Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Google about ROPO

14,164 views

Published on

Gokhan Sahin, EMEA Top Account Associate la Google, presented at Orange Online MeetUp event about Search, AdWords, ecommerce and ROPO (Effect of search beyond online sales: Research Online, Purchase Offline )

Published in: Business, Technology

Google about ROPO

  1. 1. Orange Online Meet-Up<br />1<br />
  2. 2. Agenda:<br />Evolution of Search and Adwords<br />E-commerce overview for Western Europe and Romania<br />Effect of search beyond online sales: Research Online, Purchase Offline (ROPO)<br />2<br />
  3. 3. Evolution of Adwords<br />3<br />
  4. 4. 4<br />Q: How many internet searches are made in Europe per month?<br />A: 19 billion<br />Q: What proportion of these were performed with Google?<br />A: 75%<br />Q: What % of the UK media market is invested with Google?<br />A: 11%<br />Sources: IAB UK, ComScore<br />
  5. 5. 5<br />In the Beginning<br /> Annoying pop up<br />c1990s<br />Google Adwords<br />2000<br />Google Adwords<br />2009<br />
  6. 6. 6<br />AdWords - making advertising affordable and accountable<br />
  7. 7. Evolution of Search<br />7<br />
  8. 8. 8<br />Evolution of Search<br />
  9. 9. 9<br />The first evolution<br />Results page 2002<br />
  10. 10. 10<br />Results page 2009<br />
  11. 11. Making Google easy is hard<br />11<br />
  12. 12. E-Commerce Overview<br />12<br />
  13. 13. E-commerce in Western Europe:<br />20% of the Western European consumers shop online. <br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />13<br />
  14. 14. E-commerce in Western Europe:<br />50% of the Western European consumers will be shopping online by 2014.<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />14<br />
  15. 15. E-commerce in Western Europe:<br />Average Western European consumer will spend 1086 Euros per yearon online shopping by 2014. <br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />15<br />
  16. 16. E-commerce in Western Europe:<br />Total e-commerce volume will reach $200B from 2008 to $100B by 2014<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />16<br />
  17. 17. ... and in Romania:<br />96%of the Romanian internet users are aware of the possibility of online shopping…<br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />17<br />
  18. 18. ... and in Romania:<br />…and 50% of them have shopped online at least once. <br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />18<br />
  19. 19. ... and in Romania:<br />In Romania Online shopping is the second most popular online activity aftersending and receiving e-mails<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008<br />19<br />
  20. 20. 20<br />... and in Romania:<br />44% of Romanian internet usersuseInternet as the main source of information for phones and GSM accessories<br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />
  21. 21. Research Online, Purchase Offline<br />21<br />
  22. 22. What is ROPO?<br />Online marketing<br />Offline marketing<br />Total Return<br />-<br />+<br />ROPO Effect<br />ROMI<br />Return onMarketingInvestment<br />Online SalesResearch Online<br />Online SalesResearch Offline<br />TOTAL<br /> Offline Sales Research Online<br />(ROPO)<br />22<br />
  23. 23. ROPO is constantly growing in the retail industry <br />$1,280B<br />In-Store sales influenced by Internet<br />$1,093B<br />$992B<br />$634B<br />Online sales influenced by Internet<br />$215B<br />$182B<br />$166B<br />$108B<br />2012<br />2010<br />2009<br />2006<br />Source: Internet Retail Off-line Influence Model, Jupiter Research; December 20007 (US)<br />23<br />23<br />
  24. 24. Online consumer behaviour<br />Purely ROPO related activities<br />Your web site needs to cater to both people who want to buy online and to those who research online. <br />Source: GfK NOP Ltd. For Google, July 2009<br />24<br />
  25. 25. How to Measure ROPO?<br />25<br />
  26. 26. 26<br />Study Design<br /><ul><li>Discover efficiency by comparing 3 cities with different media formats
  27. 27. Flyer in daily newspapers and regionally-targeted Google advertising</li></ul>Hamburg<br />Berlin<br />Munich<br />Flyer in newspaper<br />3 Karstadt Stores<br />n= 400 in-store interviews<br />Flyer & reg. Google advert.<br />5 Karstadt Stores<br />n= 400 in-store interviews<br />Regional Google advertising<br />3 Karstadt Stores<br />n= 400 in-store interviews<br />Measure Offline sales<br />Questionnaire data <br />
  28. 28. 27<br />Cost-Revenue Relationship (Index)<br /><ul><li>Highest efficiency in online-only advertising area, highest revenue in mixed campaign area (online and offline advertising)</li></ul>Index<br />Hamburg, Berlin: Attribution of online revenues by direct link to online campaigns; Munich: 50% of revenues, not generated by campaigns<br />Source: Karstadt<br />
  29. 29. How to measure ROPO?<br />1<br />2<br />3<br /> Geo Test<br />Tracking<br />Modelling<br /><ul><li>Regions test and control
  30. 30. Maximize spend in test region,
  31. 31. Oher factors consistent
  32. 32. Analyse before, during, after
  33. 33. 6-8 weeks
  34. 34. Additional Adwords tracking
  35. 35. Coupons:
  36. 36. Loyalty Programs:
  37. 37. Dedicated Hotline:
  38. 38. Regression model
  39. 39. Time series (at least 3 years)
  40. 40. Reflect all drivers of sales
  41. 41. Analyze</li></ul>28<br />28<br />28<br />
  42. 42. Thank You<br />29<br />

×