The Informed Consumer
Consumers Research (and Search) More



Please do not re-purpose for sales, outside of your company




                                                              Google Confidential and Proprietary   1
Careful Consumers




                U.S. consumers are still spending, but
                more cautiously. What does this mean for
                the marketer?




                                             Google Confidential and Proprietary   2
Consider Them Informed Consumers




               Google’s new consumer survey shows that
               people are spending much more time
               researching before purchasing.




                                          Google Confidential and Proprietary   3
More Research Means More Time Online

We asked U.S.
consumers how their                                                                     53% use search engines more to research
shopping habits have                                                                    purchases
changed since the
downturn in the
economy.



                                                                                        54% spend more time researching products
                                                                                        online before they buy them in a store




                                                                                        39% buy more products online (rather than in-
                                                                                        store)




                                                                                                                  Google Confidential and Proprietary   4
Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
Search is the #1 Consumer Information Source

               We asked U.S. consumers about their main sources of information on
               products and services since the economic downturn.


                                                0%           5%           10%          15%   20%         25%   30%          35%

              Search engine results/ads                                                                        29%
                               Websites                                                            22%
                    Recommendations                                             11%
                        Physical stores                                 8%
                                 TV ads                            6%
                        Newspaper ads                        4%
                              TV shows                     3%
                            Internet ads                2%
                    Newspaper articles                  2%
                     Email newsletters                  2%
                           Sales people                 2%
                Product/service experts                 2%
                           Radio shows                1%
                              Radio ads               1%
                      Magazine articles               1%
                          Magazine ads                1%
                   Direct mail/Catalogs               1%
                           Outdoor ads             0%
                          Telemarketing            0%
                     Print phone books             0%                                                Online sources total: 53%

                                                                                                                Google Confidential and Proprietary   5
Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.
Search is the #1 Traffic Source to Retailers

                                          Sources of Traffic to Hitwise Retail 500, December

                              Search Engines

                                         Retail 500
                                Email Services
                                  Entertainment                                                                   2008
                   Business and Finance                                                                           2007

              Rewards and Directories

    Social Networking and Forums
                                            Lifestyle
                           Portal Frontpages

                             News and Media

                                                          0.0%           5.0%          10.0% 15.0% 20.0% 25.0% 30.0% 35.0%


                                                                                                              Google Confidential and Proprietary   6
Source: Hitwise, provided to Google 02/25/2009. Retail 500 is Hiitwise’s index of 500 leading retailers.
Shoppers Referred by Google Increasing

                                              Share of Google Referred Traffic to Retail 500

                                   25.0%
       Share of Upstream Traffic




                                   20.0%                                                       +18%
                                                            +23%
                                                                                      +13%
             from Google




                                   15.0%            +12%
                                                                                                                       2006
                                                                                                                       2007
                                   10.0%                                                                               2008


                                    5.0%


                                    0.0%
                                                     Nov                               Dec



                                                                                                 Google Confidential and Proprietary   7
Source: Hitwise, provided to Google 02/25/2009.
People Say They’re Searching for Savings

We asked U.S.
consumers how their
shopping habits have
changed since the
downturn in the                                                                         53% spend more time online searching for the
economy.
                                                                                        latest promotions and discounts




                                                                                        46% spend more time searching for coupons
                                                                                        on the Internet




                                                                                                                 Google Confidential and Proprietary   8
Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
And Google Query Volume Reflects This

    U.S. searches for “coupons” on Google.com since 2004




    U.S. searches for “deals” on Google.com since 2004




Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google   Google Confidential and Proprietary   9
queries over time.
Quick Tips to Reach the Informed Consumer

     Consumers are                                Consumers are
                               Search is #1
   researching online                               looking for
                           information source
         more                                   coupons and deals




                             Consider search
    Make sure product                           Add special offers to
                             engine presence
   info is accessible on                            website and
                            throughout buying
          your site                               purchase pages
                                  cycle


   Consider display ad      For paid search,
                                                  Add “coupon”
    buys on content          ensure landing
                                                 keywords to paid
     sites used for        pages have enough
                                                   search buys
        research                  info


      Consider paid
                                                 Add savings and
        search on            Adjust budget
                                                offer messaging to
     “consideration”          allocation
                                                    search ads
        keywords

                                                      Google Confidential and Proprietary   10
Thank You!
Q&A




             Google Confidential and Proprietary   11
Appendix




           Google Confidential and Proprietary   12
Google’s “Touchpoints” Consumer Study

• A large-scale survey of U.S. consumers who made a
  purchase in one of 26 product/service categories during
  the last six months

• Goal was to explore the role of the Internet and other
  channels in consumer behavior and research

• Survey conducted December 2008-January 2009

• Base of 8,675 respondents, representative of U.S.
  consumers, for results included in this presentation




                                                Google Confidential and Proprietary   13

Google research-informed consumer

  • 1.
    The Informed Consumer ConsumersResearch (and Search) More Please do not re-purpose for sales, outside of your company Google Confidential and Proprietary 1
  • 2.
    Careful Consumers U.S. consumers are still spending, but more cautiously. What does this mean for the marketer? Google Confidential and Proprietary 2
  • 3.
    Consider Them InformedConsumers Google’s new consumer survey shows that people are spending much more time researching before purchasing. Google Confidential and Proprietary 3
  • 4.
    More Research MeansMore Time Online We asked U.S. consumers how their 53% use search engines more to research shopping habits have purchases changed since the downturn in the economy. 54% spend more time researching products online before they buy them in a store 39% buy more products online (rather than in- store) Google Confidential and Proprietary 4 Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
  • 5.
    Search is the#1 Consumer Information Source We asked U.S. consumers about their main sources of information on products and services since the economic downturn. 0% 5% 10% 15% 20% 25% 30% 35% Search engine results/ads 29% Websites 22% Recommendations 11% Physical stores 8% TV ads 6% Newspaper ads 4% TV shows 3% Internet ads 2% Newspaper articles 2% Email newsletters 2% Sales people 2% Product/service experts 2% Radio shows 1% Radio ads 1% Magazine articles 1% Magazine ads 1% Direct mail/Catalogs 1% Outdoor ads 0% Telemarketing 0% Print phone books 0% Online sources total: 53% Google Confidential and Proprietary 5 Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.
  • 6.
    Search is the#1 Traffic Source to Retailers Sources of Traffic to Hitwise Retail 500, December Search Engines Retail 500 Email Services Entertainment 2008 Business and Finance 2007 Rewards and Directories Social Networking and Forums Lifestyle Portal Frontpages News and Media 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Google Confidential and Proprietary 6 Source: Hitwise, provided to Google 02/25/2009. Retail 500 is Hiitwise’s index of 500 leading retailers.
  • 7.
    Shoppers Referred byGoogle Increasing Share of Google Referred Traffic to Retail 500 25.0% Share of Upstream Traffic 20.0% +18% +23% +13% from Google 15.0% +12% 2006 2007 10.0% 2008 5.0% 0.0% Nov Dec Google Confidential and Proprietary 7 Source: Hitwise, provided to Google 02/25/2009.
  • 8.
    People Say They’reSearching for Savings We asked U.S. consumers how their shopping habits have changed since the downturn in the 53% spend more time online searching for the economy. latest promotions and discounts 46% spend more time searching for coupons on the Internet Google Confidential and Proprietary 8 Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
  • 9.
    And Google QueryVolume Reflects This U.S. searches for “coupons” on Google.com since 2004 U.S. searches for “deals” on Google.com since 2004 Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google Google Confidential and Proprietary 9 queries over time.
  • 10.
    Quick Tips toReach the Informed Consumer Consumers are Consumers are Search is #1 researching online looking for information source more coupons and deals Consider search Make sure product Add special offers to engine presence info is accessible on website and throughout buying your site purchase pages cycle Consider display ad For paid search, Add “coupon” buys on content ensure landing keywords to paid sites used for pages have enough search buys research info Consider paid Add savings and search on Adjust budget offer messaging to “consideration” allocation search ads keywords Google Confidential and Proprietary 10
  • 11.
    Thank You! Q&A Google Confidential and Proprietary 11
  • 12.
    Appendix Google Confidential and Proprietary 12
  • 13.
    Google’s “Touchpoints” ConsumerStudy • A large-scale survey of U.S. consumers who made a purchase in one of 26 product/service categories during the last six months • Goal was to explore the role of the Internet and other channels in consumer behavior and research • Survey conducted December 2008-January 2009 • Base of 8,675 respondents, representative of U.S. consumers, for results included in this presentation Google Confidential and Proprietary 13