This document discusses how digital technologies are accelerating changes in how people access information and connect with each other. It notes that the number of internet users and connected devices has grown dramatically in recent decades. Mobile technologies now allow billions of people to access the internet constantly via smartphones. The document advocates that businesses must adapt to reach customers across different platforms, especially mobile, and engage with customers through various online activities beyond just search. It also stresses the importance of measurement to understand online customer behavior and gauge the effectiveness of marketing efforts.

1. Google Confidential and Proprietary 1

2. Acceleration of Everything
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3. Digital Revolution in Context
Information Distribution & Commerce Communication
“Read” “Buy” “Interact”
1994 1998 2000 2003 2006 2010
Internet Users: 77M 400M 500M 1B 1.9B
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4. The Connected World
> 2bn
people
> 35bn
devices
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Source: “Learn from Google” Atlanta Event, 2011

5. eBay sold $2B via 600M daily views 125 Years of
Mobile in 2010 on YouTube via Angry Birds played
Mobile every day
10B+ downloads 950K Android + $4.5M in donations
from the Android iPhone devices for Japan made via text
Market activated daily message
Google Confidential and Proprietary

6. Ad spend is following consumers online
consumers’ advertising
media untapped audience Investments
consumption
gap between ad
investments and media 19% online
25% online consumption
43% tv 43% tv
17% newspapers
5% newspapers
3% magazines
16% radio 11% magazines
8% mobile 11% radio
0.5% mobile
Source: eMarketer, March 2011; Share of Avg. Time Spent Per Day with Select Media by U.S. Adults vs. U.S. Ad Spending Share, 2010
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7. There is immense opportunity in Local
97% 1 in 5 1 in 3
online consumers use the web desktop searches are mobile searches are
to research for products.* related to location.** related to location.**
Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007.
**Source: Google
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8. Healthy Y/Y grow in searches for “Local”
verticals
Indexed Query Growth
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Source: Google Internal Data, YoY is last 90 days

9. The Four B’s
Addressing the Local Opportunity
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10. The Four Be’s
Be Found Be Relevant
>
Be Engaging Be Accountable
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11. Be Found
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12. Be Found – Search
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13. Consumers Are Ever More Discerning
Since the recession began,
54% of consumers are
spending more time
researching products
online before they
buy them in a store.
And 83% are relying
on trusted places
like user ratings or
product review sites.
Google Confidential and Proprietary

14. Decisions Are Made Before Entering Store
Where Purchase Decisions Are Made % of Shoppers
60%
75%
83% 83%
40%
25%
17% 17%
2007 2008 2009 2010
In-Store Before Entering Store
14 Google Confidential and Proprietary
Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.

15. Be Relevant - Mobile
>
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16. Mobile is part of our daily lives
48% 39%
of all smartphone owners of all smartphone owners
use mobile internet while eating use mobile internet in the bathroom
20% 13%
of all smartphone owners of all smartphone owners use mobile internet
use mobile internet while driving while having a meaningful conversation
Source: US Mobile Smartphone Consumer Study, Google & Ipsos Mobile Study 2010
Google Confidential and Proprietary

17. Mobile allows for constant connectivity
Hourly Distribution of Searches by Platform
(doesn’t reflect absolute traffic volume)
Night Morning Day Evening
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Tablet Mobile Desktop
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18. Mobile complements desktop
Sat/Sun Sat/Sun Sat/Sun Sat/Sun Sat/Sun
Week 1 Week 2 Week 3 Week 4 Week 5
Desktop Mobile
Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010
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19. Are you ready for mobile?
80% of customers abandon a mobile site if they have
a bad user experience 1
2
Sources: (1) Limelight Networks, Inc. 2011, (2) Compuware, “What Users Want from Mobile,” 2011
Google Confidential and Proprietary

20. Be Engaging
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21. Reach customers while they explore their interest
95% of Time Online is Spent Outside of
Search
Search
5%
Community Email & IM
26% 20%
Commerce
11%
Content
38%
Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010 Google Confidential and Proprietary

22. Google Confidential and Proprietary

23. Google Confidential and Proprietary

24. Be Accountable - Measurement
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25. THANK YOU!
Circle on G+: Daniel Ladvocat Cintra
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