The document summarizes key findings from an expert at Google about online shopping trends in 2010. It finds that (1) shoppers start holiday shopping earlier and end later than in previous years, (2) coupons and promotions are still very important for driving online sales, and (3) search traffic on key shopping dates like Black Friday and Cyber Monday saw large increases in 2009 and will likely continue to rise. The expert provides recommendations for retailers to start promotions early, offer incentives like coupons, integrate marketing across channels including search and social media, and focus on proven channels like search.

1. State of Online Shopping 2010
Sara Kleinberg, Google’s Group Product Marketing
Manager: Retail & Tech

2. Content
1 What we learned from Holiday 2009
2 What’s the same?
3 What’s new?
4 Recommendations for Holiday 2010
Google Confidential and Proprietary 2

3. Holiday 2009
1. Shopping starts early and ends late
2. Coupons still reign
3. Holiday search volume is rising
Google Confidential and Proprietary 3

4. Shopping starts early and ends late
As of August, 30, 2009… As of December 20, 2009…
44% 14%
Had already started Had yet to start
holiday shopping. holiday shopping.
Google Confidential and Proprietary 4
Source: Google/OTX Consumer Pulse Check, 8/09-12/09. Base: Those who plan to shop/research or purchase this holiday season (Nearly 9 out of 10
plan to shop/research or purchase.) [1] Have you started your 2009 Holiday shopping/researching? [2] Have you started your 2009 Holiday purchasing?
Please think of any gifts that you may shop for or purchase during the Holiday Season, as well as those you may shop for or purchase after the holidays.
.

5. Coupons still reign
Average Monthly Coupon Searches on Google:
coupons bed bath and beyond
coupons best buy coupons
victoria’s secret coupons lowes
coupon jcpenney coupons
coupons bed bath and beyond
coupons best buy coupons victoria’s
dominos coupons pizza hut
secret coupons lowes coupon coupons enterprise rental car
jcpenney
coupons
coupons
pizza hut
dominos
coupons
enterprise rental car coupons home
coupons home depot coupons
printable coupons macy’s
38%
depot coupons printable coupons
macy’s coupons target coupons
coupons target coupons kohls
kohls coupons michaels coupon coupons michaels coupon old
Non-Holiday Months Holiday Months
Google Confidential and Proprietary 5
Source: Google Internal. Average monthly search volume on top 100 coupon-related terms on Google for February through September 2009
compared against the average monthly for October through January.

6. Holiday search volume is rising
Searches on key dates increased substantially in 2009.
Data from google.com/insights/search
“Black Friday”
+20% Searches for ‘black
friday’ increased 20%
last holiday season.
“Cyber Monday”
+60% Searches for ‘cyber
monday’ increased 60%
last holiday season.
Google Confidential and Proprietary 6
Source: Google Insights for Search, 2009; comScore Press Release, 12/09.

7. What’s the same?
1. Shoppers like hot products
2. Holiday is in full swing
3. Key shopping dates
Google Confidential and Proprietary 7

8. Consumers want electronics, apparel & travel
Google Confidential and Proprietary 8
Source: Google/OTX State of Shopping research, May 2010. Q: What is one item that you are most excited about shopping for this year?

9. Products to watch: 3D TVs
300%
growth
in 3D TV searches
since the beginning
of 2010.
Google Confidential and Proprietary 9
Source: Google Internal data. Search volume reflects weekly averages from January 2010-July 2010.

10. Products to watch: Tablets & eReaders
An estimated 11 million tablet PCs and 10 million
eReaders will ship this year worldwide.
Google Confidential and Proprietary 10
Source: ABI research (July 2010) and Digitimes research (March 2010).

11. Rising product searches: Retail
Data from google.com/insights/search
Silly bandz crocs
Apparel, Mens wallets swimsuits
Clothing sandals Bathing suits
Labels & Flip flops shorts
T-Shirts Golf shoes Halter dress
Summer dresses Free weezy shirt
Super soaker Ben 10
hammock Harry potter lego
Toys & Video Water table kites
Games sandbox Little tikes
Hammock stand Mario galaxy 2
Toys r us Mario galaxy
Mothers rings Turquoise ring
Gems & Mood rings Indian jewelry
Jewelry Tiffany engagement rings Opal rings
& Chrome hearts Sapphire engagement rings
Watches Platinum engagement rings Michael kors watch
Swarovski crystals Ceramic watch
Google Confidential and Proprietary 11
Source: Google insights, rising product searches Apr – Jul 2010. Apparel, Clothing Labels, T-Shirts, Toys, Video Games, Gems & Jewelry, Watches
categories.

12. Rising product searches: Tech
Data from google.com/insights/search
lcd tv 1080p 3d tv
Consumer home projector ipod touch
Electronics ipad kindle reader
& blu ray player bose sounddock portable
Accessories klipsch image s4 nook
flip outdoor speakers
dell streak sony vaio z
Computers sony tx5 hp dv2000
toshiba nb305 macbook pro sleeve
&
sony vaio notebook dell mini 10
Accessories hp tablet macbook pro
lenovo tablet dell latitude
iphone 4 htc aria
Mobile htc evo 4g iphone 4 cases
Phones samsung vibrant nokia 5230
& htv incredible samsung galaxy
Accessories nokia nuron htc droid
motorola i1 nokia x6
Google Confidential and Proprietary 12
Source: Google insights, rising product searches Apr – Jul 2010. Consumer electronics, laptops and mobile phones.

13. By the end of summer, 1 in 3 consumers will
have started shopping
Start of holiday shopping/research
21% 35% 18%
21%
14% 12%
Nov
9%
Already Oct
Started by 5%
May
Sept
June-
Dec
August
Xmas/
Holiday
Season
Google Confidential and Proprietary 13
Source: Google/OTX State of Shopping research, May 2010. Q: When do you plan to start your 2010 Holiday shopping/researching?

14. 2009 Online Holiday Sales
Holiday 2009 Key E-Commerce Days ($ Millions), % Growth (YoY)
Mon Tue Wed Thu Fri Sat Sun
Nov 23 24 25 26 27 28 29
Thanksgiving Black Thanksgiving Weekend
$318, +10% Friday $805, +5%
$595, +11%
30 Dec 1 2 3 4 5 6
Cyber
Monday $886 $797 $803
$887, +5%
7 8 9 10 11 12 13
$828 $852
14 15 16 Free 17 18 19 20
Green Green Shipping
Monday Tuesday $874 Weekend Before Christmas
Day $767, +13%
$854, -1% $913, +21% $809, +6%
21 22 23 24 25 26 27
Google Confidential and Proprietary 14
Source: comScore Press Release, 2009.

15. What’s new?
1. Thrill of the hunt
2. Rise of the personal shopper
3. We’ve made new friends
Google Confidential and Proprietary 15

16. Thrill of the hunt
Private Sales Sites Group Buying Sites
+2x site visits YoY +72x site visits YoY
$900M in 2010 revenue $350M in 2010 revenue
Google Confidential and Proprietary 16
Source: Assorted company press releases, Google/Compete State of Shopping, May 2010 and Hitwise Blog, April 23, 2010.
Note: Group buying site estimated revenue includes Groupon, Woot, Living Social and Tippr.
.

17. Rise of the “personal” shopper
Use a mobile Mobile
device to . . . Shoppers
Compare prices/
products 22%
Look up product
information 21%
Browse for
products 19%
Check product
availability 13%
Look for a coupon 13%
Purchase a product 13%
Google Confidential and Proprietary 17
Source: Compete, “Understanding Smart Phone Owners,” June 14, 2010

18. Friends: Half become pals
Average number of brands US users are fans of on Facebook
one or two
three or four
18% five to nine
11% 10% ten or more
zero 6%
55%
Google Confidential and Proprietary 18
Source: Chadwick Martin Bailey and iModerate Reach Technologies as cited in press release, March 10, 2010. Ages 18+.
.
.

19. Friends with benefits
Why I became a “fan” of a brand on Facebook:
25% To receive
18%
To show others I
discounts support the brand
and promotions
110% 1 18%
It’s fun & entertaining To hear new info first
Google Confidential and Proprietary 19
Source: Chadwick Martin Bailey and iModerate Research Technologies as cited in press release, noted in eMarketer, March 10, 2010. Ages 18+.
Note: Respondents are fans of at least one brand.
.

20. Friends are engaging
% of new brand followers to visit brand site
+34%
+24%
Pre- Post- Pre- Post-
Friending Friending Friending Friending
Google Confidential and Proprietary 20
Source: Google/Compete State of Shopping, May 2010.

21. Friends: Mere acquaintances
2%
Pose a question on Twitter
3%
Use social network sites
18%
Research at a retailer
20%
View a brand’s site
57%
Start with a
search engine
Sources used to
begin a product search
Google Confidential and Proprietary 21
Source: PowerReviews and the e-tailing group, “2010 Social Shopping Study,” provided to eMarketer, May 3, 2010.

22. Search: stocking stuffer
% of all shopping conversions indexed to % of total site traffic
Search
Social
Media
Social
Media
Google Confidential and Proprietary 22
Source: Google/Compete State of Shopping, May 2010.

23. Recommendations
1. Game on! Start early, end late
2. Incentivize shoppers with promotions
3. Integrate marketing channels
Google Confidential and Proprietary 23

24. Game on! Start early, end late
123
Days days until
Google Confidential and Proprietary 24

25. Promote sales, coupons & free shipping
Offers/Promotions that are Effective in Encouraging Purchase
Google Confidential and Proprietary 25
Source: Google/OTX State of Shopping, May 2010. Q: Which of the following offers or promotions would persuade you or help make
up your mind to purchase a product when shopping? Select all that apply.

26. Provide value options
Google Confidential and Proprietary 26

27. Coordinate Search with catalog drops
June 2010 Catalog +55%
in online orders
Google Confidential and Proprietary 27

28. Integrate across channels
Google Confidential and Proprietary

29. Feed what works
Search campaigns drive
to twitter pages…
… user tweets reveal
trends & inform future
search campaigns.
Google Confidential and Proprietary 29

30. Marketing Recommendations for Holiday 2010
1 Start early, end late
Holiday starts now. Capture procrastinators. Target key dates.
2 Offer value
Consumers are trained. Do what’s expected.
3 Make it fun!
Squelch lingering economic concerns. Play to suspense. Make it social.
4 Integrate marketing channels
Use Search to boost other promotions. Pay attention and be nimble.
5 Focus on proven channels
Shopping starts and ends with Search.
Google Confidential and Proprietary 30

31. Thank You
googleretail.blogspot.com
Google Confidential and Proprietary 31