Consumers are hyper-informed Online sources considered before making purchase 18 90% of European internet 12 users go online to search for products & services 10 76
4 trends that will define futureMo So Lo Co Mobile Social Local Commerce Mobile enables new kinds of 40% of tweets are sent from a 50% of Google Maps usage is on 74% used mobile in shopping interac3ons mobile device mobile process 7
Unprecedented adoption rates adoption of digital devices only continues to accelerate tablets iPhone TV Radio 50 Internet 45 40 # of users (000) 35 30 25 20 15 10 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 yearsSource: hannemyr.com/essay/diff.html 2000, macworld.com, 2010 9 Google confidential
Mobile will surpass desktop soon Global Mobile vs. Desktop Internet Population, 2007-2015 Mobile Internet Users Desktop Internet Users 2000 1600 GlobalInternet 1200 Users (MM) 800 400 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Morgan Stanley Research, April 2010
5B people own a mobile device worldwide1B people will use mobile as their primary internet connectionSource: comScore, Pew 2012, Google 2012.
Smartphone Ownership is on the Rise UK UK 30% 45% UK DE DE 18% 23% FR FR US US JP JP 27% 38% ES ES 31% 38% 6% 17% 33% 44% Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011) Google confidential
24% vs 45% UK Smartphone penetra3on 2010 to 2012 14m vs 22m UK mobile internet users 2010 to 2012 ComScore Mobile Media Metrix Feb 2012
50% start with a searchof mobile internet users +223% YoYfor top 1000 commercial queries via mobile
Companies are lagging behind users! 33 % Q. Does your company have a mobile optimized website? 17% Mobile optimized means a 12% website that is formatted or developed specifically to be used on a mobile device 37 % 43 % 44Base: Advertisers (US: 200; UK: 200, FR: 200; DE: 200; JP:200).
So - Choice & sharing are accelerating− 845m monthly active − 250m monthly active users − 1 trillion views in 2011users − 500m users signed up − 1 hour uploaded/second− 2.7b likes/comments a day − 340m tweets sent/day − 3 billion hrs watched− 250m photos uploaded/ Each monthday 16
RecommendationsInfluence Purchases71% 84% Say reviews fromfamily members or Use online sources when deciding what friends influence to buypurchase decisionsHarris Interactive 2010 Google research study 2011
What if we surfacedrecommendationswhen they mattered most?
So - +1 ButtonStand out on Google search with recommendations when you need them Social Annotations result in ~5-10% increase in CTR!
Lo - location is everything 40%of mobile web searches are local Over 50% of global Google Maps usage is After looking up Mobilea local business on their smart phone,61% of users called the business and 59% visited. 21
Co – direct purchase on mobile 600% 10% One Thirdgrowth in mobile sales since of all bets made come of UK shoppers engaged in m- June 2010 through mobile commerce during Christmas 22
Co - Think like a retailerWebsite Optimizer A/B & Multivariate tests Measure and iterate 23
Co - Ecommerce becoming commerceDirect Cube Delhaize Supermarket, Brussels Central Station Google Wallet – Tap and Pay 24Tesco’s Home Plus, Underground Station South Korea Google Wallet – Coupon Redemption
Co - Mobile is Transforming EverydayShopping Behaviour 45% 24% 21% Have changed their Of Smartphone Intentionally carry a mind about owners use the Smartphone when purchasing a product phone in their shopping to or service in store as purchase process compare prices and a result of information for information gathered on their Smartphone Google confidential
Co - To win on the high street, retailers mustbe masters of multi-channel retailing TV STORES DIRECT MAIL WEBSITES AD NETWOR KS MOBILE CALL CENTRES ONLINE CHAT SOCIAL
And ensure that they have one unifiedcustomer facing proposition across allchannels L E L E S EC E P
What is the effect of digital on offlinesales? Attributing sales directly to acquisition channel misses the cross channel effect of marketing spend. Vodafone conducted an Online 2 Store test. Objec<ve: create a measurable diﬀerence in AdWords spend between test and control regions and determine the impact on instore sales. 28
What is the effect of digital on offlinesales? Measuring ROPO effect indicates that 60% of all financial product purchases are preceded by internet research Deutsche Bank study measured the eﬀect of Research shows online channel is of search on oﬄine sales. Data output based fundamental importance on GFK 20,000 household research FMP panel who report to GFK on ﬁnancial Share of new contracts, by research and sales channel, (%) product adop<on within test period. Research online / Research 48.6% of financial product purchases Purchase online online / ROPO Effect 49% in branch are preceded by online Purchase research for this product 10.8% offline 48.6% 48.6% Attributing only 10.8% of the sales that are driven by an ‘end to end’ online to Research 11% the internet would heavily undervalue offline / this channel in the channel mix Purchase Research offline offline / For every sale completed end to end 37.8% Purchase online, another 4.5 are made in store online 4.5x by people who have previously used 2.7% the internet in their research process 29
4 trends that will define future Mo So Lo Co Mobile Social Local Commerce Mobile enables new kinds of 40% of tweets are sent from a 50% of Google Maps usage is on 74% used mobile in shopping interac3ons mobile device mobile process 30
Mobile FirstThank YouIan Morgan, Industry Leader, Google UKMay 2012