Andrew Pozniak Consumers And Marketing Strategies In The Digital Space
1. Consumers and Marketing Strategies
in the Digital Space
Andrew Pozniak – Industry Leader, Emerging Markets
Bucharest, 04 November 2009
Google Confidential and Proprietary
2. Agenda
Internet evolution
Understanding user activity
What drives Search?
Search and brands
Ideas for an economic slowdown
Final thoughts
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4. The evolution of the Internet
Information & Commerce Community
Communication Self Expression &
Entertainment
1.0 2.0 3.0
1994 1998 2000 2003 2006 2009
Users 77M 400M 500M 1,000M 1,600M
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5. Hours online / month
Growth in online usage 2003 2007 2012
11 16 32
Entertainment 0.5 2 6.5
Community 1 1.5 7
eCommerce 2 2.5 4.5
2.25 4 6
Communication
Information 5 6 7.5
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6. Where does your business sit?
43% 50% 7%
Internet as Internet as Internet as
brochureware sales channel engagement tool
Source: Fortune 500 web audit (Feb 2008) Google Confidential and Proprietary 6
9. 81%
of internet users enter
websites via a search
engine
Source: Forrester Research Inc., “UK Internet User Monitor” Google Confidential and Proprietary
10. Automotive
Internet is the number one starting point Example
80%
of new car buyers
started their search on the
internet
Source: Ipsos MORI, Question 4.1: As you started to research your new car purchase, where was the first place you began searching for information?
Question 4.2: Which other sources of information did you use at any stage in researching and buying your car?
Base: All respondents Google Confidential and Proprietary 10
12. On average mobile phone shoppers do 8.5
searches prior to conversion
Share of Mobile Phone converters by number
of searches conducted per converter
Number of mobile phone
searches per converter
22% do 10 or more
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13. These searches occur over an extended period of
time - average 27 days between first search and sale
42% Sales
38% Searches
Time from First
Search
42% of mobile conversions occur after 30 days
Purchases & research tracked at a leading set of mobile phone retailers’ websites – Carphonewarehouse.com, dialaphone.co.uk, mobilefun.co.uk, o2.co.uk,
orange.co.uk, phones4u.co.uk, three.co.uk, t-mobile.co.uk, virgin mobile, vodafone.co.uk Google Confidential and Proprietary 13
14. From ‘holiday in the sun’ to holiday
Travel
purchase in 33 days – 11 searches, 28 site visits Example
HolidayRentals Teletext Holidays ebookers Hotels.com TUI TripAdvisor TUI
Visits
TravelRepublic TUI First Choice TripAdvisors First Choice TUI Thomas Cook
First Choice HolidayWatchdog TUI AirTours Expedia AirTours
Thomas Cook AirTours Thomas Cook First Choice First Choice
Tui First Choice
Olympic Holidays
Day
1 5 8 13 21 29 33
Holiday in the sun Cheap Flights Cyprus Cyprus Palm Beach Hotel Thomson
Hotels Larnaca Cyprus Holidays
Searches
Spain Holidays Cyprus Holidays
Cyprus holidays Beau Rivage
Hotel Cyprus
Europe Holidays
Holidays in the Sun
Source: Comscore Research Paper October 2007 Google Confidential and Proprietary
15. Automotive
Buyers are undecided when they start Example
52% 62% 69%
Undecided on Undecided on Undecided on
Type of car Brand of car Model of car
(eg. Sports car) (eg. Ferrari car) (eg. Enzo car)
Source: Ipsos MORI, Question 3.1/3.2/3.3: When you first started looking, how much did you know about the Type / Make / Model of car you wanted to buy?
Base: New car buyers (n=500) Google Confidential and Proprietary
16. Again this is true across different industries
Destination you
want to go
75%
Days you want to fly 44%
Price you want to
23%
spend
Times you want to
fly 18%
Airline you want to
fly
8%
N=1894
Q: “You indicated that you use search engines to help you research flights. Before using a
search engine to help you research flights, have you already made up your mind about the:”
Source: Media-Screen/GMI Apr 06 Google Confidential and Proprietary 16
17. Automotive
In fact search enables discovery of new brands Example
Automotive Example: Search engines help me
Discover new brands 44%
Discover new models 48%
Discover new and relevant websites 61%
Compare makes and models 64%
Make more informed decisions 64%
Find the best price 47%
Source: TNS / Google Automotive consumer study June 2007; Base: All respondents who bought a new car
% - Completely Agree - Agree Google Confidential and Proprietary
18. Automotive
Example
The majority of
car buyers
switch brands
55%
Source: Ipsos MORI, Question 5.2: What type of car did you buy in the end? Google Confidential and Proprietary
Base: All respondents
21. 67% of online search
37% users are driven to
search for information
about a particular
30%
company, product,
service, or slogan
20% by an offline
channel
39%
40%
Source: iProspect, “Offline Channel Influence on Online Search Behavior,” 2007. (Q. Within the last six months, which of the
following prompted you to go to a search engine to look for information on a particular company, product, service, or slogan? Select
all that apply.)/ RAB Word of Mouse Study 2007. Google Confidential and Proprietary
22. Of course, online ads drive search activity too
Display Video
Ads Ads
Driving Search
27% vs 31%
After seeing display
ads, nearly as many users
search as those who
click on ads.
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25. Advertising on your brand names reinforces your
brand in the mind of the consumer
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26. Consumers associate search ranking with the
success of the company
71% of userson top ofleading brands
expect
to be the search
results page 36% of users link placement to
company prominence
Source: comScore, US, CPG study, October 2007 Google Confidential and Proprietary 26
Jupiter Research / Ipsos Insight Consumer Survey, n=2.103 (Search Engine users US only), Jan 2008
27. Search ads have a clear impact on brand metrics
Brand Affinity Purchase Intent Brand Recall
(do you like it?) (would you buy it?) (do you remember it?)
1.18x 1.14x + 2.5x
Source: Enquiro Research/Ipsos Interactive Services, May 2008, Aggregated Data: All Industries, all countries (UK, Germany, France)
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28. Ideas for an economic slowdown
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29. 1. Users never stopped searching
113 billion searches
worldwide in July 2009
+ 41% versus 2008
In Europe, 36 billion
searches in July 2009
Source: comScore Google Confidential and Proprietary 29
30. Search query growth in Romania (+40% Q3 09 v
Q3 08)
2009
2008
2007
+ 40%
All
searches
on
Google RO
Source: Google Internal
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31. 2. When incentivised, consumers will buy
Recent retailer incentives spurred great consumer demand and sales
Cash for Clunkers
700,000 new car sales
690,000 dealership vouchers
$2.88 Billion
jetBlue All You Can Jet
All passes sold out in 2 days
31 Million searches in 7 hrs
10 Million blog results
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32. 3. Shopping starts earlier…
As of September 2009, consumers have already begun shopping for the upcoming
holidays
47%
Have started holiday
shopping/researching.1
36%
Have made holiday purchases. 2
Source: Google/OTX Consumer Pulse Check, 9/09. 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? n=2,331. [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 (e.g., post-holiday sales). n= 2,361.
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33. 3. …and ends later
During the last holiday season, some consumers waited till close to the holidays to
complete their holiday shopping
98%
Year-over-year e-commerce
sales growth happened during
the weekend before Christmas. 3
Source: [3] comScore Press Release, December 2008.
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34. 4. Consumers have more choice
Consumers today have many more choices: greater product options, new marketplaces
(i.e. online, store, mobile), and increased retailer competition
New Retailers Online Expanded Product Offerings
+7%
Source: Hitwise. Shopping & Classified Website Ranking Report, week ending 9/26/09 vs. 9/27/08.
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35. 5. Online continues to outpace offline
Online conversions continue to show year-over-year growth, outpacing negative overall
retail sales growth
Home Apparel & Home Consumer
174% Furnishings Accessories Department Improvement Electronics
Stores Stores Stores Stores Stores
135%
90%
59%
51%
-7% -7%
-10%
Home Apparel Department Home Consumer
Furnishings Stores Improvement Electronics
-12%
-14%
Google Search-Driven Conversions YoY Growth Overall Retail Sales YoY Growth
(January – August 2009) (January – August 2009)
Source: Compete/Google Retail Dashboard, January through August 2009. Overall Retail sales from US Census Monthly Retail Trade Report for Jan-August 2009.
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36. 6. Online increasingly drives offline
“Lundgren said that every dollar spent online at Macys.com influences $5.77
spent in stores within 10 days after an online purchase.”1
Source: [1] Internet Retailer, http://www.internetretailer.com/dailyNews.asp?id=31879.
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37. 7. Focus on sales conversion is key
It’s easier to double profits by
doubling your conversion rate, than trying
Will text work better than display?
to double traffic
Website optimization is key to boosting ROI
THE BOTTOM LINE
Performance Marketer
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38. 7. Your visitors will show you what works and
what doesn’t
Media tested Buttons tested
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40. Marketers need to catch up with consumers
Search is at the start of the Where is it in
consumer process media planning?
Search is an integral part of the Where is it in
consumer decision process media activity?
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41. You can always experiment and measure…
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42. “To have a great idea – have a lot
of them"
- Thomas Edison
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43. Q&A
Andrew Pozniak
Industry Leader, Emerging Markets
Thank you!
Google Confidential and Proprietary