This document discusses how the internet economy in the UK is worth £100 billion and driven by online consumption. It notes that mobile devices are enabling new kinds of interactions, with 40% of tweets coming from mobile and 50% of map usage on mobile. The document also highlights that 74% of people use mobile in the shopping process and that mobile will soon surpass desktop internet usage. It argues companies need to have mobile-optimized websites to keep up with these trends of an increasingly mobile-focused internet.

1. Making the Web
work for you
Ian Morgan, Industry Leader, Google UK
May 2012

2. The UK is leading the world online
Internet
Online
economy
worth
Sales
£100bn
11% of
total
60%
driven
by
consump3on
Online
27%
of
7.2% total
UK
ad
market
of GDP

3. The Traditional Mental Model of
Marketing
Stimulus First Moment of Second Moment of
Truth Truth
3

4. Introducing…….
…the moment a consumer grabs their laptop,
smartphone or tablet device to learn about
something they are thinking about trying or
buying.

5. PURCHASE
ADVERTISING

6. 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
7
6

7. 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
7

8. The future is Cloud-based
The future is Mobile

9. 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
years
Source: hannemyr.com/essay/diff.html 2000, macworld.com, 2010
9 Google confidential

10. Mobile will surpass desktop soon
Global Mobile vs. Desktop Internet Population, 2007-2015
Mobile Internet Users Desktop Internet Users
2000
1600
Global
Internet 1200
Users
(MM)
800
400
0
2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Morgan Stanley Research, April 2010

11. 5B people own a mobile
device worldwide
1B
people will use mobile as
their primary internet
connection
Source: comScore, Pew 2012, Google 2012.

12. 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

13. 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

14. 50% start with a search
of
mobile
internet
users
+223% YoY
for top 1000 commercial queries via mobile

15. 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 %
44
Base: Advertisers (US: 200; UK: 200, FR: 200; DE: 200; JP:200).

16. So - Choice & sharing are accelerating
− 845m monthly active − 250m monthly active users − 1 trillion views in 2011
users − 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 month
day
16

17. Recommendations
Influence Purchases
71% 84%
Say reviews from
family members or
Use online sources
when deciding what
friends influence to buy
purchase decisions
Harris Interactive 2010 Google research study 2011

18. What if we surfaced
recommendations
when they mattered most?

19. So - +1 Button
Stand out on Google search with recommendations when you need them
Social Annotations result in ~5-10%
increase in CTR!

20. YouTube Super Charges Social

21. Lo - location is everything
40%
of mobile web
searches
are local
Over 50%
of global Google
Maps usage is
After looking up Mobile
a local business on their
smart phone,
61% of users called the
business and
59% visited. 21

22. Co – direct purchase on mobile
600% 10% One Third
growth in mobile sales since of all bets made come of UK shoppers engaged in m-
June 2010 through mobile commerce during Christmas
22

23. Co - Think like a retailer
Website Optimizer A/B & Multivariate tests Measure and iterate
23

24. Co - Ecommerce becoming commerce
Direct Cube Delhaize Supermarket, Brussels Central Station Google Wallet – Tap and Pay
24
Tesco’s Home Plus, Underground Station South Korea Google Wallet – Coupon Redemption

25. Co - Mobile is Transforming Everyday
Shopping 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

26. Co - To win on the high street, retailers must
be masters of multi-channel retailing
TV
STORES
DIRECT
MAIL
WEBSITES
AD
NETWOR
KS
MOBILE
CALL
CENTRES
ONLINE
CHAT
SOCIAL

27. And ensure that they have one unified
customer facing proposition across all
channels L E
L E S
EC
E P

28. What is the effect of digital on offline
sales?
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

29. What is the effect of digital on offline
sales?
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

30. 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

31. Mobile First
Thank You
Ian Morgan, Industry Leader, Google UK
May 2012