Click here to load reader

Andrew Pozniak Consumers And Marketing Strategies In The Digital Space

  • View
    2.437

  • Download
    0

Embed Size (px)

DESCRIPTION

KONDIMENT lanseaza primul training Google AdWords din Romania

Text of Andrew Pozniak Consumers And Marketing Strategies In The Digital Space

  • Google Confidential and Proprietary

    Consumers and Marketing Strategies in the Digital Space

    Andrew Pozniak Industry Leader, Emerging MarketsBucharest, 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

  • Google Confidential and Proprietary

    Internet evolution

    3

  • Google Confidential and Proprietary 4

    3.0The evolution of the Internet

    1994 2003 2006

    77M 1,000M500MUsers

    Information & Communication

    Commerce Community Self Expression &

    Entertainment

    1998 2000

    400M

    2009

    1,600M

    1.0 2.0

  • Google Confidential and Proprietary 5

    6.5

    Growth in online usage

    Information

    Communication

    eCommerce

    Community

    Entertainment

    2003 2007

    Hours online / month

    2012

    20.5

    71.51

    4.52.52

    642.25

    7.565

    11 16 32

  • Google Confidential and Proprietary 6

    Where does your business sit?

    43% 50% 7%

    Source: Fortune 500 web audit (Feb 2008)

    Internet as brochureware

    Internet as sales channel

    Internet as engagement tool

  • Google Confidential and Proprietary

    Understanding user activity

    7

  • Google Confidential and Proprietary

    Search is a universal consumer behaviour

  • Google Confidential and Proprietary

    81%of internet users enter websites via a search engine

    Source: Forrester Research Inc., UK Internet User Monitor

  • Google Confidential and Proprietary 10

    Internet is the number one starting point

    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

    80%of new car buyers

    started their search on the internet

    Automotive Example

  • Google Confidential and Proprietary

    Search behaviour is also personal and iterative

  • Google Confidential and Proprietary 12

    On average mobile phone shoppers do 8.5 searches prior to conversion

    Number of mobile phone searches per converter

    Share of Mobile Phone converters by number of searches conducted per converter

    22% do 10 or more

  • Google Confidential and Proprietary 13

    These searches occur over an extended period of time - average 27 days between first search and sale

    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

    42% of mobile conversions occur after 30 days

    42% Sales

    38% Searches

    Time from First Search

  • Google Confidential and Proprietary

    From holiday in the sun to holidaypurchase in 33 days 11 searches, 28 site visits

    Holiday in the sun

    5 338 13 21 29

    Sear

    ches

    Visi

    ts

    HolidayRentals Hotels.com TripAdvisor

    TUI

    Expedia

    First Choice

    First Choice

    Tui

    TUI

    TripAdvisors

    TUI

    AirToursFirst Choice

    TUI

    AirTours

    First Choice

    Thomas CookTravelRepublic

    Thomas Cook

    Teletext Holidays

    HolidayWatchdog

    AirTours

    First Choice

    Olympic Holidays

    TUI

    ebookers

    First Choice

    Thomas Cook

    Cyprus holidays

    Holidays in the Sun

    Palm Beach Hotel Larnaca Cyprus

    Europe Holidays

    Spain HolidaysCheap Flights CyprusCyprus Holidays

    Beau Rivage Hotel Cyprus

    Cyprus Hotels

    Thomson Holidays

    Day 1

    Travel Example

    Source: Comscore Research Paper October 2007

  • Google Confidential and Proprietary

    Buyers are undecided when they start

    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)

    62%Undecided on Brand of car

    (eg. Ferrari car)

    69%Undecided on Model of car

    (eg. Enzo car)

    52%Undecided on

    Type of car(eg. Sports car)

    Automotive Example

  • Google Confidential and Proprietary 16

    Again this is true across different industries

    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:

    N=1894

    Source: Media-Screen/GMI Apr 06

    75%

    44%

    23%

    18%

    8%Airline you want tofly

    Times you want tofly

    Price you want tospend

    Days you want to fly

    Destination youwant to go

  • Google Confidential and Proprietary

    In fact search enables discovery of new brands

    Source: TNS / Google Automotive consumer study June 2007; Base: All respondents who bought a new car% - Completely Agree - Agree

    47%

    64%

    64%

    61%

    48%

    44%

    Find the best price

    Make more informed decisions

    Compare makes and models

    Discover new and relevant websites

    Discover new models

    Discover new brands

    Automotive Example: Search engines help me

    Automotive Example

  • Google Confidential and Proprietary

    The majority of car buyers switch brands

    Source: Ipsos MORI, Question 5.2: What type of car did you buy in the end?Base: All respondents

    55%

    Automotive Example

  • Google Confidential and Proprietary

    What drives Search?

    19

  • Google Confidential and Proprietary

    All touchpointsdrive online search

  • Google Confidential and Proprietary

    37%

    30%

    39%

    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.

    20%

    40%

    67% of online search users are driven to

    search for information about a particular

    company, product, service, or slogan

    by an offline channel

  • Google Confidential and Proprietary 22

    Of course, online ads drive search activity too

    Display Ads

    vs27% 31%After seeing display

    ads, nearly as many users search as those who

    click on ads.

    Driving Search

    Video Ads

  • Google Confidential and Proprietary

    Search and brands

    23

  • Google Confidential and Proprietary

    Search Results pages reflect and influence consumers brand perceptions

  • Google Confidential and Proprietary 25

    Advertising on your brand names reinforces your brand in the mind of the consumer

  • Google Confidential and Proprietary

    Consumers associate search ranking with the success of the company

    26

    71% of users expect leading brands to be on top of the search

    results page 36% of users link placement to company prominence

    Source: comScore, US, CPG study, October 2007Jupiter Research / Ipsos Insight Consumer Survey, n=2.103 (Search Engine users US only), Jan 2008

  • Google Confidential and Proprietary

    Search ads have a clear impact on brand metrics

    Source: Enquiro Research/Ipsos Interactive Services, May 2008, Aggregated Data: All Industries, all countries (UK, Germany, France)

    Brand Recall(do you remember it?)

    Brand Affinity(do you like it?)

    Purchase Intent(would you buy it?)

    + 2.5x1.18x 1.14x

  • Google Confidential and Proprietary

    Ideas for an economic slowdown

    28

  • Google Confidential and Proprietary 29Source: comScore

    113 billion searches worldwide in July 2009 + 41% versus 2008

    In Europe, 36 billion searches in July 2009

    1. Users never stopped searching

  • Google Confidential and Proprietary 30

    Search query growth in Romania (+40% Q3 09 v Q3 08)

    3030Source: Google Internal

    Allsearches

    on Google RO

    20082007

    2009

    + 40%

  • Google Confidential and Proprietary 31

    2. When incentivised, consumers will buy

    Recent retailer incentives spurred great consumer demand and sales

    700,000 new car sales

    690,000 dealership vouchers

    $2.88 Billion

    Cash for Clunkers

    All passes sold out in 2 days

    31 Million searches in 7 hrs

    10 Million blog results

    jetBlue All You Can Jet

  • Google Confidential and Proprietary 32

    3. Shopping starts earlier

    As of September 2009, consumers have already begun shopping for the upcoming holidays

    Have started holiday shopping/researching.1

    47%

    Have made holiday purchases. 236%

    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.

  • Google Confidential and Proprietary 33

    3. and ends later

    During the last holiday season, some consumers waited till close to the holidays to complete their holiday shopping

    Source: [3] comScore Press Release, December 2008.

    Year-over-year e-commerce sales growth happened during

    the weekend before Christmas. 3

    98%

  • Google Confidential and Proprietary 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

    Source: Hitwise. Shopping & Classified Website Ranking Report, week ending 9/26/09 vs. 9/27/08.

    +7%

  • Google Confidential and Proprietary 35

    5. Online continues to outpace offline

    Online conversions continue to show year-over-year growth, outpacing negative overall retail sales growth

    51%59%

    174%

    135%

    90%

    Home Furnishings

    Apparel Department Stores

    Home Improvement

    Consumer Electronics

    -14%

    -7% -7%

    -12%

    -10%

    Home Furnishings

    Stores

    Apparel & Accessories

    StoresDepartment

    Stores

    Home Improvement

    Stores

    Consumer Electronics

    Stores

    Google Search-Driven Conversions YoY Growth

    (January August 2009)

    Overall Retail Sales YoY Growth

    (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.

  • Google Confidential and Proprietary 36

    6. Online increasingly drives offline

    Source: [1] Internet Retailer, http://www.internetretailer.com/dailyNews.asp?id=31879.

    Lundgren said that every dollar spent online at Macys.com influences $5.77 spent in stores within 10 days after an online purchase.1

  • Google Confidential and Proprietary 37

    7. Focus on sales conversion is key

    Performance Marketer

    THE BOTTOM LINE

    Website optimization is key to boosting ROI

    Will text work better than display?

    Its easier to double profits by doubling your conversion rate, than trying

    to double traffic

  • Google Confidential and Proprietary 38

    Media tested Buttons tested

    7. Your visitors will show you what works and what doesnt

    38

    SIGN UP

    LEARN MORE

    JOIN US NOW

    SIGN UP NOW

  • Google Confidential and Proprietary

    Final thoughts

    39

  • Google Confidential and Proprietary 40

    Marketers need to catch up with consumersSearch is at the start of the

    consumer processWhere is it in

    media planning?

    Search is an integral part of the consumer decision process

    Where is it inmedia activity?

  • Google Confidential and Proprietary 41

    You can always experiment and measure

  • Google Confidential and Proprietary

    To have a great idea have a lot of them"

    - Thomas Edison

  • Google Confidential and Proprietary

    Q&AAndrew Pozniak

    Industry Leader, Emerging Markets

    Thank you!

    Consumers and Marketing Strategies in the Digital SpaceAgendaInternet evolutionThe evolution of the InternetGrowth in online usageWhere does your business sit?Understanding user activitySlide Number 8Slide Number 9Internet is the number one starting pointSlide Number 11Slide Number 12These searches occur over an extended period of time - average 27 days between first search and saleFrom holiday in the sun to holidaypurchase in 33 days 11 searches, 28 site visitsSlide Number 15Again this is true across different industriesIn fact search enables discovery of new brandsThe majority of car buyers switch brandsWhat drives Search?Slide Number 20Slide Number 21Of course, online ads drive search activity tooSearch and brandsSlide Number 24Slide Number 25Slide Number 26Slide Number 27Ideas for an economic slowdownSlide Number 29Search query growth in Romania (+40% Q3 09 v Q3 08)2. When incentivised, consumers will buy3. Shopping starts earlier3. and ends later4. Consumers have more choice5. Online continues to outpace offline6. Online increasingly drives offline7. Focus on sales conversion is key7. Your visitors will show you what works and what doesntFinal thoughtsMarketers need to catch up with consumersSlide Number 41Slide Number 42Slide Number 43