Making the Web work for you

Ian Morgan, Industry Leader, Google UK May 2012

The UK is leading the world online

60%  driven  by  

consump3on  

7.2% of GDP

Online Sales

11% of total

Online  

27%  of  total  UK    ad  market    

Internet  

economy  worth  £100bn  

The Traditional Mental Model of Marketing

Stimulus

3

Second Moment of Truth

First Moment of Truth

Introducing…….

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

ADVERTISING PURCHASE

6

Consumers are hyper-informed

18

12

10

7

Online sources considered before making purchase

90% of European internet users go online to search for products & services

4 trends that will define future

Mo  So  Lo  Co  Social  Mobile   Local   Commerce  

50%  of  Google  Maps  usage  is  on  mobile  

40%  of  tweets  are  sent  from  a  mobile  device  

Mobile  enables  new  kinds  of  interac3ons  

7  

74%  used  mobile  in  shopping  process  

The future is Cloud-based The future is Mobile

9 Google confidential

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15  

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45  

50  

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  

adoption of digital devices only continues to accelerate

Unprecedented adoption rates #

of u

sers

(000

)

years

Radio TV Internet

iPhone

Source: hannemyr.com/essay/diff.html 2000, macworld.com, 2010

tablets

Mobile will surpass desktop soon

Source: Morgan Stanley Research, April 2010

0

400

800

1200

1600

2000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Mobile Internet Users Desktop Internet Users

Global Mobile vs. Desktop Internet Population, 2007-2015

Global Internet Users (MM)

5B people own a mobile device worldwide

Source: comScore, Pew 2012, Google 2012.

1B people will use mobile as their primary internet connection

Google confidential

UK

45%

UK

38%

FR 23%

DE

17%

JP

38%

US

44%

ES

30%

UK

27%

FR 18%

DE

6%

JP

31%

US

33%

ES

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Smartphone Ownership is on the Rise

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 search of  mobile  internet  users  

+223% YoY for top 1000 commercial queries via mobile

Companies are lagging behind users!  

44

Q. Does your company have a mobile optimized website? Mobile optimized means a website that is formatted or developed specifically to be used on a mobile device

33%

17%

12%

37%

43%

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

16

So - Choice & sharing are accelerating

− 845m monthly active users − 2.7b likes/comments a day − 250m photos uploaded/day

− 250m monthly active users − 500m users signed up − 340m tweets sent/day

− 1 trillion views in 2011 − 1 hour uploaded/second − 3 billion hrs watched Each month

Recommendations Influence Purchases

71% Say reviews from family members or friends influence

purchase decisions

84% Use online sources when deciding what

to buy

Harris Interactive 2010 Google research study 2011

What if we surfaced recommendations when they mattered most?

So - +1 Button Stand out on Google search with recommendations when you need them

Social Annotations result in ~5-10% increase in CTR!

YouTube Super Charges Social

40% of mobile web

searches are local

Over 50% of global Google Maps usage is

Mobile

Lo - location is everything  

After looking up a local business on their

smart phone, 61% of users called the

business and 59% visited.

21  

600% growth in mobile sales since

June 2010

10% of all bets made come

through mobile

One Third of UK shoppers engaged in m-

commerce during Christmas

Co – direct purchase on mobile  

22  

Co - Think like a retailer

23

Website Optimizer A/B & Multivariate tests Measure and iterate

24

Co - Ecommerce becoming commerce

Direct Cube Delhaize Supermarket, Brussels Central Station

Tesco’s Home Plus, Underground Station South Korea

Google Wallet – Tap and Pay

Google Wallet – Coupon Redemption

Co - Mobile is Transforming Everyday Shopping Behaviour

24% Intentionally carry a Smartphone when

shopping to compare prices and

for information

45% Of Smartphone owners use the phone in their

purchase process

21% Have changed their

mind about purchasing a product or service in store as a result of information

gathered on their Smartphone

Google confidential

Co - To win on the high street, retailers must be masters of multi-channel retailing

STORES

WEBSITES

MOBILE

TV

DIRECT MAIL

CALL CENTRES ONLINE

CHAT SOCIAL

AD NETWOR

KS

And ensure that they have one unified customer facing proposition across all channels L E

L E

S

P E

C

E

What is the effect of digital on offline sales?

28

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.

What is the effect of digital on offline sales?

29

Measuring ROPO effect indicates that 60% of all financial product purchases are preceded by internet research

Deutsche  Bank  study  measured  the  effect  of  search  on  offline  sales.  Data  output  based  on  GFK  20,000  household  research  FMP  panel  who  report  to  GFK  on  financial  product  adop<on  within  test  period.  

Research  shows  online  channel  is  of  fundamental  importance  

Share of new contracts, by research and sales channel, (%)

49% 48.6% of financial product purchases in branch are preceded by online research for this product

11% Attributing only 10.8% of the sales that are driven by an ‘end to end’ online to the internet would heavily undervalue this channel in the channel mix

4.5x

For every sale completed end to end online, another 4.5 are made in store by people who have previously used the internet in their research process

Research online /

Purchase online 10.8%

Research online /

Purchase offline 48.6%

Research offline /

Purchase online 2.7%

Research offline /

Purchase offline 37.8%

ROPO Effect 48.6%

4 trends that will define future  

Mo  So  Lo  Co  Social  Mobile   Local   Commerce  

50%  of  Google  Maps  usage  is  on  mobile  

40%  of  tweets  are  sent  from  a  mobile  device  

Mobile  enables  new  kinds  of  interac3ons  

30  

74%  used  mobile  in  shopping  process  

Mobile First

Ian Morgan, Industry Leader, Google UK May 2012

Thank You