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@ WanIfra 2011 Conference
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Google Confidential and Proprietary1
Abdulrahman TarabzouniRegional Manager, Emerging ArabiaGoogle
aitmit
MENA Online Advertising Industry
Google Confidential and Proprietary 12
Internet Industry
3
Infrastructure Content Commerce
3
Infrastructure Content Commerce
3
Infrastructure Content Commerce
337MPeople
5x
$8BAd Spend=
=
30%
Market: MENA Market Highlights5% of World PopulationYoung Population: 33% of them < 14 Years Old
2.5x Poland Ad Spend ($3B in 2009)GDP Real Growth at 6% vs. 3.1% Globally
R1
R3R2R4
22 Countries+33% below 14 yearsArabic in the top 10 languages in number of search queriesArabic is spoken by +80%Highest GDP per Capita $110k in Kuwait2nd Language is French in R4 vs. English in R3Over 60% of MENA users are Males
Insights:
GDP per CapitaPopulation
Excluding Yemen, Iran, Sudan and Syria
Advertising Expenditure
Over 70%
Over 8%
Over 9%
Top Countries
Egypt
Unknown
Morocco
Jordan
Saudi & UAE
Sources:: Ministries of Telecom, CIA Fact Book, AC Nielsen, Madar
5
Online Advertising in MENA
MENA Online Ad Spend in 2010 = 110m-130m USD
GulfNorth Africa
Saudi Arabia
Levant
Ad Market Size in $M
Internet Penetration
Google Confidential and Proprietary6
63MInternet Users > Population 75% PopulationInternet Users
287 (21%)
60 (73%)
63 (18%)MENA
90 (45%)
311
234
MENA
1,354
1,224
348MENA
3rdPopulation
6th# of Internet Users
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 14
Saudi: Duration of usage (Minutes per day)
Internet TV Mobile Internet Mobile Phone Radio Magazines Newspapers
2526
3945
68
130133
• Over 2 hours spent daily on Internet on desktop / laptop and watching TV.• Those using internet on mobile spend almost an hour everyday.
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Use a Search Engine
Visit internet portals
Send or receive emails
Instant Messaging / Chatting
Visit / access social networking sites
Listen to music online
Download music, videos, etc
Watch videos / TV programs
Play games online
Access / Download / Upload video clips
Access / Download / Upload photos
Download applications /software / updates
Write / read blogs
Research an item you are thinking of buying
Click on an online ad banner / link
Use online banking / pay bills online
Set up your own website
Post online ratings / reviews of products / services
Complete Online Transactions / E-commerce 8
11
11
19
22
22
26
29
33
35
46
46
48
58
64
68
76
87
94
Very low
Low
Medium
High
Very High
97%
3%
Google Others
Online Activities and Search Share
Google Confidential and Proprietary
Search Trends
Queries in Arabic represents:
+54% of MENA queries
+80% of Saudi queries
Google Confidential and Proprietary 1111Google Confidential and Proprietary
Online Advertising: How do I stand out on the web?
Google Confidential and Proprietary 13
Google is in the “Connections Business”
Connect consumers to ALL the information
they care about
Connect marketers to ALL the customers
they care about
Google Confidential and Proprietary 14
Reach Customers- Advertise on the Google Network
network
Google Search:
The whole Google Network reaches around 86% of Global Internet users!
Search partners:
1
2
Display partners:
3
Google Confidential and Proprietary 15
Targeting options on the network
Search campaignreach Customers
searching on Google
Contextually targeted campaign
reach Customers surfing hundred of
thousands of 3rd party sites
Placement Targeted campaign
reach Customers surfing selected sites on Google’s Display
Network
Reach customers through various advertising touch points:
Search (97%+ reach in MENA) Display (80%+ reach in MENA)
Search campaignreach Customers
searching on Google’s
search partners
Google Confidential and Proprietary 19
Sponsored AdsCost Per Click (CPC)
On search
Natural Results(unpaid)
Google Confidential and Proprietary
On Display Network- Contextual targeting
20
Reaches millions of users as they read content online
Google scans a page, interprets its content and
serves relevant ads
Recipe for Roasted Garlic Pasta Sauce
Relevant ads Targeted in real-time
Google Confidential and Proprietary
Google’s Pricing Models
Content Targeting
• Cost per thousand impressions
• Only your Maximum bid is considered
• Access to Reach & Frequency reporting
• Content Network
CPM Model CPC Model
• Cost per click
• Maximum bid & CTR are considered
• Reach & Frequency reporting not available
• Search & Content Networks
5 Google Confidential
Google AdSense Enables You to Monetise Pages Across Your Entire Site … And Beyond
Search Pages Content Pages
Plus, more ways to monetise with other AdSense products
Expanding the AdSense Family
7 Google Confidential
Google AdSense for Search
7 Google Confidential
Google AdSense for Search
12 Google Confidential
AdSense technology maximises ad relevance and performance
• No manual intervention• AdSense automatically
understands the content of a specific page, and
• Dynamically targets ads as the content on the page changes
• Competitive hand-mapping solutions only target the static category level
Freshness and Relevancy are vital to page performance
13 Google Confidential
Linguistics Processing Delivers Superior Matching
Through linguistics processing, we know that this page is about coffee, not programming or a vacation spot
MENA AFC Partners
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 56
Do they click on ads? (Saudi)
• Nearly half of those who recall seeing online ads on desktop / laptop click on them.
Always Sometimes
Click online ads on Desktop / Laptop
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs 45 - 54 yrs Males Females
33%10%
37%19%18%18%19%
27%
34%
29%
29%28%34%31%
29%46%
24%44%41%38%39%
11%10%10%8%13%10%11%
Base: All recalling seeing an ad on Desktop / Laptop (789)
Question: Do you click on the ads you see while accessing the internet from a laptop / desktop?
Click online ads on mobile
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs Males Females
36%10%20%18%18%18%
17%
28%24%21%28%24%
28%47%44%40%
40%42%
19%15%12%21%14%16%
Base: All recalling seeing an ad on mobile (287)Question: Do you click on the ads you see while accessing the internet from a mobile?
• Marginally lower resistance to clicking on ads seen on mobile!
Rarely
• Men more likely to click on online ads both on desktop / laptop as well as mobile.Never
Always Sometimes Rarely Never
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 57
Saudi: Impact on purchase decision
Question: How often have your purchase decisions been influenced by any sort of online advertising?
• Over 40% people say online advertising does not impact their purchase decision.
Always Sometimes Occasionally
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs 45 - 54 yrs Males Females0%0%0%0%0%0%0%
44%41%56%
42%41%42%42%
30%30%
23%
28%28%33%30%
22%26%19%
28%27%21%24%
4%3%2%2%4%4%4%
Never
Base: All internet users (1067)
• Online advertising at best impacts purchase decision only occasionally.
Google Confidential and Proprietary
The dominant online behaviour remains “ROPO”
4
% of tech product consumers who used online during the purchase process(average of TV, Audio, PC, Cameras categories)
Google Confidential and Proprietary
In this complex journey, search engines are the compass
6
Search engine(s)
Typed address(es) directly into browser
Followed links from other websites
Already had website(s) in favourites / bookmarked
Followed links from email received
0% 18% 35% 53% 70%
0.06
0.23
0.23
0.27
0.68
Found website by:
Q26 Which methods did you use to find the websites you visited during the research and purchase process? Base: All researching online, n=1,141
0%
23%
45%
68%
90%
2%5%6%6%15%
0.9
Other
Challenges
DSL and mobile Internet access remain expensive
Usage between an emerging and a developed market:
Smartphone usage rising but still low
Mostly tier-2 phones e.g. S60, BlackBerry
Many tier-3 (feature) phones (small screens, mainly phone / SMS)
High prices and lack of access to entry point to the web
27
Search queries
More than 50% annual growth in mobile
subscriptionsover the past 5 years
Lack of high quality content
5% users speak Arabic vs. 2% of the content online is in Arabic
Forums are very popular in the Middle East and North Africa(35% of content vs. 10% elsewhere), but :- unstructured ;- lack quality.
Challenge for a search engine to ensure- relevant- high quality- and freshresults to surface to the top spots.
28
Low credit card penetration ratesLack of online forms of paymentRequired infrastructure still
catching up
Addressing and postal systems still in development in some countries in the Middle East
Low credit card penetration (<5% outside of Gulf countries)
E-commerce & inter-country trade laws not yet ready
SMBs not online
29
! Security still a major issue e.g. North American airlines
review 3% of transactions vs. 80% by Middle Eastern
airlines
Google Confidential and Proprietary 12
Case Studies
Google Confidential and Proprietary 13
Test Objective
Quantify the impact of search advertising on Vodafone’s in-store sales
Google Confidential and Proprietary 14
Objective: create a measureable difference in Google AdWords spending between test and control regions and determine the impact on in-store sales.
1. Determine a baseline of sales activity in each test/control region before the experiment
2. Increase online advertising for defined product categories (handset/generic keywords) in test markets
3. Determine the difference in sales between test and control markets due to altered online spending
Test
Control
Test Design
Selected a representative set of 94 Vodafone stores from 5 test regions across the UK; matched control stores were taken from other parts of the country
Google Confidential and Proprietary 15
AdWords are a highly effective driver of in-store sales at Vodafone
“Vodafone’s additional investment in generic and upper funnel keywords was an effective way to drive incremental in-store sales. We now have a better understanding of the impact of online research on retail purchase behaviour and we’ll have to rethink the way our current attribution model works.” -Mike Durbridge, Head of Direct Sales, Vodafone UK
1Overall sales lift of 1.5% in test markets when compared to the control markets; additional lift of up to 10.5% in specific categories (e.g. Sim-only contracts)2 Positive 400% return on advertising investment (Vodafone received £4.26 in sales for every £1 spent on AdWords)3 27k new customers visit Vodafone stores as a result of increased online spend
4 1.75 in-store connections are driven by AdWords for every 1 online, showing AdWords has an even greater impact in-store
Vodafone up-weighted spend on handset and generic keywords and significantly increased in-store sales
Results
Google Confidential and Proprietary36
1.Scale
Google Confidential and Proprietary37
Dawn of the world until 2003
5 exabytes of information
2 days
667 exabytes per day
Google Confidential and Proprietary38
Google Confidential and Proprietary39
2.Reach
Google Confidential and Proprietary40
Google Confidential and Proprietary41
3.Speed
Google Confidential and Proprietary42
Google Confidential and Proprietary43
Spring Mid-Nov19 Dec31 Dec30 Dec7:30PM11:10PM11:50PM
11:55PM11:58PM
11:58PM
Scale 1,000,000 years into 1 year
Google Confidential and Proprietary44