Issuu on Google+

Three Predictions for the Future of Retail & Brand Marketing Chris O’Neill Managing Director, Google Canada May 12, 2011

Google Confidential and Proprietary


Google Confidential and Proprietary


Agenda

DIGITAL REVOLUTION THREE PREDICTIONS

Google Confidential and Proprietary


Internet users worldwide 2010 1.9 B 2020

5B

Mobile subscribers 2010 2020

5B 10 B

Digital information in the world – videos, photos, music, texts, etc. 2010 2020

800 exabytes 53 zettabytes


Transformation of Consumers is Underway

ebay

Farmville

Amazon

item purchased via mobile every 2 seconds (sold $1.5B via mobile in 2010)

30M people using it every day; an est. 800K virtual tractors sold daily at $3.33 each

180 Kindle books sold for every 100 hardcovers

YouTube views

iPhone App store

Red Cross

Justin Bieber “Baby�: 500M+

5B apps downloaded

20% ($23M) of donations for Haiti in first week made via text message


By 2012, Digital advertising spending will surpass Magazine/Newspaper spending for the first time.

Google Confidential and Proprietary Source: Zenith Optemedia, April 2010; numbers provided to eMarketer by Starcom MediaVest Group, June 2010


Three Predictions

ZMOT: The battle will shift to Between Stimulus & Store MOBILE: Will be the key user interface SHOPPER MARKETING: Will go digital

Google Confidential and Proprietary


1. ZMOT Becomes the Battleground

Google Confidential and Proprietary


According to P&G, shoppers make up their minds about a product in 3 to 7 seconds, just the time it takes to note a product on a store shelf. This time lapse is called (by P&G) First Moment of Truth and it's considered the most important marketing opportunity for a brand.

– 2005 WSJ article Google Confidential and Proprietary


The First Moment of Truth Google Confidential and Proprietary


Winning is Tough at the First Moment of Truth

Google Confidential and Proprietary


Traditional Brand Action Model

Stimulus

She sees a TV ad for your product

(Agency)

1st Moment of Truth (FMOT)

She goes to her local store

(Sales)

2nd Moment of Truth: (SMOT)

She tries your product

(R&D)


More Decisions Made Before Entering Store‌

Where Purchase Decisions Are Made, % of Shoppers

Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.

Google Confidential and Proprietary


‌fuelled by online research

86%

86% of Canadian consumers research products online before purchasing

Source: Google/OTX Canada Retail Survey, April 2009 Q. Which of the following do you prefer to do when researching and purchasing <CATEGORY> products? n=5229

Google Confidential and Proprietary


Online Research Forever Changed the Game

Google Confidential and Proprietary 15


New Behavior Drives a Surge in Search Volume

+94%

+246%

Reviews

Coupons

+187%

+197%

Recipes

Source: Google Internal data for a basket of category related queries for 2007 to 2010

Local Searches

Google Confidential and Proprietary


Consumers are More Discerning Than Ever

83%

rely on trusted places like user ratings or product review sites (buyers read 4 to 7 reviews before feeling comfortable with a purchase)

Source: Google Touchpoints Consumer Survey, 01/09. Online Consumer Reviews Significantly Impact Consumer Purchasing Decisions, Opinion Research Corporation, 06/08

Google Confidential and Proprietary


Ubiquitous Behavior Prior To FMOT

Google Confidential and Proprietary


Ubiquitous Behavior Prior to FMOT

Google Confidential and Proprietary


The Sheer Volume is Staggering

recipes recipes chicken recipes healthy recipes chili recipes banana bread recipes

Source: Google Keyword Tool, annualized using May 2010 volume, CAN only

Annual Query Volume 298,800,000 180,000,000 8,076,000 6,600,000 2,952,000

Google Confidential and Proprietary


Across categories and contexts there is a Zero Moment of Truth to optimize for.

Google Confidential and Proprietary


TV? It Prompts more ZMOT

83% of Moms search on a product after being exposed to a TV ad

Q: Have you ever seen a new brand or product advertised on TV, and then searched for more information on it later using an online search engine? (N =721) Source: BabyCenter Study on Google Search, Nov 2009

Google Confidential and Proprietary


Brand Action Model of the Future

Stimulus

She sees a TV ad for your brand

Zero Moment of Truth:

She goes online to read reviews, find deals, and locate your product

FMOT

SMOT

She tries your productâ&#x20AC;Ś She goes to her local store

Which becomes the next person s ZMOT

â&#x20AC;Ś and posts her reaction to 200 online friends


The Winning Brands & Retailers will have plans to win the ZMOT

Google Confidential and Proprietary


Winning the Zero Moment of Truth A FREE New eBook from Google We introduce you to a critical new point in the decision making process with personal stories, best practices and new research. Understand this shift in the marketing landscape and learn the strategies it takes to win. Due out late spring. Sign up to reserve your copy now!

Google Confidential and Proprietary


2. Mobile Becomes Key Interface

Google Confidential and Proprietary


Mobile is Transforming How We Live Our Lives

Google Confidential and Proprietary


Mobile Connects our Digital and Physical Lives

Digital life

Physical life

Google Confidential and Proprietary


Mobile is ramping faster than any other technology we have seen in the past. Mary Meeker Kleiner Perkins

Google Confidential and Proprietary


Smartphones Have Gone Mainstream

By end of 2014

half

of Canadians will have a smart phone

Google Confidential and Proprietary Source: eMarketer, Canadian Mobile Subscriptions to Climb 20% by 2014, (June 2010).


The Mobile Web is Exploding 120

4x Growth

100

in past year

80

60

40

20

0

2007

Source: Internal Google Data 2010, US Mobile Queries (Indexed)

2008

2009

2010

2011


Mobile usage complements desktop Mobile search peaks on weekends, when people are on-the-go, away from their computers.

Source: US Google Internal Data, 2010


Five Key Mobile Trends

1 2 3 4

Mobile Entertains Us

5

... and the Ultimate Shopping Companion

Mobile Is Immediate Mobile Complements Other Media Mobile Is Local

Google Confidential and Proprietary


The Winning Brands & Retailers will optimize for Mobile

Google Confidential and Proprietary


3. Shopper Marketing Goes Digital

Google Confidential and Proprietary


Target + Green Giant


Cheers + Costco

Google Confidential and Proprietary


Digital End Caps Beginning to Appear

38

Google Confidential and Proprietary


Promote Relevant SKUs Beyond the Flyer


Update Product Assortment, Pricing on the Fly

Virtual SKU mix

40 Source: ShopperTrack reports retail foot traffic drop for February. Retail Customer Experience, March 12, 2009. http://www.retailcustomerexperience.com/article.php?id=1009


Drive Traffic with Google Maps

Google Confidential and Proprietary

41


The Winning Brands & Retailers will adopt Digital Shopper Marketing programs

Google Confidential and Proprietary


Three Predictions

ZMOT: The battle will shift to Between Stimulus & Store MOBILE: Will be the key user interface SHOPPER MARKETING: Will go digital

Google Confidential and Proprietary


Chris Oâ&#x20AC;&#x2122;Neill Managing Director Google Canada

Google Confidential and Proprietary


Digital Revoluion