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Research & Trends Breakfast Zurich, November 19, 2010 Dr. Beat B端hlmann Industry Head Switzerland Daniel Meyer Head of Market Research DACH & Nordics Claudio Hasler Industry Analyst

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Content

CH today:

Online in Switzerland

Global outlook:

Hot trends in the market

Deep dive:

Online to store, online branding

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Wake up video

The (r)evolution is already here !!!

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Online in CH – Status Quo Zurich, November 19, 2010 Claudio Hasler Industry Analyst

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87% say that access to internet should be seen as a human right BBC, March 2010

Base: persons that use the internet. Survey among 27,000 in 26 countries.

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Status quo of online in CH - Content 1. Media consumption in CH 2. Search behaviour in the internet

3. Swiss online advertising

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The Swiss are among the most advanced users of the internet Do you use Internet on your Laptop, PC, Mobile Phone or PDA? 100% 90%

81% 80%

69%

70%

58%

60%

52%

84%

84%

86%

73%

62%

52%

46%

50% 40%

69%

84%

36%

30%

20% 10% 0%

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Source: EIAA, Mediascope Europe 2010, N=1500 (1000 online, 500 omnibus)

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The Swiss are early adopters

Example: Functions used on mobile phone 100%

97%

97% 89%

90%

81% 80%

70%

60%

50%

40%

33% 27%

30%

18%

20%

17%

10%

0%

Calls

Source: Accenture Mobile Web Watch 2010; N=3516

SMS

MMS

Mobile Internet

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Internet usage surpassed TV

% Adspend

31% Radio

Media consumption (% per day)

% Adspend

Client 20% Print Logo

4.0%

5.0%

30.0% 48.7% 4.5%

8.5%

24% TV

25% Internet 50.0%

27.8%

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Source: EIAA, Mediascope Europe 2010, N=1500 (1000 online, 500 omnibus)

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Internet goes towards “always on� Percent 90%

Internet at home

80%

TV

70% 60%

Mobile internet

50% 40%

Internet at work (private purpose)

30%

Internet total

20% 10% 0%

6 - 9AM

9 - 12AM 12 - 1PM

1 - 5PM

Source: TNS Infratest, Oct 2010, N=993, during the week

5 - 6PM

6 - 7PM

7 - 8PM

8 - 11PM 11PM-2AM

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Multi-tasking in media consumption is reality

Internet 66% TV

10% Mobile internet

Source: EIAA, Mediascope Europe 2010, N=1500 (1000 online, 500 omnibus)

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Internet is by far the most important medium in CH

Not important at all

Not very important

Internet at home

Extremely important

7%

Newspapers

23%

TV

23%

Radio

62%

38%

36%

33%

Internet on the go

31%

41%

Internet at work (private purposes)

28%

46%

24%

47%

Magazines Videos/DVD

Very important

74%

14%

5%

Q203: How important are these media sources for private purposes in your daily life? N=1000 Source: TNS Infratest, Oct 2010, N=1000

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Intermediate conclusion

1. Media consumption: - Swiss are early adopters

- Internet is lead medium - Fundamental change in media behaviour over the day - Internet most important medium today

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Content 1. Media consumption in CH 2. Search behaviour in the internet

3. Swiss online advertising

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Search is the second most important Online Activity Without which web activity could you not live?

Email

59.0%

Search

43.0%

Social Networks

18.0%

Instant Messaging

15.0%

Online Gaming

10.0%

Telephone Calls

7.0%

Watching Film,TV or Clips

6.0%

Music Downloads

5.0%

Forums

3.0% 0%

10%

20%

30%

40%

50%

60%

70%

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Source: EIAA, Mediascope Europe 2010, N=1500 (1000 online, 500 omnibus)

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Search volume is huge in Switzerland Whom of you is most searched for?

400‘000‘000

Sources: individual queries: Google Keyword tool; total queries: www.mediachange.ch based on Comscore, all search engines. Future results may differ, use as directional guide online

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400 million is quite a number

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Source: Random, own estimates, internet

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Search allows to read the mind of the user

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Source: Googel internal data, Oct 2010. Future results may differ, use as directional guide only

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Search allows to read the mind of the user CH US, UK, DE, FR

CH US, UK, DE, FR

CH US, UK, DE, FR

CH US, UK, DE, FR

CH US, UK, DE, FR Google Confidential and Proprietary

Source: Googel internal data, Oct 2010. Future results may differ, use as directional guide only

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Search allows to read the mind of the user - Example

Source: Googel Insights for Search, Nov 2010

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Intermediate conclusion

2. Internet & Search: - Search is key in the internet, huge volumes

- Search allows to read people„s minds - Unstopped growth - Interest shifts from tech to entertainment & daily life

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Content 1. Media consumption in CH 2. Search behaviour in the internet

3. Swiss online advertising

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Adspend does not reflect customer behaviour Media consumption (% per day)

4%

0%

31% Radio

.7%

5%

.8%

% Adspend

50%

20% Print 25% Internet

8.5%

24% TV

28%

Source: Mediascope Europe 2010, ZenithOptimedia Ad Spend Report March 2010

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Switzerland lags when it comes to internet Ad spend

2007

2009 18.3%

25.0% 4.6%

14.6%

19.4%

16.6%

16.6%

17.3% 1.2%

18.8%

25.5% 1.7%

16.7%

11.1%

27.2%

3.5%

12.0%

21.1% 15.0% 4.1%

5.3%

17.2%

3.3%

3.3%

1.4%

25.5%

Source: ZenithOptimedia March 2010

5.5%

4.8%

6.1%

2.6%

>5 - 10% 0 - 5%

8.5%

11.8%

>20 - 30% >15 - 20% >10 - 15% Google Confidential and Proprietary

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But also in CH Internet advertising is taking off Online Ad Spend tripled between 2005 and 2009 $M $1,400.00

$1,200.00

$1,000.00

$800.00

Newspapers Magazines TV Radio Cinema Outdoor Internet

$600.00

$400.00

$200.00

$0.00 2005

2006

2007

Source: ZenithOptimedia Ad Spend Report March 2010

2008

2009

2010

2011

2012

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Intermediate conclusion

3. CH online advertising: - Adspend does not reflect user behaviour - CH still lagging internationally - Yet activities are taking off

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Key take aways – where are we today in Switzerland?

1. Internet is the most important medium today

2. Search is huge, going from tech to daily life 3. Swiss companies still lag in online marketing but clear upwards trend

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Backup

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Online in CH Status Quo