Presentation to CAMPUS and CSBG Members - Let's get technical 11/02/09

2. Speeding up in the Slowdown Sophie Jones Industry Manager, Google UK

3. Search is an integral part of customers’ lives… 57% of people would refuse to give up their broadband - higher even than fresh fruit and vegetables!

4. ..and a barometer of consumer behaviour So what are we seeing?

5. What we’re seeing… Fast rising searches ‘ Free delivery’ ‘ Discount vouchers’ ‘ New dvd releases’ ‘ Safe savings’ ‘ Cheap loans’ ‘ Pay off mortgage’ ‘ Afternoon tea’ Online shopping spend up 14.2% to £4.67bn Dec 08 M&S's online sales up 29% 13 weeks to Dec 08 Debenhams Direct, sales up 37.4% YTD 36% of internet users plan to do more shopping online & less on high street in 09

6. It is convenient… … and delivers value Source: Google Insights for Search, Hitwise. TNS. Jan 2009, NMA reported results of their survey into consumer shopping habits. 68% think shopping online is cheaper because they don't have to pay for parking, petrol or transport. 89% think they can find a better deal online than on the high street Searches for discount vouchers up 133% last year

7. “ Online shopping growth continues to outperform the high street, as tight budgets and poor weather keep people at home where they can shop online for bargains ” - James Roper, IMRG

8. This time is different

9. Online is mass market Sources: Forrester’s European Consumer Technology Adoption Study Q2 07, internetworldstats.com June 08, Ofcom Nations and Regions CMR 2008 90% Must have broadband 8 hours Spent online per week 70% UK pop go online regularly

10. Bargain hunters don’t drive Sources: Harris Interactive “Digital Influence Index”, Jun 2008; The Retail Bulletin, “Consumers seek out promotions than they were 12 months ago, Jun 2008; Internet Retailing “I want to buy some cheese”, Feb 2008; IMRG Cpagenini e-Retail Sales Index, Jul 2008] 80% of internet users compare prices and options 3/4 shoppers compare prices online before visiting the lowest price store 30% more actively seeking promotions than last year 18% buy weekly groceries online

11. 81% of internet users enter websites via a search engine Source: Forrester Research Inc., “UK Internet User Monitor” Search is the gateway

12. 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 Automotive Example : Search engines help me

13. Consumers search through the purchase process Distribution of searches prior to purchase 1 2 3 4 5 6 7 8 9 10 11-20 21-30 31-40 41-50 >50 # of searches 12 travel searches 29 days 22 travel sites Before a first transaction, on average: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Number of Searches Source: Comscore Research Paper October 2007

14. Source: c omScore, US, CPG study, October 2007 Jupiter Research / Ipsos Insight Consumer Survey, n=2.103 (Search Engine users US only), Jan 2008 Consumers associate search ranking with the success of the company of users link placement to company prominence of users expect leading brands to be on top of the search results page 71% 36% FMCG Example

16. Being top sponsored and top organic listing delivers most brand recall Source: Enquiro Research/Ipsos Interactive Services, May 2008, UK Example 3.95x

17. Search ads have a clear impact on brand recall 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?) + 2.5x 1.18x 1.14x

18. How winners get ahead in a slowdown Drive profit by targeting Manage costs Invest for growth

19. How winners get ahead in a slowdown Invest for growth

21. How winners get ahead in a slowdown Drive profit by targeting

22. Keyword Tool: pet or baby? Pet care 9,450,000 Baby care 12,380,000 How many searches were made for the following keywords in one month? pet pet food dog dog food cat cat food pet advice dog breeds cat breeds baby babies Pregnancy parenting pregnant birth newborn breastfeeding

23. Choosing advertising messages Fuel efficiency most searched Mix of messages differs across the world

24. How winners get ahead in a slowdown Manage costs

25. Search is not an island… … it works best with other media

26. Source: iProspect, “Offline Channel Influence on Online Search Behavior,” 2007. RAB Word of Mouse Study 2007. Offline media compliments online search 67% driven to search by an offline channel 57% performed search after watching a TV ad TV and online together = 50% increase in buying likelihood

27. 60% of online shopping carts are abandoned Source: Tealeaf Press Release “2008 Tealeaf Survey Highlights Potential Multi-Billion Dollar Business" … make every conversion count! 12% before check out 48% at checkout

28. HI ghest P aid P ersons O pions Hi ghest P aid P erson’s O pinion Avoid the Hippo

29. Which site converts better?

30. Winning Page – 20.2% Conversion Lift!

32. The Google online advertising toolkit www.google.co.uk/adtoolkit

33. How Google tools can help How Google tools can help Ad Planner – target customers across the web Adwords – target people searching for what you sell Webmaster – make sure your site can be found Invest for growth – Gain share of the growing online market Insights for search – react fast to changing demand Conversion optimiser – optimise your ad spend for profitability Adsense – earn extra revenue from your visitors Drive profit – Target efforts based on the facts Website optimiser – drive conversions by learning from rapid tests Analytics – drive efficiency by understanding your visitors Ad toolkit – learn more about all of this Manage costs – Use science not art to make the most of your budget

34. www.google.com/domorewithless /

35. Thank you! Sophie Jones Industry Manager, Google UK