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Google Confidential and Proprietary
Chris O’Neill Managing Director, Google Canada May 12, 2011
Three Predictions for the Future of Retail & Brand Marketing
Google Confidential and Proprietary
Google Confidential and Proprietary
Agenda
DIGITAL REVOLUTION
THREE PREDICTIONS
Digital information in the world – videos, photos, music, texts, etc.
800 exabytes 2010
2020 53 zettabytes
Internet users worldwide 2010 1.9 B
2020 5 B
Mobile subscribers 2010 5 B
2020 10 B
Farmville 30M people using it every day;
an est. 800K virtual tractors sold daily at $3.33 each
ebay item purchased via mobile
every 2 seconds (sold $1.5B via mobile in 2010)
YouTube views Justin Bieber “Baby”: 500M+
iPhone App store 5B apps downloaded
Red Cross 20% ($23M) of donations for
Haiti in first week made via text message
Amazon 180 Kindle books sold for
every 100 hardcovers
Transformation of Consumers is Underway
Google Confidential and Proprietary
By 2012, Digital advertising spending will surpass Magazine/Newspaper
spending for the first time.
Source: Zenith Optemedia, April 2010; numbers provided to eMarketer by Starcom MediaVest Group, June 2010
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
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
Traditional Brand Action Model
She sees a TV ad for your
product
She goes to her local store
She tries your
product
2nd Moment of Truth: (SMOT)
1st Moment of Truth (FMOT)
Stimulus
(R&D) (Sales) (Agency)
Google Confidential and Proprietary
More Decisions Made Before Entering Store…
Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.
Where Purchase Decisions Are Made, % of Shoppers
Google Confidential and Proprietary
86% of Canadian consumers research products online before purchasing 86%
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
…fuelled by online research
Google Confidential and Proprietary 15
Online Research Forever Changed the Game
Google Confidential and Proprietary
+197% Local Searches
+246% Coupons
+94% Reviews
+187% Recipes
New Behavior Drives a Surge in Search Volume
Source: Google Internal data for a basket of category related queries for 2007 to 2010
Google Confidential and Proprietary
83%
Source: Google Touchpoints Consumer Survey, 01/09. “Online Consumer Reviews Significantly Impact Consumer Purchasing Decisions,” Opinion Research Corporation, 06/08
rely on trusted places like user ratings or product review sites (buyers read 4 to 7 reviews before feeling comfortable with a purchase)
Consumers are More Discerning Than Ever
Google Confidential and Proprietary
Ubiquitous Behavior Prior To FMOT
Google Confidential and Proprietary
Ubiquitous Behavior Prior to FMOT
Google Confidential and Proprietary Source: Google Keyword Tool, annualized using May 2010 volume, CAN only
The Sheer Volume is Staggering
recipes Annual Query Volume recipes chicken recipes healthy recipes chili recipes banana bread recipes
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
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
TV? It Prompts more ZMOT
Brand Action Model of the Future
She sees a TV ad for
your brand
She goes to her local
store
She tries your product…
SMOT FMOT Stimulus Zero Moment of Truth:
She goes online to read
reviews, find deals,
and locate your product
… and posts her reaction to 200 online friends
Which becomes the next person’s ZMOT
Google Confidential and Proprietary
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
Digital life Physical life
Google Confidential and Proprietary
Mobile Connects our Digital and Physical Lives
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
half of Canadians will have a smart phone
By end of 2014
Source: eMarketer, “Canadian Mobile Subscriptions to Climb 20% by 2014,” (June 2010).
The Mobile Web is Exploding
120
100
80
60
40
20
0
2007 2008 2009 2010 2011
4x Growth in past year
Source: Internal Google Data 2010, US Mobile Queries (Indexed)
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
Google Confidential and Proprietary
Five Key Mobile Trends
1 Mobile Entertains Us
2 Mobile Is Immediate
3 Mobile Complements Other Media
4 Mobile Is Local
5 ... and the Ultimate Shopping Companion
Google Confidential and Proprietary
The Winning Brands & Retailers will optimize for Mobile
Google Confidential and Proprietary
3. Shopper Marketing Goes Digital
Target + Green Giant
Google Confidential and Proprietary
Cheers + Costco
Google Confidential and Proprietary
38
Digital End Caps Beginning to Appear
Promote Relevant SKUs Beyond the Flyer
Update Product Assortment, Pricing on the Fly
Source: ShopperTrack reports retail foot traffic drop for February. Retail Customer Experience, March 12, 2009. http://www.retailcustomerexperience.com/article.php?id=1009
Virtual SKU mix
40
Google Confidential and Proprietary 41
Drive Traffic with Google Maps
Google Confidential and Proprietary
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 O’Neill Managing Director
Google Canada