Google Confidential and Proprietary 1
The Value of Search Marketing in a Down Economy
Google Confidential and Proprietary 2
Challenge and Opportunity
“Brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost during good economic times…”
Professor John Quelch, Harvard Business School
Source: Harvard Business Online, March 2008
So how do you speed up in a slowdown?
Google Confidential and Proprietary 3
With Marketing That Is…
Essential
Measurable
Nimble
Cost-Effective
Google Confidential and Proprietary 4
Search: One of the Most Popular Online Activities
192MOnline searchers in the US
Almost half of all US Internet users search online on a typical day – up from one-third in 2002 – rivaling email in popularity.
1. comScore qsearch, June 2008, (divided over 30 days for daily value)2. PEW Internet & Search Engine Life, Search Engine Use Study, August 2008.
Google Confidential and Proprietary 5
Consumers Go Online in Tight Times
39% buy more products online (rather than in-store)
54% spend more time researching products online before they buy them in a store
53% use search engines more to research purchases
Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
We asked U.S. consumers how their shopping habits have changed since the downturn in the economy.
Google Confidential and Proprietary 6
2%2%
2%2%2%
1%1%1%1%1%
0%0%0%
3%
22%
29%
8%6%
4%
11%
0% 5% 10% 15% 20% 25% 30% 35%
Search engine results/adsWebsites
RecommendationsPhysical stores
TV adsNewspaper ads
TV showsInternet ads
Newspaper articlesEmail newsletters
Sales peopleProduct/service experts
Radio showsRadio ads
Magazine articlesMagazine ads
Direct mail/CatalogsOutdoor ads
TelemarketingPrint phone books
Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.
Online sources total: 53%
We asked U.S. consumers about their main sources of information on products and services since the economic downturn.
And Look To Search Engines First
Google Confidential and Proprietary 7
Marketers Find Search Essential, Too
Sources: Forrester Research April 2008. Asked 33 marketers with 200 or more employees : “How would you change your online spending patterns if there is an economic recession in the next six months?”; eMarketer, “Search Marketing Trends,” February 2009 ;
• 25% of senior marketers would increase online spending in a recession, while only 13% would cut it
• Analysts predict a 15.3% increase in search engine marketing spend in 2009
• Forecasted $14.1 billion spent on U.S. search marketing in 2009, and $33.4 billion by 2013
Google Confidential and Proprietary 8
With Marketing That Is…
Essential
Measurable
Nimble
Cost-Effective
Google Confidential and Proprietary 9
Search Marketing Provides Highest ROI
9%
12%
17%
23%
31%
32%
39%
44%
51%
26%
13%
0% 10% 20% 30% 40% 50% 60%
Pop-ups, pop-unders
Emails to third-party lists
Banner ads
Contextual text ads
Rich media ads
Contextual targeting
Aff iliate marketing
Behavioral targeting
SEO
Emails to house lists
Pay-per-click search ads
Source: MarketingSherpa and ad:tech, “Year End Surveys,” January 2009. n=1,260.
Types of Online Marketing Offering “Great ROI,” according to U.S. Online Marketers (Jan. 2009)
Google Confidential and Proprietary 10Source: comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market
Even Beyond the Click
50% of searchers are “Brand Advocates”
sharing recommendations with friends and family
versus 38% for non-searchers
Google Confidential and Proprietary 11
Paid Ads and Organic Search Work Together
Source: Luxury Vehicle Brand Case Study; Google, GSD&M, July 2007
1 + 1 = 3!Branded ads supplement performance of natural search
In a recent case study of car company, adding branded ads brought in more new visitors% New Visitors to Site Example:
Branded
Natural
Branded 52% 64%
12% Increase
Replace Infiniti search with an
example relevant to your client’s vertical
Google Confidential and Proprietary 12
With Marketing That Is…
Essential
Measurable
Nimble
Cost-Effective
Google Confidential and Proprietary 13
Be Ready as New Consumer Trends Emerge
U.S. searches for “coupons” on Google.com since 2004
U.S. searches for “deals” on Google.com since 2004
Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google queries over time.
Google Confidential and Proprietary 14
Track Trends With Google Insights for Search
Google Confidential and Proprietary 15Source: 1 SEMPO's annual survey of SEM agencies and advertisers, Jan. 08 2comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market
Be Ready Throughout the Purchase Funnel
Awareness Recognition Preference Action
Use search to reach and target
consumers and specific lifestyles
Advertise on non-branded terms
Advertise on your branded keywords
Change ad copy to induce purchase
or offer promotions and coupons
• Put your brand in consumer’s consideration set
• Searchers are more engaged than non-searchers2
• Paid search listings increase brand equity
• Impressions provide “free” brand lift
• Purchase intent increases when paid search is used
• Searchers spend 20% more than non-searchers2
Companies are more likely to use search marketing for increasing brand awareness (61%) than for selling directly online (58%) or generating leads (20%)1
Brand Marketing
Direct Response
With one search campaign, you reach customers who are ready to buy—and those who aren’t
Google Confidential and Proprietary 16
With Marketing That Is…
Essential
Measurable
Nimble
Cost-Effective
Google Confidential and Proprietary 17
Monitor Your Campaigns in Precise Detail
The “hourly (by date)” report is just one example of the detailed data available in Google AdWords
Google Confidential and Proprietary 1818
Easily Track ROI with Google Analytics
Google Confidential and Proprietary 19
Thank You
Google Confidential and Proprietary 20
Appendix
Google Confidential and Proprietary 21
Measurement Tools: Google Conversion Tracking
Track ROI and make smarter online advertising decisions.
Learn more about Conversion Tracking: https://adwords.google.com/support/
How does it work?
• Tool tracks users who click on your AdWords ad and records a conversion when that user reaches your conversion page
Benefits for Marketers
• Correlate ad clicks to custom conversion metrics
• Easily set up tracking for sales, sign-ups, leads, page-view, demo plays, and more
• Measure conversion value of campaigns, ad groups, and/or keywords and optimize bids accordingly
• Track Google and non-Google ads from one interface
Google Confidential and Proprietary 22
22
Measurement Tools: Google Website Optimizer
Increase your site’s conversion rate.
Learn more about Website Optimizer: http://www.google.com/websiteoptimizer/
How does it work?
• Free website testing and optimization tool allowing you to increase effectiveness of your website and visitor conversion rates
Benefits for Marketers
• Increase visitor satisfaction, time spent on site, and decrease bounce rates
• Works with all analytics solutions and all site traffic, not just AdWords traffic
• Test alternative headlines, images, and promotional copy – let your visitors tell you what works best
• Access detailed reports on combinationof content and components ofsites that drive highest conversion rate
New
Google Website Optimizer Service Plans (June ’08) – Hourly technical service and support for marketers, in cooperation with Google Website Optimizer Authorized Consultants
Reports – Timbuktu BikesRunning Pause I Stop I Settings I Copy
Google Confidential and Proprietary 2323
Case Study: Picasa Experience
Google Confidential and Proprietary 2424
Picture Was Not Worth 1,000 Conversions
This version drove 30% more downloads. It was the best of 200 versions –
an insight gained through Website Optimizer
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