@ WanIfra 2011 Conference

1. MENA Online Advertising Industry
Abdulrahman Tarabzouni
Regional Manager, Emerging Arabia
Google
aitmit
Google Confidential and Proprietary
1

2. Internet Industry
Google Confidential and Proprietary 12

3. Infrastructure Content Commerce
3

4. Infrastructure Content Commerce
3

5. Infrastructure Content Commerce
3

6. Market: MENA Market Highlights
337M
People = 5x
5% of World Population
Young Population: 33% of them < 14 Years Old
R2 Population GDP per Capita
R4
R3
Advertising Top Countries
Insights: Expenditure
R1
22 Countries
+33% below 14 years Over 70% Saudi & UAE
Arabic in the top 10 languages in number of search queries
Arabic is spoken by +80% Unknown Jordan
Highest GDP per Capita $110k in Kuwait Over 8% Egypt
2nd Language is French in R4 vs. English in R3
Over 60% of MENA users are Males Over 9% Morocco
Sources:: Ministries of Telecom, CIA Fact Book, AC Nielsen, Madar Excluding Yemen, Iran, Sudan and Syria
$8B
Ad Spend = 30% 2.5x Poland Ad Spend ($3B in 2009)
GDP Real Growth at 6% vs. 3.1% Globally

7. Online Advertising in MENA
Ad Market Size in $M
North Africa Gulf
Saudi Arabia
Levant
Internet Penetration
MENA Online Ad Spend in 2010 =
110m-130m USD
5

8. 1,354 287 (21%)
1,224
MENA 90 (45%)
348
MENA 63 (18%)
MENA
311
60 (73%)
234
3rd 6th
Population # of Internet Users
63M
Internet Users
> Internet Users Population 75% Population
Google Confidential and Proprietary
6

9. Saudi: Duration of usage (Minutes per day)
• Over 2 hours spent daily on Internet on desktop / laptop and watching TV.
• Those using internet on mobile spend almost an hour everyday.
133 130
68
45
39
26 25
Internet TV Mobile Internet Mobile Phone Radio Magazines Newspapers
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 14

10. Online Activities and Search Share
Use a Search Engine 94
Visit internet portals 87
Send or receive emails 76
Very High
68
3% Instant Messaging / Chatting
64
Visit / access social networking sites
Listen to music online 58
High
Download music, videos, etc 48
Watch videos / TV programs 46
Play games online 46
Medium
Access / Download / Upload video clips 35
Access / Download / Upload photos 33
97% Download applications /software / updates 29
Write / read blogs 26
Research an item you are thinking of buying 22
Click on an online ad banner / link 22
Low
Use online banking / pay bills online 19
Set up your own website 11
Google Others Post online ratings / reviews of products / services 11
Very low
Complete Online Transactions / E-commerce 8
Confidential & Proprietary Copyright © 2010 The Nielsen Company

11. Search Trends
Queries in Arabic represents:
+54% of MENA queries
+80% of Saudi queries
Google Confidential and Proprietary

12. Online Advertising: How do
I stand out on the web? Google Confidential and Proprietary 11
Google Confidential and Proprietary 11

13. Google is in the “Connections Business”
Connect consumers
to ALL the information
they care about
Connect marketers
to ALL the customers
they care about
Google Confidential and Proprietary 13

14. Reach Customers- Advertise on the Google Network
1
Google
Search:
2
Search
partners:
network
3 Display
partners:
The whole Google
Network reaches
around 86% of
Global Internet users!
Google Confidential and Proprietary 14

15. Targeting options on the network
Reach customers through various advertising touch points:
Search (97%+ reach in MENA) Display (80%+ reach in MENA)
Search campaign Search campaign Contextually targeted Placement Targeted
campaign campaign
reach Customers reach Customers
reach Customers reach Customers surfing
searching on searching on surfing hundred of selected sites on
Google Google’s thousands of 3rd party Google’s Display
search partners sites Network
Google Confidential and Proprietary 15

16. On search
Sponsored Ads
Cost Per Click (CPC)
Natural Results
(unpaid)
Google Confidential and Proprietary 19

17. On Display Network- Contextual targeting
Reaches millions of users as they read content online
Google scans a page,
interprets its content and
serves relevant ads
Relevant ads
Targeted in real-time
Recipe for Roasted
Garlic Pasta Sauce
Google Confidential and Proprietary 20

18. Google’s Pricing Models
CPM Model
Content Targeting CPC Model
• Cost per thousand • Cost per click
impressions
• Maximum bid & CTR
• Only your Maximum are considered
bid is considered
• Reach & Frequency
• Access to Reach & reporting not available
Frequency reporting
• Search & Content
• Content Network Networks
Google Confidential and Proprietary

19. Google AdSense Enables You to Monetise Pages Across Your
Entire Site … And Beyond
Expanding the AdSense Family
Search Pages Content Pages
Plus, more ways to monetise with other AdSense products
5 Google Confidential

20. Google AdSense for Search
7 Google Confidential

21. Google AdSense for Search
7 Google Confidential

22. AdSense technology maximises ad relevance and
performance
• No manual intervention
• AdSense automatically
understands the content of
a specific page, and
• Dynamically targets ads as
the content on the page
changes
• Competitive hand-mapping
solutions only target the
static category level
Freshness and Relevancy are vital to page performance
12 Google Confidential

23. Linguistics Processing Delivers Superior Matching
Through linguistics processing, we know that this page is about coffee,
not programming or a vacation spot
13 Google Confidential

24. MENA AFC Partners

25. Do they click on ads? (Saudi)
Click online ads on Desktop / Laptop • Men more likely to click on online
ads both on desktop / laptop as well
Always Sometimes Rarely Never as mobile.
19% 18% 18% 19% 10%
37% 33%
34%
31% 34% 28% 29%
27%
29% • Nearly half of those who recall
39% 38% 41% 44% 46% seeing online ads on desktop /
24% 29%
laptop click on them.
11% 10% 13% 8% 10% 10% 11%
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs 45 - 54 yrs Males Females
Question: Do you click on the ads you see while accessing the
internet from a laptop / desktop?
Base: All recalling seeing an ad on Desktop / Laptop (789) Click online ads on mobile
Always Sometimes Rarely Never
18% 18% 18% 10%
20%
36%
21% 28%
24% 28% 24%
17%
42% 40% 47%
40% 44% 28%
• Marginally lower resistance to
clicking on ads seen on mobile! 16% 21% 15% 19%
14% 12%
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs Males Females
Question: Do you click on the ads you see while accessing the internet from a mobile?
Base: All recalling seeing an ad on mobile (287)
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 56

26. Saudi: Impact on purchase decision
• Online advertising at best impacts purchase decision only occasionally.
• Over 40% people say online
advertising does not impact
their purchase decision.
Always Sometimes Occasionally Never
42% 42% 41% 42% 41% 44%
56%
30% 28% 28% 30%
33% 30%
23%
24% 27% 28% 26% 22%
21%
19%
4%
0% 4%
0% 4%
0% 2%
0% 2%
0% 3%
0% 4%
0%
Total 15 - 24 Yrs 25 - 34 Yrs 35 - 44 Yrs 45 - 54 yrs Males Females
Question: How often have your purchase decisions been
influenced by any sort of online advertising?
Base: All internet users (1067)
Confidential & Proprietary Copyright © 2010 The Nielsen Company
Page 57

27. The dominant online behaviour remains “ROPO”
% of tech product consumers who used online during the purchase process
(average of TV, Audio, PC, Cameras categories)
Google Confidential and Proprietary 4

28. In this complex journey, search engines are the
compass
Found website by:
Search engine(s) 0.68
Typed address(es) directly into browser 0.27
0.9
90%
Followed links from other websites 0.23
68%
45%
Already had website(s) in favourites / bookmarked 0.23
23% 15%
6% 6% 5% 2%
0%
Followed links from email received 0.06
Other
0% 18% 35% 53% 70%
Q26 Which methods did you use to find the websites you visited during the research and purchase process? Base: All researching online,Google Confidential and Proprietary
n=1,141 6

29. Challenges

30. DSL and mobile Internet access remain expensive
Usage between an emerging and
a developed market:
Smartphone usage rising but still
low
Mostly tier-2 phones e.g. S60,
BlackBerry
Many tier-3 (feature) phones
(small screens, mainly phone / Search queries
SMS)
More than 50% annual
High prices and lack of access
to entry point to the web
growth in mobile
subscriptions
over the past 5 years
27

31. Lack of high quality content
5% users speak Arabic vs. 2% of
the content online is in Arabic
Forums are very popular in the
Middle East and North Africa
(35% of content vs. 10%
elsewhere), but :
- unstructured ;
- lack quality.
Challenge for a search engine to
ensure
- relevant
- high quality
- and fresh
results to surface to the top spots.
28

32. Low credit card penetration rates
Lack of online forms of payment
Required infrastructure still
catching up
Addressing and postal
systems still in
development in some
countries in the Middle
East
Low credit card penetration
! Security still a major issue
(<5% outside of Gulf e.g. North American airlines
countries) review 3% of transactions vs.
80% by Middle Eastern
E-commerce & inter-country airlines
trade laws not yet ready
SMBs not online
29

33. Case Studies
Google Confidential and Proprietary 12

34. Test Objective
Quantify the impact of search advertising on
Vodafone’s in-store sales
Google Confidential and Proprietary 13

35. Test Design
Objective: create a measureable difference in Google AdWords spending
between test and control regions and determine the impact on in-store sales.
1. Determine a baseline of
sales activity in each test/
Selected a representative set of control region before the
94 Vodafone stores from 5 test experiment
regions across the UK; matched
control stores were taken from
other parts of the country 2. Increase online advertising
for defined product
categories (handset/generic
keywords) in test markets
3. Determine the difference in
sales between test and
Test control markets due to
altered online spending
Control
Google Confidential and Proprietary 14

36. Results
AdWords are a highly effective driver of in- Overall sales lift of 1.5% in
test
1
store sales at Vodafone markets when compared to the
Vodafone up-weighted spend on handset and generic control markets; additional lift
keywords and significantly increased in-store sales
of up to 10.5% in specific
categories (e.g. Sim-only
Positive 400% return on
2 contracts) investment
advertising
(Vodafone received £4.26 in
sales for every £1 spent on
27k new customers visit Vodafone
3 AdWords)a result of increased
stores as
online spend
1.75 in-store connections are
4 driven by AdWords for every 1
online, showing AdWords has
an even greater impact in-store
“Vodafone’s additional investment in generic and upper funnel keywords was an effective
way to drive incremental in-store sales. We now have a better understanding of the impact
of online research on retail purchase behaviour and we’ll have to rethink the way our current
attribution model works.” -Mike Durbridge, Head of Direct Sales, Vodafone UK
Google Confidential and Proprietary 15

38. 1.Scale
Google Confidential and Proprietary
36

39. Dawn of the world until 2003
5 exabytes of information
2 days
667 exabytes per day
Google Confidential and Proprietary
37

40. Google Confidential and Proprietary
38

41. 2.Reach
Google Confidential and Proprietary
39

42. Google Confidential and Proprietary
40

43. 3.Speed
Google Confidential and Proprietary
41

44. Google Confidential and Proprietary
42

45. Scale 1,000,000 years into 1 year
11:58PM
11:55PM
11:58PM
19 Dec31 Dec
30 11:10PM
Dec
11:50PM
7:30PM
Spring Mid-Nov
Google Confidential and Proprietary
43

46. Google Confidential and Proprietary
44