Adwords In A Down Economy

The Value of Search Marketing in
a Down Economy

Google Confidential and Proprietary 1

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

So how do you speed up in a slowdown?

Source: Harvard Business Online, March 2008 Google Confidential and Proprietary 2

With Marketing That Is…

Essential

Cost-Effective Measurable

Nimble


Search: One of the Most Popular Online Activities

192M
Online 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 4

Consumers Go Online in Tight Times

We asked U.S.
consumers how their 53% use search engines more to research
shopping habits have purchases
changed since the
downturn in the
economy.

54% spend more time researching products
online before they buy them in a store

39% buy more products online (rather than in-
store)

Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents

And Look To Search Engines First

We asked U.S. consumers about their main sources of information on
products and services since the economic downturn.

0% 5% 10% 15% 20% 25% 30% 35%

Search engine results/ads 29%
Websites 22%
Recommendations 11%
Physical stores 8%
TV ads 6%
Newspaper ads 4%
TV shows 3%
Internet ads 2%
Newspaper articles 2%
Email newsletters 2%
Sales people 2%
Product/service experts 2%
Radio shows 1%
Radio ads 1%
Magazine articles 1%
Magazine ads 1%
Direct mail/Catalogs 1%
Outdoor ads 0%
Telemarketing 0%
Print phone books 0% Online sources total: 53%

Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.

Marketers Find Search Essential, Too

• 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

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 ; Google Confidential and Proprietary 7


Essential


Nimble


Search Marketing Provides Highest ROI

Types of Online Marketing Offering “Great ROI,” according to U.S. Online Marketers (Jan. 2009)

Pay-per-click search ads 51%

Emails to house lists 44%

SEO 39%

Behavioral targeting 32%

Affiliate marketing 31%

Contextual targeting 26%

Rich media ads 23%

Contextual text ads 17%

Banner ads 13%

Emails to third-party lists 12%

Pop-ups, pop-unders 9%

0% 10% 20% 30% 40% 50% 60%

Source: MarketingSherpa and ad:tech, “Year End Surveys,” January 2009. n=1,260. Google Confidential and Proprietary 9

Even Beyond the Click

50% of searchers are
“Brand Advocates”
sharing recommendations
with friends and family
versus 38% for
non-searchers

Source: comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market

Paid Ads and Organic Search Work Together

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 52% 64% Branded R
s
12% Increase re
Natural c

Source: Luxury Vehicle Brand Case Study; Google, GSD&M, July 2007 Google Confidential and Proprietary 11


Essential


Nimble


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 Google Confidential and Proprietary 13
queries over time.

Track Trends With Google Insights for Search


Be Ready Throughout the Purchase Funnel
With one search campaign, you reach customers who are ready to buy—and those who aren’t

Awareness Recognition Preference Action

Companies are more • Put your brand in • Paid search listings • Purchase intent
likely to use search consumer’s increase brand equity increases when
marketing for consideration set paid search is used
increasing brand • Impressions provide
awareness (61%) than • Searchers are “free” brand lift • Searchers spend
for selling directly more engaged than 20% more than
online (58%) or non-searchers2 non-searchers2
generating leads
(20%)1

Use search to reach Change ad copy to
Brand
and target induce purchase
Marketing
consumers and Advertise on Advertise on your or offer promotions
Direct
specific lifestyles non-branded terms branded keywords and coupons Response

Source: 1 SEMPO's annual survey of SEM agencies and advertisers, Jan. 08 Google Confidential and Proprietary 15
2
comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market


Essential


Nimble


Monitor Your Campaigns in Precise Detail

The “hourly (by date)” report is just one example of the detailed data
available in Google AdWords


Easily Track ROI with Google Analytics


Thank You


Appendix


Measurement Tools: Google Conversion Tracking

Track ROI and make smarter online advertising decisions.

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

Learn more about Conversion Tracking: https://adwords.google.com/support/ Google Confidential and Proprietary 21

Measurement Tools: Google Website Optimizer

Increase your site’s conversion rate.
Reports – Timbuktu Bikes
Running Pause I Stop I Settings I Copy
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 New
• Access detailed reports on combination Google Website Optimizer Service Plans (June ’08) –
of content and components of Hourly technical service and support for marketers, in
sites that drive highest conversion rate cooperation with Google Website Optimizer Authorized
Consultants

Learn more about Website Optimizer: http://www.google.com/websiteoptimizer/ Google Confidential and Proprietary 22
22

Case Study: Picasa Experience


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


Adwords In A Down Economy

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