adwords in a down economy

Google Confidential and Proprietary 1

The Value of Search Marketing in a Down Economy


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?


With Marketing That Is…

Essential

Measurable

Nimble

Cost-Effective


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.


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.


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


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



Essential

Measurable

Nimble

Cost-Effective


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


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



Essential

Measurable

Nimble

Cost-Effective


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.


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



Essential

Measurable

Nimble

Cost-Effective


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.

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


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


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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