google confidential and proprietary 1 google & travel: online advertising & promotion tools...
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Google Confidential and Proprietary 1
Google & Travel: Online advertising & promotion tools
Hrabren Suknaić
Rimske Toplice, 21.11.2008.
Google Confidential and Proprietary 2
Program
Google introduction
Impact of digital platforms on travel industry
Advertising on Google
Other Google Tools
Google Confidential and Proprietary 44
online / week by Western Europeans
49%
1 billion
The internet today
1 BillionGoogle searches per
day
118 BillionEmails and IMs sent
per day
500 MillionVideo playbacks per
day
14 hoursVideo uploads every minute to YouTube
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To achieve this in the travel sector we work with the world’s leading National Tourist Organisations
Google Confidential and Proprietary 8
And are becoming a global company
Approximately 20,000 full-time employees worldwide
Google Confidential and Proprietary 9
Innovation is at the core of what we do
Our technology bring consumers and businesses together throughout the online experience
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There are now over 1.3bn online
Asia 510m
Europe 348m
North America
238m
Central/South America 126m Africa 44m
Middle East 34m
Oceania/ Australasia
19m
Source: Internet World Stats – Feb 08
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81%of internet users enter websites via a search engine
Source: Forrester Research Inc., “UK Internet User Monitor”
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Leisure travel is the most-researched product category on the internet
Google Confidential and Proprietary 14Source: FutureBrand Country Brand Index – Oct 07
The Internet influences travel decisions more than ever before
Internet, 18%
TV/ Cinema,
13%
Press article, 10%
Special package offer, 7%
Travel agent, 6%
Other, 8%Other Ads,
3%
Family and friends,
35%
Ways someone initially becomes interested in a country
Travel agent, 12%
Family and
friends, 8%
Other, 13%
Internet, 67%
Once interested in a country ways information is found
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These users are purchasing travel online in ever-increasing volumes
European leisure/unmanaged business travel online market, €Bn, 2005-08 and YOY growth rates
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42%
49%55%
60%
48%
41%
33%
25% 22%
15%
32%
41%
9%12%
15%20%
0%
10%
20%
30%
40%
50%
60%
70%
2005 2006 2007 2008
US
UK
Europe
APAC
But European purchasing patterns currently lag the US by three years
Source: PhoCusWright U.S. Online Travel Overview Sixth Edition – 2006-2008 projected, PhoCusWright European Online Travel Overview Preliminary Results – Mar 07
Leisure/unmanaged business travel online penetration, 2005-08
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Ad spend is trailing the consumer
Source: Forrester’s European Consumer Technology Adoption Study Q2 2007, ZenithOptimedia Advertising Expenditure Forecast Oct 2007
European media consumption (% hours/week) % EMEA Ad Spend 2007
television spend31%
internet spend 8%radio spend 5%
print spend48%
watching tv33%
surfing internet24%
listening to radio22%
reading12%outdoor6%
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The online travel marketplace 2008
Based on queries on Google platforms and leading partner sites
Dec-06
Jan-07 Feb-07
Mar-07
Apr-07 May-07
Jun-07 Jul-07 Aug-07
Sep-07
Oct-07 Nov-07 Dec-07
Jan-08 Feb-08
Mar-08
Tra
vel q
uery
vol
umes
29%29% 28%
19%
28%
34%
31%
24%
+66%
+73%
Year on year growth rates marked in grew where available
+10%
Insights
YoY growth continues to be strong at c. 30%
Seasonal peaks are becoming increasingly important and prolonged; December 2006 to January 2007 grew 66% whilst December 2007 to January 2008 grew 73%
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Some search trends
Source:Google Internal – Estimates based on a sample of available category-related Google data from
Dec 04 – Sept 07 for search only. Future results may differ from above. Please use as a directional guide.
Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08
30% 23% 16% 34%Hotel searches on Google UK
Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08
25% 28% 23% 38%
Hotel searches on Google DE
Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08
Hotel searches on Google IT32% 38% 26% 40%
Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08
Hotel searches on Google FR
36% 34% 37% 50%
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0%2%4%6%8%
10%12%14%16%18%20%
% o
f to
tal t
ransa
ctio
ns
Example: On average there are 12 travel searches prior to (Airline) purchase…
Number of travel searches prior to purchase
29 days on average to purchase
Source: comScore custom analysis- UK Population, Q1 2007. Travel searchers in January time aligned and monitored over 12 week period from first search. Purchases tracked at set of online travel merchants including Ryanair, easyJet and British Airways.
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0%
5%
10%
15%
20%
25%
% o
f to
tal t
ransa
ctio
ns
…and 22 travel site visits prior to purchase
Number of travel sites visits prior to purchase
Source: comScore custom analysis- UK Population, Q1 2007. Travel searchers in January time aligned and monitored over 12 week period from first search. Purchases tracked at set of online travel merchants including Ryanair, easyJet and British Airways.
29 days on average to purchase
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Our proposition – to ‘promote’ and ‘engage’
Capture consumers
throughout the decision cycle
Convert to travellers
with digital content
Promote
Engage
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Search advertising offers flexibility and control
‘Natural’ search results
‘Paid-for’ search results
Google Confidential and Proprietary 25
Google Adwords – how and why?
How it works?
Why it works?
• Helps you reach new audiences
• Excellent control
• Highly measurable results
• No minimum spend requirements
• Choose keywords
• Set budget
• Decide where ads will be displayed
People click on your ads and connect with
your business
You create your ads
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All together, Google search helps create a means to implementing an effective distribution model
$1 investment
$10 revenue$2 profit
The distribution cycle
The distribution model
• Use Search as a
distribution model, not
a marketing tool• Involves a cycle of
reinvestment
constantly delivering
bookings• Reinvestment
continues provided
ROI thresholds are met
Investment in Search
Customer booking
Reinvestment of profit
Google Confidential and Proprietary 27
Advertise on the Google Network
Active Reach,Global Internet Users
network
Google,including:
The Google Network reaches
over 86% of Global Internet
users
Search partners,including:
Thousands of Content
partners,including:
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Google’s Content Network lets you reach the right audience at the right moment
Text
Display
Video
• 765bn page views/month
• 566m unique visitors/month
• Campaigns remains completely flexible – unlike TV or Print
• Reporting is fully transparent and puts you in control
www.Dalmatia.hr
Hotels in Dalmatia Great range of hotels in Dalmatia Book today for latest prices. www.Dalmatia.hr
www.Dalmatia.hr
www.dalmatia.hr
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Major brands are already using YouTube as an effective promotional medium
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YouTube is also larger than you might think
Selected countries
Unique monthly visitors (millions)
UK 13.9
Germany 10.0
France 9.1
Netherlands 4.5
Russia 2.8
Sweden 2.5
Source: Nielsen – Aug 08
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Who is watching YouTube?
Male 54 %
Female 46 %
35-4928.4%
Under 1815.5%
25-3420.1%
65+3.8%
50-6414.7%
18 - 2417.5%
Source: Nielsen NetRatings, November 2007, Home and Work, UK
Gender
Age
Gender
Age
45-5421.8%
Under 1817.4%
35-4419.8%
55+22.1%
18-3418.8%
Male 52%
Female 48 %
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Embed your uploaded videos on your own site and stream them for free
Google Confidential and Proprietary
Improve your sites and increase understanding of your customer
• Free, hosted, web analytics service
• Evaluate visitor navigation to identify site improvements
• Gain online insights to support your offline media strategy
• Measure and evaluate the return on investment of all your online Marketing activity
Exploit Google Analytics to maximise revenues
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Providing Answers to Difficult Questions
Which marketing initiatives are the most effective?
Is my website designdriving
people away?
Where and why are visitorsabandoning my shopping cart?
What keywords resonate with prospects and have the
power to convert them?
What do people do while on my site?
Where are my visitors coming from?
Quick to set up, easy to use, and it’s free!
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Web Analytics for Your Organization Track ROI on all online initiatives from a
single report
Identify long-term trends in online marketing programs
Have regularly scheduled reports automatically emailed to you
For Executives
Capture the most conversions at the lowest possible cost
Target high return regional markets and market segments
Test various advertising creatives for each of your campaigns
For Marketers
Demonstrate the value of your site usability improvements
Show how your site design decisions improve website ROI
Identify web design parameters like visitor connection speeds and browser types
For Webmasters
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Geo products such as Maps and Earth utilise the best of user-generated content
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And use Google Maps on your own sites to assist users with navigation
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Google Maps is Europe’s leading mapping service
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000Google Maps
ViaMichelin
Mappy
Mapsolute
Multimap.com
BTex sites
Yahoo! LocalNetwork
Source: comScore Networks MyMetrix Oct 07
Europe, Jan 07 – Oct 07, total unique visitors (000’s)
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To this we’re adding imagery and data we acquire or license ourselves
Google Confidential and Proprietary 45
Use Google Insights for Search for insight into customer search behaviour