Google Confidential and Proprietary 1

Travel Trends and Keyword Advertising

Lee HunterProduct Marketing Manager, Google

Google Confidential and Proprietary 2

Travel Trends

Google Confidential and Proprietary

The European market

400m internet users across 48 countries

409m trips (15% for business)

€50bn online travel market

50% of travelers use the internet for research

74% of all searches are on Google

Google Confidential and Proprietary

Europe is world’s largest regional travel market

European Online Travel Market(Internet Sales, bn EUR)

Offline Travel

Online Travel

Source: Centre for Regional and Tourism Research (DK)

• European travel market is worth €250 bn in 2009 – world‘s largest regional travel market in terms of gross bookings

• Online is the driving force - forecasted to account for €65 bn in sales in 2009 (25% of total) – offline market is shrinking

• UK accounts for 30% of the European online travel market, with Germany in second place at 18%

• The direct sellers accounted for 64% of online sales and intermediaries for 36%

Online travel salesOffline travel sales

Google Confidential and Proprietary

Two digit growth in most marketsEuropean Online Travel Market

(Internet Sales, bn EUR, by country)

1%

14%

14%

15%

16%

8%

Growth (YoY)

Note: IT: Estimate; 2009 growth considered equal to average between FR and ESSource: Forrester Online Retail Forecast, PhoCusWright, Thomson, Nielsen, TNS, InfoAdex, D2 Report

9%

8%

7%

11%

9%

European Online Travel Market(Internet Sales, bn EUR, by segment)

Growth (YoY)

Google Confidential and Proprietary 6

Travel seasonality calendar

January traffic

Build up to Easter

1st bank Holiday

2nd bank Holiday

+11% WoW

2007

2008

2009

Peak of Summer Holidays

Tra

vel Q

ue

ries

+13% WoW

+8% WoW

Google internal data

End of Summer

(UK data)

Google Confidential and Proprietary

84% Hotel

Reminder: How search is changing for travel

7

92% Car

99% Air

117% Destination

Source: Google Internal Data

Web Search Volume in the Hotels & Accommodations Category on Google.com “Near” + “Close To”January 2004 to September 2009, including forecast

Google Confidential and Proprietary

Reminder: How search is changing for travel

8

Category Overall vs. Geneva vs. Tenerife vs. Istanbul vs. RomeJanuary 2005 to September 2009

Category Overall vs. London vs. Sydney vs. Thailand vs. ParisJanuary 2005 to September 2009

Using Google Insights to stay ahead of changing demand

Google Confidential and Proprietary

Consumer demand for value

9

Source: PriceWaterhouse Coopers :Evolution or Revolution, How to respond to the consumers demand for value.

Google Confidential and Proprietary

Keyword Advertising Trends

10

Google Confidential and Proprietary

Variance of travel metrics 2007 - 2009

11

• CTRs of Travel ads have fallen by an average of 16% YoY

• This compares with a drop of just 5% from 2007 -2008

CT

R (

%)

CP

C (

£)

• The average CPCs inflation for travel ads is around 10% YoY.

• However, CPCs have gradually fallen throughout the year and are now inline with 2008 prices

Google Confidential and Proprietary 12Resource: http://www.google.co.uk/intl/en/adtoolkit/resources/insights/

Google Confidential and Proprietary

1 Bring me to the right page

2 Make your homepage useful 

3 Help me navigate

4 Give me the right results when I search

5 Display groups of products clearly

6 Give me the product details I need

7 Make registration optional

8 Make it easy to buy or enquire

9 Reassure me

10 Find this useful? Let me help!

Think about your customer’s online journeyMake it simple for them to find, choose, and buy the product they want

Resources: www.google.co.uk/conversionswww.google.co.uk/GCP

Google Confidential and Proprietary 14

Tools

Google Confidential and Proprietary

What is the buzz around my brand?

15Resource: www.google.co.uk (‘show options’ in the blue bar)

Google Confidential and Proprietary

Who do my customers say my competitors are?

16Resource: www.google.co.uk (‘show options’ in the blue bar)

Google Confidential and Proprietary

How is my brand being talked about?

17

45m 45m updates per day on Facebook 25m active users on Twitter

Google Confidential and Proprietary 18

How is my brand being talked about?

Resource: www.twitrratr.com

Google Confidential and Proprietary

Ad Planner

Resource: https://www.google.com/adplanner/ will need to have any google account to sign in

• Does my brand appear on my key brand terms?

• What are people saying about my brand in video, blogs and forums?

• Who do my customers say my competitors are? What can I learn about my competitors?

• What is the perception of my brand outside my customer base?

• Where are my potential customers spending time online?

What can I learn about my brand?

Google Confidential and Proprietary 21

Thank you