Aquent/AMA Webcast: The New Moment of Truth: How Technology Has Influenced Purchase Decisions and...

Google Confidential and Proprietary

The New Moment of Truth: How Technology Has Influenced Purchase

Decisions and How Savvy Marketers Can Capitalize

In this webcast Catherine Roe, Head of CPG, Google, will discuss why the consumer's changing media and shopping habits

necessitate the inclusion of a digital strategy in your integrated shopper marketing plans. Also, how best-in-class companies have leveraged strong manufacturer, retail and media integration to drive sales & retail partnerships. Google will also present a case study on how search & display advertising has been proven to drive sales and

ROI for a CPG company.

Google Confidential and Proprietary 3

Gone Digital!

• AMA/Aquent Webcast

Catherine RoeHead of CPG, Google

January, 2011

In 2010, Digital advertising investment surpassed

Print/Newspaper spending for the first time.

CMO Council report quoting the Outsell Group, $119.6 billion to $111.5 billion4

A Week in the Life of a U.S. Hispanic

Weekly Media Consumption

52% Online14 hrs

37% TV10 hrs

7% Radio2 hrs

4% Newspapers1 hr

Source: JupiterResearch Economic Downturn Online Consumer Survey,

Most Marketers have not kept up with their consumers…

Gap between ad spend and media consumption

A Week in the Life of a U.S. Hispanic

5% Online

US Ad InvestmentWeekly Media Consumption

19% Radio

63% TV

8% Newspapers

52% Online14 hrs

37% TV10 hrs

7% Radio2 hrs

4% Newspapers1 hr

Source: JupiterResearch Economic Downturn Online Consumer Survey,

Most Marketers have not kept up with their consumers…

Gap between ad spend and media consumption

Marketing Priorities:

ZMOT: Marketing influence shifts to “Between Stimulus & Store”

Localization: Digital targeting will be more locally focused

Speed: The new Agility of a Digital world

ROI: Proving that digital marketing works!

Speed: The new Agility of a Digital world

1. ZMOT

The Evolving Path to Purchase:

The Goals have not changed:

Grow Sales and Share

But the Journey has changed dramatically

Historical Path-to-Purchase Model:

Stimulus

1st Moment of Truth

(FMOT)

Stimulus

2nd Moment of Truth:

(SMOT)

1st Moment of Truth

(FMOT)

Stimulus

NEW Path-to-Purchase Model:

SMOTFMOTStimulus

NEW Path-to-Purchase Model:

SMOTFMOTStimulus Zero Moment of Truth:

Which Effects ZMOT

The New Path to Purchase

81% of shoppers conduct research before they shop, typically for an hour of more.

Source: GMA, Booz & Company, and SheSpeaks Shopper Marketing 3.0 Survey; n = 3,600 respondents

Be On The List “Before The Store”

• 76% of U.S. households prepare a written or digital grocery shopping list prior to shopping

Source: Survey of 3,600 shoppers for Shopper Marketing 3.0 study conducted Fall 2009 by Booz & Company In collaboration with Grocery Manufacturers Association

Google Confidential and ProprietaryGoogle Confidential and Proprietary

Online Research has Changed the Game

+288%Coupons

+209%Recipes

+149%Local Searches

+188%Reviews

+288%Coupons

+188%Reviews

+288%Coupons

+209%Recipes

Google Confidential and ProprietaryGoogle Confidential and Proprietary 30

The Sheer Volume is Staggering

recipesweight losssoapshampoodeodorantmayonnaisepasta sauce

Annual Query Volume

153,200,000 54,540,000 26,970,000 15,820,000

3,569,000 1,475,500 1,292,000

Source: Google Keyword Tool, US only.

“Search advertising is the

online world's equivalent of

trade promotion.”

Source: Advertising Age, Is Search the Online Equivalent of Trade Promotion?, http://adage.com/digitalnext/post.php?article_id=135261

Search is Integral Tool for Trade Marketing

+188%Reviews

Good News for Shopper Marketers!

Source: MarketingVox : Search Affects CPG Brand Building, Offline & Online Sales.. http://www.marketingvox.com/study-search-vital-for-cpg-brand-building-and-both-offline-online-sales-033942 38

2. Localization

*Marketer is responsible for translating ads into selected languages.

Region City Radius Set borders

Digital Enables Precision Targeting:

It’s Called “Owning the Digital Shelf”

Leverage Virtual Endcaps

Geo-Targeted Coupon Distribution

3. Speed

Leverage Insights

www.target.com/chex Try Gluten Free Chex cereal. Available at Target!

And Execute!

Concept was a huge success!

McDonald’s Leverages ZMOT for new Smoothies

Take advantage of

the Unexpected…good or

Amplify Assets Fast & Creatively

Speed Beats Perfection!

Miracle Whip faces Adversity

Colbert Calls Out Miracle Whip

Miracle Whip Immediately Responded

Full page ads in top newspapers

3 TV spots on Colbert

Facebook Messaging

Search

YouTube

And then “Krafted” an Official Response As Well

3. ROI

Green Giant Target Shopper Marketing Initiative

Insight: Vegetable side dish queries

A Search on “Frozen Veggies”

A Search on “Easter Meal Ideas”

Partners and Participants

Objectives • What is the offline impact of Google search and display campaign on the test brand?

• Can a geo-based targeting approach drive impact vs. a specific competitor?

• Which search text ad messages resonate best with consumers and are most effective at driving offline sales?

Study Objectives

Match Market Methodology

Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010

Search Creative A plus Display

Control - DarkSearch Creative C plus

Display

Search Creative B plus Display

Text Ads By Message:

Health Claim

Product Message

Coupon Message

Display Ads by Initiative

Results:

Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010, Sales in volume.. Life versus control (dark – no search). All results significant at 90% or greater.

Sales Lift in Brand Only Campaign

Private LabelTest Brand

Results:

Sales Lift in Product Only Campaign

Results:

Sales Lift in Product Only Campaign

Sales Lift in Coupon

Campaign

• Search + Display are effective in driving offline sales & ROI

• A Geo-targeted strategy is effective at driving sales at a specific retailer & location

• Ads with Coupon Messaging resonate best with consumers and drive the strongest offline performance

Summary of Key Findings & Implications

CPG - Retailer Trade Calendar1980 1993 1997 2000 2010

Digital Shopper Marketing

Category Mgt / Shopper Insights

Trade Promotions

National Consumer Support

Bottom Line......It’sTime to Re Think the Traditional Trade Calendar!

Trade Promotions

Customer Specific Marketing Funds

Trade Promotions

It’sTime to Re Think the Trade Calendar!

Trade Promotions

Customer Specific Marketing Funds

Trade Promotions

It’sTime to Re Think the Trade Calendar!

Thank You!

croe@google.comor Contact me on linkedin

Aquent/AMA Webcast: The New Moment of Truth: How Technology Has Influenced Purchase Decisions and...

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