Aquent/AMA Webcast: The New Moment of Truth: How Technology Has Influenced Purchase Decisions and How Savvy Marketers Can Capitalize

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

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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

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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

6

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:

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



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Localization: Digital targeting will be more locally focused



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Speed: The new Agility of a Digital world



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ROI: Proving that digital marketing works!

Speed: The new Agility of a Digital world


1. ZMOT

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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


81%

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”

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• 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

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Online Research has Changed the Game


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+288%Coupons


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+209%Recipes



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+209%Recipes

+149%Local Searches



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+188%Reviews

+288%Coupons



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+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

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+188%Reviews


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+188%Reviews

+188%Reviews






Good News for Shopper Marketers!

+20%

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

http://www.marketingvox.com/study-search-vital-for-cpg-brand-building-and-both-offline-online-sales-033942


2. Localization


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*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”


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Leverage Virtual Endcaps









Geo-Targeted Coupon Distribution



3. Speed

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3. Speed


Leverage Insights


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

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McDonald’s Leverages ZMOT for new Smoothies

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Take advantage of

the Unexpected…good or

bad


Amplify Assets Fast & Creatively


Speed Beats Perfection!


Miracle Whip faces Adversity

http://www.youtube.com/watch?v=6n1vtZR16RY


Colbert Calls Out Miracle Whip

http://www.colbertnation.com/the-colbert-report-videos/252726/october-15-2009/the-mayo-lution-will-not-be-televised


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


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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

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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:

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Health Claim

Product Message

Coupon Message


Display Ads by Initiative

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Results:

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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:

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Sales Lift in Product Only Campaign




Results:

79


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!



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Thank You!

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[email protected] Contact me on linkedin

mailto:[email protected]

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Aquent/AMA Webcast: The New Moment of Truth: How Technology Has Influenced Purchase Decisions and How Savvy Marketers Can Capitalize