Speeding up in the Slowdown

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Google Confidential and Proprietary 1

Anni RonkainenIndustry Head, Google Finland

Speeding up in the

Slowdown

Pärnu Marketing ConferenceMay 15, 2009

This time is different

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1.4 billion online

3.3 billion mobile

id5341906 pdfMachine by Broadgun Software - a great PDF writer! - a great PDF creator! - http://www.pdfmachine.com http://www.broadgun.com

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183 billionEmails sent per day...2 million every second

�130 billionEU eCommerce sales

580 millionunique visitorsin social networks

15 hoursof video uploaded to YouTube every single minute

1.53 billionGoogle searches worldwide per day

LyricsGoogleTartuTorrentTallinn

Swine fluSusan boyleUuseeE okulEbay uk

Youtube.comMeteoFacebook.comTwitterEesti

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Online is mass market

Sources: Forrester�s European Consumer Technology Adoption Study Q2 07, internetworldstats.com Nov 08, Ofcom Nations and Regions CMR 2008, EMOR, Point Topic

52%Out of 6-74 year old Estonians are online

at least 5 days a week

277.000Broadband

connections

854.600Internet users

In Estonia

Search is a core behaviour

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There are two sides to the story�

Online retailers continue to grow

Online check & reserve grew 50%, ecommerce a further 21% of sales

(Q3 08)

Online +34%, overall +0.4% (Q3 08)

Online +1.1% vs. 7% drop in shop sales.

60% of Next Directory orders now online

Q4 sales +9%

Online +30%, overall +1% (Q3 08)

+25% Christmas 08 v 07

High Street In Decline E-commerce On The Rise

Search is a barometer

Q4 sales +9%

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Top search terms in Estonia, last 7 days

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No Media Is an Island

Marketers need to catch up with consumers

Search is at the start of the consumer process

Where is it in media planning?

Search is an integral part of the consumer decision process

Where is it inMedia activity?

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Offline Channels Drive Online Search

37%

30%

17%

Source: iProspect, �Offline Channel Influence on Online Search Behavior,� 2007. (Q. Within the last six months, which of the

following prompted you to go to a search engine to look for information on a particular company, product, service, or slogan? Select all that apply.)

20%

67% of online search users are driven to search for information about a particular company, product, service, or slogan by an offline channel.

More bang for your marketing buck

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57% of people have performed an online search

after watching a TV ad

Likelihood of buying increases by more than

50% when TV and online are used together

Search can produce the same shift in brand

perception at up to 52% less cost than other media

channelsSource: Internet Advertising Bureau, May 2008; iProspect & Jupiter, Aug 2007; Google internal study conducted by Milward Brown, 2007

Get Beyond Media

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Bargain hunters don�t drive

80% of internet users compare prices and options

3/4 shoppers compare prices online before visiting the lowest price store

30% more actively seeking promotions than last year

Online retail spend was up

38% YoY in H1 2008

Sources: Harris Interactive �Digital Influence Index�, Jun 2008; The Retail Bulletin, �Consumers seek out

promotions than they were 12 months ago, Jun 2008; Internet Retailing �I want to buy some cheese�, Feb 2008;

IMRG Cpagenini e-Retail Sales Index, Jul 2008]

The Last Mile Is Critical

If they have not found an item on a site, 50% of people assume it is not available in store either

30% formed a negative perception of a company with a badly put together website

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65% of shopping carts are abandoned at

checkout

Source: Tealeaf Press Release �2008 Tealeaf Survey Highlights Potential Multi-Billion Dollar Business"

Get religious about conversion

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Source: EIAA mediascope Europe Study, Nov 2007

Search is the way in�

Search is more important than word of mouth when researching products or services

49% of online shoppers have changed their mind about which brand to buy following research on the web

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3 No media is an island - optimizing the media investments between the channels is crucial

1 Slowdowns are when winners get ahead

2 This time it�s different � consumers are digital and the slowdown will fuel online growth

4 Keeping up with the digital consumer will help you get ahead

5 Are you doing all you should?

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Q & A

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Thank you!

Anni RonkainenIndustry Head, Google Finland