3. Digital Revolution in Context
Information Distribution & Commerce Communication
“Read” “Buy” “Interact”
1994 1998 2000 2003 2006 2010
Internet Users: 77M 400M 500M 1B 1.9B
Google Confidential and Proprietary 3
4. The Connected World
> 2bn
people
> 35bn
devices
Google Confidential and Proprietary 4
Source: “Learn from Google” Atlanta Event, 2011
5. eBay sold $2B via 600M daily views 125 Years of
Mobile in 2010 on YouTube via Angry Birds played
Mobile every day
10B+ downloads 950K Android + $4.5M in donations
from the Android iPhone devices for Japan made via text
Market activated daily message
Google Confidential and Proprietary
6. Ad spend is following consumers online
consumers’ advertising
media untapped audience Investments
consumption
gap between ad
investments and media 19% online
25% online consumption
43% tv 43% tv
17% newspapers
5% newspapers
3% magazines
16% radio 11% magazines
8% mobile 11% radio
0.5% mobile
Source: eMarketer, March 2011; Share of Avg. Time Spent Per Day with Select Media by U.S. Adults vs. U.S. Ad Spending Share, 2010
Google Confidential and Proprietary 6
7. There is immense opportunity in Local
97% 1 in 5 1 in 3
online consumers use the web desktop searches are mobile searches are
to research for products.* related to location.** related to location.**
Source: *Yahoo! and com Score Study Finds Online Consumers Who Pre-Shop on the Web Spend More In-Store. July 2007.
**Source: Google
Google Confidential and Proprietary 7
8. Healthy Y/Y grow in searches for “Local”
verticals
Indexed Query Growth
Google Confidential and Proprietary 8
Source: Google Internal Data, YoY is last 90 days
10. The Four Be’s
Be Found Be Relevant
>
Be Engaging Be Accountable
Google Confidential and Proprietary 10
11. Be Found
Google Confidential and Proprietary 11
12. Be Found – Search
Google Confidential and Proprietary 12
13. Consumers Are Ever More Discerning
Since the recession began,
54% of consumers are
spending more time
researching products
online before they
buy them in a store.
And 83% are relying
on trusted places
like user ratings or
product review sites.
Google Confidential and Proprietary
14. Decisions Are Made Before Entering Store
Where Purchase Decisions Are Made % of Shoppers
60%
75%
83% 83%
40%
25%
17% 17%
2007 2008 2009 2010
In-Store Before Entering Store
14 Google Confidential and Proprietary
Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.
15. Be Relevant - Mobile
>
Google Confidential and Proprietary 15
16. Mobile is part of our daily lives
48% 39%
of all smartphone owners of all smartphone owners
use mobile internet while eating use mobile internet in the bathroom
20% 13%
of all smartphone owners of all smartphone owners use mobile internet
use mobile internet while driving while having a meaningful conversation
Source: US Mobile Smartphone Consumer Study, Google & Ipsos Mobile Study 2010
Google Confidential and Proprietary
17. Mobile allows for constant connectivity
Hourly Distribution of Searches by Platform
(doesn’t reflect absolute traffic volume)
Night Morning Day Evening
12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM
Tablet Mobile Desktop
Google Confidential and Proprietary
18. Mobile complements desktop
Sat/Sun Sat/Sun Sat/Sun Sat/Sun Sat/Sun
Week 1 Week 2 Week 3 Week 4 Week 5
Desktop Mobile
Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010
Google Confidential and Proprietary 18
19. Are you ready for mobile?
80% of customers abandon a mobile site if they have
a bad user experience 1
2
Sources: (1) Limelight Networks, Inc. 2011, (2) Compuware, “What Users Want from Mobile,” 2011
Google Confidential and Proprietary
20. Be Engaging
Google Confidential and Proprietary 20
21. Reach customers while they explore their interest
95% of Time Online is Spent Outside of
Search
Search
5%
Community Email & IM
26% 20%
Commerce
11%
Content
38%
Source: Online Publishing Association and Nielsen//NetRatings, August 2010; iProspect Research 2010 Google Confidential and Proprietary
