The document discusses search engine marketing and e-commerce trends. It begins with an agenda covering the evolution of search and Adwords, an overview of e-commerce in Western Europe and Romania, and the effect of online research influencing offline purchases (ROPO). Statistics show most internet searches in Europe are on Google, and e-commerce is growing, with 20% of Western Europeans and 50% of Romanians shopping online. The presentation then examines how ROPO is an increasing trend, where consumers research products online before purchasing offline, influencing over $1 trillion in annual retail sales. Methods for measuring ROPO effects on marketing campaigns and sales are also reviewed.

1. Orange Online Meet-Up 1

2. Agenda: Evolution of Search and Adwords E-commerce overview for Western Europe and Romania Effect of search beyond online sales: Research Online, Purchase Offline (ROPO) 2

3. Evolution of Adwords 3

4. 4 Q: How many internet searches are made in Europe per month? A: 19 billion Q: What proportion of these were performed with Google? A: 75% Q: What % of the UK media market is invested with Google? A: 11% Sources: IAB UK, ComScore

5. 5 In the Beginning Annoying pop up c1990s Google Adwords 2000 Google Adwords 2009

6. 6 AdWords - making advertising affordable and accountable

7. Evolution of Search 7

8. 8 Evolution of Search

9. 9 The first evolution Results page 2002

10. 10 Results page 2009

11. Making Google easy is hard 11

12. E-Commerce Overview 12

13. E-commerce in Western Europe: 20% of the Western European consumers shop online. Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, 13

14. E-commerce in Western Europe: 50% of the Western European consumers will be shopping online by 2014. Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, 14

15. E-commerce in Western Europe: Average Western European consumer will spend 1086 Euros per yearon online shopping by 2014. Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, 15

16. E-commerce in Western Europe: Total e-commerce volume will reach $200B from 2008 to $100B by 2014 Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, 16

17. ... and in Romania: 96%of the Romanian internet users are aware of the possibility of online shopping… Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008 17

18. ... and in Romania: …and 50% of them have shopped online at least once. Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008 18

19. ... and in Romania: In Romania Online shopping is the second most popular online activity aftersending and receiving e-mails Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008 19

20. 20 ... and in Romania: 44% of Romanian internet usersuseInternet as the main source of information for phones and GSM accessories Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008

21. Research Online, Purchase Offline 21

22. What is ROPO? Online marketing Offline marketing Total Return - + ROPO Effect ROMI Return onMarketingInvestment Online SalesResearch Online Online SalesResearch Offline TOTAL Offline Sales Research Online (ROPO) 22

23. ROPO is constantly growing in the retail industry $1,280B In-Store sales influenced by Internet $1,093B $992B $634B Online sales influenced by Internet $215B $182B $166B $108B 2012 2010 2009 2006 Source: Internet Retail Off-line Influence Model, Jupiter Research; December 20007 (US) 23 23

24. Online consumer behaviour Purely ROPO related activities Your web site needs to cater to both people who want to buy online and to those who research online. Source: GfK NOP Ltd. For Google, July 2009 24

25. How to Measure ROPO? 25

27. Flyer in daily newspapers and regionally-targeted Google advertisingHamburg Berlin Munich Flyer in newspaper 3 Karstadt Stores n= 400 in-store interviews Flyer & reg. Google advert. 5 Karstadt Stores n= 400 in-store interviews Regional Google advertising 3 Karstadt Stores n= 400 in-store interviews Measure Offline sales Questionnaire data

30. Maximize spend in test region,

31. Oher factors consistent

32. Analyse before, during, after

33. 6-8 weeks

34. Additional Adwords tracking

35. Coupons:

36. Loyalty Programs:

37. Dedicated Hotline:

38. Regression model

39. Time series (at least 3 years)

40. Reflect all drivers of sales

41. Analyze28 28 28

42. Thank You 29