Google Confidential and Proprietary

New Realities of Retail

Fransje Mous

Account Manager Retail, Google Netherlands

Google Confidential and Proprietary

WHEREWE ARE TODAYWHEREWE ARE TODAY

Google Confidential and Proprietary

The majority of people and businesses are now connected

Google Confidential and Proprietary

The majority of people and businesses are now connected

€8b2010 NL Internet sales

(+25% growth)of Dutch population has a

Smartphone

36%27%of media consumption on average is spent online

(NL)

over over

Google Confidential and Proprietary

The Internet is at the heart of daily life

3.6bsearches conducted per

day worldwide

Research

over 2.4mdaily visitors on

YouTube.nl

Entertainment

over85%online reach social

networking sites in NL

over

Socialising

Google Confidential and Proprietary

The Internet has transformed the Retail landscape

Google Confidential and Proprietary

The Internet has transformed the Retail landscape

2

Of sales in NL in 2009 were online

7%Rising share of spend for online retail channels

Google Confidential and Proprietary

The Internet has transformed the Retail landscape

Traditional retailers are now among biggest online players in the UK

25/10

of top online shops in the UK are high street brands

Google Confidential and Proprietary

The Internet has transformed the Retail landscape

The ROPO effect is everywhere 2

uses the Internet in the product orientation phase

41%

Google Confidential and Proprietary

WHAT’SCOMING NEXTWHAT’SCOMING NEXT

Four key trends in RetailFour key trends in Retail

Google Confidential and Proprietary

1. Think multi-channel

Google Confidential and Proprietary

Halo effect

Impact of online advertising on offline sales in non-tested categories

Up to 3.5%

Offline sales lift

Increase in offline sales revenues in tested categories

1.5% – 4.4%

12

40+ studies show that Online advertising drives offline sales

Google Confidential and Proprietary

Mobiles & Contracts

4:1 ROAS

Apparel

3:1 ROAS

Consumer Electronics

12:1 ROAS

Home & Garden

6:1 ROAS13

…delivering strong ROI across different categories

Google Confidential and Proprietary

2. The “non-line” effect

ONLINE

OFFLINE

Google Confidential and Proprietary

Mobile brings Internet to the high street

24 web site visits/day for average European smartphone user

1/3 US smartphone users have used to compare products/prices while in a store

Google Confidential and Proprietary

Mobile brings Internet to the high streetEg: Barcode scanners

Google Confidential and Proprietary

Mobile brings Internet to the high streetEg: Google Shopping

Google Confidential and Proprietary

3. Becoming Social

Nearly a quarter of

viewers watch YouTube

videos outside the site

(Source: google internal)

180+ video responses to questions from Twitter, Facebook, YouTube etc. in close to real-time

670.000 Members for ‘HowTo’ videos

Google Confidential and Proprietary

4. Love the Data

Google Confidential and Proprietary

See what the world is searching forEg: Fastest rising searches, NL, 12/2010

Google Confidential and Proprietary

Insights for search

Google Confidential and Proprietary

Spot opportunitiesEg: Gardening category searches, 12/2010

Google Confidential and Proprietary

Compare search patternsEg: Brand searches, 2010

Google Confidential and Proprietary

Online media delivers

Proven Results

Google Confidential and Proprietary

Recommendations

Align your marketing efforts across channels

Don’t forget mobile

Engage your customer

Rely on the data - Be visible when people search for you

Google Confidential and Proprietary

Thank you