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Preparing for Holiday 2013:

Succeeding with the digital shopper

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Today’s Agenda

Holiday Highlights 2012

Holiday 2013: Insights for Succeeding

Preparing Your Mobile Strategy

Next Steps

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2012: Holiday HighlightsA look back at key moments

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True or False?

In 2012, more than 80% of

consumers said online

influenced which stores they

chose to visit

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True or False?

In 2012, 82% of consumers said

online influenced which stores

they chose to visit

True

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True or False?

100% of consumers finished

holiday shopping before

Christmas

Google Confidential and Proprietary 7Google Confidential and Proprietary 7Sources: Google & Ipsos/OTX Post-Holiday Shopping Study (January 2012)

True or False?False

32% of consumers finished

holiday shopping after

Christmas

Google Confidential and Proprietary 8Google Confidential and Proprietary 8Source: Comscore Holiday Report 2013

True or False?

Cyber Monday 2012 was the

largest online spending day in

history

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True or False?

Cyber Monday 2012 was the

largest online spending day in

history at $1.46B

True

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Holiday 2012:eCommerce drove holiday growth

Source:1. NRF: http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=15002. comScore: http://www.comscore.com/Insights/Press_Releases/2013/1/2012_U.S._Online_Holiday_Spending_Grows_14_Percent_vs_Year_Ago_to_42.3_Billion

Total eCommerce Sales: $42.3B2

+14%

Total Retail Sales: $579.8B1

+3%

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2013: Insights for SucceedingWhat we expect this year

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Holiday 2013: Insights to Succeed

Source: 1. http://www.marketplacefairness.org/what-is-the-marketplace-fairness-act/2. http://money.cnn.com/2013/05/28/news/consumer-confidence/

Relevancy, relevancy, relevancy!Talk to the most valuable consumers and drive conversion

Mobile is Not Optional:Without a mobile strategy, you risk not being part of the consideration set.

More to Win:Consumers are expectedto increase online and offline spending

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2013: More to WinShoppers to increase spend across channels – especially online

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Key dates are going to drive Holiday success

Thanksgiving Day (Nov. 22)*

Black Friday (Nov. 23)*

Cyber Monday (Nov. 26)*

Green Monday (Dec. 10)*

Last minute (Dec. 16)

Free Shipping Day (Dec. 17)**

Christmas Day

$633

$1,042

$1,465

$1,275

$1,135

$1,013

$288

2009 2010 2011 2012

Key Online Shopping Days During Holiday

$1 Billion

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TRIVIA QUESTION #1

Comscore Holiday Data 2010-2013* = Projected

In the 6 week Holiday period from mid-November to the end

of December, how many BILLION DOLLAR online

shopping days were there in 2012?

Hint: in 2010 there were two Billion dollar online shopping days

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We expect more than 12 Billion dollar online shopping days in 2013

Comscore Holiday Data 2010-2013* = Projected

2010 2011 2012 2013*

Number of Billion Dollar Online Shopping Days During Holiday, 2010-2013

2

10

12

??

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Estimated US Top Online & In-Store Spending Days - Holiday 2013

Mon Tue Wed Thu Fri Sat Sun

Nov 25 26 27 28 29 30 Dec 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 31

Christmas

T-Giving &Hanukkah

Black Friday

Green Mon

Free Ship.

Cyber Mon

Source: MasterCard SpendingPulse.

Top In-Store Spending Days

Top Online Spending Days

What will your strategy be on key dates?

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Relevancy, Relevancy, RelevancyConvert the highest value consumers

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Three ways to Drive Relevancy

1Localization

2Product Listing Ads

3Shipping Solutions

Scaleably geo-target your audience to maximize ROI

Simplify the online shopping experience for customers

Determine how you will compete on shipping &

returns

Google Confidential and Proprietary 20Google Confidential and Proprietary 20Source: Google Internal Tools. July 2013.

1) Localization:Manage the Market – Not the Masses

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2) Product Listing Ads:Simplify the online shopping experience for customers

Click Traffic Coming from Product Listing Ads – Apparel Industry

12/1

/11

2/1/

12

4/1/

12

6/1/

12

8/1/

12

10/1

/12

12/1

/12

2/1/

13

4/1/

13

6/1/

13

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

holiday

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TRIVIA QUESTION #2

Comscore Holiday Data 2010-2013* = Projected

How many online shoppers consider “free shipping” when making a purchase decision?

Google Confidential and Proprietary 23Google Confidential and Proprietary 23Source: Deloitte; Wells Fargo State of Retail 2013. comScore State of Retail – Internet Retailer 2013.

3) Shipping Solutions:Amazon has set the bar for shipping expectations – How will you respond?

Same-Day Delivery

66%of shoppers factor free shipping into

their purchase decision

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Mobile is no longer an optionAdapting to survive in an evolving marketplace

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2012 Mobile Highlights:

Source:1. Bain Retail Holiday Newsletter #5: Holiday Recap and a look ahead to 2013: http

://resultsbrief.bain.com/pdfs/2012-bain-retail-holiday-newsletter-5.pdf2. Google Internal Data

13% of online sales from mobile1

Cyber Monday• Mobile accounted for 16% of online

purchases

Black Friday - • Mobile traffic saw double-digit growth

67%• Mobile accounted for 16% of online

purchases

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TRIVIA QUESTION #3

Comscore Holiday Data 2010-2013* = Projected

What percent of holiday shopping search queries were

made on mobile devices in 2012?

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85% of users only look at the top 2 ad slots of first page

Source: Eye-Tracking Study, 2011

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2

3

4

5

6

7

8

1

2

Do not lose any market share and always be there by appearing in top ad slots or first page

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Extensions to drive the top performing conversions

Location extensionsfor in-store conversions

Call extensionsfor call conversions

Sitelinksfor website conversions

Click-to-Downloadfor app downloads

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A mobile website is a must: Your competitors will leave you behind this holiday without one

40% of consumers turn

to a competitor’s site after a bad

mobile experience

Source: Google Mobile Playbook.

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Summary

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If You Only Remember 3 Things…

Takeaway

Start preparing your Holiday campaigns, yesterday

Align your online and offline strategies

Mobile, mobile, mobile….and one more thing, mobile

1

2

3

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thank you!