google ch - online in ch status quo (claudio hasler)

Google Confidential and Proprietary 1

Zurich, November 19, 2010

Research & Trends Breakfast

Dr. Beat Bühlmann

Industry Head Switzerland

Daniel Meyer

Head of Market Research DACH & Nordics

Claudio Hasler

Industry Analyst


Content

CH today:

Online in Switzerland

Global outlook:

Hot trends in the market

Deep dive:

Online to store, online branding


The (r)evolution is

already here !!!

Wake up video


Zurich, November 19, 2010

Claudio Hasler

Industry Analyst

Online in CH – Status Quo

Google Confidential and Proprietary

87% say that access to internet

should be seen as a human right

Base: persons that use the internet. Survey among 27,000 in 26 countries.

BBC, March 2010


Status quo of online in CH - Content

6

1. Media

consumption in

CH

3. Swiss online

advertising

2. Search

behaviour in the

internet

1. Media

consumption in

CH


The Swiss are among the most advanced users of the internet

7

36%

46%

52% 52%

58%62%

69% 69%73%

81%84% 84% 84% 86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Do you use Internet on your Laptop, PC, Mobile Phone or PDA?

Source: EIAA, Mediascope Europe 2010, N=1500 (1000 online, 500 omnibus)


The Swiss are early adopters

8

97%

89%

33%

27%

97%

81%

18% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Calls SMS MMS Mobile Internet

Example: Functions used on mobile phone

Source: Accenture Mobile Web Watch 2010; N=3516


27.8%

50.0%

8.5%

4.5%

48.7%

30.0%

4.0%

5.0%

Internet usage surpassed TV

9

Media consumption (% per day)

% Adspend

Client

Logo

% Adspend


31% Radio

20%Print

24%TV

25% Internet


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

6 - 9AM 9 - 12AM 12 - 1PM 1 - 5PM 5 - 6PM 6 - 7PM 7 - 8PM 8 - 11PM 11PM-2AM

Percent

Internet at home

TV

Mobile internet

Internet at work (private purpose)

Internet total

10

Internet goes towards “always on”

Source: TNS Infratest, Oct 2010, N=993, during the week


Internet

TV

Mobile

internet

Multi-tasking in media consumption is reality


66%

10%


Internet at home

Newspapers

TV

Radio

Internet on the go

Internet at work

(private purposes)

Magazines

Videos/DVD

62%

38%

36%

31%

28%

24%

14%

7%

23%

23%

33%

41%

46%

47%

74% 5%

Internet is by far the most important medium in CH

Q203: How important are these media sources for private purposes in your daily life? N=1000

Very importantNot very importantNot important at all Extremely important

Source: TNS Infratest, Oct 2010, N=1000


1. Media consumption:

- Swiss are early adopters

- Internet is lead medium

- Fundamental change in media

behaviour over the day

- Internet most important medium today

Intermediate conclusion


Content

14

1. Media

consumption in

CH

3. Swiss online

advertising

2. Search

behaviour in the

internet

2. Search

behaviour in the

internet


Search is the second most important Online Activity

15

3.0%

5.0%

6.0%

7.0%

10.0%

15.0%

18.0%

43.0%

59.0%

0% 10% 20% 30% 40% 50% 60% 70%

Forums

Music Downloads

Watching Film,TV or Clips

Telephone Calls

Online Gaming

Instant Messaging

Social Networks

Search

Email

Without which web activity could you not live?


Google Confidential and Proprietary 16Sources: individual queries: Google Keyword tool; total queries: www.mediachange.ch based on Comscore, all search engines. Future results

may differ, use as directional guide online

400‘000‘000

Search volume is huge in Switzerland

Whom of you is most searched for?


400 million is quite a number

17

Source: Random, own estimates, internet


Search allows to read the mind of the user

18

Source: Googel internal data, Oct 2010. Future results may differ, use as directional guide only


CH

CH

CH

CH

CH

US, UK, DE, FR

US, UK, DE, FR

US, UK, DE, FR

US, UK, DE, FR

US, UK, DE, FR

19

Source: Googel internal data, Oct 2010. Future results may differ, use as directional guide only

Search allows to read the mind of the user


Search allows to read the mind of the user - Example

Source: Googel Insights for Search, Nov 2010



21

2. Internet & Search:

- Search is key in the internet, huge

volumes

- Search allows to read people„s minds

- Unstopped growth

- Interest shifts from tech to entertainment

& daily life


Content

22

1. Media

consumption in

CH

3. Swiss online

advertising

2. Search

behaviour in the

internet

3. Swiss online

advertising

27.8% 28%

8.5% 8.5%

48.7% 50%

4.0% 4%

23

Media consumption (% per day)

% Adspend

24%TV

25% Internet

20%Print

31% Radio

Source: Mediascope Europe 2010, ZenithOptimedia Ad Spend Report March 2010

Adspend does not reflect customer behaviour


Switzerland lags when it comes to internet Ad spend

2007

24

>20 - 30%>15 - 20%>10 - 15%

>5 - 10%0 - 5%

3.3%

3.5%

17.3%

16.7%

4.6%

12.0%

11.1%

1.2%

5.3%

19.4%

1.4% 6.1%

18.3%

16.6%

18.8%

3.3%

5.5%

4.1%

25.5%

14.6%

21.1%

17.2%

15.0%

1.7%

8.5%

25.5%

2.6% 11.8%

25.0%

16.6%

27.2%

4.8%

2009

Source: ZenithOptimedia March 2010


But also in CH Internet advertising is taking off

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

2005 2006 2007 2008 2009 2010 2011 2012

Newspapers

Magazines

TV

Radio

Cinema

Outdoor

Internet

$ M

Online Ad Spend tripled between 2005 and 2009

25Source: ZenithOptimedia Ad Spend Report March 2010



26

3. CH online advertising:

- Adspend does not reflect user

behaviour

- CH still lagging internationally

- Yet activities are taking off


Key take aways – where are we today in Switzerland?

27

1. Internet is the most important medium today

2. Search is huge, going from tech to daily life

3. Swiss companies still lag in online marketing

but clear upwards trend


Backup

google ch - online in ch status quo (claudio hasler)

Technology