The Google Game:How Maps, Media and Mobility Are Changing Mass Marketing For Ever

 Angela Heyamhey@techviser.com

Techviser20th November 2007

Republic Polytechnic of Singapore 2007

Winners, Losers, Trends, Opportunities

Maps Mobility

Mass Marketing

About Google

Media

Summary

Google is a trademark of Google, Inc.

Google

Picture Source: Google

1. Why Is Google Successful?2. How Big Is Google’s Impact?3. Who Wins?4. Who Loses?5. What Changes?

Five Questions

Picture Source: Google

The Pillars Of GoogleEric Schmidt

Ads AppsSearch

Screenshot and exec photos source: Google

Larry PageSergey Brin

PhilosophyDon’t Be Evil

Paraphrased fromhttp://www.google.com/intl/en/corporate/tenthings.html

1. Focus On The User

2. Do One Thing Well

3. Fast > Slow

4. Web Democracy

5. Answers Anywhere

6. Can Make Money &Not Be Evil

7. Always More Info

8. Transborder Need

9. Serious, But Suits

10.Great Isn’t Good

Features And Not Products

AdWords And AdSense

Google From Cradle To Grave Baby

◦ Google Search For Name - Easily Found Or Anonymous?

◦ Photos – Picasa◦ Baby Gifts From Froogle Pay With Google Checkout

Child 1st Website With Google Page Creator Teen Makes YouTube Videos Student Uses Android Mobile Phone Professional Blogs Using Blogger With AdSense Entrepreneur Creates Business With AdWords Tracks Customers With Google Analytics Finds New Offices Using Google Maps & Earth Small Business Uses Google Applications Large Business Uses Google Search Appliance Obituary On Google News

2002 2003 2004 2005 2006 2007e0

2

4

6

8

10

12

14

16

18

MSNAOLYahooeBayAmazonGoogle$

Billion

s (

US

)Google’s Revenues ($US Billions)

Annual RevenuesSource: Techviser and Annual Reports

2002 2003 2004 2005 2006

-60%

-40%

-20%

0%

20%

40%

60%

MSNAOLYahooeBayAmazonGoogle

Google’s Profitability (%)

Source: Techviser and Annual Reports

Google content network reaches:• 75% of unique internet users• 20 languages and over 100 countries

Top 10 Web Companies – USOctober 2007

40 50 60 70 80 90 100 110 120 130 0

50

100

150

200

250

Google

Microsoft

Yahoo!

Time Warner

News Corp On-line

eBay

InteractiveAmazon

Wikimedia

New York Times

Number of Unique Visitors (M)

Min

ute

s S

pen

t O

n P

ag

es

Source: Nielsen Online

Top 10 Web Sites – USOctober 2007

40 50 60 70 80 90 100 110 1200

50

100

150

200

250

300

Google

Yahoo!

Microsoft

MSN/Windows

AOL

Fox

YouTube

eBay

WikipediaAmazon

Number of Unique Visitors (M)

Min

ute

s S

pen

t O

n P

ag

es

Source: Nielsen Online

Google Indirect Investment Of 5% In AOL For $1B Cash AOL Focusing More On Ads And Games Forms Ad Target and Measuring Business Group

◦ Platform-A, Also Has Advertising.com Subsidiary Acquired In 2007

◦ Third Screen Media For Mobile Ads◦ Controlling Interest In ADTECH AG For Online Ad-Serving◦ TACODA online behavioral targeting ad network

AOL’s Challenges◦ Time-Warner Subsidiary◦ Downward Pressure On AOL’s Prices For Advertisers◦ Dial-up Business Failing- Sold German Business For $850M◦ Users Moving Away From AOL’s Portal

Case Study: America Online

Year Company Result

2001 Deja Usenet Since 1995 Google Groups

2002 Pyra Labs Blogger

2003 Applied Semantics Advertising Technology

2004 Keyhole Google Earth

2004 Picasa Photo Albums

2005 Urchin Software Google Analytics

2005 2Web Technologies Spreadsheet

2006 Upstartle, Writely Docs – Word Processing

2006 YouTube $1.65B Video Sharing

2007 Postini $625 Enterprise Secure Messaging

2007 DoubleClick $3.1B* Advertising

Select Acquisitions

Jan-Jun 2007 – Acquired 10 companies - $184M +$42M on performance* Subject to approval by regulators

Maps

Map Mashup - Housing

Craigslist and Google MapsSource: housingmaps.com

Maps Mashup – Tagged Places

Source: findbyclick.com

UserInpu

t

Map Markers Are Ads

Tags

Google Ads

National Marketing Service

“A massive improvement. A massive change. “David Hoffman, CEO SAGAS Group,LLC www.Sagas.com (couldn't exist without Google Adwords)

Maps – Location Of Interest

Source: Procter and Gamble

Maps – Winners and LosersWinners Losers

Suppliers of underlying maps and aerial photos to Google and major players

Location-based businesses that advertise on popular map sites – retailers, estate agents, malls

Advertisers with products related to a location

Advertisers who create campaigns around locations

Traditional paper map suppliers

Established GIS vendors with proprietary platforms

Any location-based business whose competitors have better maps

Proprietary map only devices

Engage The Customer With Maps

Maps Become Dynamic, Multi-layered and Interactive

Media“We can’t expect consumers to come to us. It’s arrogant for any media company to assume that.”

Quincy Smith, president of CBS Interactive, May 14 2007 Wall Street Journal

More people read the Blogosphere than read newspapers

Google trials offline media - TV Advertising Favored Over Some Subscriptions

◦ Sept 07 – NY Times drops $50/year subscriptions◦ Nov 07 – Wall Street Journal announces free access

Huffington Post- 1800 Unpaid Bloggers New online mega sites

◦ Social Networking – MySpace, Facebook◦ Open Social – Google cross-platform initiative

Netnography – market research on websites

Media Trends

USA – 30,000 advertising and marketing services companies

Top 50 have less than 40% of the market Typical local agency has 30 people with $5M

in revenues USA - 23 million small businesses, 1M

advertise online (Source: Rupert Murdoch)

Advertising Statistics

Source: Hoovers

US Ad Spending Market Share

Other

Radio

Internet

Local TV

Newspapers

Magazines

National TV

0.0%20.0%

40.0%

3.8%

7.3%

6.4%

11.4%

18.8%

19.1%

33.1%

3.9%

7.1%

7.6%

10.8%

17.8%

20.0%

32.8% 1st Half 2007

1st Half 2006

Source: eMarketer andTNS Media Intelligence Strategy

2007 TV advertising estimates•$68 B (Universal McCann)•$75 B (Morgan Stanley)

2007

Internet AdvertisingOther

2011

Internet AdvertisingOther

Internet Advertising US Share

Internet Ad Spending

Per User Annual Spending Annual Spending $M

India

Brazil

Korea

Canada

China

Germany

France

Japan

UK

US

0 20000 40000

90

400

779

950

1100

1300

2500

3400

4700

19500

Source: Yazid Aksas, Stanford Business School, May 2007Cf $21,700M US Online Ad Spending Estimate from eMarketer

India

China

Brazil

Korea

Canada

Japan

Germany

France

US

UK

4

1527

30

47

63

71

104

127157

Global Marketing - Startup

Source: Cordarounds

•Power Of Blogging•Trousers - $85•Google Ads - $24 per customer•42% repeat business•25% overseas•Text info on website

2005 2006 2007 2008 2009 20100

20

40

60

80

100

120

140Local Online Local Total

$ B

ilio

ns

US Local Advertising

Local Online includes ads on local media sites and local ads from national sites Local Total includes print, billboard, TV, radio, print yellow pages

Source: eMarketer 2007 based on data from September 2006 from Veronis Suhler Stevenson,PQ Media,

Borrell Associates, Corzen, Interactive Advertising Bureau, Simba Information

Local Marketing - Major Brands

Uses Google MapsSource: Krillion.com

Media – Winners and Losers

Winners Losers

Multi-format media properties

Major brands that create engaging multimedia experiences

Businesses that expand their reach with online ads

New companies that offer services remotely

Television and newspapers without actively engaged users

Ad and marketing agencies that don’t embrace search and community websites

Mobility6.6 Billion People3 Billion Mobile Phones

2006 2007 2008 2009 2010 20110

2000400060008000

1000012000140001600018000 Brand Ads Direct Response

$U

S M

illion

sGlobal Mobile Advertising Spending

Total - $1.5B in 2006 growing to $16.2B In 2011 Direct response ads are for potential purchases (e.g. link to online store) Brand ads are promotional

Source: eMarketer, October 2007

Free WiFi in Mountain View 700 MHz Auction Bid? Dark Fiber Mobile Search, Ads, Gmail SMS Search GOOGL - 46645 Google Maps, YouTube

Initiatives

Android Device Platform Open Handset Infrastructure

Android Architecture

Source: Google)

Battle For Personalization Past - Ringtones, Backgrounds, Cases Now – Ringbacks, Multimedia Next – Tiles and Widgets

Will On Deck or Off Deck Win?

Carrier

Platform Provider

Device Vendor

Widget Vendor

User

Samsung SPH-M4650 SmartPhoneWith MS Windows Mobile

Mass MarketingEngage UsersThe Long Tail

What Marketers Want

Sponsorships

Event marketing

Entertainment marketing

Field marketing

In-house digital production

Public Relations

Partnerships

Customer Marketing

Brand Strategy

Behavioral Targeting

Consumer Insights

0 10 20 30 40 50 60 70 80 90

32

38

39

43

49

59

60

66

71

80

82

% of Respondents From over 250 senior marketersSource: Booz Allen, Interactive Advertising Bureau

et al

Web Analytics For All 66% Use Search, 34% Go Directly To A Website

Raising The Bar

Landing Page Statistics

Source: Marketing Sherpa, Sep 2007www.marketingsherpa.com

Survey 4203 Marketing Sherpa readers Landing Page Conversions 46% say landing page conversions are up 14% say conversions are holding steady

Don’t share test results with their agency

Require landing pages to match regular site layout 100%

No landing page content or aid for affiliates

Leave offline promotions off homepage

Use one landing page for many traffic sources

Send foreign ad clicks to English landing pages

Only test landing pages at site launch

Ask too many questions on registration forms

Can't measure landing page tests properly

Can't test alternative pages A/B

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

16%

21%

24%

25%

35%

35%

40%

42%

44%

48%

Year Of Widgets And Gadgets

2007

Engage Users With Widget Ads

Source: http://www.google.com/adwords/gadgetads/gallery.html

Google Trends - WidgetsA Yahoo launches Yahoo! Widgetstuaw.com - Jul 25 2005   

B Opera 9 offers "widgets," BT, skinsMacNN - Jun 20 2006   

C Yahoo! Keeps Consumers Connected with Yahoo! Widgets 4

Promotion World - Mar 22 2007    D Nokia Introduces Web Widgets to S60

Mobile Burn - Apr 16 2007    E PayPal Founder Banks on Web Widgets

Top Tech News - Aug 6 2007   

F Google to distribute ads in widgetsThe State - Sep 19 2007   

Source: Google Trends

1. Australia   2. United States   3. Canada   4. India   5. Switzerland   6. United Kingdom   7. Sweden   8. Germany   9. Belgium   10. Netherlands

iGoogle With Gadgets

SGLifestyle Gadget

Singapore Population

Gadget

Phone CallGadget

iGoogle indexes over 20,000 gadgets

Widgets – USA Today

Source: http://www.netvibes.com/usatoday

OpenSocial – Share Friends, Activities, Lifestyle

OpenSocial

Source: http://code.google.com/apis/opensocial/

60M active users by end of 2007 75% outside college 58% have college education 56% female 34% work as professionals, execs, sales,

education or technical 12% full time students 45% are 35 or older (Nielsen) 6% worldwide

(Forrester) – numbers differ

Facebook – A Quick Way To Get On Mobile Devices

Source: e-strategy, Forrester, Nielsen

Google’s Success

Financial Savvy

Trusted Brand

Clever PeopleEfficient

Innovation*Vast CustomerCollaboration

Big Visions*

* Pictures Courtesy Google

Conclusions

Old Marketing

New Marketing

EngageUsers

Videos Maps Widgets Blogs Social Networks

Dr Liew Beng Keat Republic Polytechnic of Singapore IEEE Singapore Imperial College Alumni Of Singapore Singapore Computer Society

Acknowledgements