1. Mobile-Local ads:
The next big opportunity?
Frank Albert Coates
Mobile & Local Evangelist
April 28, 2010
Google Confidential and Proprietary

2. Four Factors Driving Opportunity
1 Information
Ubiquity 2 The Mobile
Web
Location,
3 Location,
Location
4 Driving
Action
Google Confidential and Proprietary

3. Enabling Consumers to Use Mobile
Communicate Entertainment
Find
Information Transact
Google Confidential and Proprietary

4. 1. Information Ubiquity
Google Confidential and Proprietary

5. 9%  46%
Smartphone % of global mobile
phone sales 2008 vs. 2013
Google Confidential and Proprietary
Source: Gartner as cited by MediaPost, August 2009 5

6. Case Study: More Conversions, Lower Cost
Mobile advertising seems to be a well-kept secret….
we’re finding that mobile can actually deliver a lower
cost per conversion than desktop targeted ads.
Retailer Location
Danny Huynh, Associate Search Director for Razorfish
Results
 7.5% more efficient cost per
conversion compared to
desktop campaigns
 Over 9.3% more conversions
with mobile-specific ad text
Google Confidential and Proprietary 6

7. The Mobile Apps Explosion
• Over 4 billion app downloads
and counting
• Average Android user
downloads 40 apps
• 25% of iPhone & Android
users spend 2 hours per day
in apps
Google Confidential and Proprietary
Source: Complete, Inc. 2009, mocoNews 2009

8. Case Study: Increased Conversions on Apps
CTR with Google Mobile Ads [for Apps] is consistent
and often even better that what we currently see
[on desktop]…. clicks are great, but even more
impressive, is the direct effect on app downloads.
Matthew Shadbolt, Director of Internet Marketing for The Corcoran Group
Results
 Improved performance:
8 to 10 times higher CTR
 Increased downloads:
Achieved an estimated
20% of total app
downloads
Google Confidential and Proprietary

9. Make it easier to promote apps
AdWords for mobile apps
• Transparent setup:
Automatic device targeting
• Improved call-to-action:
Ad text optimized
Google Confidential and Proprietary

10. 2. The Mobile Web
Google Confidential and Proprietary

11. Google Confidential and Proprietary

12. Leveraging the Power of the Cloud
Google Translate Google Voice Search
Google Confidential and Proprietary

13. 3. Location, Location, Location
Google Confidential and Proprietary

14. Location Makes Search More Actionable
37% of local online 46% of local online
searchers visited a searchers contacted a
business in person business by telephone
Find a store Order
nearby a pizza
Get driving Phone the
directions business
Google Confidential and Proprietary 14
Source: TMP Directional Marketing and comScore, 2009

15. Half a Decade of Location Investments
Google Confidential and Proprietary

16. Local Mobile Ad Solutions
Sponsored Ad Listings Near Me Now Click to Call
Google Confidential and Proprietary

17. Ads on mobile linked to Google Places
Location extensions Coupons
Google Confidential and Proprietary

18. Multiple locations: Store locator ads
Google Confidential and Proprietary 18

19. Challenges with mobile local advertising
Advertiser User
Targeting Privacy
Scale Trust
Offline Conversion User Experience
Tracking
Google Confidential and Proprietary 19

20. 4. Mobile Drives Action
Google Confidential and Proprietary

21. Explosive Growth in 3 Years
Android Nexus One
Google Mobile “Shopping” Category Query Growth
Smart Phone Launches
Moto Droid & Eris
Android myTouch
iPhone 3GS
Blackberry Storm
Android G1
iPhone 3G Palm Pre
iPhone
Google Confidential and Proprietary 21
Source: Google Internal Data, based on a basket of 20,000 keywords within the shopping category

22. Most Active, Biggest Spenders
Total Internet Spending in the Last 6 Months
Under $50 - $100 - $200 - $500 $1k - $2.5 - $5k - $7.5k $10k None
$50 $100 $200 $500 - $2.5k $5k $7.5k – $10k +
$1000
* % of active mobile users who spent money in one of the “amount spent” categories
* Index: Higher = population more likely to use their phones to access mobile content
Google Confidential and Proprietary
Source: comScore, Google commissioned study, October 2009

23. Google Local Shopping
Google Confidential and Proprietary

24. Mobile Transactions for Fortune 100 Retailer
Increasing
order value
More
transactions More visitors
on mobile from mobile
phones
t=0
More time spent on mobile
Google Confidential and Proprietary

25. Case Study: Mobile Drives Online Sales
Customers were engaging with our website through their
mobile devices and actually completing transactions…. only
now does the data exist to support heavy investment [in mobile]….
as part of our long-term growth strategy.
Search Engine Analyst for Fortune 100 National Retailer
Results
 Incremental traffic: Over 17%
increase in iPhone visits
 Great ROI: Achieved a 6:1 return
within the first three months
 Increased online revenues: Grew
average order value on mobile 14%
Google Confidential and Proprietary

26. Thank You !
frankalbert@google.com
Google Confidential and Proprietary