Presentation by Henry Kelly, Industry Analyst, Technology, Google

1. Digital Opportunities Christmas 2010
Henry Kelly
Industry Analyst
Technology, Google Google Confidential and Proprietary 1

2. Christmas Online
It’s Big and it Starts Early
Google Confidential and Proprietary 2

3. 76% of people researched a
technology related product
online and then went on to
purchase that product either
online or in store
-
Source: Q2, Q3.1 / Consumer Commerce Barometer / TNS Infratest, Fieldwork March 22 April 11, 2010 / base varies for each product category Google Confidential and Proprietary

4. Growth rates for C.E & Telecom queries
Research Online Purchase
Week commencing Offline:
21st September: First
spike in traffic for all End of month – post payday
verticals search spike to find presents
Consumer Electronics Queries Laptops Queries Mobile & Wireless Queries
145%
140%
135%
130%
125%
120%
115%
110%
105%
100%
6-Jul-09 6-Aug-09 6-Sep-09 6-Oct-09 6-Nov-09 6-Dec-09 6-Jan-10
Month of January:
The bounce back is
significant
Google Confidential and Proprietary 4

5. ‘Christmas’ starts Today
Doubling in
second half
November
Ramp up
through
October
First blip
this time last
year
Source: Australian search queries from internal Google tools
Google Confidential and Proprietary 5

6. Finding stores is still happening at the last minute
Continue growing
Source: Insights for Search to 25th Dec
Google Confidential and Proprietary 6

7. And what happens if you can’t get instore?
Buying vouchers still happens up to the last minute
Searches for
‘Gift Vouchers’
Will you be offering an Online
Voucher service so that people
can buy and redeem Gift
Vouchers purely Online?
The perfect way to kick start the
New Year
Continue growing
to 24th Dec
Google Confidential and Proprietary 7
Source: Insights for Search

8. Learning from Christmas Past
Get Scientific and Look at the Trends
Google Confidential and Proprietary 8

9. eCommerce Attitudes
I always read the Terms &
Conditions before buying
an item online.
I’m comfortable
buying products I’m comfortable buying
from foreign products from
websites. unfamiliar websites.
Smart
Savvy
Secure
Question: Thinking about online shopping to what extent do you agree or disagree with the following statements?
Source: Q7.2 / Consumer Commerce Barometer / TNS Infratest, Fieldwork March 22-April 11, 2010 / base: n = 2,025 Google Confidential and Proprietary 9
Top 2 on a 5 point scale = strongly agree, agree

10. Consumers start offshore searches before domestic
Queries for International & Domestic Terms
[Indexed]
1
3 Mid October:
Key research window for
overseas brands
2
1
2
Early December:
International orders &
research finalised to ship
3
Mid December: Interest
moves back to ‘local’
brands with store presence
International (eg): International shipping, USPS, Amazon, Book
Depository, ebay.com, Macy, Best Buy, ebay.co.uk
Domestic (eg): Myer, Harvey Norman, David Jones, Coles,
Woolworths, Kmart, Target, Dick Smith, JB Hifi, Officeworks
Source: Australian search queries from internal Google tools
Google Confidential and Proprietary 10

11. Auctions intensify before Christmas in Research Phase
‘Mobile Phone’ queries Cost Per Click (CPC)
[Indexed] Last year, CPC levels rose
significantly, but dropped as the
3
season progressed
2.5
Don’t think that by leaving it late
2 you can get ‘cheap clicks’
1.5 Why was there a drop?
1 October is the Telecoms
Christmas!
0.5
0
Google Confidential and Proprietary 11
Source: Australian search queries from internal Google tools

12. Q4 is a popular time to Launch new Products
What
happens
when a
laptop product is
laptops launched in
to a
netbook category?
notebook
Apple iPad
notepad launch
influences
whole
category
What are
you or
competitors
planning?
Source: Click volume from internal tools
Google Confidential and Proprietary 12

13. New products: leverage interest before product launch
Australian ‘iPad’ Search Volume
Launch Announcement US Sales Launch Australian Sales Launch
[January 27th] [April 3rd] [May 28th]
Register Interest Take Pre-Orders Sales…
iPad Experience: surge in January, with Learning: support your new products
interest bubbling through until Australian with search marketing during pre-
launch in May launch phase
Source: Australian search queries from internal Google tools
Google Confidential and Proprietary 13

14. Top Categories for 2010 – Educate and Inform
Smartphones Tablets 3D TV
Approx 400k searches a Approx 800k searches a Approx 200k searches a
month on Smartphone month on Tablet PC related month on 3DTV related
related products products products
Key launch – HTC Desire, Key launch – iPad, Asus Key Launch – Samsung
Apple iPhone 4, Samsung Eee, Dell Streak, HP Slate,
Key points to consider –
Galaxy, Nokia N9 pre-order Kindle now!
Online through TV will
Key points to consider – is Key points to consider – open up magnitude of
it a Global launch? Have with many new entrants, content for home theatre
you set-up pre-reg early consumers need education.
enough? Become their partner
Google Confidential and Proprietary 14

15. Getting Ready
Next Steps for a Merry Christmas
Google Confidential and Proprietary 15

16. What should you be doing next?
Marketing Steps Online Focus
-Start with large/high value items -Prepare/test Christmas creatives
requiring long research times - Update landing pages
- Create category level excitement September - Advertise on broad category items
- Spark interest with generic terms - Implement remarketing code
-Move to traditional Christmas items -Move to gift-buying creatives
-Push toys, gifts, games -Start broad interest display ads
-Start promotional campaigns October -Bring up daily budgets as search
-Take lay-by/shipping orders traffic & interest increases
-Add impulse and branded items -Align online campaigns with offline
-Start to drive vouchers & gift cards -Turn on remarketing to capture
-Adjust promotions as stock levels November researchers from October
begin to change -Prepare post-Christmas creatives
-Push hard on all channels -Harvest key Christmas sales
-Include upsell of extra items & gift- -Close orders and drive last-minute
wrapping
December shoppers to stores or gift vouchers
-Prepare post-Christmas sales -Ready post-Christmas campaigns
-Shift messaging to sales/savings -Shift gear to new year sales focus
-Integrate messages across channels January -Ramp up sales & price messages
Google Confidential and Proprietary 16

17. The 7 Steps to a Successful Christmas
What day does Christmas falls on and how
will this impact on delivery dates or in store
purchase
Christmas and Boxing Day sales are
important; take advantage of the surge in
volume
Capitalise on the “back to school” surge
(End January)
Traffic builds earlier in the year for mobile
queries (Q3 peaking Q4)
Queries peak early November, and again in
the first week of December
Advertisers must capture the bounce back in
volume of queries into January and Q1
Be aware of key product categories and who
will be releasing new products in Q4 2010
and Q1 2011
Google Confidential and Proprietary 17

18. Thank You!
Google Technology Team
Google Confidential and Proprietary 18