Google Confidential and Proprietary

Google AdWords UpdateFrederick Vallaeys

Agenda

Online advertising in today’s economy

SEM trends during the holidays

AdWords product updates

How to respond to a down economy

“When times are tough, it is time to invest, not cut. This comes from years of research dating back to Ogilvy’s Alex Biel and Millward Brown interaction surveys. All show that if we cut marketing during such times, the impact is damaging and it can take you longer to get back to where you were.”

—Sir Martin Sorrell, chief executive,WPP Group, as quoted in MediaWeek, October 7, 2008

Online Marketing Benefits:

• Measurability

• Granular targeting

• Interactivity and engagement

“We see more people turning to online because it’s much more efficient in terms of time and money.”

Michael Boylson, CMO, J.C. Penney

Consumers Go Online in Tight Times

-11% same-store sales

+21% online sales

-7.4% same-store sales

+8.7% online sales

Source: The New York Times, “To Save Gas, Shoppers Stay Home and Click,” July 2008.

Consumer behavior reflects economic trends

U.S. searches for “safe investments” on Google.com

U.S. searches for “fuel efficient cars” on Google.com

Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google queries over time.

Sep 2008

Mar 2008

Track Trends With Google Insights for Search

www.google.com/insights/search

• Narrow data to specific categories, like finance, health, and sports.

• Anticipate demand for your business so you can budget and plan accordingly.

• Know where to find your customers. See how search volume is distributed across regions and cities.

Strategies

Ads

• Focus on your value proposition

Keywords

• Your keywords should reflect consumer trends

Website

• Build trust

• Offer something for the bargain hunter

• If not now, maybe later

Measure

Optimize

Decisionand

Purchase Cycle

AdWords CPA Trends from 2007

ChristmasBlack Friday

Holiday Trends for 2008

Both research and shopping will start early this year 

• 31% of consumers plan to start holiday shopping and research before Halloween.

• 57% will start before Thanksgiving.

Consumers will spend more time looking for deals

• 43% of consumers plan to do more comparison shopping.

There are 5 fewer shopping days between Thanksgiving and Christmas than last year

Source: OTX/ Google 2008 Holiday Shopping Intentions Survey, 9/16-9/24 2008, n=10,039

Product Update

Some changes since last year…

• First Page Bids

First Page Bids

Product Update

Some changes since last year…

• First Page Bids

• Conversion Optimizer

• More detailed metrics

Separate Google and Search Partner Stats

Product Update

Some changes since last year…

• First Page Bids

• Conversion Optimizer

• More detailed metrics

• Display ad builder

Display Ad Builder

Product Update

Some changes since last year…

• First Page Bids

• Conversion Optimizer

• More detailed metrics

• Display ad builder

• Analytics enhancements

Analytics

Custom Reports

Advanced Segments

Learn more Wednesday at 10:15am: Analytics Vendors and Package Implementation

Product Update

Some changes since last year…

• First Page Bids

• Conversion Optimizer

• More detailed metrics

• Display ad builder

• Analytics enhancements

• Website Optimizer

Website Optimizer

Google Confidential and Proprietary

Thanks!frederick@google.com