Transcript Search Usage Prior To Purchase

Online Marketing
in Canada
Martin Byrne
Director – Yahoo Search Marketing Canada
The CA Digital universe grew
13% from November 2005 to November 2006
22,184 22,239
21,960
22,078
Unique Visitors(000)
Canadians 2+ Years
21,517
21,738
20,950 21,297
20,248 20,604
19,885
20,070
06
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19,698
Source: comScore Media Metrix Canada, All Locations Nov. 2005- Nov. 2006
Canadians Are Online
% Online Reach
70
180,000
60
Online Reach%
160,000
Total Unique Visitors
140,000
50
120,000
40
100,000
30
80,000
60,000
20
40,000
10
20,000
0
0
Canada
US
UK
Germany France
Italy
Total Unique Visitors (000)
59% of Canadians access the internet
at least once a week, the highest
% reach of any G7 country
Russia
Source: comScore Media Metrix October 2005
Wikipedia 2004 – 2005 population estimates
Canadians of
all Ages Online
Canadians across all age groups use
Canadian Age Groups Online
the web regularly
95
10,000
8,000
76%
91%
80
65
53%
6,000
50
4,000
35
26%
2,000
0
% Reach
Unique Visitors (000)
12,000
20
5
2-17
Canadian Population
18-34
35-54
Canadians Online
55+
Online Reach
Source: comScore Media Metrix Canada, November 05, All Locations
Source: Statistics Canada, July 04 Census
Canadians Spend
40hrs+ a Month Online
40.8
Canada
34.2
Israel
31.6
UK
30.3
Brazil
US
29.6
Spain
29.4
28.1
Finland
27.5
Sweden
26.2
Netherlands
France
24.2
Germany
24.0
Portugal
21.0
Wired
Canadian
households
spend 40.8 hrs
a month online,
more than any
other G7
country
Source- comScore Media Metrix, November
2006 data
Canadians Are Spending
More Time With Multi-Media
Watch TV While Surfing
35%
28%
30%
26%
25%
The web is increasingly becoming
a passive domestic utility that
complements the consumption of
other media like TV and Radio.
26%
25%
22%
20%
TV and Computers in the Same Room
10%
2002
2003
2004
2005
2006
With the increased adoption of
wide format/hi-res plasma
televisions and the introduction of
IPTV the desktop PC will be
replaced by the TV as the new
domestic gateway to the internet.
Adult Canadians with Internet Access
15%
50%
45%
40%
42%
39%
39%
39%
2003
2004
2005
35%
30%
25%
20%
2006
Canadians are spending
Less Time With Old Media
Canadians are spending less time with
all other media except online
Impact of Internet on Canadians Use of Other Media
% Of Canadian Internet Users
0%
Radio
-2%
-1%
Dailies
Weeklies
Magazines
TV
-2%
-4%
-3%
-4%
-5%
-6%
-6%
-7%
-8%
2005
-10%
2006
-10%
-10% -10%
-12%
Source: Cybertrends Pulse of the Internet Report March 2006
Internet has really
changed media
Online Marketing is
Growing…because it works
In 2007 Canadian Online Marketing Spending is
estimated to be more than $900m
Canadian Online Ad Spend by CategoryHistorical/Forecast
$1,400
Search
$1,200
Graphical Media
$520
Millions ($CDN)
$1,000
Directories
$388
$800
$600
$192
$109
$92
$113
$131
2003
2004
$166
Classifieds
$365
$268
$400
$200
Performance Media
eMail
$296
$226
$101
Sponsorship
$142
Other
$64
$2002
2005
2006
2007
2008
Source: IAB Canada
Source: IAB Canada 2006
Search is Becoming
the eMarketers Choice
In 2007 Search Marketing spending in Canada is
estimated to be more than $400m
Canadian Online Ad Spending by Category Historical/Forecast
% of Total Annual Spend
100%
6%
90%
9%
30%
80%
70%
Search
37%
37%
38%
39%
Performance Media
52%
48%
Directories
60%
36%
50%
40%
30%
20%
Graphical Media
2%
27%
5%
7%
26%
12%
10%
Classifieds
32%
31%
29%
28%
7%
9%
10%
11%
11%
9%
8%
7%
2005
2006
2007
2008
Sponsorship
eMail
Other
0%
2002
2003
2004
Source: IAB Canada 2006
1) GET ONLINE!
…because not being there now hurts your
brand and your story
It doesn’t change
my view of the brand
name, the product,
or the service
I have a less favorable
view of the brand name,
the product,
or the service
64%
36%
[Source: Yahoo! Search Marketing and Carat Expert, May 2005]
Social Media is the
Ultimate Merger Of Influence
•
•
Social networking is a trifecta of
factors that influence consumer
choice.
The Internet ensures that the
information shoppers need to
make wise decisions is at their
fingertips.
– An unlimited network of
“friends”
– Expert media & information
sources
– Your marketing messages
•
Unleash the power of the Web
by engaging consumers through
social networking.
Search is the New
Gateway to Consumers
• 78% of Canadians online will use search
engines to research on and offline purchases
• 27% of those who researched product info
online purchase online
• 45% of those that search for product
information online still purchase via traditional
retail
Search is an Integral
Resource Prior To Purchase
67%
VOIP
Automotive
57%
Luxury Travel
57%
53%
Technology
51%
Teen Apparel
43%
Auto Insurance
Banking
Home Improvement
Books, Games, Music
Search
Usage Prior
To Purchase
35%
27%
24%
Source: 1)Long & Winding Road 2) Reach & Engagement Studies
Search is the Gateway
to Travel Consumers
• 83% of online travel buyers completed a relevant
search prior to their online purchases.
• Travel buyers performed an average of 5.4 travelrelated searches and clicked on 7.8 links prior to
each travel purchase they made.
• 85% of online travelers feel that search is more
valuable than offline resources.
Travel Marketers using
search agree…
• Travelers will go online to learn more about your products
and services after being influenced offline or through other
channels.
• Search helps advertisers close the loop on their marketing
efforts.
• Search is more than a media buy and can be used as a
distribution strategy.
• Understanding acquisition costs by channel is essential in
seeing the value of search as a potentially lower-cost form
of distribution.
• While highly effective as a direct response vehicle, search
serves to aid in product and brand awareness-building.
Advertisers are
Choosing Search Engines
Canadian Online Marketing Growth
Annual Advertiser Spending
($,000)CDN
$4,000
Display Ads
$3,500
SEM/SEO
$3,000
$2,500
$2,000
$1,500
By 2010
Canadian
Advertisers will
be spending
almost $4B a
year in Online
Advertising
eMail
Directories
In 2006 Canadian
advertisers spent
more than $350M
on SEM/SEO
By 2010 more
than 33% of
all online
marketing
dollars or
$1.2B will be
spent on
search engines
$1,000
$500
$2005
2006
2007
2008
Year
2009
2010
Understand Your
Consumers Cognitive Funnel
Consumer Decision Funnel
Consumer Thoughts
Search Query
Need Recognition
“My Back Hurts”
Back Pain
Need Qualification
“Maybe I need a new bed”
Beds and back pain
Solution Identification
“I need a bed that gives me
better back support”
Beds with Back Support
Solution Evaluation
“Foam or Spring”
Foam vs. Spring beds
Solution Selection
Foam bed Brand A
vs. Brand B
Foam Beds
Transaction
Selection
I’ve only got $X to spend
Discount Foam Beds
Search Targets
the Untargetable
A Search
Program
hits all
potential
consumers
interested in
your product
or services
Client Age vs Income Distribution
100
Age
Income
90
Client Age
80
70
60
50
40
Print program
targeted at
30
Annual
Income
$45k - $75k
TV program targeted at
20
25 to 45 year olds
10
10
20
30
40
50
60
70
Annual Income ($,000)
80
90
100
Searching Often Leads
Consumers to New Brands & Websites
Brand & Website Introduction
 Top ranking positions in search often convey perceptions of leadership – and
ultimately drive traffic
79%
61%
56%
Search introduced
me to brands that I
previously was
unaware of
I expect brand
leaders to be
consistently in the
top results
 Source: YSM Reach & Engagement – Auto Insurance
Target: Recent Auto Insurance Purchasers
  Source: The Role of Search in the Wireless Market


Target: Those who have switched wireless providers in the last 12 months and used online search in the
research process
   Source: The Role of Search in the Travel Research Cycle
US Travel Web Searchers
Looked at a site I
didn’t intend to
because it was one of
the first few results

Searchers Are Looking
To Be Influenced
Pre-Purchase
# Of Brands Considered Before Purchase (across
product categories: Automotive, Finance, Technology, Retail)
Searcher
Internet User/Non-Searcher
Non-Internet User
2.50
1.80
1.50
Average # of brands considered
prior to purchase
Source: Long & Winding Road
 Indicates a significant difference at a 90%
confidence level
Searchers Are Engaged
Apparel Engagement:
Searchers vs. Non-Searchers
% Increase In Onsite Activity Among Searchers (vs. Non-Searchers)
47%
Email to Friend
39%
Live Customer Service Chat
35%
View Return Policy
30%
Store Locator
29%
View Size Charts
Request Catalog
Contact Us
20%
17%
Customize Product Image
15%
Add Items to Cart
15%
Email/Newsletter Registration
14%
View Shipping Methods/ Charges
12%
Source: Apparel Reach & Engagement Studies
 Indicates a significant difference at a 90%
confidence level
Canadian Companies
Might be Missing the Boat
• 82% of Canadian businesses with websites use some
form of online advertising.
• Of those online advertisers 36% spend money on some
form of SEM/SEO activity.
• Of those that do invest in some form of SEM they spend,
on average, less than 18% of their online budget on
Search.
• Of the 45% of online advertisers that advertise in
Canada, only less than 25% have tried SEM.
• In 2006 more than 79% of US online advertisers used or
piloted some form of SEM program.
SEM is the Best Way to
Compete With the Big Guys
The percentage of large and medium-sized businesses use Sponsored Search is significantly higher
compared to small businesses but, the use of online media as whole does not differ by size of
business.
Small business
(1-4 emp. & sole proprietor)
Medium business
(5-49 employees)
Large business
(50+ employees)
81%
Advertise Online
SEM/SEO
30%
83%
Advertise Online
SEM/SEO
60%
81%
Advertise Online
SEM/SEO
57%
Leverage Search
Engine Marketing Services
Leverage Organic
Search (SEO)
Understand the
Relationship Between SEO/SEM
Organic and Paid Search listings drive
different kinds of consumer actions
CAMPAIGN GOALS
SEM
SEO
Registration data
Specific action taken
Delayed e-commerce or service purchase
E-commerce product or service purchase
Offline conversion
Average
5.7%
4.3%
4.2%
3.8%
3.6%
3.6%
5.2%
3.9%
6.3%
4.1%
2.8%
4.2%
Online is now a trusted
Driver for Consumer activity
Best Buy: exit surveys at the
register found that 19% would
NOT be there, except for the
online promotion
Source: Forrester Research/Shop.org
Key Online Marketing
Trends through 2010
• Consolidation of advertising networks
• Increased ability to purchase media based on
performance and not volume (CPC/CPA vs. CPM)
• Migration from audience targeting to prospect
targeting
• Migration from the PC to the New TV as the
interactive hub of the household
www.advertising.yahoo.ca
THANK YOU