The Role of Search in the Business Technology Purchase Process

The Role of Search in the Business Technology Purchase Process Agenda • Methodology and Sample • Key Findings by Purchase Process Phase • Keywords Used in the Purchase Process • Propensity to Click on Ads • Summary 2 Google Confidential Overview Goal of the Study: • Identify how search compares to other resources across the purchase process • Identify types of keywords used most across the purchase process • Identify messages that resonate best with business technology influencers • Explore variances across product categories, company size, and job functions The Basics: • Business Technology Influencers Sampled • Represent various job functions • Studied three enterprise categories: Server Storage, Enterprise Applications and Security 3 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Methodology Sample and Methodology • To accomplish the research objectives, a web-based survey was conducted among respondents of the IntelliQuest CIMS™ study and the IntelliQuest Tech Panel™ in the U.S. • The general makeup of the respondents is as follows: Enterprise Application Software Security Software Storage for Servers Total 300 300 300 900 • The report shows the data cut by small/medium and large business (1999 employees and 1,000+ employees) as well as IT vs. non IT function where appropriate • Data collection was conducted from March 31 to April 13, 2005 • Google was not identified as the sponsor of the research 5 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Makeup of Respondents (Total) Company Size* 1-999 employees Sample size 338 Extent of Purchase Influence Entire organization Sample size 515 1000+ employees 555 Sample size 728 Entire worksite/division Department or business unit 216 102 Job function Part of MIS/IT department Workgroup 40 Not part of MIS/IT department 172 Self only 27 * Does not sum to 900 because respondents were allowed to select "Don't know/decline to answer". 6 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Extent of Purchase Influence • A survey was structured in the context of one of the three categories of influence - involvement in the past 12 months in the purchase of: 1. Enterprise apps 2. Security software 3. Storage for servers • According to the Millward Brown IntelliQuest CIMS 2004 syndicated study, this sample frame has significant influence across a wide variety of technology categories 7 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Respondents Have Purchase Authority Across Many Products Category Percent of sample who also have influence over the purchase of category Desktop PCs/workstations Operating systems Printers Displays ISP Consulting LANs Inter/Intra/Extranet equipment Utilities/software development tools 87% 54% 91% 72% 62% 27% 44% 47% 50% Source: IntelliQuest CIMS 2004 Business Influencer Study 8 Key Findings – Search in the Purchase Process Business Technology Purchase Process RESEARCH / ENGAGEMENT CONSIDERATION/ COMPARISON PURCHASE 10 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Research/Engagement Phase First Choice Total Choice Search engine Manufacturer’s website Colleague IT Consultant Content website Magazine/Trade publication RESEARCH/ENGAGEMENT 22% 16% 15% 12% 10% 6% 6% 4% 2% 18% 36% 40% 44% 34% 33% 57% 60% 50% Manufacturer’s sales rep CONSIDERATION/ COMPARISON PURCHASE Trade show Online retailer Local retailer Community websites E-mail newsletter Blogs 2% 16% 2% 15% 1% 10% 0% 7% 11 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Consideration/Comparison Phase First Choice Total Choice Manufacturer’s website Manufacturer’s sales rep IT Consultant Colleague Search engine Content website RESEARCH/ENGAGEMENT 23% 19% 11% 9% 9% 8% 7% 4% 3% 3% 34% 39% 40% 32% 28% 20% 33% 24% 59% 47% Online retailer CONSIDERATION/ COMPARISON PURCHASE Local retailer Magazine/Trade publication Trade show Community websites Blogs E-mail newsletter 1% 13% 1% 6% 0% 7% 12 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Purchase Phase First Choice Total Choice Manufacturer’s sales rep Online retailer Manufacturer’s website IT Consultant Local retailer Colleague RESEARCH/ENGAGEMENT 32% 16% 11% 9% 9% 7% 5% 27% 33% 26% 21% 43% 44% 58% Search engine CONSIDERATION/ COMPARISON Content website Trade show 2% 13% 2% 13% 2% 13% 0% 6% 0% 3% 0% 3% PURCHASE Magazine/Trade publication Community websites Blogs E-mail newsletter 13 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Tech Buyers Find Your Company Via Search Methods for locating technology related information online Type keywords into a Search Engine Type company name into a Search Engine Type web address (URL) into my browser Bookmarked sites 33% 49% 57% 79% Other (please specify) 0% 1% 10% 20% 30% 40% 50% 60% 70% 80% Q. How do you find manufacturer, tech content, tech distributors and associations websites when you go online? 14 Source: Insight Express (September 2004) Google Confidential Key Findings: Job Function & Company Size Job Function • Use of search by IT professionals vs. business influencers In the research/engagement phase, IT professionals turn to search engines more frequently than business influencers; however, still half of business influencers turn to search -- significantly more than any other media resource • Behavior in subsequent phases In the subsequent phase of the purchase process, use of search does not significantly differ between the two groups • Number of sources used IT professionals use more sources on average than business influencers Company Size • Use of search by large companies vs. SMB companies Both segments use search equally throughout the purchase process • Number of sources used In the research/engagement phase, large companies turn to more sources on average than smaller companies 15 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Key Findings: Sub-vertical Categories • Enterprise Application, Storage and Security decision makers use search consistently • Enterprise Application decision makers tend to use direct channels more than Security and Storage decision makers – In the research/engagement phase and consideration phase, they are significantly more likely to turn to manufacturers' web sites and sales reps – In the final purchase phase, they are significantly more likely to turn to manufacturers' sales reps • Storage and Security decision makers are more likely to turn to online retailers in the final purchase phase 16 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Key Findings – Keyword choices in the Purchase Process Keyword Usage Broad Category Terms Brand / Product Names or Terms Pricing Terms Reviews / Articles RESEARCH / ENGAGEMENT CONSIDERATION COMPARISON PURCHASE Relative Frequency Of Use High Medium Low 18 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Keyword Usage • Security software: Category terms used more frequently throughout. • Enterprise Applications: Brand/product names and terms used more frequently throughout • Enterprise Applications: Brand/product names and terms peak in the consideration/comparison phase 19 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Key Findings – Messaging that Works Components of a Sponsored Listing IBM Enterprise Management Easy integration, Download a white paper www.ibm.com Title Branded or unbranded Benefit Examples: •Solves business problems •Improve ROI •Easy integration Or no benefit included Call to Action Examples: •Compare prices •Download a white paper •Learn more Or no call to action included URL Branded or unbranded 21 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Importance of Attributes in Sponsored Listings In the consideration/comparison stage Title 17% 16% 16% 34% 36% 34% 35% 35% 38% 14% 12% 13% Benefit Call to Action URL 0% 10% Enterprise Security Storage 20% 30% 40% 22 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Benefit Statements for Enterprise Applications Benefit Enterprise Applications 2.5 34% 36% 34% 1.5 Easy integration Solves business problems, Multi-platform support, For medium and small businesses Low cost Improve ROI 0.5 Security -0.5 Storage -1.5 -2.5 No benefit listed 23 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Benefit Statements for Security Importance of Benefit Enterprise Applications 2.5 34% 36% 34% 1.5 0.5 Complete enterprise solution For large or small businesses Full protection Cost effective Ensure reliable disaster recovery Easy setup Security -0.5 Storage -1.5 * The conjoint utilities indicate the value of the various levels of this attribute. Attributes above the zero line are more preferred than average and attributes below the line are preferred less than average. 24 Google Confidential -2.5 No benefit listed Benefit Statements for Storage Importance of Benefit Enterprise Applications 2.5 34% 36% 34% 1.5 Superior performance 0.5 Security Low cost, Simple configuration Consolidate storage Lower TCO Integrated -0.5 Storage -1.5 * The conjoint utilities indicate the value of the various levels of this attribute. Attributes above the zero line are more preferred than average and attributes below the line are preferred less than average. 25 -2.5 No benefit listed Google Confidential Calls to Action for Enterprise Applications Call to Action Enterprise Applications 2.5 35% 35% 38% 1.5 Compare prices Download a demo Download white paper Learn more Security Storage 0.5 -0.5 View a webinar -1.5 -2.5 No Call to Action listed 26 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Calls to Action for Security Call to Action Enterprise Applications 2.5 35% 35% 38% 1.5 Compare prices Download free trial Learn more Download white paper Security Storage 0.5 -0.5 Free online scan -1.5 -2.5 No Call to Action listed 27 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Calls to Action for Storage Call to Action Enterprise Applications 2.5 Compare prices 35% 35% 38% 1.5 Security Storage Get details here 0.5 Download white paper -0.5 View a webinar Download a demo -1.5 -2.5 No Call to Action listed 28 Source: Millward Brown Study Conducted for Google, May 2005 Google Confidential Summary Purchase Process • Search is used heavily in the research/engagement and consideration/comparison phases, where marketing can most influence purchase behavior Keywords • Keyword themes should map to the different phases of the purchase process. Landing page content should also align with these phases Messaging • In the consideration/comparison phase, salient calls to action and benefit statements are the most important elements for increasing click propensity 29 Google Confidential Thank You For Further Information: techbtob.feedback@google.com