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					Behavioral Insights – What Looking at
Web Usage Tells Us About Search




Mark Riseley, Google EMEA Market Insights

August 2009



                                            Google Confidential and Proprietary   1
Search is a universal consumer behaviour


      >1.5 Billion people        >2 Billion Google
      online                     searches per day



      85% of people online        Search is the most
                                  popular online activity after
      use Search
                                  e-mail




* Global                                       Google Confidential and Proprietary   2
And online research is prevalent in many categories
                                 Research and purchase methods for recent purchases (among UK Internet users)
       100%
       Research
       online                   Products that are mainly (>50%) researched                            Products that are mainly (>50%) researched
                                online & predominantly purchased offline                              and purchased online

    Research
                                                                                                                                Leisure flights
       online                                                                                         Car insurance
                                                                                                                                    Hotels
                                                                                                             Package holidays
                                                                               Computer Hardware
                                                  Mobile phone handset
                                        Cars                            Digital camera Home insurance
                                                  Domestic Appliances                     Audio devices
                                                                             Personal Loans                       Event tickets
                                                                                                Computer software
                                                    Visual devices       Computer peripherals
                                                                                                           Business travel
                                                                  Mobile phone subscription   CDs/DVDs

                                                                                   Printer supplies
                                     Home furnishings          Cinema Tickets
                                                                                          Books
                                                   Personal Appliances
                              DIY, tools etc.    Car parts & accessories
                                              Toys        Sporting Goods
                                        Footwear       Clothing & Accessories
                                                          Gifts
                              Cosmetics         Health products

                                 Products that are mainly (> 50%) researched                          Products that are mainly (>50%) researched
                                 and purchased offline                                                offline but predominantly purchased online
         0%                                                                                                                                                            100%
                                                                                                         Purchase online                                               Purchase
                                                                                                                                                                       online

Selection: Bought at least 1 product of the respective category in the last 12 months

Source: TNS Infratest, Base: all purchases (United Kingdom) (n=18.078), June 2008                                                Google Confidential and Proprietary      3
                                                                                                                                    Automo&ve


 Search supports all aspects of online research                                                                                     Example





                                                            Automotive Example: Search engines help me




Source: TNS / Google Automotive consumer study June 2007; Base: All respondents who bought a new car
% - Completely Agree - Agree                                                                           Google Confidential and Proprietary
   And we know search impacts brand metrics

        earching
and
seeing
a
sponsored

         S                                                                       Top of Mind Awareness
                                                                                                                           109
      link
increases
all
brand
metrics.
This

                                                                                                  106
          brand
effect
is
essen7ally
free

                                                                                100


        O
        nce
the
consumer
has
clicked

   through
the
brand
effect
is
significantly
                                  No Exposure      Exposure to            Exposure to
                 mul7plied
                                                                  sponsored link        sponsored link +
                                                                                                                       website




                Campaign Awareness                                                         Brand Values
                                                                 120                                                       119



                                                                                                  106
             100                       101                                      100




       No Exposure                Exposure to               Exposure to      No Exposure      Exposure to            Exposure to
                                 sponsored link           sponsored link +                   sponsored link        sponsored link +
                                                              website                                                  website



Source: Flora XMOS Study (Google / Mindshare / Metrixlab / Unilever) 2008                         Google Confidential and Proprietary   5
But search results
are just the first
step in a long
journey



         Google Confidential and Proprietary
So let’s look at the
online journey more
closely




         Google Confidential and Proprietary
Here’s a quiz to test your knowledge of online
                   behaviour




                                     Google Confidential and Proprietary
How many searches does the average clothing shopper in the UK do
before purchasing online?

A: 6                                  B: 8
C: 2                                  D: 20
                                                     Google Confidential and Proprietary
How many searches does the average clothing shopper in the UK do
before purchasing online?

A: 6                                  B:
C:                                    D:
                                                     Google Confidential and Proprietary
How many website visits does it take before someone makes a decision to
buy a mobile phone in the UK?

 A: 4                                   B: 9
C: 17                                   D: 7
                                                       Google Confidential and Proprietary
How many website visits does it take before someone makes a decision to
buy a mobile phone in the UK

 A:                                     B: 9
C:                                      D:
                                                       Google Confidential and Proprietary
How long on average does it take for a French travel researcher to decide
to buy online?

 A: 15 days                              B: 32 days
 C: 39 days                              D: 21 days
                                                          Google Confidential and Proprietary
How long on average does it take for a French travel researcher to decide
to buy online?

 A:                                      B: 32 days
 C:                                      D:
                                                          Google Confidential and Proprietary
So how do we know
these things?




        Google Confidential and Proprietary
              Methodology: clickstream analysis
                                                                                                                         Clickstream Analysis




                                                                                          currys                           laptops
                                      Dell
 Searches




            PC World
                                                                                          Tablet                  laptops Coloured
            Pink                      PC World                                            laptops  PC World
                                                      laptops                                                             laptops
            laptop                                                                        toshiba
                                      Cheap
            Coloured                                                                      portege                          Pink
                                      laptops
            laptop                                                                                                         laptops
                                                                                          m400-11h
                                                                                                                            comet

                                      PCWorld.co.uk                                                                       Comet.co.uk          eBay
                                                                               Pixmania   Misco
            PCWorld.co.uk                                       Pixmania                                                  Currys.co.uk         computers
                                      Dell                                                Currys     PCWorld.co.uk        PCWorld.co.uk
                                      Shopping.com Kelkoo                                                                                      PCWorld.co.uk
Visits




             Dell            Amazon                                            Bizrate    Amazon                   ebuyer Sony Style
                                                                Dixons.co.uk                                                                   PriceRunner
                                      eBay                                                 Bizrate    Dell                Nextag
            DealTime.co.uk            computers
                                                                eBay           MicroDirect Dell                            Dell                ebuyer
                                                                                           Lenovo
                                      Comet.co.uk               computers                                                  Pixmania
                                                                                           Toshiba


              Day 0          Day 15    Day 22         Day 26 Day 30            Day 37      Day 43     Day 47      Day 48 Day 62                 Day 66
                                                                                                                       Google Confidential and Proprietary   16
Clickstream Study Objectives

•  How much do people research online?


•  How long does the research process take?


•  How many searches and site visits?


•  What sorts of search / site visit?


•  To what extent do consumers shop around?




                                              Google Confidential and Proprietary   17
      The Online Journey is Complicated!

                   Arrows represent proportion of users who go from one site type to another during a hotel
                   aggregator transaction session (French users, June-August 2008)


                                                                                       Maps
                         Travel Guide                                                                                              Hotel




                                                                        34%
                                                                                                       30%        52%

                                                                                            60%
                                                 Google Search                                          Hotel Aggregator

                                                                                            45%
                                                                                                                         30%

                   Destination                                                                                                             Other Search




                                                      Ground Transport                            Online Travel Agency




Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008                                  Google Confidential and Proprietary   18
      And is different for different purchase categories

                   Arrows represent proportion of users who go from one site type to another during an online
                   travel agency transaction session (French users, June-August 2008)


                        Ground Transport                                                     Maps                                   Lodging




                                       Google Search                                        Online Travel Agency                 Other Search




                          Tour Operator                                Travel Guide                            Air Travel




Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008                                   Google Confidential and Proprietary   19
      …and long. Many conversions occur after 30 days or more
Share of Conversions by Time Period from First Search


                                                                               Conversions beyond 30
                                                                               days from first search




Time from First
Search



 Purchases & research tracked at a set of leading websites for each category
                                                                                                        Google Confidential and Proprietary   20
 Source: comScore custom analysis- UK Population, Q4 2007;
Let’s look at some
real journeys




         Google Confidential and Proprietary
           Computer Case Study – “Coloured or cheap?”

   From “PC World” to purchase at ebuyer in 66 days


                   First Search                                                                                                           Purchase

           PC World                                                                                                                      eBuyer


                                                                                                currys                           laptops
           PC World                     Dell
Searches




                                                                                                Tablet                  laptops Coloured
           Pink                         PC World                                                laptops  PC World
                                                           laptops                                                              laptops
           laptop                                                                               toshiba
                                         Cheap
           Coloured                                                                             portege                           Pink
                                         laptops
           laptop                                                                                                                 laptops
                                                                                                m400-11h
                                                                                                                                   comet

                                         PCWorld.co.uk                                                                          Comet.co.uk            eBay
                                                                                     Pixmania   Misco
           PCWorld.co.uk                                             Pixmania                                                   Currys.co.uk           computers
                                         Dell                                                   Currys     PCWorld.co.uk        PCWorld.co.uk
                                         Shopping.com Kelkoo                                                                                          PCWorld.co.uk
Visits




            Dell             Amazon                                                  Bizrate    Amazon                   ebuyer Sony Style
                                                                      Dixons.co.uk                                                                    PriceRunner
                                         eBay                                                    Bizrate    Dell                Nextag
           DealTime.co.uk                computers
                                                                     eBay            MicroDirect Dell                             Dell                 ebuyer
                                                                                                 Lenovo
                                        Comet.co.uk                  computers                                                    Pixmania
                                                                                                 Toshiba


             Day 0           Day 15       Day 22           Day 26 Day 30             Day 37      Day 43     Day 47      Day 48 Day 62                   Day 66




           Source: comScore custom analysis- UK Population, 15+ Home and Work                                             Google Confidential and Proprietary   22
           Q4-2007 activity
           Clothing Case Study – I know what I want

   From “Next” to purchase at Next in 57 days


                   First Search                                                                                                            Purchase

           Next                                                                                                                         Next


           next          topshop             next           Uggs       Ankle boots                      Next                       Next             Next
Searches




           boots         next                                                                                    Topshop
                                                            Shoes
                                            Shoes                       Fly London
           Shoes          Uggs                              boots
                                            and boots                                                            Kids boots
           and boots      Flat boots                        Miss Sixty boots
           Uggs           Dolcis                            Boots        topshop



                                                            oli.co.uk                                            Additions
            Next         Littlewoods                                       Littlewoods   asos
                                           Pricerunner       asos
           InStyle                                                                                               Direct
                                                            Bizrate                                     Next
Visits




                         Top Shop                                                        Additions
            asos                            Next                                                                 Next
                                                            Kelkoo                       Direct                                     Next            Next
           La Redoute
                          Next             Dorothy                          Top Shop     Shopping.com
                                                             Next
                                                                                                                 Top Shop
                                           Perkins


            Day 0           Day 1            Day 7           Day 13             Day 21    Day 22        Day 35   Day 40            Day 49         Day 57




           Source: comScore custom analysis- UK Population, 15+ Home and Work                                             Google Confidential and Proprietary   23
           Q4-2007 activity
           Mobile Phone Case Study – Model to Operator

   From “nokia 6500” to conversion at orange.co.uk in 52 days


                   First Search                                                                                                              Conversion

           Nokia 6500                                                                                                                      Orange

                                                   Free texting                                                                    Nokia
            Nokia 6500                                                                                                                                 Phones
Searches




                                                   iPhone                                                                LG Viewty phones
             o2                                    Samsung Free texting                                                                         4U
                                      Free texting                              Free texting                             reviews
                                                   g600                                                                               Carphone  Orange
           Phone 4 U                                Orange                                     Free texting                           Warehouse
                                                   Nokia



                                                      Orange
                                                                                               Apple          Which      Dialaphone
                                                                 Money                                                                   Nokia          o2
              o2             o2                                                  o2
                                                      Mobile fun Supermarket                                  Bizrate                            Bizrate
                                          o2
Visits




                                                                                               Vodafone       Stuff.tv                 Carphone
                             t3
                                                      Apple                                                                            Warehouse Phones            Orange
            Phones 4 U                                                                                        Ciao
                                                                                Apple                                                                  4U
                                                                                                o2                       Orange
                                                       o2
                                                                                                                                                        Orange


           Day 0           Day 6       Day 8           Day 10         Day 12     Day 18         Day 21        Day 27      Day 36        Day 38         Day 49 Day 52




           Source: comScore custom analysis- UK Population, 15+ Home and Work                                                Google Confidential and Proprietary    24
           Q4-2007 activity
Consumers are better informed than ever




Marketers search for connections   The balance is shifting –
with the right customers based     consumers are in control
on insights



                                                           Google Confidential and Proprietary   25
Lots of competitive research – even for lower value
products
                                                     Clothing         Computers              Mobile
Metric                                                                                       Phones




Searches per conversion 5.7                                           5.0                    4.7



Site visits per conversion 11.9                                       12.6                   9.4



% of total site visits on
                                                     34%              22%                    23%
converting site




 Source: comScore custom analysis- UK Population, 15+ Home and Work               Google Confidential and Proprietary   26
 Q4-2007 activity
And loyalty is not a given




                             Google Confidential and Proprietary   27
Only 36% of mobile phone converters visited the site on which they
converted on during their first day of research

          Proportion of converters who visited the site they eventually converted on during the first day of research




Source: comScore custom analysis- UK Population, 15+ Home and Work                             Google Confidential and Proprietary   28
Mobile phone Category, Q4-2007 activity
Examining Search
Behaviour




        Google Confidential and Proprietary
24% of automotive converters record a single
search, 20% do more than 10 searches

                            Share of Automotive converters by number of searches conducted per converter


                                                                         Chart explanation notes: 24% of converters do only a
                                                                           single search during research, 20% do more than 10
                                                                           searches during research
                              8.23 searches per converter on average




                                                      Number of automotive searches per converter

 Source: comScore custom analysis- UK Population, Q1 2008; ONS population estimates;                             Google Confidential and Proprietary   30
 Auto Search = keyword search from defined list of 7,500+ auto related search terms
     There’s no clear progression in finance from generic to branded
     searches

                                             Share of Search by week from first search – Credit Card Applicants




   Time from First
   Search




Source: comScore custom analysis- UK Population, Q3 2007;
                                                                                                             Google Confidential and Proprietary   31
Finance searches in Q3 2007 time aligned and monitored over 12 week period from first search
     Generics Don’t Necessarily Come Before Branded Searches

                                      Share of Online clothing purchases by first search / last search combinations



                                                                                                                   33% of purchases
                                                                                                                   start and end with
                                                                                                                   brand terms, and
                                                                                                                   include a generic
                                                                                                                    term in between




            5% of purchases
           start and end with
          generic terms, and
            include a brand
            term in between


Source: comScore custom analysis- UK Population, Q4 2007;
                                                                                                            Google Confidential and Proprietary   32
Clothing searches in Q4 2007 time aligned and monitored over 12 week period from first search
Generic Keywords offer great reach opportunities


    71%                     of all online travel conversions have at least one
                            generic keyword search prior to booking


                           % conversions with at least one generic keyword search




Source: comScore UK 2007                                                    Google Confidential and Proprietary   33
                      58%
                       of French online travel
                       researchers’ started
                       their search journey with
                       a generic keyword




Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008   Google Confidential and Proprietary
      More searches means a user is more likely to buy

                           Probability of an online travel transaction based on the number of
                           searches a user does (France)




                                                                                            Total market   Google Confidential and Proprietary
Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008
      And the same is true for sponsored links clickthroughs

                           Probability of an online travel transaction based on the number of
                           sponsored link clickthroughs a user does (France)

                                                                                     Average for sponsored link clickers = 24%




                                                                                            Total market                  Google Confidential and Proprietary
Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008
      Paid search can drive traffic which converts through other means

             1st Visit to transaction site                                                      Returning Visit when the
                                                                                                transaction takes place
       (proportion of total traffic coming
            from different sources)                                                         (traffic that came from sponsored
                                                                                                links refers this time as…)



                                                                                                      Sponsored
                                                                                                      Links = 31%
                     Direct (43% of
                       1st visits)

                                                                                                     Natural Search =
                                                                                                           24%
                    Sponsored Links
                   (10% of 1st visits)
                                                                                                      Other referral =
                                                                                                           18%

                     Natural Search
                   (23% of 1st visits)
                                                                                                       Direct = 27%


                    Other referral
                  (24% of 1st visits)


  Base: conversion journeys with more than one visit to transacting site

Source: Nielsen NetView Custom Analysis of Travel Vertical (France) - June to August 2008                 Google Confidential and Proprietary
Final Thoughts




         Google Confidential and Proprietary
What we’ve learned today



  1   Search is a process, not an event



  2   Consumers shop around a lot and loyalty is hard to win



  3   The “funnel” doesn’t apply online



  4   The online journey takes longer than you think



  5   Generic search delivers great reach of in-market shoppers




                                                          Google Confidential and Proprietary   39
Some Thoughts To Work On



  1   Do you understand which terms “assist” conversion?



  2   Does your search strategy balance driving traffic and conversions?



  3   Does your ROI model balance driving traffic and conversion?



  4   Are you measuring for long enough from a clickthrough?



  5   Are you there each time a shopper is searching?




                                                           Google Confidential and Proprietary   40
Questions?




             Google Confidential and Proprietary   41
Thank You!
mriseley@google.com




                      Google Confidential and Proprietary   42

				
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