Online to Store Insights from Case Studies: France, Germany and UK NOVEMBER 2011
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1 Online to Store Insights from Case Studies: France, Germany and UK NOVEMBER 2011
2 OBJECTIVES Are offline sales driven by websites and online advertising? Can online ads drive incremental offline sales? How does ROPO impact purchase behaviour? Can online advertising deliver greater efficiency than offline media METHODOLOGY Meta analysis EMEA case studies. Various methodologies applied across the studies Source: Google, Online to store (EMEA), November
3 Key findings 1 2 Clear indication that offline sales are driven by websites and online advertising Also considerable evidence to suggest that online advertising drives incremental offline sales 3 ROPO clearly impacts purchase behaviour drives up average spend 4 And a number of studies indicate greater efficiency associated with online vs. traditional advertising Source: Google, Online to store (EMEA), November
4 10% of offline sales are driven by the retailer s website Source: Google, Online to store (EMEA), November
5 Web traffic drives a third of influenceable offline sales 35% of the offline sales that can be influenced are driven by the retailer s website 63% of sales can t be effectively influenced 4% 8% 1% 15% 13% 59% 37% of sales that can be effectively influenced 35% of the offline sales that can be influenced are driven by the traffic to the site Base sales volume Manufacturer and competitor marketing Pricing and promotion Offline media Catalogues Web traffic to retailer site Source: Google, Online to store (EMEA), November
6 Site visits and SEM drive call centre contacts 9% of all Call Centre contacts come via the website and Paid Search Direct Marketing 0.6% TV ads 1.4% Price/rate 23.4% Paid search 1.4% Website visits 7.4% Base level 63.6% Consumer demand, economic factors etc. 13/10/ /11/ /12/ /01/ /02/ /03/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ /12/ /01/ /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ /12/ /01/ /01/ /02/ /03/ /04/ /05/ /06/2010 Source: Google, Online to store (EMEA), November
7 Online advertising delivers incremental sales Paid search delivers 7% points uplift in offline sales relative to control markets where no AdWords budget was allocated Bicycle sales return (INDEX) 199% 100% Test - increased AdWords budget Control - no AdWords budget ROI online sales only ROI online and offline sales Source: Google, Online to store (EMEA), November
8 Online advertising delivers incremental sales 1.5% lift in store sales through up-weighted investment in Paid Search (4:1 ROI) Test Control Source: Google, Online to store (EMEA), November
9 Online advertising delivers incremental sales 18% Call Centre unit sales on top of the online conversions driven by Paid Search Contracts through AdWords (Online & Call Centre) 18% 100% 118% Online Contracts AdWords Offline Contracts AdWords (ROPO) Total Contracts AdWords Source: Google, Online to store (EMEA), November
10 Online advertising delivers incremental sales +2% uplift in store sales through up-weighted Display advertising on the GDN 1 Incremental uplift of 2% in test relative to control markets 2 Incremental uplift of 3% for post-paid and 5% for hybrid voice offers Test region Control region Additional uplift of up to 11% for migrations Incremental ROI every 1 invested in Google Display Network delivered 1.2 of incremental revenue Display does not cannibalize search. Non significant impact of display clicks on paid search clicks Source: Google, Online to store (EMEA), November
11 ROPO influences in-store behaviour In-store spend 33% higher on average when consumers conduct online research prior to purchase +33% No online research before purchase Online research before purchase Source: Google, Online to store (EMEA), November
12 ROPO influences in-store behaviour 2 x higher basket size from ROPO customers driven by Paid Search Online and offline redeemed coupons 51% 151% 100% Online Offline Total Source: Google, Online to store (EMEA), November
13 ROPO influences in-store behaviour 16% higher revenue (ARPU) from ROPO customers vs. indexed average Research Online, Purchase Offline (ROPO) Research Research Mobile buyers Post paid (%) Online Offline Mobile buyers Post paid (ARPU) Online Offline Purchase Online Offline 26% 41% 8% 25% Purchase Online Offline 90 index 116 index 79 index 91 index Source: Google, Online to store (EMEA), November
14 Greater efficiency through online advertising 6% higher revenue opportunity through re-allocating current budget to Paid Search 35,000 Opportunity = 6% 33,000 31,000 29,000 Optimal Mix Historical Mix Units (Sales) 27,000 25,000 23,000 21,000 19,000 Historical BTS Investment 17,000 15,000 Total Campaign Investment Source: Google, Online to store (EMEA), November
15 Greater efficiency through online advertising 30 x return for every 1 spent on Paid Search. 85% of this is delivered offline ONLINE ROI 4.68 Note: Some low level cross channel ROI evident across press and catalogues OFFLINE ROI TV Catalogues Press Outdoor Radio Magazines Paid search Source: Google, Online to store (EMEA), November
16 Greater efficiency through online advertising 100%+ higher return through online advertising compared to the next best offline media Gross Return on Investment (GROI) in Euros TV EDEKA Image TV EDEKA Weinlese Print (magazines) Google Content Network SEM Promotion (daily newspapers) Promotion (adjusted) Source: Google, Online to store (EMEA), November
17 Greater efficiency through online advertising +0.23% in-store sales for every 1% more traffic sent to the retailer s website Efficiency in driving offline TV sales 0.23% Driving additional traffic to the website is twice as effective in driving offline sales as increasing catalogue distribution 0.11% 0.07% 0.05% 0.03% 0.02% 0.02% 0.01% Competitive TV Web traffic to Auchan.fr Catalogues Manufacturer Press Manufacturer Outdoor Auchan Radio Manufacturer Radio Auchan Press Manufacturer TV -0.04% Source: Google, Online to store (EMEA), November
18 Greater efficiency through online advertising -58% lower cost-to-revenue ratio (CRR) where only online advertising is used Relative investment to revenue ratios Revenue Costs Index CRR: 100% Index CRR: 42% Index CRR: 95% 253% 241% 165% 100% 100% 69% Flyer (Munich) Online (Hamburg) Mix (Berlin) Source: Google, Online to store (EMEA), November
19 Greater efficiency through online advertising -13% lower media investment on GDN Display and YouTube to achieve (higher) sales Control Budget swap Cost TV: 100% of national -13% YouTube: 12% of national TV TV: 75% of national Sales (vs. pre-campaign) +13% +15% Source: Google, Online to store (EMEA), November
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