Think Insights with Google

Efficiency and Effectiveness in Digital Advertising

Digital advertising delivers powerful results for advertisers - but running digital campaigns has become too complex. Google commissioned The Boston Consulting Group to better understand the potential to improve efficiency and create more value in digital campaigns. Using "lean" methodology to map the end-to-end process of 24 digital campaigns across 15 digital marketers in Europe, here's what we found:

Campaign teams were spending on average only 1 day in 5 on "value-creation" activities, with 80% of their time spent on low-value activities such as trafficking
Moving to a single ad technology stack creates productivity improvements of up to 33% across the campaign lifecycle
Further productivity gains come from combining a technology stack with wider organizational change -- which frees up talent for higher-value activities
Increased efficiency means better performance. Efficiency gains re-invested into value-creating activities create an important competitive advantage in campaign performance.

Understanding Incremental Reach: Banco Popular

This research shows how GDN can optimize TV campaigns not only in terms of reach generation but also by creating a better balanced OTS distribution and increasing media planning efficiency.

Key Findings:

GDN campaign reached 52,1% of target and added a 4,7% incremental reach to the TV campaign.
72,3% of GDN GRPs delivered out of high TV exposed.
To achieve total campaign reach with only TV would have required a 14% expense increment.

The Multi-Screen Olympics

UK Olympics multi-screen consumer insights on media consumption and multi-screening across TV, mobile, tablet and computers during the Olympics in the UK from several pieces of primary research conducted by Google.

Key Findings:

On any given day 1 in 3 UK adults followed the Olympic action on multiple screens.
The Olympics caused people to try new things on their digital devices, such as live streaming on smartphones, downloading new apps or joining a new social network.
Smartphones enhance the live event experience. Almost 1 in 3 Olympic Park attendees looked up online content on their phones while they were there.

Mobile Search Moments: Understanding How Mobile Drives Conversions

As consumers increasingly turn to their mobile phones, it is critical for businesses to understand the range of "mobile conversions" that can occur such as phone calls, store visits, or purchases on other devices. In partnership with Nielsen, Google analyzed over 6000 mobile searches and the actions that resulted, drawing precise and measurable connections between mobile searches and the online and offline conversions that they drive.

Key Findings

Mobile phones are always on and always with us - 77% of mobile searches occur at home or at work.

Mobile search drives valuable actions for businesses - 73% of mobile searches trigger additional actions or conversions.

The average mobile search leads to two follow up actions.

Nearly half (45%) of all mobile searches are goal oriented and help people make decisions.

YouTube Ads Leaderboard February 2013

We're excited to present the YouTube Ads Leaderboard for February 2013 - a collection of ads people chose to watch and share this month. You'll notice that ads from the big game charted high in February, showing how brands can capture attention on YouTube far beyond the initial broadcast. We also love seeing Pepsi's Jeff Gordon Harlem Shake video on the list, as it's a great demonstration of how brands can benefit by joining in on the fun.

As with prior Leaderboards, we determine this list by looking at ads uploaded within the month that that most moved audiences through a winning combination of promotion (paid ads) and popularity (organic views). Check back each month for a new list!

PlayStation 4

Uploaded 2/20/13 by PlayStation

Creative Agency: Sony Computer Entertain...
Media: Deutsch Inc.

views

26,296,340

Samsung Mobile USA - The Next Big Thing

Uploaded 2/2/13 by samsungmobileusa

Creative Agency: 72andsunny
Media: Starcom

views

21,382,135

Official Ram Trucks Super Bowl Commercial "Farmer"

Uploaded 2/3/13 by ram

Creative Agency: The Richards Group
Media: Universal McCann Detroit

views

14,093,015

Jeep® "Whole Again" SUPER BOWL OFFICIAL COMMERCIAL

Uploaded 2/3/13 by thejeepchannel

Creative Agency: Global Hue
Media: Universal McCann Detroit

views

7,484,985

Harlem Shake (Jeff Gordon Edition)

Uploaded 2/14/13 by Pepsi

Creative Agency: Funny or Die
Media: OMD/Resolution Media

views

5,525,843

Find New Roads Anthem :90 HD | Chevy Commercials | Chevrolet

Uploaded 2/10/13 by Chevrolet

Creative Agency: Commonwealth

Media: Carat

views

4,231,650

OREO Separator Machine #1 - Creator: Physicist David Neevel

Uploaded 2/26/13 by Oreo

Creative Agency: Wieden+Kennedy
Media: MediaVest Worldwide, Inc.

views

3,394,974

Find New Roads Anthem :60 HD | Chevy Commercials | Chevrolet

Uploaded 1/23/13 by Chevrolet

Creative Agency: Commonwealth
Media: Carat

views

2,626,904

Pepsi NEXT - Behind the Scenes at #CokeChase

Uploaded 2/3/13 by Pepsi

Creative Agency: Funny or Die

Media: OMD/Resolution Media

views

2,307,260

OREO - Whisper Fight

Uploaded 2/3/13 by Oreo

Creative Agency: Wieden+Kennedy
Media: MediaVest Worldwide, Inc.

views

2,301,289

View count as of 03/4/13

The YouTube Ads Leaderboard is determined by an algorithm that factors in paid views, organic views and view rate (how much of a video people chose to watch).

For additional coverage of the YouTube Ads Leaderboard, go to Adweek.com

YouTube TrueView ads double monthly trade-in vehicles at Rick Case Honda, resulting in 12x ROI

Rick Case Honda partnered with Car-mercial.com to produce YouTube TrueView in-stream ads encouraging vehicle trade-ins. After launching the ads, the dealership doubled the number of trade-ins from a competing make from 10 per month to 20 per month. Rick Case Honda was now earning an incremental $50,000+ for online videos that cost $0.20 - $0.30 per view. Monthly unique site visitors also increased by over 18%.

The Digital Traditionalist

Enter Land Rover's North American headquarters and you might think you've stumbled into an auto showroom. Inside the suburban New Jersey building, a black Range Rover Sport is parked next to a Jaguar sport sedan. Merchandise cases display Land Rover t-shirts, hats, and mugs while industry awards and framed car photos line the walls.

It's the kind of scene familiar to anybody who's been to an auto dealership. But as technology alters the way consumers shop for cars, automakers are realizing showrooms alone won't generate sales.

Showrooms Go Digital

Land Rover isn't jettisoning its showrooms; instead, the company is bringing the engagement online through video, social sharing, display and search ads, and mobile sites. "Most people first experience auto brands online now," says Kim McCullough, Land Rover North America's Brand Vice President. "Showroom visits are down. People are making up their minds about brands in other ways, whether through friends or experiences online. By the time people get to a showroom, they already know what they want."

New research from Google, TNS, and Polk confirms that digital is changing the purchase path for auto shoppers, with influential brand moments now stretching across a cycle that encompasses pre-market, in-market, and post-market phases rather than the traditional launch period. This cycle of "constant consideration" requires marketers to harness the unique opportunities afforded by digital brand-building to win all the moments that matter.

The digital shift could have automakers rattled, particularly premier marques like Land Rover, which prizes white-glove service and safeguarding its image. But McCullough is sanguine about the evolving market. Sitting in her corner office surrounded by memorabilia, including an iconic green Land Rover logo, it's clear she appreciates her employer's heritage. McCullough, who first worked for Land Rover in the late 1990s before moving on to other auto marketing jobs, says the company's culture lured her back: "There's something about this brand and the way it has always been true to its core that is really appealing." Her aim now is to uphold that legacy while adopting digital tools.

Engagement: Fuel for Leads

So far, McCullough has been able to strike this balance. Since starting her second Land Rover stint in March 2011, she has orchestrated the successful launch of a new vehicle, Range Rover Evoque, and is directing the rollout of Land Rover's revamped flagship Range Rover. Both campaigns employed digital innovations new to Land Rover. McCullough, who honed her digital skills in the 2000s at Toyota, has also more than doubled Land Rover's digital spending (from 15 percent of the marketing mix to 35 percent), expanded its digital and social media staff, and relaunched several of the company's core consumer websites, including its YouTube channel, which currently boasts over three million views.

These moves are feeding an overall resurgence. Following decades of ownership shuffles, the UK-based automaker has found steady support in India's Tata Motors, which acquired Land Rover and sister company Jaguar from Ford Motor Co. in 2008. The resulting company, Jaguar Land Rover, is now profitable and growing, thanks to strong Land Rover demand. Land Rover sales in the US - the brand's third-largest market after China and the UK - increased 15 percent year-over-year in 2012.

To sustain that momentum, Land Rover is boosting its presence on social sites, where it can directly connect with owners and enthusiasts. Land Rover is active on Facebook, Google+, Instagram, Twitter, and YouTube, and added Pinterest and Tumblr last year. These are Land Rover's always-on platforms, maintained year-round regardless of the company's product cycle. Recognizing the value of video, McCullough redesigned Land Rover's YouTube channel in 2012. The update replaced YouTube's standard, chronological layout with videos organized by Land Rover model and a window showing the company's latest tweets and Facebook posts. Land Rover says the more intuitive layout has boosted time spent on the site.

Key metrics point to results. A 2012 Google Analytics report found referrals from the company's social channels were 195 percent more likely to turn into solid leads than visitors to Land Rover's website who arrived from non-social sources. "When people have a chance to engage with our brand and attach a little more meaning and connection to it, we are seeing them transition to a lead," McCullough notes.

Engagement is crucial for smaller companies like Land Rover, which are increasingly seeing the value in flipping the traditional marketing funnel - using social channels to target their most likely-to-engage consumers first, rather than reaching out to the broadest possible audience via traditional media. Leading with media that allows for greater engagement measurement means brands know when they have a hit, and can make better strategic decisions about how to deploy the rest of their marketing budget. This is especially important for an automaker like Land Rover: "Dollar for dollar, we have to be very smart about what we're doing," McCullough admits.

Wheels of Innovation

To encourage innovation, McCullough applies a 70/20/10 rule to her budget, allocating 70 percent of resources to tried-and-true forms of marketing, 20 percent to experimental initiatives from the previous year that show promise, and 10 percent to new ventures. The framework allows McCullough's team to explore, especially in social and mobile, with limited risk.

Land Rover has tested out a relatively new type of Google ad called social annotation, which mentions Land Rover's nearly 1.1 million Google+ followers in the company's search results. Google's "custom annotation" feature lets Land Rover insert short quotes from, say, an awards committee or a positive review into ads, as well. According to Land Rover, these "third-party validations" have increased click-through rates to its website by as much as 14 times since it began testing the ads last winter.

Another smart investment has been mobile. Land Rover overhauled its mobile site in 2012. The upgrade added a number of practical features for both shoppers and owners, including vehicle photos and videos, and information about Land Rover's driving schools and roadside assistance. After the site went live, Land Rover started buying Google "Bid by Distance" ads that surfaced Land Rover's site when prospective buyers searched terms like "luxury SUV" on mobile devices near Land Rover dealers. The ads resulted in an 87 percent higher click-through-rate to Land Rover's mobile site.

McCullough says Land Rover continues to monitor how its consumers are using mobile to shop. A JD Power survey released last year identified Land Rover buyers as particularly mobile-savvy. Of 33 auto brands, Land Rover owners were the most likely to access the internet from their smartphones and use apps for new vehicle purchases.

The New Online Launch

Though active year round, Land Rover ramps up its digital spending during launches for both customer acquisition and branding. The company's 2011 introduction of Evoque, a fuel-efficient crossover, relied heavily on new media campaigns to attract young, urban buyers. A series of events built anticipation, kicking off nearly a year before Evoque's on-sale date. First came a teaser site, followed by an urban journey-themed mobile app, and blog posts and videos from cultural influencers, known as "City Shapers." To play up Evoque's personalization options, Land Rover also released a "choose your own adventure" -style interactive film and, in May 2011, staged an interactive concert that streamed music from three simultaneous performances located in New York, Milan, and Shanghai.

"It's important all through the year to be active in all elements of the purchase funnel: Awareness down to purchase," says McCullough. "When we're not on broadcast TV, we use digital to expand in that upper funnel area."

Land Rover's most recent launch, for its new Range Rover, will also follow a multi-step digital campaign. An interactive takeover ad promoting the Range Rover will appear on YouTube on February 25. To extend the ad's reach, Land Rover is coordinating same-day takeovers of YouTube's mobile and tablet homepages. Finally, Land Rover will deploy the ad as an expandable 'Lightbox' ad within the Google display network, which will target consumers who fit the Range Rover buyer profile over several weeks.

In addition, Land Rover has developed a video series in partnership with YouTube. The 10-part series chronicles adventurer/YouTube personality Peter Bragiel driving cross-country in the new Range Rover. Land Rover will release new videos weekly in February and March on both its own and Bragiel's YouTube channels. Like the Lightbox ads, the videos are geared to spark interest in the new car long after the TV spots and homepage takeovers have stopped running.

Despite its social and digital successes, some time-honored practices endure at Land Rover. McCullough varies her approach based on vehicle model, audience and launch phase. While much of the all-new Range Rover's marketing was digital, the vehicle's pre-launch, in fall 2012, focused on "super-loyalists" - aficionados who had owned at least five Range Rovers. In the run-up to the new Range Rover's introduction, Land Rover treated this select group to posh dinners at exclusive venues and early looks at the vehicle. The events were an opportunity to reward Land Rover's best customers and to build pre-sale interest. Afterwards, McCullough sent attendees handwritten thank-you notes.

Indeed, for all her modern thinking, she's clear that Land Rover's established values will endure. "As our owners always say: 'Don't change it; just make it better.'"

Written by Elizabeth Woyke

Click here to download this article as a PDF.

The Furniture Shopper's Path to Purchase

Digital is changing the purchase path for furniture shoppers. Today, 74 percent of all shoppers start their research online, driving 50 percent year-over-year growth for some retailers. Mobile search amplifies the opportunity for brand discovery, powered by generic keywords. Check out the data below to get the full picture.

B2B's Digital Evolution

Throughout 2011 and 2012, Google worked with CEB's Marketing Leadership Council to survey 1,500 business leaders who have recently been involved in major purchases for 22 large B2B organizations. The results suggest that a new paradigm in business-to-business marketing has taken hold.

Let's start with a little role-play. Say you're the buyer of IT services for a mid-sized company. One day, the CEO - your boss's boss - comes to you, disgusted. He's tired of his computer freezing all the time, and Sales has been complaining for months about problems running live demonstrations. He wants it fixed, but there's a catch: The overall IT budget for the year can only increase by 10 percent.

What do you do? There are dozens of IT vendors and thousands of available specifications. First, you figure out what you need. Then, if you're like most business buyers, you go to the internet. You start with some well-known corporate IT suppliers, companies whose names you've heard before. For some additional leads, you check out some well-respected voices in the corporate IT world: Bloggers, people you've seen at conferences. You might even visit a web forum or two that you've gotten valuable information from in the past. You come up with three or four vendors that can fulfill your needs, invite them to present, and go with the lowest bid. Success! You've solved the problem and the CEO loves you.

Makes sense, right? But if you're a B2B marketer, this narrative should give you pause: Nearly all of this has happened without the input of a single salesperson.

The challenge is digital

Why? Let's start by putting some numbers on the story. The example above isn't far-fetched; our research has shown that, on average, business buyers do not contact suppliers directly until 57 percent of the purchase process is complete. That means for nearly two thirds of the buying process, your customers are out in the ether: Forming opinions, learning technical specifications, building requirements lists, and narrowing down their options, all on their own, with minimal influence from you.

It wasn't always like this. That customers can engage in this self-directed learning is thanks to the internet; that they must learn about products and solutions themselves is a function of increased budget pressure amid a stagnant economy.

So what's wrong with waiting for customers to come to us? Because by the time they do, they have hardened expectations about what they want out of a supplier - and at that point, your job is to take their order and fill it for the lowest price. They're learning on their own, and there's no room to teach them why what they've taught themselves is wrong.

It's Marketing's job to influence the 57 percent of the sale that occurs mostly on the web, before Sales contact, but three challenges - incomplete digital integration, ineffective content, and a poorly-optimized channel mix - are keeping marketers from growing mindshare and making the most of what they are getting already.

True integration

Most marketing leaders still treat digital as an unwanted appendage on the traditional marketing campaign cycle, which goes roughly like this: Create a new product, design a campaign touting its features and benefits, figure out a place to stick digital channels within that campaign architecture, execute, measure, repeat.

Take a look at the story we began with, and it becomes clear why this approach won't work. Customer learning is happening all the time, and doesn't coincide with your campaign calendar.

Marketing organizations have largely been designed from the ground up to support and optimize campaigns, not maintain the continuous presence that the digital channel requires. Marketing management must adjust; if the customer is always learning, then Marketing must always be teaching.

Persuasive, focused content

It's not enough to teach; you have to teach well. And the dirty little secret of most content marketing is that it does neither. It's obvious why: Content creation has been allowed to grow organically, with the inevitable result, our research shows, that it has typically spread across multiple business and product lines and lacks a consistent, cohesive message.

All of that leads us to the biggest problem with current B2B digital approaches: They rely on content that is not at all useful for customers in the midst of a learning journey. Most content is low value; it may be interesting or get a lot of "engagement," but it doesn't help buyers make commercial decisions.

This is a structural problem. Marketing's content creation machine is not designed to create consistent, focused messages.

A smarter mix

When do customers want whitepapers, and when do they want YouTube videos? Matching customer need with channel is among the biggest challenges in digital marketing, and doing it right requires data on how customers use various channels to be - to some degree - all in the same place and comparable.

Marketing organizations are decidedly not set up for those things. Typically, they've responded to digital with a fragmented approach, where one team owns whitepaper creation for one product line, another team owns webinars for another product, and a third team owns YouTube for the entire firm, and so on. Getting a sense of channel effectiveness is tough in an environment like this, and the benefits of integrating all the data various teams hoard are often negated by the time and expense required to do it right.

How do you solve the problem? Rather than investing the time and money to implement dubious models that attribute specific leads to specific pieces of content, Marketing should double down on two things: Simpler, more actionable models and analytics talent.

If you can get digital integrated with your broader mix, get the message right, and pick the right format for those messages, you'll be well on your way to thriving in the digital landscape.

About the Research This research was completed by CEB's Marketing Leadership Council in partnership with Google. Underpinning the findings are: Insight and quantitative benchmark research and analysis into B2B Marketing and Sales Practices Insight from the CEB advisory teams specializing in B2B marketing issues and from subject matter experts at Google Structured interviews with leaders at 50 B2B marketing organizations Secondary research and interviews with numerous vendors, consultants, agencies, and research organizations operating in the digital marketing space

Download the full whitepaper and diagnostic tools here

CEB is the leading member-based advisory company. By combining the best practices of thousands of member companies with advanced research methodologies and human capital analytics, the CEB equips senior leaders and their teams with insight and actionable solutions to transform operations. This distinctive approach, pioneered by CEB, enables executives to harness peer perspectives and tap into breakthrough innovation and improvement without costly consulting or reinvention. The CEB member network includes more than 16,000 executives and the majority of top companies globally. For more information, visit executiveboard.com

Click here to download this article as a PDF.

Looking for Love

Digital channels are helping to increase Valentine's Day spend, with more and more shoppers turning to search to help them find the ideal gift. In fact, Valentine's Day search spikes now start earlier and last longer than ever before, with search volumes increasing for flowers, gifts, gift baskets, and wine.

Chevy Sonic "Firsts" campaign leveraged YouTube to engage millennials

Chevrolet launched a series of YouTube videos for the Chevy Sonic "Firsts" campaign, supported by a full suite of YouTube Google ads. They saw a net increase in subscribers on their YouTube channel, as well as increased brand lift and consideration. The Sonic also became the best-selling sub-compact car in the US.

Campaign was supported with TrueView ads, standard in-stream, YouTube homepage masthead, YouTube mobile roadblock, and the Google Display Network
Increased brand lift and consideration within the target audience; Chevy Sonic became the best-selling sub-compact car in the US
Positive net change in subscribers on YouTube channel, one of the biggest increases in months
Chevy Sonic "Skydive"; video targeted against Red Bull's Stratos led to 9.7 million impressions, over 80,000 clicks, and a 93% standard in-stream video completion rate

YouTube Ads Leaderboard January 2013

What makes an ad great? Simple: people choose to watch it. On YouTube, we see this more and more - fans are opting to view and share content they're passionate about, be it a music video, a favorite show, or an ad. The January 2013 YouTube Ads Leaderboard celebrates the U.S. ads uploaded within the month that most moved audiences through a winning combination of promotion (paid ads) and popularity (organic views). And with over 51 million combined views, it's proof that if you make it great, they will come.

Nike Golf: No Cup Is Safe

Uploaded 1/14/13 by NikeGolf

Creative Agency: Wieden+Kennedy
Media: Wieden+Kennedy

views

9,128,633

Child of the 90s | Internet Explorer

Uploaded 1/23/13 by internetexplorer

Creative Agency: Microsoft with Column Five
Media: Starcom MediaVest

views

8,797,321

Toyota RAV4 2013 Big Game Commercial "Wish Granted"...

Uploaded 1/28/13 by ToyotaUSA

Creative Agency: Saatchi & Saatchi LA
Media: Saatchi & Saatchi LA

views

6,111,078

Huge Bear Surprises Crew on EcoBubble Photo Shoot in BC

Uploaded 1/14/13 by SamsungHomeApp...

Creative Agency: The Viral Agency

views

5,887,234

Kate Upton Washes the All-New Mercedes-Benz CLA in Slow...

Uploaded 1/21/13 by mbusa

Creative Agency: Merkley+Partners
Media: Razorfish

views

5,705,545

Volkswagen Super Bowl 2013 Game Day Commercial | Get In...

Uploaded 1/27/13 by Volkswagen

Creative Agency: Deutsch LA

Media: Mediacom

views

3,502,311

Audi 2013 Big Game Commercial - "Prom"

Uploaded 1/24/13 by AudiofAmerica

Creative Agency: Venables Bell & Partners
Media: Mediacom

views

3,422,075

Toyota Game Day Teaser "I Wish" Starring Kaley Cuoco (Official)

Uploaded 1/23/13 by ToyotaUSA

Creative Agency: Saatchi & Saatchi LA
Media: Saatchi & Saatchi LA

views

3,208,036

The Replacer - Official Call of Duty: Black Ops 2 Video

Uploaded 1/22/13 by CALLOFDUTY

Creative Agency: 72andSunny

Media: OMD

views

2,959,747

Nike Basketball | Kobe Bryant: #COUNTONKOBE

Uploaded 1/17/13 by nikebasketball

Creative Agency: Wieden+Kennedy
Media: Razorfish

views

2,558,900

View count as of 01/31/13

For additional coverage of the YouTube Ads Leaderboard, go to Adweek.com
Ads were included on this list based on organic views, paid views and view rate. All ads were uploaded in the U.S.

The Future of Shopping

When John Donahoe was appointed CEO of eBay in 2008, he told staff and shareholders it was time to face reality. "We had fallen victim to our own success," he says, sitting at his desk in the company's San Jose headquarters. "We had stopped innovating and we had become disrupted. So I said we were on a turnaround, and using the word 'turnaround' shocked people. But it also liberated us so we could take bold, aggressive action. We changed our business model, our economic model, our user experience, and our pricing."

Perhaps the most high-profile change was the sale of Skype to Microsoft - at a handsome profit. "Skype was a fantastic business which connected people," says Donahoe. "But it had no synergies with our core business, which is connecting people through commerce. Our business is connecting commerce, not connecting people. Technology innovation happens too quickly for a company to be great at multiple things. We sold Skype and invested that money in about 20 acquisitions that complement our business."

While Skype lacked the required synergy, an earlier eBay acquisition symbolizes the perfect fit. PayPal, purchased in 2002, creates an integrated shopping experience. "When you buy online, buying and paying shouldn't be two separate things," Donahoe argues. PayPal is now on the verge of outgrowing its parent company, accounting for 40 per cent of eBay's overall revenue and growing every year.

Donahoe predicts there will be a "fundamental redefinition of what shopping means" over the next few years, and that PayPal will play a major role in instigating this change. With the use of mobile devices driving more personalized services in-store, the physical wallet will soon become irrelevant. "Early on it'll be young people and early adopters," says Donahoe. "It won't happen overnight but the mobile phone - the digital wallet - will replace the physical wallet because it's safer and more convenient. Our vision for payments is that you put everything in your physical wallet in the Cloud - your credit cards, cash, debit cards, loyalty cards, etc. Then you'll access that safely and securely from any internet-connected device."

The Mobile Control System

In the case of both eBay and PayPal, Donahoe is reaping the rewards of investing early and heavily in mobile technology - eBay was there on day one of the App store in 2008. "We were betting on mobile early, even though you couldn't prove positive returns," Donahoe recalls. "We understood mobile as a shift in consumer behavior that was inevitable so we embraced it regardless of whether it had a positive or negative outcome. Today, the eBay mobile apps have been downloaded over 100 million times and will do over $10 billion of commerce this year. It's been enormous and it's continuing to grow."

The dramatic rise of mobile, which currently accounts for 15-20 percent of eBay's business (and Donahoe sees this rising rapidly over the next three years) has fundamentally changed the way the company operates. "The mobile device has become the central control system in consumers' lives," Donahoe says. "Last year, in over half of retail transactions in the US, the consumer accessed the web at some point in their purchase, perhaps a Google search or a price comparison. This can happen in their living room, at work, on the street, or in the store, and it's blurred the line between online and offline to the extent that our addressable market has gone from being e-commerce, worth about $500 billion, to the $10 trillion market we call 'commerce.'"

Big is the New Small

There has been another major change at eBay. A few years ago, two-thirds of sales were of auctioned items, usually second-hand; now two-thirds of sales are of fixed-price items, usually new and sold by retailers. This means individuals have to compete directly against major retailers rather than just against each other. A company that made its name by enabling entrepreneurship and small-scale commerce now enables all commerce at all levels - a change that prompted some users to complain that eBay has lost its soul. But Donahoe argues that there is equality of opportunity on the website, that he's enabling smaller businesses and individuals to compete against major retailers through the same platform. "If [major retailers] don't have a unique inventory or pricing they probably won't be successful," he says. "We can enable them to compete but we can't enable them to win. They have to win themselves."

As eBay has shifted from its auctioning roots, more and more major retailers have come on board. These companies like working with eBay, Donahoe says, because it's not a retailer itself so will never compete against them. Unlike, for example, Amazon, eBay doesn't hold physical stock; it's a platform that gives bricks-and-mortar sellers an expanded online presence. And through PayPal, he explains, the company offers traditional retailers something new - the potential to personalize and localize the shopping experience.

"Forty years ago our parents shopped on Main Street and everybody knew their name," says Donahoe. "But the last 30 years has been the era of big-box retailers offering lower prices and more consistent service. Now technology such as PayPal Here, which allows you to identify yourself and tell the retailer you're coming to the store, is allowing for greater personalization, which becomes a potential source of competitive experience."

The rise of mobile technology and cloud computing, he says, is changing much of what we thought we knew about commerce. "The lines have become blurred. It's no longer about local or global, online or offline, small-seller or big-seller. It's about local and global, online and offline, small-seller and big-seller. Technology offers the opportunity for a more positive sum-game commerce environment. Technology gives consumers maximum choice. It's no longer winner takes all. Now it takes all to win."

But can a company approaching its twentieth birthday - a dinosaur, in internet terms - continue to win when faced with fresh young start-ups? "Technology is changing how people shop and there'll be multiple winners," Donahoe says. "We're less focused on what our competition is doing and staying focused on driving innovative technology and platforms that allow consumers to have great shopping experiences. There will always be new start-ups, new formats, and new ideas, but we're well positioned to be one of the key leaders in this new world of commerce."

Written by Matthew Lee

Click here to download this article as a PDF.

Winning Super Bowl Insights

Public interest in the Super Bowl begins towards the end of December, lasting over a month. As pre-game anticipation builds, people are seeking out Super Bowl commercials earlier. YouTube not only helps people to find Super Bowl ads, it allows millions to re-watch and share these ads after the game

Gaming's Connected Future

Kristian Segerstrale uses the word "amazing" a lot. It describes the experiences that he and his employer, Electronic Arts, are setting out to create for gamers growing up in a multi-platform world. It's a big challenge both for EA and the industry as a whole, which, like other entertainment businesses, has had to adapt to the seismic shift brought on by increased connectivity, social media, and the ubiquity of mobile devices. "Amazing" may not always be the reality, then, but Segerstrale believes that EA is the company best positioned to make it happen.

If anyone is able to navigate the rapidly shifting social/mobile landscape, it's the former co-founder of mobile gaming company Glu, and social games developer Playfish. EA acquired the two-year-old Playfish in 2009 in an estimated $300 million cash and equity deal, making Segerstrale the Executive Vice President of Digital for the parent corporation.

Mobility, Connectivity, and Computing Power

According to Segerstrale, there are three macro trends that are driving EA (and the industry) at this moment - mobility, connectivity, and the raw increase in computing power.

Mobility has vastly expanded the number of potential gamers. "Not only is gaming growing on these devices rapidly, but what we also see is an explosion in the amount of people playing games," explains Segerstrale. "It's more accessible than having to own a console or sit in front of a PC."

Connectivity has transformed the way EA thinks of its business all together. "With connectivity, games have become completely different. Now we are running ongoing services where what you do after you get hold of the product is as important - if not more important - than what you do before you get hold of the product," he says. "We no longer measure ourselves in units sold but rather how many consumers have we engaged. It's similar to a consumer internet service."

Segerstrale offers EA Sports' FIFA 12 as an example. The company sold 12 million units in the six months post-launch, but as five million gamers continue to play online in any given week, 20 percent of all the game's revenue has been generated from in-game transactions.

When it comes to Segerstrale's third trend - power - it's all about looking good, graphically speaking. "We had the standard set by the last generation of consoles in the living room, and everything else [mobile and tablets] has been catching up to that." He believes that the increase in raw computing power is setting the stage for a mixed generation box that will create, in EA-speak, "What awesome will look like in the living room for games."

Making The Console Social (and Mobile)

While some in the industry have seized upon Zynga's challenges to signal the death knell of social (or "canvas") games on Facebook, Segerstrale maintains that this is simply an inevitable slowing of growth in a space that launched with explosive numbers. While he thinks that canvas games will be just fine in the long run (and EA will continue to develop for them), the bigger picture is the influence they have had across platforms - and especially on the console. "What we are seeing is gaming on mobile, console, and tablet beginning to really embrace the elements that made social gaming grow so fast in terms of the free-to-play models, the connectivity to friends, and the ability to get your friends involved in the game, which ultimately to me is what social is about."

EA has already begun to integrate these social elements within its console games. In the most recent update of its NHL franchise, users can post their in-game achievements to Facebook. Within the first six days of going live, more than 1.1 million users shared their scores. As Segerstrale explains: "Ultimately, the experiences we create are so fundamentally emotional that people want to talk about them. We think that is incredibly important." EA is also beginning to connect its console titles with mobile platforms - giving FIFA players access to their "Ultimate Team" via mobile, or letting Battlefield players have mobile access to the Battlelog system.

Next Level Data

EA's commitment to connectivity echoes the findings of a recent Google report, Understanding the Modern Gamer. For major franchise titles, the report suggests, engagement is extending beyond the traditional release cycle to year-round interaction. Segerstrale argues that the key to improving this ongoing engagement is EA's use of data.

"We use data all the way from our acquisition efforts to our digital game engagement efforts to figuring out our existing consumer base - from what games might they want to play next to what would be a great consumer journey moving forward." Data can tell you simple stuff like where a consumer switches off a video game trailer, but it can also figure out if a level is too difficult. In turn, EA is evolving its culture to allow for the rapid testing of new ideas; giving creators real insight into what consumers think about a gaming experience, thus enabling them to actually alter and improve that experience.

If they get it right, EA can win the ultimate battle: The one for consumers' attention. "This is much more about, 'How do we create something that is truly inspirational for consumers?' Because our real competitor in the games industry is all the other cool things you can do on your mobile or tablet or any connected device today," Segerstrale says.

"Our ambition has to be to create one of those moments in games whereby we innovate and create something that's so new and fresh and different that it immediately captures the imagination for the consumers so they come and spend more time with us."

Written by Anastasia Goodstein

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Constant Consideration Research Study

Digital is changing the habits of auto shoppers, turning pre-market, in-market, and post-market phases into a cycle of constant consideration in which brand influence can be won or lost at any point. Though 63 percent of consumers enter the market with a brand in mind, only 20 percent will ultimately purchase that brand. This study reveals where the greatest opportunities for influence arise and how to take advantage of them.

Constant Consideration Infographic

Digital has changed the purchase path for auto shoppers. As pre-market, in-market, and post-market phases have evolved into a cycle of constant consideration, brand loyalty can be won or lost at any point. This infographic demonstrates the impact of these changes, and illuminates some of the key moments of brand influence.

Constant Consideration: Brand Choice on the Path to Vehicle Purchase

We live in the age of engagement. Digital has amplified the opportunity for brands to connect with consumers at the moments that matter, across an array of platforms, screens, and devices. At the same time, however, there is a growing skepticism - even among ad agencies - as people begin to question whether consumers really care about brands at all.

According to Weiden+Kennedy Amsterdam, 72 percent of Pepsi fans also drink Coca-Cola. Their conclusion: Your consumers are just somebody else's consumers who occasionally buy you. Is this true? And if it is, what is the real value of a fan, a Like, a +1, or a tweet? In fact, how do we define engagement at all?

Happily, our research suggests that there's no need for doom and gloom. Yes, consumer behavior has changed with the digital revolution, but brands should see this as an opportunity, not a cause for despair.

For the auto industry, it means embracing a new model in which marketers no longer view potential customers merely as "shoppers." Rather, they are owners who bring with them strong brand notions based on their experiences before, during, and after their last vehicle purchase.

They are on a continuous journey starting long before they are in-market and continuing long after they buy. Each moment leads fluidly into the next, from the instant the car is driven off the lot, when pictures and reviews are posted online, to servicing milestones and the everyday experience of the vehicle, which shapes consideration the next time the owner is ready to shop for a new vehicle.

We call this continuous feedback loop of vehicle interaction, research, and experience "Constant Consideration." It's a cycle in which brand interest can be won or lost at any point, which is why 100 auto executives surveyed by the IBM Institute for Business Value cited customer management as the part of the automotive value chain that will change most over the next decade. It sounds daunting - a never-ending story of auto marketing - and yet the same force creating the challenge of constant information also provides the solution. By harnessing the unique insights and immersive, personal experiences afforded by digital brand-building, auto marketers can adapt for greater sales and long-term loyalty.

Pre-Market Moments

We use the term pre-market to refer to the phase at which consumers aren't yet actively researching a purchase but are nevertheless exposed to brand marketing.

To dig deeper about how brand notions are formed as a result of pre-market influences, with the help of Polk and Compete, we tracked the online research activity of over 10,000 vehicle buyers leading up to purchase. What we found challenged the conventional wisdom that the search path for a given category (say, luxury) begins with generic search terms before narrowing to a brand of choice. Instead, 63 percent of new vehicle purchasers begin their search with a specific brand in mind, having been influenced in a meaningful way during the pre-market stage.

This can be a lengthy process, sometimes lasting years, and as a result is tough to measure. But a strong digital strategy can undoubtedly help. Not too long ago, brands were limited to broadcasting their content through a limited number of sources to many viewers at once. Today, digital storytelling allows brands to "microcast," or connect with many smaller, concentrated audiences who represent truly passionate viewers. At the moment where consumers are least likely to care about your vehicle, microcasting enables brands to align themselves with something consumers do care about. And in a connected world, brands can combine their storytelling with social interaction.

Case Study The digital space affords a near-infinite array of passion points. For the all-new 2013 Dodge Dart, the focus was humor and reaching out to millennials who like their information served with a side of comedy and skepticism. That made The Onion a perfect partner. Dodge sponsored The Onion's YouTube channel (with over 200 million views to date) and collaborated on a three-minute video in which advertising for the Dart was cleverly smuggled into a sketch poking fun at... TV advertising. The partnership allowed the Dart to connect with consumers' true passions while affording them the opportunity to share their stories, thus driving engagement and brand favorability.

(For more examples of automotive brand-building, see Google's Creative Sandbox)

In-Market Moments

On entering the market, your potential consumer becomes a shopper, actively researching and planning a purchase. This competition for awareness and favorable opinion gets even more intense. Remember those 63 percent of shoppers who formed an initial consideration set before they entered the market? Well, once in-market, only 20 percent of shoppers actually buy the vehicle they first researched. Over the course of in-market research, search data suggests that 73 percent of in-market activity involves cross-shopping.

Although the brand objective may now have changed, branding itself is more important than ever, especially across multiple screens. Younger, open-minded shoppers - those who consider four or more brands in-market - are increasingly turning to multiple screens for research and discovery: Indeed, they're almost twice as likely to use mobile and tablet devices as their older, more brand-loyal counterparts.

Tablets in particular will quickly become a "killer app" for auto shopping, combining sight, sound, and motion with the convenience of a device that sits in your lap. Our research found that 43 percent of brand-agnostic shoppers use video sharing sites across desktop and mobile devices, while once on the lot, 51 percent take pictures; 49 percent check online reviews; and 44 percent use comparison tools. Mobile and video are changing the shopping ecosystem as it's being built.

Case Study When Volvo launched the S60 to take on the likes of the BMW 3-Series and Mercedes C-Class, it approached this highly competitive sector with a cross-platform approach that took maximum advantage of digital technology. On desktop, Volvo employed large ad formats like the YouTube homepage masthead, but it was on mobile that the campaign came into its own. Interactive mobile ads allowed consumers to explore a 360-degree view of the S60, swipe for more photos and videos, and locate nearby dealerships. What's more, an augmented reality test drive experience in a YouTube masthead provided something truly groundbreaking. Volvo realized that when it comes to mobile, it's important not to just replicate across screens, but to make use of each screen's unique capabilities - whether it's geolocation, interactivity, or the intuitive fun of swiping. The result was an increase in purchase intent of 88 percent, and brand favorability of 240 percent.

Post-Market Moments

As the buyer drives off the lot, what is often considered the end of the process is actually just the beginning of the next sale.

Service moments and milestones can build or erode long-term brand loyalty. Immediately after purchase, 87 percent of new owners say they're likely to buy the same brand next time. But the reality is a bit different: Only 56 percent end up as repeat purchasers. What happens to that missing third and how can you get them back?

Begin by considering how digital can help owners endorse your brand to others while maintaining loyalty themselves - especially at the dealership. How can you use social, review, and maps channels to get consumers talking about their experiences? More to the point, are those experiences worth talking about to begin with? Owners cite service moments as brand influencers, so treat maintenance moments as branding opportunities with optimized digital service experiences. And once you delight owners, help them pass the message on to others.

Case Study There are 6.8 million Camry owners in the US - the problem for Toyota was that they were virtually silent online. New shoppers, on the other hand, wouldn't consider buying a Camry until they'd read one or two reviews. Undeterred, Toyota saw an opportunity to utilize digital and social in a way that inspired conversation and redefined the owner's role. Alongside Saatchi & Saatchi, they created an ever-evolving social network with dynamic choose-your-own-adventure questions and real-time stats based on user interaction. Dealers became an important pillar, amplifying the brand message and social outreach through their own channels. Through a final display ad campaign, these real-world stories became the research material of the next in-market shopper, continuing the virtuous cycle of Constant Consideration. The result was an 800 percent spike in real-world Camry interest, and 19 percent more sales leads than pre-campaign.

Conclusion

The data tells us that for automotive consumers, vehicle attention may rise and fall throughout shopping and ownership, but there are brand moments to be won at each stage. As customers form opinions during three phases of the purchase path, brand-building should be a shared responsibility of the brand, in-market, and service teams. Auto marketers who use new digital tools to identify and connect with consumers at the moments that matter will win in this new era.

Key Take-Aways

i) Pre-Market What you need to know: Sixty-three percent of new vehicle purchasers begin their search with a specific brand in mind. What you need to do: To create consideration, use digital tools to connect with passionate audiences and align your brand with something consumers care about.

ii) In-Market What you need to know: Only 20 percent of shoppers buy the vehicle they first researched online, while 73 percent of in-market search activity involves cross-shopping. What you need to do: Focus on being found and being favorable. Drive consideration and purchase intent across screens to reach the most open-minded shoppers.

iii) Post-Market What you need to know: Eighty-seven percent of new owners say they're likely to buy the same brand next time, but only 56 percent end up as repeat purchasers. Owners cite service moments as brand influencers. What you can do: Amplify the attachment. Enable endorsement through social, review, and maps channels. Use newly accessible customer information to anticipate maintenance needs and to delight owners.

Written by Michelle Morris

Michelle Morris is an Automotive Industry Director at Google. She is responsible for leading advertising strategies for the company's North American automotive client and agency partners.

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Office Furniture & Supplies Insights

This one sheeter showcases mobile, search, display, and video data and trends for the Office Furniture & Supplies industry. It also suggests new opportunities and helpful resources for improving your business in 2013.

Fashion's New Homepage

When Mindy Grossman took over as HSN CEO in 2006, the petite blonde powerhouse (recently named one of the world's 100 Most Powerful Women by Forbes magazine) had a huge job ahead of her. Formerly known as the Home Shopping Network, HSN was the frumpy, tacky channel that sold gemstones, gym gear, and holiday-themed sweaters. It had posted $941 million in sales and an operating income of $95 million - but most of that had come from Cornerstone, the mail-order house the company had recently acquired.

In six short years, Grossman not only took the company public during a recession, she boosted its sales to $3 billion a year, and completely changed its profile. HSN is no longer just a direct seller, or even a television network, Grossman says, but is now a hybrid media, entertainment, technology, and retail business.

The company that was once kryptonite to designers and celebrities has now become their go-to collaborator. Iman, Emeril Lagasse, Giuliana Rancic, Padma Lakshmi, Jonathan Adler, Liz Lange and Mariah Carey all hawk their wares on HSN. That, in turn, has made Hollywood sit up and take note: HSN has partnered with movies and television shows like Snow White and the Huntsman, The Help, and True Blood. Lionel Richie, Bret Michaels, and Rod Stewart have given concerts on the network this year (while selling their CDs), and HSN recently partnered with Toyota to sell their hybrid cars.

But despite all these high-profile partnerships, Grossman's biggest move was to invest heavily in digital, particularly gaming and mobile, turning HSN into what she calls a "boundary-less experience," while showing a unique ability to adapt as that technology transformed the retail landscape.

TURNING ONE-TIME INTO LONG-TIME

When most people think of a "gamer," they don't picture a chic, white-collar, well-dressed, and well-groomed woman in her mid-thirties - one who's earning reward points to spend at HSN.com. But then, most people don't picture the world like Grossman.

"We were doing a lot of work around our consumer," she explains. "She loves to shop, but she also loves to share on Facebook, Twitter, and Pinterest. We also knew she loved casual games, which have the same psychology as shopping - combining the thrill of the hunt with reward and a passion for getting to the next level. My obsession was, 'If our customer is doing these things anyway, why can't she do them all with us?'"

Now they can, through the HSN Arcade, which has become an integral part of HSN's digital strategy. The idea is to replicate the "stickiness" of social and gaming platforms since the longer someone stays on a site, the more likely they are not only to buy but to talk up the experience to their friends, and thus bring in more customers.

When the the arcade launched a year ago, "We didn't really know what to expect," Grossman admits. "Our strategy was to give people more reasons to engage with the HSN brand, and to acquire and retain customers. We now have close to 90 million games played, with a half million registered players. The length of time people spend on the site is two to three times higher, and we're seeing an increase in sales. It's about having a little fun and making the one-time customer a long-time customer."

More importantly, the demographics - or "psycho-graphics" - of the company have changed, driven by its commitment to gaming and technology. The average age of the HSN customer is now 55, with an aggregate income of $70,000. But, as Grossman points out, "We are seeing that the entry point for new customers is more in the 35-45 age range. Customers coming from digital, and specifically through mobile, are younger, more affluent, and more diverse." While 26 percent of HSN's customers earn $100,000 plus, Grossman points out, "On the digital side [that percentage] is much higher." Mobile, then, is the driving force attracting new, younger, and more affluent customers to the brand.

THE TRULY PERSONAL SHOPPER

The online and mobile business at HSN is now up to $1.4 billion a year in sales, comprising 35-40 percent of total revenues, and is based around the company's motto: Content, Community, and Commerce. "Digital and mobile have increased multi-channel shopping behavior, conversion, and engagement," Grossman says. "It's really driven new customer acquisition and assimilation, and provided engagement between purchase cycles."

On the community side, that means engaging consumers on their own terms, with personal and flexible experiences. "We are focused on extending our multi-channel experience and offering our customers more and more innovative ways to engage with us," Grossman explains. "We are committed to giving our customer the opportunity to experience HSN on her terms, whenever and wherever she chooses. Whether it's via her smartphone or tablet, we provide a seamless, personalized experience that is engaging and compelling to her."

No less compelling are new content initiatives that take advantage of HSN's multiple channels, and which can now be consumed on multiple screens. "Several years ago we embarked upon a journey to transform the HSN brand and business from a single-channel operation into a multi-screen network of experiences designed to inspire and ignite our customers' passion to learn and explore," Grossman says.

For example, when Rod Stewart performed on the network, viewers could watch it on traditional TV, tablets, or mobile, and exclusive online extras included a live pre-show on Facebook; behind-the-scenes green room images on Pinterest and Instagram; and an additional song that aired exclusively on HSN's social network sites.

The result is a virtuous circle that leads consumers back to the final part of the company's motto: Commerce. Because the more engaged they are, the more products they'll buy.

On January 8, HSN.com re-launched with a fresh design and a pop-up platform that Grossman says will up the site's community, games, and dynamic content elements. The company will also focus on mobile and tablet sales. "The customer's needs and wants don't really change, but they don't seek us out anymore," Grossman adds. "We have to be where they are - consistently informing, engaging, and entertaining them. It's about creating a community and creating that connection. You have to talk to your customers' needs and remember that they are a part of a larger group. Ask yourself: 'Who are they going to share with? Will it be engaging and compelling to them?'"

These days Grossman can more often than not be found on a plane - traveling from HSN headquarters in St. Petersburg, Florida, to meet with movie executives in Los Angeles, fashion and music bigwigs in New York, and tech power players in San Francisco. All in the pursuit of branching out and expanding HSN and its customer base.

"We are more than a collection of dynamic brands," Grossman concludes. "We offer an immersive shopping experience that responds to and anticipates our customers' lifestyles. Our live events, our social connections, our digital catalogues, even our gaming platform, all create new experiences for our customer - and those experiences consistently drive additional sales."

Written by Paula Froelich

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