Stephanie Tilenius’ Keynote at Internet Retailer – Google Commerce is about Mobile, Social, Personalization and Local
Here are my notes on Stephanie Tilenius’ second public speaking event as VP of eCommerce at Google titled Betting on Disruption. Over 30 minutes, Stephanie shared pretty commonly known information, but in a much more clear 10K foot view than we’ve previously heard from Google. As with all live blogging, some of the information that follows is paraphrased.
There are 4 key areas that are important to Google’s eCommerce initiatives: Mobile, Social, Personalization, and Local. These are trends that will change commerce in powerful ways.
Mobile phone adoption is growing at fast pace. 4.6 billion people have mobile phones. Today 1 in 5 people in the US have a smart phone. Last year it was 1 in 10 people. Android is now growing faster than iPhone platform. Half of all internet connections are from mobile devices. Consumers are accessing websites through mobile devices. We believe that the mobile web is going to be bigger than the PC web. The mobile web is accelerating 8x faster than PC web.
What are people doing with their phones? Searching (has grown 5x in last 2yrs) and Shopping.
Shopping. Half of consumers this past holiday shopping season said they used their phones for shopping – to research products of find coupons. Google has seen a 30x growth in mobile shopping queries. Mobile internet usage is elevated during the weekends (and there’s a correlated drop in PC based internet usage). Look at Japan, during commute time and lunch time, mobile usage increases (with correlated drop in PC based internet usage). Google is betting on mobile first. It will be bigger than the PC web.
Google Goggles. Allows you to scan products. Translates a picture of a book cover or barcode into a query on the web. We’re getting better at soft goods (shoes for example). You can take a picture of something you want, walk down the street, and be able to find it in a store.
Social. We see a rise of social sites. 1 out of every 6 minutes online is social. 1 out of every X (might have been 20, but I’m not sure) tweets is about products.
Personalization. Mentioned and showed the SuperBowl ad called Parisian Love. We enabled consumers to create their own ads. We had 100K videos within 2 weeks. Highlighted Polyvore, which features user generated content (UGC), basically enabling consumers to create their own designs and have others buy them. Empowering users to drive commerce is a big trend.
Local. You can get info on a local provider in search, mobile, or on the PC. 1 in 5 desktop searches are local. 1 in 3 mobile searches are local. Near Me Now button just released. Shows everything around you. 80% of people using Near Me Now are undecided about what they want to do.
What about these trends? What does it mean for you? Three pieces of advice: Be Found, Make Your Ads Useful, and Create a Seamless Shopping Experience Online and Offline.
Ad for Denny’s during SuperBowl highlighted the need to be in search as viewers searched for Denny’s because of the TV ad. You need to be in search. Stephanie showed the Google Shopping product page that has developed over the last year to include nearby stores, video reviews, tech specs, prices, etc. We’re taking product feeds and putting the information out there. Discussed the partnership with BazaarVoice. Best Buy and Sony Style are some early adopters. Talked about mobile shopping with local availability, the Blue Dots, which highlights inventory that’s available right now in the store. Best Buy, Williams Sonoma, and Sears are 3 of over a dozen retailers participating.
Make your ads useful
We’ve improve the format for text ads. What should we do for commercial information? We’ve added 5 or 6 different formats:
-Site links (merchant decides what to promote, what links to display). S
-Product listings (ads) – We’ve taken the product feed and put the information (price, picture, title) right in the ad. Using the feed the merchant has already sent us.
-Product extension ads – We let the merchants decide which products to promote, how to run campaigns.
-Click to call ads
Across all these ad formats, we’ve see an increase of 10-30% CTR.
-Remarketing. Showed IHG (Intercontinental Hotels) example. Retargeting enables retailers to target promos to consumers who have left their site.
Create a seamless shopping experience – offline and online. 93% of sales is still in the stores. We launched a product called Google Shopper. We have over 700K downloads. We’re encouraging you to think about blending offline and online.
Data on how this is all coming together:
-Macys: every $1 online drives $6 in stores within 10 days
-Best Buy: 80% of customers who come in the door went online to bestbuy.com first
Notion is that today’s retail experience will get richer and richer. Html5 and mobile web – you need to innovate. It’s time for websites and mobile commerce to start innovating. 87% of consumers search before they buy.