Wireless Shopper 2.0 April 20, 2010
Google Confidential and Proprietary
450+ phones in North America
with
10
launches a week
Google Confidential and Proprietary 1
Source: Gartner Group (2009)
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Methodology • The initial study was based on understanding the attitudes of online users who identified themselves as wireless purchasers and analyzing behavioral clickstream activity of those observed adding a wireless product to their shopping cart. A follow up study was completed, performing an attitudinal and behavioral study based on a major phone launch in Q2 2009 • Tracked online search and research activity using Compete’s 2MM US opt-in panelists from Nov 2008 to Dec 2009, including carrier, OEM, 3rd party reseller and research sites • Includes both paid and natural Search • Sites and Search terms used were provided by Google We tracked consumers online shopping activity to understand shopping and searching patterns.
We analyzed those who added the product to cart, tracing their behavior backward from the point of purchase.
Surveyed searchers to understand their purchase behavior.
Google Confidential and Proprietary Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010.
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shifting marketplace
smart phones
search
Google Confidential and Proprietary
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shifting marketplace
Google Confidential and Proprietary
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Device Focused Consumers Online Regardless of Purchase Location General Retailers Stepping it Up
Google Confidential and Proprietary
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Shoppers Open to Switching
Service Provider
Device
42%
78%
did not know exactly which Carrier they would purchase from
did not know exactly which OEM they would purchase from
Q - When you first considered your most recent cell phone purchase, which statement best describes your mindset about the wireless service provider? (Total Respondents=2961) Q - Which statement best describes your mindset about the brand of cell phone? (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010.
Google Confidential and Proprietary
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Hot Phones and Features Trump Upgrades “I was eligible for a free or discounted upgrade with my provider”
“I wanted a phone with more features”
“I saw a new cell phone that I had to have”
-11% +20% +17% Q. Why did you decide to make this cell phone purchase? (n=2881, among those not purchasing first cell phone) Source: Google/Compete Wireless Shopper Study, January 2010. Q. Why did you decide to make this cell phone purchase? Please select all that apply. (n=1217, not first phone) Source: Wireless Shoppers Study, Google & Compete May 2008
Google Confidential and Proprietary
Device Interest Reflected through Search Queries
Source: Google.com, US
Google Confidential and Proprietary
9
Consumers Increasingly Research Online
29%
increase in the number of online resources used in research+
63%
of people who bought phones in stores researched their purchase online
Q - Which of the following sources did you use to research your recent cell phone purchase? (Total Respondents=2961) + As recalled by survey respondents in 2009 vs as recalled by 2008 survey respondents Source: Google/Compete Wireless Shopper Study, January 2010.
Google Confidential and Proprietary
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Same Online Research to Buy Online or In-store Type of Information Researched Online
* *
Q - Which of the following activities did you conduct online during your most recent cell phone purchase research process? Please select all that apply. (n=2057; based = shoppers that used online sources) Source: Google/Compete Wireless Shopper Study, January 2010.
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Buyers Spending More Time Researching Time Spent Researching Phone Purchase
5%
4 weeks or more
9%
**
Total 2008 (n=1257)
20%
1 week but less than 4 weeks
Total 2009 (N=2961) 25%
**
19%
More than two days, but less than one week
20%
56%
2 days or less 45%
0%
10%
20%
30%
40%
** 50%
60%
Q - How much time did you spend researching your most recent cell phone purchase? (Total Respondents=2916). Source: Google/Compete Wireless Shopper Study, January 2010. Google Confidential and Proprietary Source: Wireless Shoppers Study, Google & Compete Q: How much time did you spend researching your recent cell phone purchase? (N=1257, asked of recent wireless buyers, May 2008)
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Retailer Sites Increasing Share of Voice Website Traffic Growth Dec 2008 vs Dec 2009
178%
Amazon
107%
Target
160%
RadioShack
44%
Aggregate of OEM sites
3%
Aggregate of Carrier sites
26%
Walmart
Source: Compete.com
Google Confidential and Proprietary
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Increasingly Influential as a Resource Used During Research Process (2008 vs 2009)
Influential to Purchase Decision (2008 vs 2009)
45%
65%
40%
40%
60%
40%
55%
35% 30%
20% 15%
45%
40.00%
51%** 45%**
45%
40.09%
40%
24%**
30% 25%
15%
5%
10%
18%**
16%
20%
9%
30%
24.00% 25%
Wireless Carrier Site
18.10%
20%
16.00%
15% 10%
9.00%
5%
5% 0%
35%
35%
35%
10%
0%
60% 55%
50% 40%
25%
57%
0%
OEM Site Wireless Carrier Site
Retailer Site
OEM Site
2008
Wireless Carrier OEM Site Retailer Site Site
Retailer Site
2009
Q - Which of the following sources did you use to research your recent cell phone purchase? (Total Respondents=2961) Not all answer choices included on chart Q - On a scale from 1 to 5, where 1 means no influence at all and 5 means significant influence, how much influence did each of the following have on your most recent cell phone purchase? Top 2 Box (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010. Google Confidential and Proprietary Q: Which of the following sources did you use to research? Asked of Recent Wireless Buyers, (N=1257) Q: How much influence did each resource used have on your purchase? (Top 2 Box) Asked of Recent Wireless Buyers Who Used Resource, N=variable, May 2008. Source: Wireless Shoppers Study, Google & Compete 2008.
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Retailers Have Captured Wireless Customers Purchase Channel for Phone Purchase
23%
Q – Where did you purchase your most recent cell phone? (Total Respondents=2961). Online share of purchases was higher than actual due to online survey fielding. Actual online share is typically ~6% of carrier gross add orders Source: Google/Compete Wireless Shopper Study, January 2010. Note: Traqline reports 17% of wireless phone sales through general retail stores in Q4 2009.
Google Confidential and Proprietary
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Device Focused Consumers Online Regardless of Purchase Location General Retailers Stepping it Up
Google Confidential and Proprietary
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smartphones
Google Confidential and Proprietary
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Open to Switching Carriers Reeled in by Features Investing More Money, More Research
Google Confidential and Proprietary
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New Segment of Customers Wireless Device Owned Prior to Current Smartphone
65%
new smartphone owners
Compete Smartphone Intelligence data. G1: Which of the following best describes the wireless device you primarily used before purchasing your current smartphone? (n=1959, smartphone owners)
Google Confidential and Proprietary
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Smartphone Purchase Drives Carrier Switching
Been with current service provider 2+ years
Q: How long have you been with your current wireless service provider. Source: Compete Gen Pop Wireless Survey, August 2009.
75%
Cell phone buyers
versus
67%
Smartphone buyers**
Google Confidential and Proprietary
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All Attributes Valued by Smartphone Buyers Importance of Attributes (Smartphone vs Cell phone) 85% 88%
Coverage area 77% 78%
Wireless provider
Carrier
69% 71%
Wireless provider customer service
63% 66%
Wireless provider my family and friends use
60%
Online account management
66% 50%
Specific phone model
80%
**
42%
Operating System
70%
**
Device
29%
Applications available for download
60% 0%
10%
Smartphone Ow ner (n=704)
20%
30%
40%
50%
60%
** 70%
80%
90%
100%
Cell Phone Ow ner (n=1542)
Q - On a scale of 1 to 5, how important were each of the following attributes when making your most recent cell phone purchase? (Top 2 Box) (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010.
Google Confidential and Proprietary
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Smartphone Owners Do More Research Time Spent Researching Phone Purchase (Smartphone Owner vs. Cell Phone Owner) 7%
4 weeks or more
**
17%
28%
1 week but less than 4 weeks
25%
21%
More than two days, but less than one week
Cell Phone Owner (n=1542)
20%
Smartphone Owner (n=704)
43%
2 days or less 38%
0%
10%
20%
30%
**
40%
Q - How much time did you spend researching your most recent cell phone purchase? (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010.
50%
60%
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Not All Wireless Shoppers On Board Yet
Why I Bought a Smartphone wanted a phone 45% Iwith more features
22%
I saw a new phone I had to have
Why I Didn’t Buy a Smartphone plans are 53% Smartphone too expensive
28%
Q - Why did you decide to make this cell phone purchase? (Total Respondents=2961) Source: Google/Compete Wireless Shopper Study, January 2010. SC4: Why haven't you purchased a smartphone? Source: Smartphone Intelligence Study, Q32009. (n=1959)
I don’t need the features on a smartphone
Google Confidential and Proprietary
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Open to Switching Carriers Reeled in by Features Investing More Money, More Research
Google Confidential and Proprietary
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search
Google Confidential and Proprietary
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62% of consumers who searched for a newly launched mobile device purchased one.
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010. White-labeled case study based on the launch of a mobile in Q2 2009. Survey Data.
Google Confidential and Proprietary
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Search is a Compass Increase Acquisition & Loyalty Bridge the Gap from Queries to Sales
Google Confidential and Proprietary
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Wireless buyers conduct an average of
searches during their shopping process
Source: Google/Compete Wireless Shopper Study, January 2010. Clickstream Data.
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Capture, Learn, and Optimize
Launch
Pre-Launch
Search Queries
Announcement
Search Encompasses Mobile Device Launch
Average
Mobile P hone La
unch
Time
Source: Google internal data.
Google Confidential and Proprietary
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Search Directs Traffic to New Phone Sites Search Share of Total Site Visits to New Device Product Pages (Share of search referrals among total referrals to Carrier and OEM sites)
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010. White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
Google Confidential and Proprietary
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Search Introduces New Customers Percent of Searchers and Buyers (Device term searchers and search referred buyers who were current customers or prospects of the launch carrier)
Searchers
62% Prospects
38% Current Customers
Announcement & Pre-Launch
Searchers Buyers
Searchers Buyers
47% Prospects
39%
56% Prospects
46%
53% Current Customers
61%
44% Current Customers
54%
Launch
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010. White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
Post-Launch
Google Confidential and Proprietary
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Visits Initiated by New Device Searches Percent of Search Referrals from Specific Device Keywords (Search referrals to OEM and Carrier pages, Compared to generic keywords)
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010. White-labeled case study based on the launch of a mobile in Q2 2009. Clickstream Data.
Google Confidential and Proprietary
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49% of Buyers Searched on Non-Brand Terms Top 10 Non-Branded Terms that drove to shopping cart cell phones prepaid cell phones
hot cell phones
cell phone plans cell phone cell phone companies prepaid phones cell phone deals prepaid cell phone plans prepaid phone cell phones providers
Source: Google/Compete Wireless Shopper Study, January 2010. Clickstream Data.
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Non-Brand Terms Convert to Sales
30%
of search-driven conversions to Tier 1 carriers
Non-Branded terms drove
67%
of search-driven visits to store locator pages
Source: Compete Custom Dashboards. Q3 2009.
Google Confidential and Proprietary
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Search Drives Sales, Overall
67%
Purchases made in-store by searchers of new phone launches.
Source: Google/Compete The Value of Search for Wireless Product Launches Study, March 2010. White-labeled case study based on the launch of a mobile in Q2 2009. Survey Data.
Google Confidential and Proprietary
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Search is a Compass Increase Acquisition & Loyalty Bridge the Gap from Queries to Sales
Google Confidential and Proprietary
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Thank you
Google Confidential and Proprietary
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