Futures of the Internet presentation

FuturesThe marketer's central task is to make the brand

easy to buy and this requires ensuring people can find it and know about it. "Everything else is

secondary”

Change like never before

YouTube trashed Hollywood. In 2005, it did not exist. Google bought it for $1.65 billion and Viacom is suing it for $1 billion—and both for the same reason: it has utterly disrupted the status quo of audience behavior

Skype trashed phone company revenues – particularly long distance. Broadband – is about to land many new TV services. Facebook – is connecting the globe

Record Industry gone – well nearly Craig’s List – Trashed newspapers classified revenues

Then & Now

June 15, 2010 3

The internet is the change agent

2000 >> 2010adults who use the internet

have broadband at home

own a cell phone

connect wirelessly

use “cloud”

tech social networkers

NOW: faster, mobile

connections built around

outside servers and

storage

THEN: slow, stationary

connections built around my computer

46%

5%

50%

0%

0%

<10%

79%

64%

82%

59%

>66%

48%

Australian online population in 2010

4

Over 17 million Australians are online

9 in 10 have broadband at home

THEY SPEND

22h hours online15 hours watching TV10.3h listening to radio

3.4h and 2.1h reading newspaper and magazines

Source : Nielsen online consumer report Feb 2011

40% use Internet while watching TV

They look at 92 domains and 3,029 pages

Agenda

Who is doing this well?

Key Themes 2015:

1.Mobile - number 1 screen

2.Search - Internet is going search centric

3.Social - Ads socially enabled

4.Video - Explosion in Rich media content

5.Trading – DSP’s Advertisers will learn to love the

data

Numbers

Mobile Internet

So why should we care?

Mindbox confidential and proprietary

2010

Australians are searching more from mobile devices

Source: Google Internal Data, based on a basket of 20,000 keywords

iPhone

iPhone 3G

Android G1

Blackberry Storm Palm Pre

iPhone 3GS

Android myTouch

Android Nexus One

Moto Droid & Eris

2008 2009

3,000% + growth in 3 years

12% of all Google queries in Dec 2010 came from mobile devices

Mobile web adoption 8x faster than the desktop web

People use their phone differently

9

Mobile provides the opportunity to remain constantly connected to your customers as they ‘go mobile’

And they use it constantly throughout the week

10Source: Citi Investment Research and Analysis; iCrossing Mobile U.S. Google Internal Data, 2010

Mobile provides the opportunity to remain constantly connected to your customers as they ‘go mobile

Mobile Search QueriesDesktop Search Queries

Most of the activity on mobiles is new.

It’s not just iPhone.

Largely driven by social media.

Search

So What About Search We don’t need advertising anymore because we can find anything we

want. – Google Founder We convert 50% of our customers on the website – the other 50% in our

branches. Brand advertising is now only intended to drive search and that’s the ROI. – Marketing Director

On all devices and for any type of content

4bn+ searches per day worldwide and increasingly sophisticated : everyday, 15% of searches are new queries

Mobile: 50% of people using Internet via smart phones start with Search.

Over 30% of mobile searches are for local info

Video: Over 500 million queries globally

each day on YouTube

Online Usage Trends

Stickiness: Categories

Source : Nielsen NetView March 2011

Top 5 Categories Visits Per Person

Active Reach

Time Per

Person

Search Engines/Portals & Communities 43 92% 7:37:51

Entertainment 26 82% 5:26:50

Telecom / Internet Services 29 80% 3:01:32Computers & Consumer

Electronics 19 78% 2:22:31

News & Information 21 74% 1:49:03

0 5 10 15 20 25 30 35 40 45 500%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Automotive Multi-category Commerce Corporate Information

Government & Non-Profit Telecom/Internet Services Home & Fashion

Finance/Insurance/Investment Education & Careers Family & Lifestyles

News & Information Computers & ConsumerElectronics

Search Engines/Portals& Communities

Special Occasions Entertainment Travel

Visits per Person

Bubble Size = Time per Person

Act

ive

Rea

ch (

%)

0 5 10 15 20 25 300%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ask.com - C Google Search - C Whereis - C

BigPond Search - C Yahoo!7 Search - C Bing Web - C

NineMSN Search - C a lot - B Bing Images - C

Google Image Search - C

Visits per Person

Bubble Size = Time per Person

Act

ive

Rea

ch (

%)

Online Usage Trends

Stickiness: Search CategorySearch Category: Google Search is still the stickiest Search Brand with an active reach of 83%, followed by Google Image Search (35%), and Bing Web (22%)

Source : Nielsen NetView March 2011

Top 5 Brands/Channels Visits Per Person

Active Reach

Time Per Person

Google Search - C 27 83% 0:43:58

Google Image Search - C 5 35% 0:14:35

Bing Web - C 7 22% 0:09:08

Ask.com - C 3 19% 0:02:55

Yahoo!7 Search - C 7 12% 0:15:59

Video

The rise of the YouTube generation

Online video vs other medium

YouTube - the tip of the iceberg!

Source: Comscore Video matrix // Techcrunch

Social MediaIt’s not about campaigns.

Converse CMO Social media isn’t even a two-way

conversation –- it’s more complicated than that.

Be respectful of the time between purchases of your product by adding value and contributing to the conversation. When it comes time again to purchase, your relationship with them should pay off.

Which is why we focus on a couple of core marketing truths via social – be relevant, make a connection, be useful

Social Media LandscapeUnique

Audience

Online Usage Trends

Source : Nielsen NetView March 2011

• 73.8% of Australian online users have accessed a member community site in March 2011 which is an increase of 3.5% month on month

• 64.9% of Australian online users now use Facebook. This has increase of over 3% month on month.

Online A

ctive

Universe

Member

Communities

Faceb

ook

Blogger

Word

Press.c

om

Twitter.

com

Linke

dIn

Myspace

.com

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Unique Audience

0 5 10 15 20 25 30 350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Facebook Blogger WordPress.com

Twitter.com LinkedIn Myspace.com

Tumblr Hub Pages Wikia

Six Apart TypePad

Visits per Person

Bubble Size = Time per Person

Act

ive

Rea

ch (

%)

Online Usage Trends

Stickiness: Member Communities Category

Member Communities Category: Facebook is the stickiest Member Communities Brand with an active reach of 65%, followed by Blogger (26%), and WordPress.com (13%)

Source : Nielsen NetView March 2011

Top 5 Brands/Channels Visits Per Person Active Reach

Time Per

Person

Facebook - B 29 65% 7:34:53

Blogger - C 5 26% 0:11:40

WordPress.com - C 3 13% 0:10:02

Twitter.com - C 7 11% 0:11:56

LinkedIn - C 4 10% 0:10:16

Online is about engagement

Video content found online is the 2nd most popular form of online

brand engagement

Source : Nielsen online consumer report Feb 2011

3 in 4 of online Australians consult other people’s online reviews and comments about brands, products or services.

1 in 2 actively participate in online discussions about brands or provide their

own comments

Search is already social

28

Social Graph

Platforms

Understand

Be useful

Be live

YouTube

Twitter

Flickr

Delicious

Facebook

Social Space

Networks

Plan/iterateMeasure

Active listening

Aggregation Outreach Moderation

APIs

Social Spaces Framework

Principles

ProcessesWidgets / tools

EditorialOptimise assets

M&S assets

On-site UGC

Connecting

Research & Listen

Curation

Content

Marketers will learn to love data

Internet provides Real Time Insights about your brand

Google runs 100’s of experiments/day

Volkswagen Germany discovered that 15 searches on Golf = 1 saleTrommsdorff & Drüner: VW Golf econometric modeling 2010

Amazon runs more than 200 tests/day at any point

Media Changes

These replace performance networks.

DSP – Demand side platforms

Banner click through rates have dropped dramatically – no one really buys the brand recognition unless it’s accompanied by action.

Context is the only way to generate a return. Trading will become derigeur – it’s happening now.

SSP – Sell side platforms

5 Coolest Brands with Gen Y

Apple

ConverseTrader Joe’s

Whole FoodsAmazon

5 Coolest Brands with Gen Y: Amazon

5 Coolest Brands with Gen Y: Converse All

Star

5 Coolest Brands with Gen Y: Converse All

Star

5 Coolest Brands with Gen Y: Whole Foods

5 Coolest Brands with Gen Y: Whole Foods

Everything needs to work on mobile.

Opportunity

THE FUTURE IS NOW

You have to be available on all devices and it all needs to work. It’s no different to being on a supermarket self.201

1in

Advertising drives search.

Customers use social media to share content – they love blogs and because they are diverse they all read different blogs.

The web just has to work. Usability is key.

Online and offline have to be integrated

You have to measure and improve over time.

They want the buying and servicing process focused on their needs – Web, retail,