In this session, Catherine Roe of Google will discuss why the consumer's changing media and shopping habits necessitate the inclusion of a digital strategy in your integrated shopper marketing plans. Also, how best-in-class companies have leveraged strong manufacturer, retail and media integration to drive sales & retail partnerships. Google will also present a case study on how search & display advertising has been proven to drive sales and ROI for a CPG company.

1. The New Moment of Truth: How Technology Has Influenced Purchase Decisions and How Savvy Marketers Can CapitalizeIn this webcast Catherine Roe, Head of CPG, Google, will discuss why the consumer's changing media and shopping habits necessitate the inclusion of a digital strategy in your integrated shopper marketing plans. Also, how best-in-class companies have leveraged strong manufacturer, retail and media integration to drive sales & retail partnerships. Google will also present a case study on how search & display advertising has been proven to drive sales and ROI for a CPG company.

3. Gone Digital! AMA/Aquent Webcast Catherine Roe Head of CPG, Google January, 2011 3 3

4. In 2010, Digital advertising investment surpassed Print/Newspaper spending for the first time. CMO Council report quoting the Outsell Group, $119.6 billion to $111.5 billion 4

5. Most Marketers have not kept up with their consumers… A Week in the Life of a U.S. Hispanic Weekly Media Consumption 52% Online 14 hrs Gap between ad spend and media consumption 37% TV10 hrs 7% Radio2 hrs 4% Newspapers 1 hr 5 Source: JupiterResearch Economic Downturn Online Consumer Survey,

6. Most Marketers have not kept up with their consumers… A Week in the Life of a U.S. Hispanic Weekly Media Consumption US Ad Investment 52% Online 14 hrs 5% Online Gap between ad spend and media consumption 63% TV 37% TV10 hrs 19% Radio 7% Radio2 hrs 4% Newspapers 1 hr 8% Newspapers 6 Source: JupiterResearch Economic Downturn Online Consumer Survey,

7. Marketing Priorities: 7 ZMOT: Marketing influence shifts to “Between Stimulus & Store”

8. Marketing Priorities: 8 ZMOT: Marketing influence shifts to “Between Stimulus & Store” Localization:Digital targeting will be more locally focused

9. Marketing Priorities: 9 ZMOT: Marketing influence shifts to “Between Stimulus & Store” Localization:Digital targeting will be more locally focused Speed:The new Agility of a Digital world

10. Marketing Priorities: 10 ZMOT: Marketing influence shifts to “Between Stimulus & Store” Localization:Digital targeting will be more locally focused Speed:The new Agility of a Digital world ROI:Proving that digital marketing works!

11. 1. ZMOT 11

12. The Evolving Path to Purchase: The Goals have not changed: Grow Sales and Share

13. 13 But the Journey has changed dramatically

14. 14 But the Journey has changed dramatically

15. 15 But the Journey has changed dramatically

16. 16 But the Journey has changed dramatically

17. Historical Path-to-Purchase Model: 17 Stimulus

18. Historical Path-to-Purchase Model: 18 1st Moment of Truth (FMOT) Stimulus

19. Historical Path-to-Purchase Model: 19 1st Moment of Truth (FMOT) 2nd Moment of Truth: (SMOT) Stimulus

20. NEW Path-to-Purchase Model: 20 SMOT FMOT Stimulus

21. NEW Path-to-Purchase Model: 21 Zero Moment of Truth: SMOT FMOT Stimulus Which Effects ZMOT

22. 81% The New Path to Purchase 22 81% of shoppers conduct research before they shop, typically for an hour of more. Source: GMA, Booz & Company, and SheSpeaks Shopper Marketing 3.0 Survey; n = 3,600 respondents

24. 24 Online Research has Changed the Game

25. Online Research has Changed the Game +288% Coupons 25

26. Online Research has Changed the Game +209% Recipes 26

27. Online Research has Changed the Game +149% Local Searches +209% Recipes 27

28. Online Research has Changed the Game +188% Reviews +288% Coupons 28

29. Online Research has Changed the Game +188% Reviews +288% Coupons +209% Recipes 29

30. 30 The Sheer Volume is Staggering Annual Query Volume recipes weight loss soap shampoo deodorant mayonnaise pasta sauce 153,200,000 54,540,000 26,970,000 15,820,000 3,569,000 1,475,500 1,292,000 Source: Google Keyword Tool, US only.

31. Search is Integral Tool for Trade Marketing “Search advertising is the online world's equivalent of trade promotion.” 31 Source: Advertising Age, Is Search the Online Equivalent of Trade Promotion?, http://adage.com/digitalnext/post.php?article_id=135261

32. 32 Online Research has Changed the Game +188% Reviews

33. Online Research has Changed the Game +188% Reviews +188% Reviews 33

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37. 37

38. Good News for Shopper Marketers! +20% Source: MarketingVox : Search Affects CPG Brand Building, Offline & Online Sales.. http://www.marketingvox.com/study-search-vital-for-cpg-brand-building-and-both-offline-online-sales-033942 38

39. 2. Localization 2. Localization 39

40. City Set borders Radius Region *Marketer is responsible for translating ads into selected languages. 40 Digital Enables Precision Targeting:

41. It’s Called “Owning the Digital Shelf”

42. 42 Leverage Virtual Endcaps

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49. 49

50. Geo-Targeted Coupon Distribution

51. 51

52. 3. Speed 3. Speed 52 52

53. Leverage Insights 53

54. Leverage Insights 54 www.target.com/chex Try Gluten Free Chex cereal. Available at Target!

55. And Execute! 55

56. 56 Concept was a huge success!

57. McDonald’s Leverages ZMOT for new Smoothies 57

58. McDonald’s Leverages ZMOT for new Smoothies 58

59. 59 Take advantage of the Unexpected…good or bad

60. Amplify Assets Fast & Creatively

61. Speed Beats Perfection!

62. Miracle Whip faces Adversity

63. Colbert Calls Out Miracle Whip

64. Miracle Whip Immediately Responded

65. And then “Krafted” an Official Response As Well Full page ads in top newspapers 3 TV spots on Colbert Facebook Messaging Search YouTube

66. 3. ROI 66

67. Green Giant Target Shopper Marketing Initiative

68. Insight: Vegetable side dish queries

69. A Search on “Frozen Veggies”

70. A Search on “Easter Meal Ideas”

72. Partners and Participants 72

74. Can a geo-based targeting approach drive impact vs. a specific competitor?

75. Which search text ad messages resonate best with consumers and are most effective at driving offline sales?Study Objectives 73

76. Match Market Methodology 74 Search Creative A plus Display Search Creative C plus Display Control - Dark Search Creative B plus Display Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010

77. Text Ads By Message: 75 Health Claim Product Message Coupon Message

78. Display Ads by Initiative 76

79. Results: 77 Private Label Test Brand Sales Lift in Brand Only Campaign Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010, Sales in volume.. Life versus control (dark – no search). All results significant at 90% or greater.

80. Results: 78 Private Label Test Brand Sales Lift in Product Only Campaign Sales Lift in Brand Only Campaign Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010, Sales in volume.. Life versus control (dark – no search). All results significant at 90% or greater.

81. Results: 79 Private Label Test Brand Sales Lift in Coupon Campaign Sales Lift in Product Only Campaign Sales Lift in Brand Only Campaign Source: White-labeled Search and Display Match Market Study for Ready-To-Eat Cereal Advertiser, August 2010, Sales in volume.. Life versus control (dark – no search). All results significant at 90% or greater.

83. A Geo-targeted strategy is effective at driving sales at a specific retailer & location

84. Ads with Coupon Messaging resonate best with consumers and drive the strongest offline performanceSummary of Key Findings & Implications 80

85. 81 Bottom Line......It’sTime to Re Think the Traditional Trade Calendar!

86. 82 It’sTime to Re Think the Trade Calendar!

87. 83 It’sTime to Re Think the Trade Calendar!

88. 84

89. Thank You! croe@google.comor Contact me on linkedin 85 85