Think Auto live stream


Uploaded by GoogleBusiness on 24.06.2011

Transcript:

MICHELLE MORRIS: Great.
So welcome to the 2011 Think Auto event.
This is actually our fourth year running.
And it's so wonderful to see familiar faces in the crowd.
I know many of you have been here for all of the events.
So we're just absolutely thrilled to see you.
In addition to our US partners, we actually are
excited to welcome international guests from
Argentina to Australia and many locales in between.
And before we jump in today, I wanted to take a minute to
highlight the ringleaders on your business.
If you guys could please stand--
if they're not, they're probably busy volunteering--
if you're in the room.
They're incredible leaders, of course, but they've got
phenomenal teams dedicated to your business and really
making magic as we can on a daily basis.
Those teams are here.
They saved the good seats for you, but you'll see them
throughout the day.
And in addition, if you check out your book, you'll also
find that we've got with us our mobile, display, TV,
agency, Hispanic, dealer jump-start teams. So really
anybody as part of the auto family is here today.
And we welcome your conversations and questions
with that team.
So as my cartoon--
they swore they didn't make her look like me, but there
was a resemblance, yes?
As she mentioned, I'll go through some housekeeping.
And we would love for you to that use the
#thinkevents when tweeting.
And as many of you know, our handle is @GoogleAuto.
So if you're not already following us, we would love to
have you along for the ride.
So please sign up sometime today.
And we value your feedback.
I can't emphasize that enough.
We have actually changed events, changed the location
and all kinds of logistics based on your feedback.
We're constantly trying to improve.
So if you could take five minutes today before you leave
to fill out that survey, we just want to make sure that
this is a valuable event for you and your teams each year.
And if you have questions, the two mics-- there's a mic
located right over here and another one to this side.
If you're more comfortable or if it's easier to tweet,
please just tweet 22333, and type the word thinkauto
without any spaces, and then your question.
I'd also like to welcome those who are joining us today over
live stream for the very first time.
We'll be live streaming until 3:00 PM
Eastern or 12:00 PM Pacific.
So if you ask a question, that will be live streamed as well,
and we sure hope that you do as we go throughout the day.
So before we jump in, we wanted just to take a few
minutes to look at trends across the industry.
Today we plan on focusing on connections, connections that
introduce a brand, that change opinion and consideration, and
ultimately close a sale.
As we look at trends across the industry, we know that
consumers have increased choices, which presents
increased challenges for us as marketers.
We can expect that those choices consumers have are
only going to grow.
Last year alone, there were 309 vehicles for consumers to
choose from, and that number is predicted to grow to 320 by
2014, up almost 80% if you can believe it from just a decade
ago in 2000.
You'll hear from John Ross later today that the average
consumer is using over 18 different sources to narrow
those selections down.
So for over 300 vehicles on the road, 18 different sources
to find the right vehicle for them.
In fact, the models referenced on this slide used to belong
to an elite club.
There only used to be one to two cars that got 40 miles per
gallon highway.
And now if you look by the end of our 2012 launches, more
than a dozen vehicles will fit into that club.
And the great news is that crowded playing field gives
you, as marketers, an opportunity to make meaningful
connections with customers.
That opportunity is greater today than it's ever been, not
just because of the sales forecasts, which are actually
still positive even given what we've all gone through in Q2,
but we're actually seeing encouraging signs in our own
search data.
So vehicle search demand has never been greater.
Shopping queries are up 41% year over year, year to date,
surpassing even the frenzy that we experienced during the
Cash for Clunkers craze.

And if you look closer at some of the segments that are
driving interest in that shopping category, probably
not a surprise, fuel-efficient vehicles have grown, actually
doubling last year's numbers year to date.
And that trend is not slowing down.
In May alone, that number is 113% year over year.
We expect that trend to continue as the year
progresses.
And growth in searches for popular luxury brands is
outpacing the general market.
Stay tuned.
You'll hear more from us.
We've got a Think Luxury event planned in September really
taking a closer look at this segment given the interest in
the category and bringing specific research and
recommendation to those of you that are working
across luxury brands.
I highlighted trucks and SUVs. While those numbers might not
seem as big as the two on the top, what's interesting to
note, typically when fuel-efficient vehicles go up
or searches for gas prices go up, we see interest go down in
trucks and SUVs. And even trucks and SUVs are clipping
along at a very healthy 34% year to date year over year
growth rate for queries.

So critical to connecting with this increased pool of
shoppers is really understanding them.
At Google, we're incredibly interested in human behavior
and also providing tools that can help take the expertise
and the analysis that you're surrounded in day in and day
out really to the next level, to help guide the
recommendations we can bring forward to your teams. You may
be familiar with some of these tools.
We started with Google Trends.
Google Trends added then features with
Insights for Search.
And then less than a month ago, we
introduced Google Correlate.
Google Trends was our first foray into mining search data,
so it allowed you to see the popularity of a search spike
and the news events that actually triggered that spike.
Insights for Search introduced advanced features.
We use this a lot when we're making
recommendations for you.
So you can see growth for a term relative to its category.
You can visualize where that term is most popular in a
given region or country through a heat map.
And while Trends and Insights for Search allowed us to
choose a keyword and see its pattern, Google Correlate,
which is just new-- we've been playing around with it for the
last month--
let's you input a pattern or a data set.
What's intriguing about this is we know that there's a lot
of data you consider and that you know about your consumers.
And you can actually see what data relates to that search.
So let's walk through a quick example.

Oh, I forgot my builds.
This is a quick example of Google Trends and then Google
Insights for Search and finally, most recently
released Google Correlate.
So an example of Google Correlate.
If we look at just a quick example in action, we thought
it might be interesting to take a look at US total light
vehicle sales.
This data is from Edmunds.
It's from 2008 to present.
The data is plotted here.
You can actually see the deviants from average sales,
which is indicated by the gray line either above
or below the mean.
We entered this data, and we simply uploaded it as an Excel
file into the tool.
And then Correlate looked for search queries that most
highly correlated with this set of data.
So any guesses in the room about what searches might
relate to US light vehicle sales?
KPIs, key buying actions, incentives,
anything like that?
You'll hear more about KPIs this afternoon.
Turns out-- and it was very interesting to us--
"resignation letter" is one of the top terms highly
correlated with vehicle sales.
Ends up if someone's getting a new job, they might want to
roll in in a new set of wheels as well.
So it's just interesting to look at information.
Of course some of the usual suspects are on the list that
you might imagine, some of those KPIs that I recommended.
But what was really intriguing to us is 4 of the top 10 terms
that most highly correlated with vehicle sales volumes
dealt with job mobility.
So these job-related terms positively correlated with
vehicle sales.
So as vehicle sales went up, so did the search queries for
these different terms. And they all indicate someone
upwardly mobile in their career.
They're considering a net salary, resigning from one
job, accepting another.
It's not a stretch to think that economic gain would be
associated with a large purchase, but the example
speaks to how you might use that data and how we can work
with your teams to surface trends in purchase behavior.
We're constantly experimenting, and we'd be
interested in working with you as you play
with your own data.
Better understanding consumer needs and intents is really
one important step to captivating them.
So how do we speak their language when they've got 309
vehicles this year alone to choose from?
We'll hear from many leaders today on the discipline of
captivation.
We'll look at it through the lens of a proven enchanter and
a data-driven researcher.
We'll contribute thoughts from our own experiences.
And in the afternoon, we'll reveal some new tools for you
from Google to help connect consumers on their own terms
to the different choices they have while in market.
And right now I'd like to introduce the author of New
York Times best-seller Enchantment, Guy Kawasaki.
Guy is the co-founder of alltop.com, an online magazine
rack, if you will, of popular topics on the web.
And he's a founding partner at Garage Technology Ventures.
Previously, he was the chief evangelist at Apple.
Guy is the author of not 1 but 10 books, including
Enchantment, Reality Check, How to Drive Your Competition
Crazy, Selling the Dream, and The Macintosh Way.
Guy has a BA from Stanford, an MBA from UCLA, and he also has
an honorary doctorate degree from Babson College.
Welcome, Guy.
GUY KAWASAKI: Thank you.
[APPLAUSE]
GUY KAWASAKI: Thank you very much.
It's very nice to be here.
Google is clearly one of my favorite companies.
But I love cars.
I just love cars.
So when this opportunity came to speak here, I leapt at it.
Although I can't tell you I have any particularly
hot car right now.
But in my prior life, which is before my four kids, I
used to love cars.
And I never thought about it.
I think I may have to resign, so I can do more
searches for cars.
I like that attitude.
So I've never seen a button like this.
I take it press in the middle for forward?
FEMALE SPEAKER: To the right.
GUY KAWASAKI: To the right.
OK.
So a little bit more about my background.
I worked for Apple from 1983 to 1987.
I was Apple's software evangelist. So my job was to
convince people to write Macintosh software.
This meant that I worked in the Macintosh division, which
was a very interesting experience working for Steve
Jobs, using the word interesting euphemistically
and loosely.
The division was arguably the greatest collection of
egomaniacs in the history of California.
And that's saying a lot.
I think we held that record for a good three decades until
Google broke the record.
[LAUGHTER]
GUY KAWASAKI: Because we worked for Steve, we had very
special rules, unlimited supplies of fresh orange juice
at $2 a bottle.
We had a travel policy, which was we could fly first class
for any flight over two hours.
My interpretation of that rule was that two hours begins at
the moment you leave your apartment.
So I flew first class everywhere.
I'd fly first class from San Francisco to Monterey, because
my apartment was 45 minutes from SFO.
Back then the company was Apple II and Macintosh.
The Apple II was making all the money.
Macintosh was spending all the money because we weren't
shipping yet.
So if you looked at the Apple P&L, the P was Apple II, and
the L was Macintosh.
But we were such bad people, we would not let Apple II
division people into our building.
So that would be like one part of a company not being allowed
into the other part of the company even though you were
paying for the building.
So the Apple II division came up with a great joke about us,
which is how many Macintosh division employees does it
take to screw in a light bulb?
The answer is one.
The Macintosh division employee holds up the light
bulb and expects the universe to revolve around him.
Of course, there's a Microsoft version of this joke.
The Microsoft version of it is how many Microsoft employees
does it take to screw in a light bulb?
The answer is none, because Bill Gates has declared
darkness the new standard.
[LAUGHTER]
GUY KAWASAKI: I have watched high-tech speakers for about
three decades now, and I've learned two salient points
about them.
First of all, they pretty much all suck.
And secondly, they go long.
And that is a bad combination.
It's like being ugly and low mileage, stupid and arrogant.
If you suck and you go short, it's OK.
And if you're great and you go long, it's OK.
But if you suck and go long, not a good combination.
So I use a Top 10 format for my speeches so that in case
the audience think I suck, they know approximately how
much longer I'll suck.
I hope you don't think I suck, but in case you do, there are
10 points today.
I'm going to explain to you the art of enchantment, how to
be enchanting, and particularly from a car
perspective, because I love cars, and I love enchantment.
And so I hope to pass on some skills so that you may enchant
your customers and your prospective customers.
The first step in enchanting is to be likable.
And if you think about it, have you ever been enchanted
by someone you did not like?
Probably not.
And likeability is a very fundamental skill.
You may think it's a duh-ism as in duh, of course, you have
to be likable.
But there are many organizations and many people
who are not likable.
Let's talk about some of the basics of likeability.
It starts with a great smile.
This is not a great smile.
This is what's called the Pan Am smile, although many of you
are too young to know what Pan Am is at this point.
It used to be an airline.
And this flight attendant is not really
happy to see the passenger.
She's faking the smile.
That's when you use only your jaw muscle.
A great smile is called a Duchenne smile.
A Duchenne smile uses two sets of muscles, the eye muscles
and the jaw muscles.
This is a great Duchenne smile.
This is Mari Smith, an expert in social media.
She's a friend of mine.
I saw her avatar, and I said, can I get that picture in a
larger format?
I want to use it in my enchantment speech as an
example of a great Duchenne smile.
And she agreed.
Then I told her, well, Mari, I have good news for you and bad
news for you.
Actually, the good news, I'm going to tell thousands of
people about your great smile and what you do every year.
The bad news is that you're in my speech because you really
have crow's feet, Mari.
And she agreed.
But the point is to make a Duchenne smile.
Second thing is to dress for a tie, no pun intended.
I think there are three theories in
dressing for an audience.
One theory is to underdress.
This is where you know everybody will be in business
attire, but you wear t-shirt, jeans, and sneakers.
It's because you think you can get away with it.
Essentially, you're saying, I don't respect you.
You can also overdress where you're trying to impress
people with your money or your taste.
In this case, you're communicating the message that
I am better than you.
But truly, the goal is to equal dress, to dress roughly
equal to your audience.
Now I notice not many of you have Aloha shirts on today,
but the point here is to dress roughly
equal to your audience.
And the third component of
likeability is a great handshake.
This is a mathematical formula.
After all, we're at Google.
This is a mathematical formula for the perfect handshake
involving your eye contact, the verbal greeting, the
dryness of your hand, the length of the shake, the
firmness of your shake, the moisture content of your hand.
All of that is in that formula.
The bottom line is you need a great handshake.
So three duh-isms, great handshake, dressing for
equals, and a great smile.
That's the start of likeability.
I'll give you an example for you to apply something
concrete to likeability.
This is Richard Branson.
Richard Branson in this particular picture
is shining my shoes.
This occurred in Moscow.
He and I were at a conference speaking.
And in the speaker's room, he came up to me, and he said,
Guy, do you ever fly Virgin?
I said, Richard, I hate to tell you, but I don't.
I'm a United Airlines Global Services Level, which is the
highest level of United Airlines customer, so I don't
really want to jeopardize my Global Services Level by
flying other airlines.
And at that moment, this is what he did.
He got on his knees, and he started polishing my shoes
with his coat.
And that is the day I started flying Virgin America.
So as an example, think of Richard Branson.
Now you can be likable, but not trustworthy.
You could like a celebrity, for example, but not
necessarily trust the celebrity.
A very good example of this might be Charlie Sheen.
You might like Charlie Sheen, but you certainly don't trust
Charlie Sheen.
So the second level of achieving enchantment is to
become trustworthy.
I think the key to becoming trustworthy is that you have
to understand it is not a chicken or egg question.
There's a definite order.
You have to trust your customer before your customer
will trust you.
The onus is upon you.
If you want to be trusted, you have to trust first.
Amazon lets you buy Kindle ebooks.
You have up to a week to return them.
Most people could read a book in a week.
They trust you, however, not to just read the
book and return it.
Another great example is Zappos.
Zappos has convinced thousands if not hundreds of thousands
of women to buy shoes without trying the shoe on.
That's trustworthiness.
If Tony Hsieh had told me, Guy, our business model is
we're going to enable women to buy shoes without trying them
on or seeing them, I would have told him he's nuts.
And yet, clearly Zappos has succeeded.
Women do trust Zappos.
Part of it is because you can buy any shoe, try
it on, send it back.
Zappos will pay shipping both ways.
Zappos has trusted women, and women came to trust it.
And the final classic brick and mortar example is of
course Nordstrom.
So three examples of organizations
that trusted its customers.
Its customers reciprocated and trusted back.
The onus is on you.
You have to trust first.
Second thing is, you should think of being a baker in your
organization, not an eater.
An eater sees a pie and says, I want to eat as much of this
pie as possible.
What I eat, somebody else doesn't eat.
What somebody else eats, I don't eat.
Therefore, I have to eat as fast and as much as possible.
A baker has a very different outlook.
A baker loves to bake pies, bakes more pies,
bakes bigger pies.
The baker doesn't see the world as a zero-sum game.
I can bake bigger pies and more pies.
Bakers are trustworthy.
And the final thing is great trustworthy people default to
a yes attitude.
That is, as they meet new people, as they encounter
people, they have a positive attitude.
And they're always thinking, how can I
help the other person?
They have an automatic default yes answer.
If the person asks me to do something, I will say yes.
Three characteristics of trustworthy people.
The next thing is to perfect your product or your service.
So we have the likeability of Richard Branson.
We have the trustworthiness of Zappos.
And now let's have a great product.
I have tried to enchant people with great products, and I
tried to enchant people with crap.
Let me tell you, it is a lot easier to enchant people with
great stuff than crap.
So the question is, how do you make great stuff?
How do you perfect your cause, your company, your
organization, your idea, or your car?
I think that great products are DICEE.
Let me explain the DICEEness here.
The D in DICEE stands for deep.
Great products, great services are deep, lots of
functionality, lots of features.
You do not run out of power as you come up the curve.
Great products are deep.
They are also intelligent.
When you look at a great product, you say, well,
somebody was thinking here.
Somebody understood this problem.
Somebody understood this pain.
Somebody solved my problem.
And I have a car example for you.
This is the GT500, the Shelby Mustang.
It's made by Ford, 550 horsepower,
roughly 5 and 1/2 Priuses.
This is a car that goes 0 to 60 in 4.3 seconds.
This is the bad-ass Mustang of all bad-ass Mustangs.
I really want to buy one of these Mustangs.
Anybody here from Ford?
Nobody's here from Ford?
I'm giving this great plug, and they're not here?
Jeez.
What a wasted opportunity.
[LAUGHTER]
GUY KAWASAKI: We're live streaming.
Scott Monty's out there listening to this.
He better be.
So the point here is that middle-aged Asian American
going through a crisis here.
It's a perfect car for me, except I have four children.
My children are 6, 9, 15, and 17.
My 17-year-old has a license.
My 15-year-old is about to get a permit.
And I know that no matter how well I plan things, there will
be an instance where they're going to have
to drive this car.
Their car's in the shop.
Something is going to go wrong.
Mom's car is in the shop.
They have to pick up Mom.
Something is going to happen.
And the thought of my 15- or 17-year-old driving a 550
horsepower car is irresponsible.
It's socially irresponsible.
But what I figured out is Ford makes a product called MyKey.
And since everybody else is here, I would
encourage you to do this.
So MyKey has one very salient feature, which is you can
program the top speed of the car into the key.
So theoretically, I could loan my kids this Mustang and
program their key to go no faster than 55 miles an hour.
That is a very intelligent product.
It really understood my pain, my problem.
To give your kids a key to a car that has a top speed
programmed into it, MyKey, very intelligent.
Great products are also complete.
Complete means it's not just the rubber, and the steel, and
the leather, and the aluminum, and the glass.
It is the totality of the car experience.
It is the Lexus experience in many instances, right?
It's the after-sales support.
It's the service.
It's all that stuff.
Great software is not just the download.
It's the download.
It's the APIs.
It's the VARs.
It's the developers.
It's the online documentation.
It's the webinars.
It's the special interest groups.
It's the blogs.
It's the totality of a product that makes it
complete and great.
Great products are also empowering.
They make you feel more creative and more productive.
And finally, great products are elegant.
Somebody cared about the user interface.
And I have to say, if there's an area that I think that many
manufacturers could improve, it is about the user interface
with their whole menu structure, the whole system.
Audi has MMI, and BMW has their system.
But everybody has their system, and it's all
menu-driven.
I have to tell you that I think that's a great stumbling
block in your industry.
Those things are just too hard to use.
And in a perfect world, I wish you would all make it so that
when you buy a car, you can create
essentially My Car, a website.
And at My Car on the web, I can customize everything.
I can customize the doors lock automatically when it hits 15
miles an hour.
And everything that's inside the menu structure that you
let me do in the car, let me do on a website.
And then just send this message to the website and
say, OK, the owner of this car has just configured the car.
When the doors open, when the locks turn on, when the locks
turn off, the seat, all that customization that you let me
do in the car, let me do on the web.
Because there's no way you can do it as well as you could do
it on the web pointing, and clicking, and dragging, as you
could with a menu-driven system.
You could really, I think, make the car-customization
process much more enchanting that way.
So I'd like to advocate that you all create a website for
each car, and you let people customize the car's features
on a website, not in the car.
The next thing is to describe your car, your product, your
service in short, sweet, and swallowable
terms, like this ad.
This ad was made after 9/11.
Very simple.
If you see something, say something.
If you see someone who's left something on
a train, say something.
Like loose lips sink ships.
Two, three, four, five words, something like that.
Not the patent-pending, curve-jumping,
paradigm-shifting IEEE, automotive terms. Short,
sweet, and swallowable.
Think mantra, two or three words.
The mantra for Google might be democratize information.
The mantra for eBay would be democratize commerce.
The mantra for Target would be democratize design.
The mantra for FedEx would be peace of mind.
My personal mantra is empower people.
Short, sweet, and swallowable.
Not mission statement, mantra.
Two, three, four words.
And the next thing is to look at this example.
This is the antithesis of short, sweet, and swallowable.
This is a sign to cross a street.
I took a picture of this sign when I was back
East visiting colleges.

And I was just stunned that it took four paragraphs to
explain how to cross a street.
And this is on the campus of Brown University.

Two days later, I went to Yale to visit Yale, and there was
this same sign.
So it's something about the Ivy League.
But this is the antithesis of short, sweet, and swallowable.
The next thing is to conduct a premortem.
The way a premortem works is rather than the leader of your
organization saying, OK, now does anybody have any concerns
or questions and expects people to raise their hand and
if you're the marketing person, say, well, I'm
concerned that the software is too slow or too buggy.
Nobody does that.
Nobody does that, because if you do that,
you've created an enemy.
If you're the marketing person and you say that, the software
engineering person has just drawn a
bull's eye on you, right?
You're also seen as a laggard, a negative
person, a poor team player.
There's a lot of risk with speaking up when you're asked
to speak up.
I'd like to suggest a different method for you.
The different method is you say, let's
pretend our product failed.
Let's pretend our car failed.
Let's pretend our marketing program failed.
Now come up with all the reasons why it
hypothetically failed.
Mileage was too low.
Tsunami in Japan meant that we couldn't get parts for the
introduction.

Unintended acceleration.
Software too slow.
Sales force unsophisticated.
Marketing mispositions it.
Whatever.
Come up with all the reasons, and then come up with ways to
eliminate those hypothetical reasons, so you never conduct
a postmortem.
Because a postmortem is too late.
It's after you're dead.
So pose the question, let's pretend that we failed.
Now let's come up with all the potential reasons why we could
fail, and then let's go and eliminate as many of those
reasons as possible.
Conduct a premortem.
The next stage is to actually launch
your product or service.
And the key step in launching your product or service is to
tell a great story, to tell a great story about how you
wanted to help people relive their youth.
So you reintroduce the Boss Mustang, the 302 Boss.
To tell people that you were frustrated that the only place
you could use a computer was by going to a large company or
going to a government agency.
And you thought, surely there must be a better way, that you
could have a computer in your house, that it would be small
and portable and easy to use and inexpensive, so you
started Apple.
Or you thought, surely there must be a better way to get
search results than what exists, so you started Google.
Or surely there must be a way for my girlfriend to sell her
PEZ dispensers on the internet, so you started eBay.
It's a total bullshit story, but it's a great story.
The point here is to tell a story.
It's not about patent-pending, curve-jumping,
paradigm-shifting, new kinds of engines, and new kinds of
technology.
It's a story about why you created this
product or this service.
The next thing is to plant many seeds.
I think there are two kinds of marketing in the world.
Marketing 1.0 is top-down.
This is where you suck up to the A-listers, the
journalists, the powerful people in your industry.
You suck up to Top Gear.
You suck up to whoever it is, Road & Track, Car and Driver.
And you hope that they announce
that your car is good.
And then all the hoi polloi and the great unwashed masses,
they read that, and they buy your car.
Life is simple, right?
I don't believe that anymore.
I believe that because of Facebook, and Twitter, and
blogging, and search, really, that nobodies are the new
somebodies.
And the way it works today is that lonelyboy15 with his 50
followers may be the person that tips
your product or service.
It used to be that someone pronounced judgment from up on
high, told everybody to buy it, and it made
your product a success.
I don't think it works like that at all anymore.
I think it's when lonelyboy15s, and Tiffany56s,
and all the unknown people love a product or service,
they make it tip.
And at that point, the A-listers, and the
journalists, and the experts, they have to write about your
product or service.
It's not because they made it a success.
They're reporting its success.
And if you believe this theory, you need to plant many
seeds, because it is very hard to find lonelyboy15.
Lonelyboy15 does not have 10 million followers.
Lonelyboy15 does not write for Road & Track.
Lonelyboy15 is very hard to find.
Planting many seeds involves a real mental calculation about
how you can enable more people to drive your car, to
test-drive your car, to touch your car.
It's a very, very different way of marketing.
Plant many seeds.
When my book came out, usually you send 150 copies to the top
book-review organizations in the world.
We sent out 1,600.
We sent it out to any blogger who asked.
The blogger didn't have to be a book blogger, or a business
blogger, or a social media blogger, any blogger.
I have about 400 reviews for my book out there right now.
Many of them are in vegetarian blogs.
They're in dog-trainer blogs.
I also happen to own the esthetician blog market.
A lot of people who care about beauty wrote about my book
Enchantment.
I don't know why.
But if you think about it, to use the old entrepreneurial
reality distortion, if just 1% of the women who care about
beauty bought Enchantment, do you realize how many copies of
Enchantment that would be?
The point here is to plant many seeds.
Nobodies are the new somebodies.
The next point is to use salient points.
In the car business and in any kind of technology business,
we have our parameters, right?
Miles per gallon.
But really people care about are yearly costs.
In the not-for-profit business, you may think you
want to measure your results in dollars.
But what people really care about is if I give you $100,
how many months of food does that buy?
That's what the people care about.
And in the gadget business, we always
talk in terms of gigabytes.
We think people wake up in the morning saying, if only I had
32 gigabytes of storage.
Really people wake up in the morning thinking about the
number of songs, or movies, or number of apps there are, not
the size of the storage.
So use the salient points.
Talk in terms of yearly costs, months of
food, number of songs.
The fifth step in enchantment is to overcome resistance.
I could make the case that the more innovative your product,
your service, or your car the more
resistance you'll encounter.
You would think it would be opposite.
If you have this really radically great new design,
you would have to overcome less resistance.
If you could show why a diesel engine is superior to a gas
engine, less service, more torque, 35% higher mileage,
roughly the same cost as premium gas.
But you know what?
People are resistant to those kinds of ideas.
They may have an idea stuck in their head that way back when,
they owned an old Mercedes, and that Mercedes was stinky,
and noisy, and slow.
So that's what they have in their brains
about diesels, right?
So you have to overcome resistance.
This is an example about overcoming resistance.
In the 1980s, the electronic gaming business was tarnished.
Retailers no longer wanted to stock electronic games.
So Nintendo saw this problem, and what it did is it added a
robot to its game and repositioned it as a toy.
In fact, it repositioned it as an electronic toy that was
educational.
And so it got kids to ask their parents for Christmas
for an educational toy to learn robotics instead of
positioning it as a game.
That's how it overcame resistance.
So more ways to overcome resistance.
One is to provide social proof, that is, to enable
people perhaps unwittingly to show that they have embraced
your product or your service.
Apple did this, I think, by accident.
I don't think Apple planned this.
But when iPod first came out, it was unusual in that it had
white earbuds.
And you noticed white earbuds, because everybody else's
earphones were black.
And so you noticed these white earbuds.
It translated into iPod.
Soon you bought an iPod.
This meant there was one more set of white
earbuds in the world.
This meant that more people saw white earbuds, so they
bought iPods.
So it meant there was more white earbuds.
So it became an upward spiral.
The more white earbuds you saw, the more you saw proof of
iPod's goodness, the more likely you were to buy an
iPod, which would add to the pool and the size of white
earbuds in the world, which caused more people to buy
white earbuds.
Provide social proof.
Provide social proof.
The next thing is to find a bright spot.
In the book called Switch by Chip and Dan Heath, they cite
a case where this person went from America to fight
malnutrition in Vietnam.
Apparently, there was really bad nutrition in the villages
of Vietnam.
And rather than focusing on all the things that were going
wrong in Vietnam, he found out that some families had much
healthier kids than the others and even adjusted for their
position within the village social structure and adjusted
for income.
Those two things could not explain why some families were
healthier than others until he found out that they did
something very simple.
They added shrimps and crabs from the rice paddies along
with vegetable matter to the plain rice meals.
That was the simple thing they did differently.
So he focused on the bright spot in the battle against
malnutrition in Vietnam.
Not trying to fight all the negative parts.
He was focusing on what worked and took that what-worked part
and told it to the other families.
This is what you should do differently.
In my background, in the mid '80s, Macintosh was not
succeeding.
We positioned it as a spreadsheet, database, and
word-processing machine.
And if you're old enough to remember, we were zero for
three there.
There was one bright spot.
The one bright spot was Pagemaker.
Pagemaker created a very bright spot called desktop
publishing.
And desktop publishing arguably saved Apple.
If it was not for desktop publishing, we would all have
phones today with real keypads.
So we would have phones where the battery lasted for more
than a day.
We would have phones that wasn't stuck to the worst data
carrier in the world.
It would be a very different world.
Pagemaker saved Apple.
Pagemaker saved Apple.
I believe Pagemaker was a gift from God to Apple.
I believe in God, and one of the reasons why I believe in
God is there is no other explanation for Apple's
continued survival than the existence of God.
The point here is to find that bright spot.
What's the equivalent in your business of the bright spot?
What is that group?
What is that place where your car is succeeding?
And rather than trying to fight all the nay-saying, look
for that bright spot.
What is your desktop publishing?
What is your mother who is adding shrimps, and crabs, and
vegetable matter to the plain rice meal?
What is your bright spot?
The next thing is to enchant all the influencers.
I think many marketing people assume in any family, the
father is making the decisions.
That is a very bad assumption.
80% of the time, you'd be wrong.
It is the mother that is making the decision.
Sometimes it's the sister-in-law.
Sometimes, especially in an Asian
family, it's the parents.
I'll tell you, though, in my family, it is the daughter.
Whatever my daughter wants, she gets.
It is that simple.
You convince my daughter to buy a car, I'll buy the car.
It's no problem.
I have something else.
I want to take you on a very deep segue.
As sales and marketing kind of people, I want you to
understand something.
You need to trust the speaker, OK?
And I'm telling you, if you want to learn a great deal
about social media and marketing, rent or buy the
Justin Bieber movie Never Say Never.
How many of you have already seen that
movie, Never Say Never?
You can hold your hand up high.
You don't have to go like that.
Yeah.
Be proud.
OK.
So four of you have seen that movie.
I'm going to give you a money-back guarantee, OK?
Rent or buy that movie.
If you don't learn about marketing, I will give you
your money back.
I'll tell you what.
You'll see some things in that movie.
First of all, you'll see how social
media made Justin Bieber.
It was YouTube and his mother.
It wasn't Disney spending $250 million to make Justin Bieber.
It was his mother and YouTube.
That's a very interesting story.
Many of you may be interested in having mentors.
It's very interesting to watch Justin Bieber interact with
his vocal coach in that movie.
Very, very powerful relationship.
You'll also see how hard he works.
I was amazed at how hard he has to work.
All of us are after word of mouth advertising.
He has his crew go into the parking lots of concerts and
find girls who don't have tickets
and gives them tickets.
And you should see just the pure joy and the word of mouth
that that generates.
It will bring tears to your eyes to see how happy those
girls are who don't have tickets to get tickets.
It's truly, truly a great movie about marketing.
So suspend your disbelief.
Trust the speaker that Google brought in.
Rent or buy Never Say Never.
We're going to go from Justin Bieber to The Grateful Dead.
That's quite a segue.
The sixth step is to make your enchantment endure.
This is an example, The Grateful Dead.
They do something very counterintuitive.
At a Grateful Dead concert, you will notice that there's
an area for tapers, not that anybody uses tape anymore.
The Grateful Dead encourages its fans to tape the concert,
basically to pirate the concert, and
then spread the music.
Whereas the rest of the members of the RIAA are suing
little old ladies for downloading cello music from
Napster, The Grateful Dead is encouraging people to tape
music at its concert.
It creates a special area for amateurs
to record the concert.
This helps The Grateful Dead endure.
More ways to make your product, or
service, or idea endure.
Talking about completeness again, build an ecosystem.
Do all of you support your car clubs?
Do you support the Porsche Club?
Do you support the BMW Club?
Do you support the Audi Club?
Do you support the blogs?
So these are user groups.
Do you support your resellers and developers, your
equivalents?
Do you have websites?
Do you have online conferences?
All these kind of things, if you build this ecosystem where
many people care about your car, many people care about
your company, it makes you endure.
There's lots of people.
The user groups of Apple supplemented Apple's marketing
efforts for years.
During the years from, I'd say the, mid '80s to the mid '90s,
when Apple was unable or unwilling to support its
users, the user groups took care of all of that.
Completely voluntary, sometimes
despite Apple's efforts.
Build an ecosystem if you want to endure.
The next thing is to invoke reciprocation.
Reciprocation is a very powerful factor.
This is a carpet that depicts the war between
Ethiopia and Italy.
Italy invaded Ethiopia in the 1930s.
And when Italy invaded Ethiopia,
the people of Mexico--
the people of Mexico--
collected money and sent money to help the Ethiopians.
90 years later, when there was a big earthquake in Mexico--
We'll just wait for that phone to ring.
I'm going to just humiliate whoever's phone that is.
Of course, that's not my phone.
That's not my tone.
It's a Nokia tone, isn't it?
[LAUGHS]
The people of Mexico sent money to
the people of Ethiopia.
90 years later, there's a big earthquake in Mexico, and the
people Ethiopia, even though they're in the middle of a
really bad famine, they collected money and sent money
to the people of Mexico, because the feeling of
reciprocation is so powerful.
Another similar example, right after the Civil War, the
people of New York collected money and bought a fire truck
for the people of Charleston, South Carolina.
Actually, the first ship sank, so they had to buy them a
second fire truck.
150 years later, after 9/11, the people of Charleston
collected half a million dollars and bought the people
of New York a fire truck because they wanted to
reciprocate for how the people of New York helped the people
of Charleston.
The people of Charleston wanted to reciprocate and help
the people of New York 150 years later.
I'm going to give you two power tips about reciprocation
from Robert Cialdini, the author of
a book called Influence.
So you will be my subject, OK?
OK.
So let's say I default to yes.
Let's say I'm a baker, not an eater.
So I help you.
I do whatever.
And you thank me.
When you thank me, the optimal response for me to her, to her
gratitude, is not you're welcome.
The optimal response is I know you would do the same for me.
By saying, I know you would do the same for me, essentially
I'm telling her, you have a lot of class.
You're a good person.
I know you would do the same for me.
I'm also telling her I know you will do the same for me.
OK?
Just putting her on record.
You owe me.
That's the optimal response.
Don't do it every time, but it's the optimal response.
The second tip about reciprocation is enable people
to pay you back.
Enable people to pay you back.
You may think the optimal response is to take
the real high road.
I know you would do the same for me, but you don't have to.
Don't bother.
It's OK.
My pleasure.
Life goes on.
That's actually not optimal, because no matter what you
say, she still feels indebted to me.
And she feels indebted to me, so she is hesitant to ask me
to do more things for her.
I am perfectly willing to do more things for her.
She's not going to ask me, because she thinks she
already owes me.
Now our relationship is stuck.
She won't ask me to do any more.
What I need to do is enable her to pay me back.
What car company do you work for?
FEMALE SPEAKER: I work for AutoZone.
GUY KAWASAKI: You work for AutoZone?
OK.
So you could arrange for me to get a GT500 loaner.
You could reciprocate, right?
So you could pay me back.
When she does that, we clear the decks.
Then she can ask me to do more things.
So the key here is to enable people to pay you
back, clear the decks.
She can ask you to do more.
You can do more.
And your relationship can progress.
Don't think that the best thing to do is to tell her,
don't worry about it.
The best thing is to enable her to pay you back so that
more transactions can occur.
Invoke reciprocation.
The last tip I have for you about making enchantment last
is do not rely on money.
If you have to rely on commissions, and affiliate
fees, and various forms of payment, something may be
wrong with your product, your service, your car, your idea,
your organization.
Maybe you're not likable enough.
Maybe you're not trustworthy enough.
Or maybe your product isn't as good as it should be.
Money is typically the enemy of enchantment.
If you're the enchanter, you have to ask yourself at some
moment in self-reflection, am I doing this because I truly
believe I have the best car or because I'm paid to do so?
If you're the enchantee, you ask yourself, is this person
telling me to buy this car because this person really
believes or because this person is an affiliate or gets
a commission?
It really affects the enchantment relationship.
Don't rely on money.
The seventh thing is that if you want to be a great
enchanter, you need to become a great presenter, to be able
to pitch and to speak.
Let me give you three tips about this.
First, customize the start of your speech.
Customize the introductory part of your speech.
Make it so that it's very obvious you know exactly where
you are and who you are talking to.
This is an example that I cite from my past. This is a
picture of my LG washer and dryer.
The scenario here is that I was in Rio de Janeiro speaking
to the Latin American management of LG.
After I got to Brazil, however, I figured out, you
know, Guy, you're speaking to LG.
You own an LG washer and dryer.
You bought an LG washer and dryer, because the washer has
a steam cycle.
Honestly, I've never used the steam cycle, but I thought it
was so cool that it had a steam cycle that I bought this
LG washer and dryer.
But I was already in Rio.
So I sent a text message to my two older boys, the 15- and
17-year-old, the ones that I don't want
them to drive a GT500.
And I tried to invoke a little reciprocation.
Get off Halo.
Get off Call of Duty.
Go downstairs.
Take the iPhone 4 that dad bought you.
Take a picture of the washer and dryer.
Send it to me right away.
I'm about to go on deck.
So I wait about 20 minutes, and nothing happens.
No picture.
So finally I get fed up, and I send a text message to my
older son Nick.
And he tells me that his younger brother Noah said that
he sent me the pictures, which he had in the meantime.
So this is the series of messages.
I send him a message, "Did you get my text messages?" My
older son Nick says, Noah, his brother, said he did it.
By the way, since you're talking to LG,
can you get us TVs?

Is there any doubt that he is my son?
Then you see my response, which is, I doubt it, because
there is reciprocation, and there is stupidity.

So the point here is that you know, if you're in Latin
America, you're speaking to the Latin American management
of LG, for crying out loud, show that you have
LG washer and dryer.
If you're speaking to Procter & Gamble, show that you have
Bold in your pantry.
If you're speaking to SC Johnson, show
that you have Windex.
Whatever it is, show.
Somehow customize.
When I travel around the world making
speeches, I go a day early.
I take pictures, and I show the audience that I'm not your
typical ugly American, shock and awe.
I visited your country.
I'll show you some pictures that I've used.
This is me in Moscow, same trip that
I met Richard Branson.
I learned that Russians really have big balls.
Man, it is true.
Secondly, this is me in Edinburgh.
This is learning about haggis from this guy at Crombies
Quality Meats.
I learned about him because of Andrew
Zimmern's Bizarre Foods.
Basically, whenever I go to a country, I go do what Andrew
Zimmern has done.
Go to Chile, eat guinea pigs.
OK, I'll go eat guinea pigs.
So this is haggis.
I do not recommend this.
Wow.
I'm from Hawaii.
I love poi.
Wow.
I can't eat that.
I had a really great trip about a month ago.
I went to Doha, Qatar.
And this is me standing in front of
the Al Jazeera building.
What an interesting place.

Al Jazeera is so cool.
A lot of Americans think that Al Jazeera is this network for
terrorism, for terrorists.
It's not at all true.
I mean, they're like the opposite of Fox, basically.
That's how you should think of them.
And I was really, really, really, really
impressed with them.
They have lots of Macs.
They really use social media.
Al Jazeera's a really cool place.
This is my favorite picture traveling around the world.
This is me trying on a fez in the Grand Bazaar in Istanbul.
And talk about a Duchenne smile.
Look at that vendor's smile.
Is that not pure, pure happiness, right?
So the point here is customize your presentation.
The next step is to sell your dream.
Sell your dream about what a hybrid means, or what a diesel
means, or what a Volt means, or what a plug-in Prius means.
Sell your dream.
Sell your dream of what 550 horsepower in a Mustang means
or what a Boss 302 represents.
Sell your dream.
Sell your dream.
Steve Jobs does not stand up in front of an audience and
hold up an iPhone and say, I have here $188 worth of parts.
We manufacture these parts in a factory in China where we're
trying to cut down on the rate of suicides at that factory.
And if you buy into this phone, you'll also be stuck
with a two-year data contract with a company that has less
bars in more places.
That's not how he positions an iPhone.
He positions an iPhone as thin, and cool, and beautiful,
and there's an app for that.
And it makes you more powerful, and more creative,
and more social.
He sells his dream.
Sell your dream.
And the last point about presentation is the Guy
Kawasaki 10-20-30 rule of PowerPoint.
The 10 part is the optimal number of slides in a
PowerPoint presentation is 10.
10, not 60.
10.
You'll be lucky to get 10 points across in a
presentation.
Now you're smart people.
Some of you are looking at me like, yeah, Guy,
you're such a hypocrite.
You have used at least 40 slides so far.
Why is it you're telling us to use 10, and you've used 40?
And you're not even finished?
The answer to that question is you are not me.

10 slides.
You should be able to give those 10 slides in 20 minutes.
The reason for this rule is because roughly 95% of the
world is using another operating system.
This operating system takes you 40 minutes to make it work
with a projector.
10 slides, 20 minutes.
And the optimal size font is 30 points.
30 points.
Take all your slides.
Make them all 30 points.
See what happens.
So much of your text will go off screen.
That's a good thing.
Many people use 8, 10, or 12.
They put a lot of text, and they read the text.
The problem with reading the text is that one slide into
reading your text verbatim, the audience has figured out
your algorithm.
This bozo is reading the slides verbatim.
I can read the slides silently to myself faster than this
bozo can read them to me.
I'll just read ahead.
10 slides, 20 minutes, 30-point font.
You know what?
If 30-point font is too strict a rule for you,
here's a rule of thumb.
Figure out who the oldest person is in your audience.
Divide his or her age by 2.
Presenting to 60-year-old people, divide by 2.
30 points.
50-year-old, 25 points.
Some day you may start a company.
Some day you may be talking to a really
young management team.
Maybe you're preaching to a 16-year-old VC.
At that point, God bless you.
Use the 8-point font.
But until that day comes, 10 slides, 20 minutes, 30 points.
Next step is to use technology to enchant people.
Step number one in using technology, remove the speed
bumps to technology.
Don't make people create a My Car account by
entering the VIN, OK?
That might be a little difficult.
I don't know where my VIN is.
I'm not about to go outside and look at that VIN.
I can't tell if it's a zero in that VIN or a
capital O in that VIN.
Don't make me put in the VIN.
This is the equivalent of the VIN.
This is a CAPTCHA.
The purpose of CAPTCHA is to reduce the number of people
who register for your websites.
So no problem.
We all know what the first word is.
It's the second word.
The second word is, shall I say, problematic.
How many of you know what that word is?
0 out of 400 people here.
Zero.
So there goes signing up for that.
That is a Hebrew word.
How many of you have a Hebrew keyboard?
Also zero.

Irony of ironies, that is the Hebrew word for "obstacle." I
kid you not.
Obstacle.
Here's a positive example of removing the speed bump.
This is a company called Sungevity.
Sungevity is in the business of installing solar panels.
One of the pain in the ass parts of installing a solar
panel is setting the first appointment.
They come to your house.
They measure the roof.
They figure which way is southwest, all
that kind of stuff.
It's a pain in the ass to set up that appointment,
be there, all that.
Sungevity is very clever.
You give them your home address.
They look it up on a satellite photo.
They figure out from the satellite photo mocking up how
big a panel they can put on your roof, how many kilowatts
it can produce, how much it'll cost, which way is south,
what's optimal, all that stuff.
I haven't left my desk.
All you need to do is give them the home address.
They do it with a satellite photo.
Remove the speed bumps.
Second thing is in social media in particular, you have
to do one of these three things, provide value,
information, links to interesting stories.
Your Twitter account should be providing links to interesting
stories, not just about your brand.
Interesting stories about new technologies in automobiles,
interesting stories about these people took a trip
across the United States using a certain kind of car.
It might not even be your car.
Interesting stuff.
Or these are the best photos from the French auto show.
These are the best pictures from the New York auto show.
Constantly be providing information.
Provide insights, what this means.
What does this mean?
What does this link mean?
What does this information mean?
Or assistance.
This is how you reset the mileage in the
odometer for your car.
Provide that.
Comcast does this very well, providing
assistance using Twitter.
Provide value.
The next thing is some rules of engagement.
You need to engage fast. The single best way, I think, for
enchanting people with technology is answer your
email within 48 hours.
I'll be the first to admit that I can't always do this.
But wow, that simple act, because nobody does it.
Answer your email within 48 hours.
Answer any contact.
Second thing is going back to the theory of planting many
seeds, if lonelyboy15 contacts you, yes, answer him.
Arguably he is as important as Jeremy from Top Gear or the
editor of Road & Track, or Car and Driver, or AutoWeek, or
AutoSpies, whatever it is.
Engage many people, and do this all the time, not just
when all the other work is done.
Fast, many, and often.
Next thing is how do you enchant people
that you work for?
How to enchant your boss?
Very simple.
All you have to do is when your boss asks you to do
something, drop everything else.
Might not be palatable.
Might not be optimal, but this is the way to
enchant your boss.
If your boss asks you for a presentation in five days,
drop everything.
And then the next step is to prototype fast. You have a
five-day deadline, the next day, show up with a text
version and just say, is this what you want in your
PowerPoint presentation?
This is a rough draft.
This shows two things.
First, you dropped everything.
Secondly, it also shows that you are trying to make a great
presentation.
There are now four days to revise this presentation.
You didn't wait till the last minute.
And the last way is to deliver bad news early.
Never deliver bad news late.
Never wait for that miracle to occur at the last moment where
you don't have to deliver bad news, because that miracle
seldom occurs.
Deliver bad news early.
This improves the probability that you will be able to fix
the problem before it truly becomes bad news.
If you deliver bad news late, it is too late.
Then how doing enchant down, how to enchant people
who work for you.
The key is a concept by Daniel Pink.
He wrote a book called Drive, i.e., what drives us, no pun
intended, what motivates us.
So the key to motivating people who work for you is to
provide a map.
The first part of map is mastery.
That is, you enable people who work for you to master new
skills, to become better employees.
You do this with great autonomy.
I will enable you to master new skills, but you will be
working autonomously, independently.
I'm not going to breathe down your neck.
And then finally, the P, which is you'll be mastering new
skills, working autonomously at an organization that has a
higher purpose than simply making a buck.
We are changing the world.
Provide employees with a map.
Second way to enchant employees is to empower
action, to basically say to people, I think you're smart.
I think you have good judgment.
I think your heart's in the right place.
I empower you to take action.
And the last way to enchant your employee is to suck it
up, to think of Mike Rowe of Dirty Jobs.
What makes Mike Rowe of Dirty Jobs so enchanting is he is
willing to do the dirty job.
He'll work in the paint factory, in the poi factory.
He'll clean the outside of skyscrapers.
He'll change power lines in Colorado.
He will artificially inseminate camels.
He'll do whatever it takes.
He will do the dirty job.
Are you a boss who will do the dirty job?
Are you willing to do what it takes?
Are you asking employees to do something that you yourself
would not do?
Do the dirty job.
Suck it up.
Now I know I'm late, but I'm going to
finish like three minutes.
Can I have three more minutes?
Of course, what are you going to do, not invite me back?
FEMALE SPEAKER: [INAUDIBLE].
GUY KAWASAKI: Just checking.
They're going to get a copy of the book, right?
OK.
So you're going to get a copy of Enchantment.
And I just want to explain this very funny story.

This is the cover.
I crowd-sourced the cover design.
And this is the design that won.
And then when I showed this design to the publisher, the
publisher hated it.
He said it's too feminine, too woo-woo, too self-help, too
Marin County, too Boulder, Colorado, too Shirley MacLaine
multiple lives.
No man will buy a book that looks like this.
So I was deeply disappointed, but in my heart, I knew they
were right.
But I really loved the butterfly metaphor.
This is a Blue Morpho butterfly.
So being Japanese, I thought, oh, origami.
Make a cooler butterfly.
Not that I knew jack about origami, but guess what?
I know how to use Google.
So I type in origami butterfly.
And I come across this butterfly.
This is a Alexander Swallowtail.
It's made by someone named Michael LaFosse, who is
arguably the Wayne Gretzky of origami.
And I get in contact with Michael LaFosse.
I say, I saw your Alexander Swallowtail.
I need a similar butterfly.
I need a blue butterfly, but it has to
be a bad-ass butterfly.
It has to be like--
think of a butterfly--
if Blue Morpho had sex with a B-2 stealth bomber, what would
that butterfly look like?
And so he came up with this.
This is called the Kawasaki Swallowtail.
So this is the butterfly that's on the cover.
And this is the Kawasaki Swallowtail.
Have you ever heard of the Zuckerberg Swallowtail, Jobs
Swallowtail, Ellison Swallowtail, Schmidt
Swallowtail, Gates Swallowtail, Ballmer
Swallowtail?
No, you haven't.
Mulally Swallowtail?
No, nothing.
Cross this off the bucket list. I have a
butterfly named after me.
So it became this cover.
This is the cover of my book called Enchantment.
Right now actually, this is a very special deal.
You're going to get it free.
You can get a copy of Enchantment with a free copy
of PresentationZen.
And then this is my last slide.
I think I have one more actually.
Several things.
I'm going to sign your book if you want it.
And I'm going to sign it "Resisting you is futile."
Several things here.
The reason why I sign the outside of the cover is
because, A, it's faster.
B, I think the reason why you get a cover signed is because
you want to show off that you met the author, right?
And so why would you have it signed on the inside?
Who can see it there?
You want to be on the airplane as you fly back,
and it's on the cover.
And the people next door to you say, wow, Guy Kawasaki
says you're irresistible.
Who are you?

So that's the second.
And the third reason is it enables me to mail covers all
over the world when people have bought the book and
haven't met me.
I can sign them a cover and just mail them the cover,
which is very reasonable.
So I also want you to know my writing is not so hot.
So it says, "Resisting you is futile." And the reason why I
do that is because I want you to know, you will be
irresistible.
And also I also explain what I write because in my previous
two books, Reality Check and The Art of the Start, I used
to sign it, "Kick butt." And then one day--
I'm not making this story up-- a woman came up to me after I
signed her book, and she said, Guy, why did you sign my book,
"Nice butt?" So I said, it's because you have a nice butt.
So then I'll tell you another funny story built on that
funny story.
So I told this story to another speech, and I did a
signing after the speech.
And this woman came up to me and said, Guy, would you sign
my copy of Enchantment, "Adequate butt." And so that's
why I want to explain to you it says, "Resisting you is
futile."
And this is truly my last slide.
If you want a PDF of this presentation, just send an
email to gina@garage.com.
I'll be happy to send you this PDF presentation.
Although you're getting the book, so you're getting more
than the presentation.
Secondly, my slides were created by a
woman named Ana Frazao.
And this is her website.
If you ever need great slides, she creates great slides.
So I like to plug her.
And then if you ever want more information about my book,
just text the word mac on your smartphones to 44133, and you
will get an email with the information about my book.
So that is enchantment.
Summarize, the big three in enchantment, likeability,
trustworthiness, and great product.
So as a metaphor, you want the
likeability of Richard Branson.
Remember, he got down on his knees to polish my shoes when
I told him I'd never flown Virgin.
The moment I started flying Virgin America.
The likeability of Richard Branson.
You want the trustworthiness of Zappos, where women will
buy shoes without seeing them and without trying them on.
That is trustworthiness.
And finally, you'd like the quality of a company like
Apple, Macintosh, iPhone, iPad, iPod.
The quality of Apple, the trustworthiness of Zappos, and
the likeability of Richard Branson.
And you too will be enchanting.
And I hope that this enables you to enchant your customers
and to change the world.
Thank you very much.
Thank you very much.
[APPLAUSE]
MICHELLE MORRIS: Great.
So thank you, Guy.
We wanted just to check in on campaigns
that capture attention.
They're meaningful.
They're immersive.
They're personal.
We'll hear more about many of these topics from Lorraine
this afternoon.
The books will be available at lunch and throughout the day,
so it's up to you in terms of when you want to pick them up.
And next I'd like to introduce John Ross.
He is the CEO of Shopper Sciences.
We're really excited to work with him and to share his
insight with you at this year's Think Auto.
Shopper Sciences actually aims to pinpoint the media sources
that move a shopper from indecision to decision.
Some of you might know John.
He was a VP of marketing at Home Depot, so he shares many
of our challenges.
And during his tenure at Home Depot, the company actually
grew from a regional retailer to become one of the
best-known brands in all of retail and the second largest
retailer in the US.
And he actually led the company's first foray into
e-commerce.
So John's going to be referring to a concept that
we're exploring at Google called the
zero moment of truth.
So we've all heard about that first moment of truth when
you're actually looking, and you're in the store aisle.
You're in front of the vehicle.
That's your first moment of truth.
But what about that zero moment of truth?
What are the stimulus that gets your attention?
We're talking about 18 different sources.
That zero moment of truth, you've actually already made
up an opinion that allows you to explore your
first moment of truth.
So I would love to introduce John.
And John will also be taking questions.
So welcome, John.
[APPLAUSE]
JOHN ROSS: So you get to follow Guy Kawasaki, huh?
Is there anyone in the audience wearing
a tie besides me?
Anybody, please?
One?
Thank God.

My dad was a big guy.
He was 6'3", almost 6'4".
Big, broad shoulders, very deep voice, intimidating.
There was no filter on my father.
What he thought, he said, which was actually kind of
cool to watch sometimes, but not in a parent-teacher
conference when you did something wrong at school.
I went shopping with my father once to buy a car for my mom.
We get to the car dealership.
He gets out.
The salesperson approaches and says, what are
you looking for today?
And he says, that car right there actually.
That's exactly what we're looking for.
The guy says, well, that's a tough call.
That car is in demand.
It'll probably be sold by the end of the day.
And my dad said, well, you don't need my money.
He turned around, got in the car, and drove off.
And I'm doing this while this happens, because my father
never said anything in a soft voice.
And he used a couple of other more colorful
language than that.
And as we're pulling away, of course, the salesman and the
sales manager are both chasing behind us as we pull out of
the dealership.

Why do shoppers behave the way they do?

What industry are you in?
Manufacturing?
Brand custodian?
Advertising?
Marketing?
Dealer network?
Car dealer retail?
What business are you in?
No matter which answer is right for you, no matter which
part of our industry you're a part of--
for me, retail, retailer by trade, by career, by genetics.
Father and grandfather were all retailers.
At the end of the day, we're in the human
being motivation business.
We all share that in common.
And if we're going to motivate human beings to behave the way
we want, we have to understand what drives those human beings
to behave the way they do.
I'd like you think about data for a second.
Think about all the information that you get that
feeds back to you and to your business that helps you to
make smart business decisions.
Think of all those sources and imagine, as I talk, those
sources stacking up on your desk.
Transaction counts, inventory logs, sell-through rates,
market share data, syndicated information, maybe brand
tracking studies from your agencies, brand
health, brand intent.
You may get information out of the dealership in terms of
close rates and sell-through rates and even down to the
individual sales associate.
All that data, imagine that stacked up.
All that data is driven by transactions, buying behavior,
what stuff people do.
And often that stack, while thick, sometimes gives you a
very incomplete picture of why shoppers behave
the way they do.
I don't know if your business is like my history.
Monday mornings are usually tough.
You're getting sales reports over the weekend.
Everyone's emailing back and forth.
We didn't hit the numbers.
What are we going to do?
You have this Monday morning meeting where everyone is
supposed to have the answers that reconcile what happened
over the weekend.
What are we going to say?
Why didn't the promotion work?
What happened to sales in the southwest region?
Why are we sliding on market share?

Sift through that stack of data, pull all their
transaction logs, all the information that you had out.
Is it ever useful in that moment?
Does it help you to make an answer back because you have
to be smart in the moment, you have to
come up with an answer?
Does it reveal actually what went on?
In fact, does any of that data reflect why shoppers did or
did not embrace your promotion or your event?
At worst, you can always blame the weather, right?
Always default.
What is it that drives shoppers to behave
the way they do?
That's Shopper Sciences.
That's our complete mission
statement, understand shoppers.
Consumers, people using the product, experimenting with
it, actually previous purchasers, not
interested in them.
Someone eating breakfast cereal or driving a current
car whose lease doesn't come up for two
years, that's a consumer.
Someone who needs a new car, someone who just finished
eating breakfast cereal, and ran out, and needs to go and
purchase that becomes a shopper.
And it's a very peculiar and very powerful space.
And we want to understand those people better than
anyone else.
Google, very smart people, right?
Google has been looking at this marketplace.
And they looked at a phrase that came out of the packaged
goods industry from very smart people at P&G, this idea of
the first moment of truth.
If any of you from that industry have worked with
them, P&G looked at it and said, there's actually
something really interesting that happens.
We spend so much of our time trying to look at consumers,
and drive consumption, and brand awareness, advertising
to drive interest and intent for our product.
Actually, the place where most influence takes place, the
place that actually may be driving why they buy our brand
versus another may be in store, the
first moment of truth.
That's actually the first place the shopper interacts
with the product.
Second moment of truth is during consumption.
And so P&G's been on a tear for years, and the industry
has followed them in trying to shift influence back into this
first moment of truth space.
First moment of truth was written, the design of it, the
concept of first moment of truth comes from a
pre-Facebook era, a pre-digital era.
It comes from a space with 4 TV networks, 30 cable
networks, 4 local radio stations of consequence, and a
newspaper print ad.
It's a very different time than today, a day in which
shoppers are connected, empowered, smarter as a
consequence of the advanced technology that they
incorporate into their life.
And so Google comes along and asks a question.
Maybe there's something new.
Maybe there's a new phrase that we need to look at, a new
time period, that time period before the person interacts
with the first moment of truth.
Well, first minus something, called it zero.
Zero moment of truth.
And it's the idea that digital technology has created a
pre-shopping space, consumers interacting with each other
and products in a way that drive purchase
that can make us smart.
Understand the zero moment of truth, and you may be able to
reveal why shoppers behave the way they do.
So zero moment of truth, digital interactions, social
media, mobile, all these kinds of phrases that we talk about
that we know are changing people's lives in
fundamental new ways.
First moment of truth, interaction with a product or
the service.
In your space, it's probably at the dealership.
Second moment of truth is consumption and what you do
immediately after.
And surrounding it all is stimulus.
Stimulus.
Shopper Sciences would call it stimulus.
You guys may call it advertising, TV, radio, print,
outdoor, balloons, clowns, whatever you're using in order
to promote your vehicle or your brand.
It's classic to advertising space.
As a retailer, I got 1,300 pages of data a month.
Stack it up.
Go into a meeting, a conversation with, say, the
leading supplier in the industry.
And in the room is also the buyer.
So it's the number-one buyer of that product.
And there's the crack marketing agencies that
surround us.
And we're all sitting in the room.
We're looking at a piece of stimuli, something that the
shopper is going to see.
Could be a print ad, could be a banner ad, could be a TV
commercial.
It doesn't matter.
Something that the shoppers are going to see.
And often that conversation went like this.
I don't know.
Do you think the logo is big enough?
Those bubbles in the background, is
that the right color?
I don't know if I like that font.
Very interesting, right?
As smart as we are and as much data as we have, all this
information that comes back, we often get caught up in the
craft of the moment, the mechanics of advertising.
Why do you think that is?
Why do we get stuck at that stage?
Why aren't we talking about, is this the right message to
empower the shoppers?
Is this going to actually resonate with this consumer?
Is this a way to actually change behavior?
Because that's what we're trying to do.
We're trying to motivate and entice.
Yet we get stuck on the mechanics of advertising.
And I believe it's because that very stack of data, those
1,300 pages of data, the transaction logs, e-commerce
reports, and all the stuff we do in order to make us smarter
are a poor proxy for understanding human beings,
human behavior.
Transaction logs, and reports, and market share don't explain
why the shoppers behave the way they do.
If we can model them, if we can reveal them, if we use
quantitative tools to go ahead, and research, and
connect with these shoppers, we can answer really, really
important questions like what are they actually doing?
What's driving their behavior?
What role do these new media actually play in
the person's decision?
Is it having any effect, or is it actually just kind of noise
in the system?
And what about my traditional media experience?
What about my print ads, and my newspaper inserts, and my
TV campaigns?
Are those changing their roles?
Are they being affected by these new media, or do they
sustain their same role that they played 5
and 10 years ago?
And then think about things like the
physical dealership itself.
The marketing industry tends to treat marketing in silos.
Well, there's the search and the search effects.
There's the physical store and the role that that plays.
There's the associates.
Then there's the traditional advertising, TV. As if
shoppers move through the purchase funnel in this linear
fashion, awareness, consideration, trial.
They move through this linear path as if human beings were
linear in their behavior.
Human beings are non-linear.
We are emotional beings.
We are random.
And we move through and into the decision-making process in
very unpredictable ways.
And yet at scale across large audiences, if I can look at
things that these groups have in common, there may be a
truth moment, a moment of truth that we can reveal that
will make me smart about what actually matters in my
marketing and what may be irrelevant.
And that's the whole point of Shopper Sciences.
And that's the whole point of this giant Google project that
we've done.
Google asked us to look at not just the automotive industry,
but industries across the spectrum, CPG, restaurant,
health and beauty, insurance, banking, voting.
I can tell you, selecting a political candidate is just
like shopping.
The decision-making cycle, you go from undecided to decided.
You go down a path.
And at some point, you either make a smart decision, or you
run out of time, and you have to flip a lever.
But all of it is decision making.
And decision sciences is actually a broader kind of
description of what we do.
Engage and connect with the shopper as close to the moment
of decision as possible.
And look at what's actually influencing, what's causing
the change that they make.
And let's do it across thousands and thousands of
shoppers across industries.
And then let's look at the verticals.
Let's look within the verticals.
And then let's do that in a way that can answer the key
questions that we're really all trying to answer.
What's going on throughout the process?
We don't presume, we don't really believe that the
shopper's needs early in their journey are the same as late,
and yet we tend to blaze away at advertising campaigns which
provide the same level of information across the
spectrum, the 360-degree view.
The advertising agencies have done a really miserable job
over the years with 360-degree marketing.
It's become a matching luggage exercise.
Your print ad matches your banner ad.
It all matches.
Look what a great job we did.
That may be a very naive understanding of how the
shoppers are using that media, because my needs in search and
digital may be completely different downstream.
If I can understand where those effects are taking place
in the timeline, that can make me very powerful.
I also want to understand where they're going.
Are they actually seeking out this information?
Is it influencing them in any way?
It influences the key metric on this, what actually is
driving the conversion.
Just because lots of people are seeing TV commercials on
college football for power tools doesn't mean that's
necessarily influencing them to buy power tools at a Home
Depot store or my competition.
So I want to understand what's actually driving influence.
And finally, and the most important, is why?
What is it about that experience that actually drove
conversion?
And if I can reveal those answers, and I can do it
across a large number of shoppers, I can begin to get
very, very powerful in terms of the way
I drive their behavior.
So before we get into this, we have a short video.
Why don't we go ahead and play that?
[VIDEO PLAYBACK]
-I have been considering purchasing a new vehicle for
about six months now.
-For about the past 90 days.
-Probably within the last six months, and I plan to purchase
one in the next couple weeks.
-Before I actually decided to make the purchase, I was
probably shopping for about six months, which included
narrowing it down to what type of car, and name brands, and
models and then starting to actually do
the test-drive process.
-I'm looking more for something sporty.
-I started considering with four brands and then narrowed
it down to the top two.
-I was considering probably three different options.
-Quite a few, actually.
-I looked at the Lexus, the BMW, the Audi, the Volvo,
obviously the Toyota.
I looked at Ford.
And there was one more.
Oh, and the Cadillac.
So that's seven.
Seven.
-I've been considering 10 different brands, mostly mini
SUVs.
-My parents were actually looking for it even longer
than I was.
And they were really recommending this car.
-Probably through my father.
-I think it's my own research more than anything else.
-I will research third-party companies to get insight based
on the vehicle.
-Consumer Reports, going online and
reading people's reviews.
-What I did is I went into each site, and then I built
the car of my dreams depending on the site.
-On the Mercedes-Benz dealership, I picked and
matched the colors, things, and looked at inventory, went
on different websites for different dealerships to see
who had those colors that I was looking for.
-We were real sure of the features that we were
interested in.
And so being able to do comparison shopping in advance
of actually getting into a dealership is definitely our
preference.
-The internet really helped us weed out and sort out what was
what.
-The most common way that I would do a search is just
simply on Google, Ford F-150.
And it brings you to everything from price lists to
dealerships in my area.
-I think it's a good place to start when you're looking at
several different brands if you don't know where to look
first, and then they give you the different websites to go
and look at.
-I think as most part, anytime I'm looking for a big-ticket
item, I always go on the internet, and shop, and see
what's out there, and do the price comparison.
[END VIDEO PLAYBACK]
JOHN ROSS: One lady shopped for seven cars, seven
different brands.
Wow.

These key questions, the irony about them is, as simple as
they are, they can be applied across industries.
So when you look at how a shopper makes a decision in
consumer electronics or maybe in making a decision around
elective medical procedures, or in a pharmacy, or in
automotive, you begin to see macro trends.
You begin to see how shoppers are embracing new technology,
how it's changing their behavior, how it reflects
their role between the physical plant and their
experience online.
It gives us a complete picture of the shopper.
Because while your target may be a shopper in the automotive
space, that shopper is actually involved in all those
categories.
And so understanding how they behave in a particular
industry relative to the macro space that they exist can be
very, very powerful too.
And I'll be talking about that as I go along today.
When?
What's the purchase timeline?
It's no surprise that purchasing an automobile is a
thoughtful, considered process.
And that the average shoppers are out there.
And that between a month and up to a year in advance, you
got a real sweet spot there, high consideration, high
concentration of shoppers in that month
to two-month period.
It's a very thoughtful shopper who is pre-researching and
thinking about what's coming up.
A lot of catalysts drive this, everything from your lease
coming up to just finally getting frustrated with low
gas mileage.
Whatever the drivers, it's a highly
thoughtful purchase cycle.
What's fascinating to us about this is that 14% of the
shoppers that we studied, 14% of them, are beginning and
ending their journey within a week.
So there's a bifurcation of shoppers in the group.
We see this a lot.
We will see this in timelines on all kinds of industries
where even in highly considered purchases, you may
have a group who are very thoughtful and very smart.
And then there's this spontaneous group that behaves
quite randomly, maybe randomly, or their time
horizon for planning is much shorter.
As I do my speech today, and you think about how would you
use this data, how do you apply it, this is one that
interests me.
Because you can go in and think about, wow, do I have a
bifurcated marketing plan?
Do I have information that's good for the pre-planning set?
And am I thinking about people who are buying either under
duress-- my car is damaged or broken--
people who are buying spontaneously, people buying
for an event?
My 30th high-school reunion is coming up.
I will not be driving my personal car to that reunion.
But I have thought about new ones.
I have.
Where are they going for information?
Now this is a really important question.
And a media planner asks this question all the time.
So what are people using?
What's the consumption rates of media?
Typical media planning would say, I'm going to look for a
high concentration of people in a particular media and then
a high concentration of people who buy, and the correlation
between those two people.
A lot of people who watch college football, also from
syndicated reports, tend to buy a lot of power tools.
Therefore, that's a good place for my media, right?
Where do they go for information?
Now we're going to split it up today in this study between
three different columns.
This is not a 30 point on this slide, by the way.
Just to point that out.
But all the things in the red, TV, radio, advertising, the
stimulus, the traditional things that we think of in
advertising.
Everything in blue is the ZMOT, the digital sources,
social media, mobile, emerging media that didn't exist maybe
10 years ago.
And everything in gold will be the experience in the
dealership, the experience with the sales associate, the
test drive.
Now at Shoppers Sciences, we don't walk into any assignment
with a prediction about what is a media node or not, a
media node, an influence node.
We let the shoppers reveal it.
So it can be the sales associate at the dealership.
It could be a shelf wobbler.
It can be an experience with someone in the credit office.
It can be the physical POP that's on the exterior of the
dealership.
It can be the TV ad, the radio, the print.
We let that funnel up through the process so that we can see
what's actually driving influence.
We've got a whole range of great clients.
When you look at the restaurant business, a key
driver may be someone who just came back from lunch and is
eating lunch in your workplace.
And you smell it, and you ask them, where
did you go for lunch?
That actually bubbles up as being one of the top
influencers in the
quick-service restaurant category.
That's a media node.
That's a media opportunity that I can use to try to
convert that shopper back to me.
In the toy industry, Hasbro is one of our clients.
The child is actually a media influencer.
They behave like a media node to their parents.
We call it the whine index.
How much whining does it take before the
parent actually converts?
And if you think about it, thinking of an individual in
your family as being a media node is quite interesting.
And so we'll let these things reveal themselves over the
largest audiences.
So where are they going for information?
So each bar represents a different media node.
The first thing before we get into it is
the number of sources.
18.2 sources.
18.2 sources.
That means that they're using 18 things on average before
they made a purchase.
That could be asking their dad for advice.
That could be going online.
That can be using the print ad.
18.2 sources.
That's crazy.
That's greater than the work we do looking at people in,
say, an elective medical procedure.
Right?
That's crazy.
And that's on average, which means there are many people
out there using far more sources
before they make a choice.
Now if you go in and look at the individual ones, first
off, look how many there are in ZMOT space.
ZMOT is not just search.
It's not just Google.
It's not just Facebook.
It's all the ways in which digital technology allows
people to connect, blogs, purchaser reviews, rankings,
manufacturer websites, industry trade journals, and
their rating reviews, all of that stuff.
And the collected usage of it, there's far more usage in the
digital space than we would have predicted
going into the study.
This is very digital-savvy shopper.
TV, print, magazine showing up high usage for people in the
car-buying process.
So not a surprise.
It was a surprise to us that the red bars weren't a little
bit taller than they are.
But still, high usage of the traditional media in it.
Searching online, comparison shopping.
Searching dealer inventory shows up as one
of the highest usage.
That's quite interesting.
So the way they're using it isn't general search, but
really directed in terms of trying to find a specific
model or a make at a specific dealer.
Manufacturer websites showing up.
I'll tell you, across industries, this industry does
a great job on manufacturer's websites.
You show up as both high usage and high
influence as an industry.
You've been a leader in that space.
Many of the clients that we work for, some are very
sophisticated and advanced marketers, some of the biggest
brands that you can possibly imagine.
In many cases, they're quite envious of the relationship
that you have to the manufacturer's website,
because you provide utility and value in a way that's much
harder do in some other industries.
But it shows up here.
And then the test drive.
The test drive is a media opportunity.
Think about your marketing calendar.
Your marketing calendar is like many of our clients',
like mine as a retailer.
Months going across the top, it's a grid.
You've got your marketing activity going down, and you
have TV, and local TV, and print, and the magazine ads,
and banners, and outdoor billboards, and search.
It's a list of activity by time.
If you're like many of our clients, social media is
squeezed into the bottom.
Maybe they're squeezed in an 8-point font
down at the very bottom.
You have mobile.
You have some of the emerging media squeezed in.
But we treat them as discrete experiences.
Is the physical store also on your marketing calendar?
Maybe it says, does it require signage kit or not?
Or do treat it as a media node in and of itself?
You could have had a hypothesis coming into the
study that because of the rise of digital media, because of
the shoppers' ability to connect with each other in
order to understand the product and the service before
they make a purchase, you have a hypothesis that the physical
dealership, the FMOT stuff wouldn't be necessary.
It's the retailers' paranoia.
This is what keeps them up at night is do I eventually just
become a place where the product or services
are just picked up?
Do I just become a logistics source?
As these new media emerge, does it reduce the influence
that my physical plant provides.
In this study in automotive, I can tell you, that
is not what we found.
We didn't find it as a replacement media at all.
We see ZMOT activity, digital and social media, we see them
as incremental on top of the experience in the dealership,
that the dealership is still playing both a high
participation role and also a high influence role, which I'm
about to show you.
Now you could say, well, this is just the techno savants.
You're just looking at high digital early adopters.
And our data shows that's not true.
The gold bar over there, you still have people in the
50-plus group--
I'm about to be in that group--
using 14.8 sources on average.
That's still more than an elective medical procedure.
So they're still a highly engaged shopper that's
involved in the process.
Of course, the younger groups are using this more, and you
see a voracious demand for information.
25.6 sources, that's a lot of pre-research before they show
up in a dealership or get engaged.
And anything can be a resource, asking for advice
from a friend, having a discussion about it at work, a
Facebook post that you do saying, hey, I'm
about to buy this car.
What do you think about it?
Any of those things can stack up as well as using
traditional media.
What's more interesting about this is that amongst the
younger audience when asked about the role that it plays
in their experience, the number-one
phrase they use is necessary.
This is fascinating that ZMOT and digital activity has
become a necessary part of the decision-making process.
And I think that'll play out as we go into this study.
So yeah, they're using sources.
But the younger group, while they're using digital sources
highly, they're also using traditional media as well.
85% and 70% for FMOT and SMOT.
All right.
So just because I used it doesn't mean it necessarily
drove influence.
Let's look at that now.
Did the experience with that media channel, having seen the
TV commercial, or talked to the associate, or done a test
drive, did it actually drive any conversion?
Today, in the moment, what mattered in terms of the
decision you made on buying the car?
And in our study, the test drive is
the number-one answer.
The test drive is the number-one answer.
That's a media channel.
That's a media node.
That's an influence node.
Does that get the same level of attention in your media
plans that the other things that you do
for planning's sake?

The physical experience with the automobile at the
dealership is not necessarily a surprise.
Everything that's in a red box here are ZMOT sources.
Requested a quote online, comparison shopped online,
searched dealer inventory online, read automobile
reviews online, sought information from a
manufacturer website.
This is a highly engaged digital shopper who is saying
that these digital sources, multiple digital sources, the
intersection with all of these sources is providing a
tremendous influence when they finally go to make a decision.
We do a lot of work for grocery retailers.
We do a lot of work in the CPG categories as well.
When you're doing work for a brand like Coke, a ubiquitous
brand-- and we work with them-- it's often hard to see
the effects of ZMOT experiences when you watch
shoppers in the moment.
When you stand in the store and watch someone moving their
basket down the aisle, they're putting the products, the
basket never stops moving.
It looks like the same habitual, rote behavior,
pantry loading, replacement-style behavior
that you saw before.
And this may be true also in a doctor's office or in a
pharmacy where you watch the way they intersect.
The actual shopper's behavior in the moment may not seem
very digital-like.
And yet when you start doing research and say, what got you
here, and what finally helped you make the decision, even
though the transaction takes place in a physical plant,
that transaction is often influenced by more digital
sources than anyone would believe.
What role did your online websites play?
What role did these things like previous purchaser
reviews and magazine articles reviews--
if you combine all of the digital sources here, you can
see this is a digital-savvy shopper.

So retail, still powerful.
ZMOT sources becoming the most influential of all the things
that take place for people who are buying, making a final
purchase decision on the car.
Mobile shows up here as very small.
It's showing up here very small because in general,
we're in generation one of most mobile technology.
If you really think about it, even the iPhone 4 is still a
pretty early model of a consumer appliance.
We're still in the beginnings of shoppers adopting and
understanding how to harness mobile technology for the
shopping space.
When we look at the people who did use a mobile phone, it's a
very small audience.
For the people who did use it and used it successfully, it
becomes the top one, or two, or three
influencers in their category.
And we predict in automotive, just like in anything else
that we do across all of these categories, we predict over
time that mobile will grow radically.
Automotive.
ZMOT is up there tied with the physical experience in the
dealership, FMOT.
And its influence is almost as strong.
Really a fascinating space.

Now show you some cool way to think about this data.
Let's try to put time, usage, and influence together in a
way that we can visually see what's going on.
So what you're seeing here is a heat map.
And going across the bottom is time.
So if you're pegged over at the far right-hand side of the
chart, that's someone who started shopping and finished
shopping in the same day.
That's that pure spontaneous shopper.
And if you're way up on top of the chart, that means that
particular media node-- in this case,
this is using search.
This is a Google event after all.
Using search.
It was highly influential.
So if you're getting scores in the 8's, 9's, and 10's, that's
a highly influential.
And then if you see a large colored circle, it means
there's a high concentration of shoppers that say this was
highly influential.
So it allows you to say where in the process is search
playing the role?
What's actually going on here?
So you see a huge concentration of search
activity in that one to three months out.
So a lot of activity going on early in the journey.
If you ever wonder what begins the automotive purchasing
cycle, I can tell you now, search is playing an amazingly
powerful role early in the process.
Now this will also show up a little bit later.
Now on the projector, there's a green blob over there in the
short term as well.
It's not showing up quite as well on these projectors, but
it does play a late role as well.
Now there's another number on this chart.
It says 86% usage.
See it up there in the top?
Repeat usage.
That means that shoppers are coming back to this medium
more than once.
It's not just something that they're using and then moving
on through the journey.
I saw the TV commercial.
I used the print ad.
I did a search, and I went into the dealership.
It doesn't work that way.
Repeat usage.
We will see some media in that high repeat usage.
Search is one of those where they keep coming back over and
over again.
And there's another piece of information on this chart, and
this is perhaps the most important piece of all is why.
So they're saying, it's highly influential.
It's really, really influential early in the
journey, and then it becomes a little bit less influential as
I get closer in.
But still, it's highly important in my
final purchase decision.
Why?
What is it that drives it?
And those colored bars on the far right represent different
reasons why shoppers were using the media.
The blue bar and the red bar are the one you want to pay
attention to.
Blue is price, promotions, events.
And of course, number-one answer.
I can tell you that in this economy across every industry
we do, price, value, value-driven decisions is
almost always the number-one answer for any shopper in the
decisions that they make.
But in this instance, it's a lot weaker a driver than we
would have predicted, especially given the nature of
the industry and what a large percentage of the industry's
activity goes around the super summer salebration ads.
0% financing.
The red bar is vehicle performance, information about
the vehicle, things I would use to make me smarter.
Now I'm going to click through several of these heat maps,
and what I want you to pay attention to are those bars.
Pay attention to the blue and red ones, and watch.
That's the dealer website.
There's newspaper advertising.
Not a whole lot of activity going on there.
There's newspaper advertising again, we're
looking at the 16%.
So very, very low repeat usage.
As I tabbed through them, you'll notice the blue bar is
number one.
The red bar is number two.
But all the rest of the bars are in there.
When we see this in an industry, what it's telling us
is that it's a much more complicated purchase decision
that requires more information from any media input than the
shopper is probably getting.
Let me say it in a different way.
It's not a price-only world.
This is a shopper who's out there expecting information to
make them smarter.
They're using 18.5 sources on average.
They're consuming a tremendous amount of information in the
pre-shopping phase.
They're highly engaged in the shopping process.
And they need more information than just what's the current
sale price.
They're raising their hand and saying, help me
make a smart choice.
And in fact, when you see things like mileage,
maintenance, and warranty, fuel efficiency, and gas
mileage expected out of a newspaper ad, that tells you
this shopper has a voracious demand for information off of
what we tend to think about as very monodimensional media.
That makes our job harder as marketers.
The easiest version of that chart, those heat maps, would
have been where only one of those pegs out, where search
was only about warranty information or previous
purchaser reviews, or social media was only about price.
That's easy.
That makes our job easier, because we just do one thing.
Your creative agency says, what's the one big idea?
Let's just tell one thing and do it simply.
And that's great advice if you want your TV commercial to
break through and people to remember it.
But it may not be great advice for your marketing campaign,
because what the shopper is saying is that I need help.
I need this information in a way that makes me smart in
what is a intensely complicated purchase.
And I need it across all these media.
It's not just a price-only world.
It's interesting to look at all of them together, to step
back and look.
So physical experience in the dealership, search online,
searching dealership inventory, which is a surprise
to us in the study how high influence that was.
There's comparison shopping online.
TV ad is showing a moderate influence down there, but
fairly early in the process.
It's really fascinating when you look at these maps within
an industry like automotive.
But it's also fascinating to look at how your industry
compares with others, because, remember, the shopper is only
an automotive shopper for the moment.
And then they're a grocery shopper.
And then they're a travel planner.
And then they're buying insurance.
And so when you look across all these, including selecting
a political candidate, it's fascinating to
look how you vary.
And I will say this, you guys are in a sweet spot.
You really are.
Of all the industries we studied, and if I were to show
you all of these charts-- there's not time today.
But if I were to show these across every media node from
blogging to social media to print to mobile to all the
rest of it, you move way up in the consideration set.
You have a shopper who is saying, I'm ready to embrace
the information you have available to me in any way you
deliver it.
And for the shreds of information I'm getting from
you and from previous shoppers, I'm having to bundle
those things together.
Digital is a great place for me to go.
They are predisposed to ZMOT-like activity, and that
is a great thing.
It offers you the opportunity to create a very profound
relationship with the shopper, harnessing digital technology
in a way that's often very difficult to do using mass
traditional advertising stimulus.
All right.
Zero moment of truth, pre-shopping phase.
First moment of truth, experience with the product or
service at the dealership.
Second moment of truth, what do you do after you say yes?
What's it like in the consumption phase?
This is a shopper that's an extrovert.
They want everyone and their brother to
know what they bought.
I just got the new car.
It's the greatest thing ever.
And they are telling everyone about it.
These are exceedingly high numbers.
They're the highest of any industry that we saw in this
study except for boating.
Friends and family connections, 63% harness both
word of mouth, offline, social media, and digital, online
social media.
A high degree of mentioning to coworkers in their workspace,
talking about it in their work.
Often something we don't see is that something people do in
their personal lives they don't necessarily bring into
their coworkers.
And yet we see a high degree of that.
This is a customer who's prepared not only to consume
digital media in the purchase process, but they're primed
and ready to share it after the fact.
On your marketing calendars, as you think about planning
for this ZMOT world, you think about building a marketing
campaign around what would be most effective to generate not
only interest in your product early on, to make sure people
who bought become evangelists, harness this.
They are primed and ready for it.
Do you make it easy for them to share?
Is there a process set up in the dealership where you take
a photo of them next to the new car and send it across on
their own social network?
Do you give them any reward for sharing across the network
what just happened?
Do you give them a reward for sharing their great service
experience using these digital technologies?
Huge opportunities to harness the second moment of truth.
Now what shoppers say and what they do are not always the
same thing, right?
We are emotional beings.
We want to answer smarter than maybe we
really behave sometimes.
We may not even know why we behave the way they do.
It's often hard to imagine ZMOT search.
Blue type on a white field, it's often hard to imagine
that as an emotional media.
Broadcast?
Absolutely.
Play some cool radio spots, rock and
roll, highly emotional.
Print, I don't know.
Magazine, yeah, highly emotional.
Search?
Craigslist?
Hard to think of it as emotional media.
We know that if we want to reveal what's going on in
shoppers that we have to do it both rationally and
emotionally, that we have to connect with those shoppers on
both sides of the way they make decisions.
Shopper Sciences, we are a research and
a consulting company.
We do primary research in the field of shoppers
and decision making.
We're really fascinated just about decision making.
We have labs.
If you were to come and visit us in our LA lab or our New
York lab opening here in the next month or so, if you were
to come visit, we could put a skull cap on your head.
We would begin to negotiate pricing with you at that
moment, because we can watch how you feel.
But we could put a skull cap on your head.
We could watch how the electrical activity in your
brain changes as you interact with products or services.
And we put some product in front of you, say, four
shampoo bottles.
And we could say, tell us about these.
And you would say, well, I like this one.
This bottle is cool.
This one smells good.
I think this would be better for my hair.
As you talk, the frontal lobe, the most advanced section of
our brain, it goes alive.
It lights up with electrical stimulation.
The logic, the verbal centers of the brain goes live.
And then if I say, OK, now you have to choose.
You have to pick one or the other.
You can only take one of them home with you today.
Which will it be?
All that goes dark.
The center portion of your brain comes alive, lights up.
Now that's the same part of your brain that controls
fight, flight, yes versus no, risk, reward.
It's also the same part of your brain that controls your
autonomic nervous system, how fast you breathe, how much you
sweat, how much your eyes dilate.
It's all the things that control the emotional centers
of our body.
And those things can reveal actually what's going on
emotionally often in ways that shoppers themselves can't
express verbally.
So we want to be able to reveal what's going on
intellectually and what's going on emotionally.
And the way you do this is you literally can connect the
shoppers up to a sensor.
Now we don't put brain caps on their head.
We use a sensor about the size of quarter.
They wear it on their wrist. We use a camera that captures
their facial expression.
You actually betray a lot of your emotions using facial
expressions.
We plot things.
And I'm not going to belabor this.
But I'll just show you.
This is a typical example what this looks like.
This is someone who's online and going through a shopping
process for an automobile.
The bumpy curve at the top, that's galvanic skin response.
The one in the middle there is body temperature.
There's motion, heart rate.
We look at a lot of different diagnostics.
Just pay attention to the curve.
Diagnosing what goes on in the decision-making process is
quite powerful, because it lets you reveal what's
actually driving people, what's motivating them
positively, excitement level.
We can also look for distress.
And distress is something you fix.
It's the problem to fix.
So coming in, they're trying to navigate.
They're trying to find their particular model.
They were struggling a little bit with that.
But it really wasn't that big of a deal.
They started reading online purchaser reviews and getting
advice from other shoppers.
And all of a sudden, their emotional state went down.
Do you see that dip there as it drops?
So they got excited.
Excitement level going up, body temperature goes down.
That leads us to believe that's helping them.
They're excited.
The previous independent advice is helping them to
validate they're making a good choice.
And then all of a sudden, we get rising
frustration level again.
This is actually when they were trying to get a price.
How do I get a price on this car?
What's it actually going to cost me?
And when you see this kind of curve over, and over, and over
again, not for one shopper, but for 1,000 shoppers, when
you see that there's a common effect that happens when
something [? goes place, ?]
like how hard is it just to get a price?
It doesn't have to be exact.
Just tell me about what it's going to cost. When you see
that happen over and over again across large audiences,
it begins to tell you, we have a common
disconnect, a common problem.
On the same side, when you see a positive, like when that
body temperature drops there as they're reading online
purchaser reviews, that tells us, let's sponsor more
purchaser reviews.
Let's make them more visible.
Let's harness what we're learning here in the digital
space, because it's highly emotional.
It's also interesting to think about ZMOT experiences having
an effect in the dealership.
So this is when the shopper actually goes into the
dealership and what it looks like.
And I know inwardly a lot of you may be groaning, because
if you put a sensor on someone and send them shopping for a
car, every bad car shopping experience comes to mind.
That's not what we're doing here.
We're just looking at the process across a large
audience to see what actually drives behavior.
Greeting by the sales associate, see that little
spike there?
It's a high-stress spike.
But actually, as they start getting some information, as
they start getting information about the car, body
temperature drops.
They start getting more excited.
They start to test drive.
Test drive is a stressful experience.
And you see a high spike there in stress.
Having someone watch you drive and talk to you while you're
driving is actually a stressful experience.
And thinking of it as a media node, what things could you do
to control and qualify that experience in a way that can
make it easier?
Reviewing the features, all of a sudden, stress
levels start dropping.
And they get back to the dealership, and it comes time
to try to get a price quote.
And we have the same exact thing happen as before.

Thinking about ZMOT in planning in relation to the
dealership, it's not an either/or media.
They're layered.
Figuring out how to harness that digital technology so
that you can have a positive event in the dealership.
We brainstormed about this.
Advice that comes back from the dealer online that would
say, OK, these are the three things that add the most costs
to a car or when thinking about these kinds of features,
realize that you can actually get a better deal if you get
them in a package.
And here are some ways of thinking about it.
And about this is the range you should expect.
That kind of advice and information coming from the
dealer may be very powerful, especially when you know
they're going to get it from Edmunds or from some other
independent resource.
And that information may be wrong.
Coming into the dealership having already gotten an idea
about what I'm going to pay for this car may have been a
way to dramatically drop that curve.
And we know this, if you can drop the emotional distress of
a shopper, you can increase your close rate.
It's the number-one thing that you can do to improve the
performance of wherever that transaction takes place,
online, on a phone, in a retail store.

Highly ZMOT-engaged shopper.
ZMOT providing a high degree of influence.
It's not replacement.
It's in addition to the physical
experience from the store.
See some erosion in stimulus in terms of providing actual
influence, but it's still out there.
Younger shoppers embracing it more, but this is not a story
of just Generation X or Y. This is across Baby Boomers.
These are people who are trying to make a choice,
people raising their hand and saying, help me
make a smart choice.
And the retail experience is just as important.
Opportunity to blend those two together in a way that can
make shopping for a car a win.
Price.
Price is really important.
But this is a shopper who is saying I need more information
than just price.
I'm making a true value equation.
And in any way that you can deliver pricing information
plus the previous experience, it'll make it great.
I'd think about what happens after the shopper buys the
car, the moment that they say yes in the dealership and how
you can turn that into a social media experience, how
you can empower and reward them for sharing across.
That's a huge media opportunity.
I'd think about that test drive.
Man, that's a media node.
How can you build that experience?
I'd think about search and search in my campaign.
Search not only for getting you to the brand or the
experience, but also thinking about search as a way to solve
problems, anticipating problems that you know come up
in their experience, because it's not only a high
influence, but it's also something they keep coming
back to over and over again.
It's the highest repeat usage of any media that we saw in
the study across all industries.
Harness that for you guys.
I think at the end of the day, our job as marketers evolved.
When I started out, commissioned salesperson.
I did sell cars, consumer electronics.
I was a store manager, regional
manager, merchant, CMO.
It's a lot more fun in marketing.

We spend a lot of time trying to manipulate.
What can we do to get people to shop this weekend?
What bait can I throw out that will get the fish to bite?
Very much in terms of manipulation.
Sale, coupon, rebate, heaven forbid, loyalty program,
loyalty card, reward campaigns, all
these kinds of things.
What this study tells us is the shopper has moved.
They're not waiting for us to stimulate them.
Stimulus has declined in favor of media that they can
interact with under their terms and controls.
This is a shopper who is saying, I'm going to set the
terms of the engagement.
I want to engage with you, and this is the information I'm
looking for.
And he who rewards me with the information I need that makes
me feel smarter, better, faster, that's going to earn
my dollars.
What an incredible opportunity.
More so for this industry than any other that we studied, we
think it's a great opportunity.
At Shopper Sciences, we're glad to have been part of it.
Thank you, Google, for letting us be a participant.
Thank you for your time.
[APPLAUSE]
MICHELLE MORRIS: Thank you, John.
Thank you, John, for not only the interesting findings, but
also it's very helpful to get cross-industry perspective on
just how complex--
you know that, obviously--
and involved the auto-purchase process is, especially across
some of those key stages that John highlighted.
So digital comparison shopping, where consumers are
actually building their consideration set online, the
retail, the all-important retail experience, and of
course this new emerging behavior of post-purchase
sharing, where everyone is really talking about
validating their purchase with those that they know online.
So in addition to the study we just presented-- your Google
teams will have this study--
we also have additional media use questions and answers in
this afternoon's session with the bi-flow study with Compete
that we do each year.
So you'll see some of that in the section this afternoon on
social, local, and mobile.
And of course, your terrific Google teams will be meeting
with you and scheduling meetings, so you can see the
differences in this year's study compared to the previous
years in addition to in-depth findings on ZMOT.
So we're actually ready for a break.
Thank you for that.
A couple quick thank-yous and announcements.
Just a thank-you to AutoNation, who helped us line
up those dealer interviews.
We got some great perspective.
It's always good to hear from real consumers as we're
putting together research.
And anybody who needs a quick bio break, you can just follow
not the yellow brick road, but there is a white road that
will take you got to the other side of the lobby.
And we will be back in just 10 minutes, which puts us at
right around 11:40.
We're running just a little bit behind.
So if you don't mind making it back to 11:40.
And then last thing, Guy will be signing books at the close.
So from 2:00 to 2:30, after we close, he will be available to
sign any books.
Thank you so much, and we'll see you in 10 minutes.
MICHELLE MORRIS: Great.
Welcome back.
I'll give everyone a moment to find their seats.
There are some seats in the front for those of you that
are standing in the back.
If you'd like to come in the front, we'd love to have you.
So come on up.
There's many seats up here.
As a reminder, we will be live streaming this session.
So please use the #thinkevents when you're tweeting.
And our next speaker, I'm really excited to introduce.
When we're meeting with you, we're often asked by our
partners, how do you use your products to market Google?
You've probably seen us.
We call it dogfooding here at Google, meaning we
eat our own dog food.
So you see us on our Android phones.
We use the Gmail products.
We're constantly trying out our products.
Our next speaker, Lorraine Twohill, is responsible for
Google's marketing efforts globally.
Her programs focus on our go-to-market strategy and
adoption of all of our products, if you can believe
it, from consumer offerings to business services.
Lorraine will share her perspective on how technology
can facilitate some of those magic moments that Guy spoke
to this morning.
Lorraine's our VP of Marketing and also our CMO.
So welcome, Lorraine.
[APPLAUSE]
LORRAINE TWOHILL: Thanks, Michelle.
So as I was driving across here in 100 degrees of heat in
my car, I thought I'd ask the team when I came in, which car
I should be buying to help me cope with the heat over here
in California where I'm now based.
And I was told to buy a GM car because of the remote control
ability to control your air conditioning.
So those non-GM folks, you need to pitch me your version
of that, so I can be cooler in my car on these hot days.
So that was my car journey.
So from a car journey to my journey at Google, I've been
eight years at Google.
Started in London eight years ago in a small office with 20
people working across all functions.
We're this tiny team, very small, but hellbent on
changing the world.
Eight years on, over here, running global marketing,
we're a much bigger organization, but we're still
hellbent on changing the world.
It's very much a part of our culture.
I'm going to take this time to talk a bit about marketing at
Google, and what we do, and how we explain what we do.
Now when people hear that I run marketing at Google, I
tend to get two comments back.
The first one is typically, oh, my god, that's the coolest
job in the world, which is what I think.
And the other one is, marketing, what marketing?
And the answer is we're somewhere in the middle.
We're not a conventional company.
We won't necessarily do things a very conventional way, as is
everything at Google.
So therefore, marketing will be a little less conventional
and maybe sometimes more surprising.
So I'll share some of that.
But there's two things I wanted to talk
about at the beginning.
This is not going forward.

So the first thing I wanted to talk about is--
thanks.
Turning it on is usually useful.

Still isn't going forward.
So the first thing I wanted to talk about is engineering at
Google and what it is like to work in marketing at an
engineering company.
It's a very different culture than a normal company.
And engineers, they look at the world in a
very different way.
So whereas we will see things happening in the world, and we
will adapt to that situation, engineers will ask very simple
questions, like how can we fix this?
How can we change this?
And so the whole philosophy at Google is really about problem
solving and how we solve problems. And that's very much
the philosophy within our marketing.
Likewise, our marketing is very much like
how we launch a product.
We go to market.
We test, we iterate.
I can click from here if you want.
It's easier.

Shall I do that?
Yeah.
MALE SPEAKER: Yeah, that's probably good.
LORRAINE TWOHILL: There we go.
So likewise, at Google, we launch our marketing campaigns
like we launch products.
So we will launch a campaign.
Often we launch just on the web.
We'll test it, we iterate.
We get it better.
We'll test messages.
We'll hone it.
So we treat the way we launch campaigns just as how we
launch products.
And it's very much part of our engineering philosophy.
It's very much data driven.
It's iterating, and it's learning.
The second I wanted to mention is when you're responsible for
this brand, this crazy brand, this iconic brand that is the
most trusted brand in the world-- it's up there with the
Salvation Army as the most popular, most trusted brand in
the world--
you have to think carefully about
how you do your marketing.
You can't do stuff that's too commercial.
People feel that Google is part of their lives.
It's something they trust.
At 4:00 in the morning, if you have pain in your chest, you
ring the paramedics, and you'll typically go on Google.
People do this all the time.
We can't start doing stuff that's too
commercial in our marketing.
They don't think we're a commercial company, which of
course we are.
But they think we're an organization.
And it's different.
So we have to be very careful how we nurture and protect
this brand that is Google and not damage that relationship
of trust that we have with consumers.
So for example, our home page you see change a lot.
We play with this.
Most companies would never do that with their brand.
But we'll play with this page a lot.
This is probably my favorite doodle of all time.
We ran this just last week.
It was for Les Paul.
And it was our second ever sort of playable doodle, but
our first that you could actually play
music on and record.
I'll just show you a quick example.
[VIDEO PLAYBACK]
[GUITAR MUSIC PLAYING]
[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So anybody could go on and play any song
they wanted.
My three-year-old had hours of fun hitting the Record button
and Save button.
So from 3-year-olds to 93-year-olds,
this reached everybody.
And we really care about that.
We're very democratic in what we do.
We really try and reach all age levels.
But there was a Record button there.
And guess how many people in the US recorded a song?
Any guesses?
You're a quiet bunch.
41 million.
41 million.
It gives you an idea of the scale of Google, just the
scale and the reach.
Everything we do, if we screw up, we screw up
on a colossal scale.
Trust me.
I've been there.
So that's the part of the issue.
We have to be extremely careful the steps we take.
A big part of my job is I review probably 50
opportunities every day.
And I have to decide which one of those 50 is the right one
for us, because everybody wants to work with us.
But the reality is, we can't take this brand everywhere.
It can go almost everywhere, but we have to be very careful
what we do with that.
So 41 million people recorded a song.
Five years of music was played through this
device in one day.
This only ran for one day.
It's just in colossal scale.
And that's a theme you'll hear me talk about quite a bit.
So within all of this, our brand has to stretch across a
whole bunch of products, a whole bunch of areas.
We try and distill all of our marketing
down to five key areas.
And I'll talk a bit about each of these.
And I'll give you one or two examples on each of these to
show you how we bring it to life.
So the first of these is focusing on one real user.
At a company that's large and talks a lot about billions,
and digits, and numbers, and data, it's extremely
important, especially if you're in the marketing
function, you keep reminding people that actually we're
trying to solve for one real user.
And that one real user is, guess what, not an engineer in
the Bay Area.
It's actually your mom, or your brother, or your friend.
And that's who we need to solve for in the products we
build and in the marketing we do as we tell people about
these products.
So that's a big focus for us in terms of our marketing, and
pretty much all of our journeys start there.
They start with the user.
Every meeting has to mention the user.
Otherwise that meeting will end.
That's a big, big belief of mine.
You have to have the user come into every meeting.
Otherwise, it's not an effective meeting.
We've got to focus on solving users' needs and solving
problems.
Now that can be difficult if you're the software business,
because let's face it.
We don't get out of bed in the morning and think, wow, I'm
going to download a new app today.
Software has to become part of your life.
We have to make technology personal.
That's my job.
I have to make you feel like this benefits you, this is
part of your life.
This technology is useful to me in a personal way and
impacts me in a very personal way.
And that's a big part of the marketing we do.
So we always try and boil our messaging, which tends to
start off very complex, down to one very simple message
that really resonates with real people, with real users
in their daily lives, and it shows the tangible benefits to
them in their daily lives.
So I'm going to give you an example now.
It's a video.
It's an ad we ran in the Super Bowl last year.
And it's for Search.
It's very hard to market Search,
our most known product.
Everyone already has a view of it.
They know it already.
Awareness is incredibly high.
We haven't got an awareness issue.
But we want to remind them why they love us, remind people
how important Search is and what a part
it is in their lives.
And so we launched this campaign.
What's interesting about this campaign, we launched it on
the web first on YouTube.
We had about 9, 10 different ads, different videos,
Click-to-Pay ads.
One of them just really took off.
Internally, we all had preferences.
There was a couple that we really knew
were very, very good.
But one just took off.
And it was extremely interesting to use YouTube as
a test bed--
which is something we do a lot-- as a test bed for
creative work to see which creative work would take off,
be the most popular.
We saw this one just take off olympically and just get a
huge amount of views.
And so we felt like we should put this somewhere else.
So we put it in the Super Bowl.
And that's why we ended up having this ad in the middle
of a football game, which I've never watched
before in my life.
But it was a new experience for me.
So it should play.
So this is the ad we ran.
[VIDEO PLAYBACK]
[PIANO MUSIC PLAYING]
[SPEAKING FRENCH]
-Hello.
Bonjour.

-Bonjour, monsieur.
-Tu es tres mignon.

[SHOP BELL RINGS]
[GIRL GIGGLES]
[PHONE RINGS]
-Hello?

[SPEAKING FRENCH]
[BELLS CHIMING]
[BABY LAUGHING]
[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So that's an example of-- it was our first
TV campaign here in the US, our first ad to run on
TV here in the US.
Now what was interesting about that is not many companies
would put a love story in the middle of the Super Bowl.
And we did it purely because we just loved this piece of
creative, and we just saw it really taking off on the web.
I did count seven different ads in that game that had guys
in shorts in them, underwear in them.
So I think maybe we might have missed something.
It was clearly a theme.
But we had a great response to this, and we felt quite
excited about it.
The next example I'm going to show you is how do you then
take a product like a browser--
we really care about Chrome.
We really care about browsers.
Browsers make your internet experience, your whole journey
on the web faster, easier, safer.
It's a really good thing for the web to have faster,
easier, safer browsers.
Most of you don't give a shit.
It's like a tire.
You have to it, but you don't really know why.
So how do you tell people--
you guys have that problem too, right?
How do you market tires?
So certain things are just not as sexy as other features.
But they have to know about them.
It's important in terms of education and knowledge.
And we're about knowledge sharing.
We want people to have the right choices, to choose the
right products for them, the right path for them.
It's a problem we all face in marketing, right?
So how do market a browser?
And the first hundred million users who came into Chrome
came in there because Google.
They came in there because they knew what a browser was.
The second hundred million Chrome users are not going to
come in for that same reason.
We needed to find a way to awaken some curiosity in them,
get the brand Chrome in front of them and, again, make it
personal, make it part of their lives, and
tell a wider story.
So we launched just about five weeks a TV campaign in the US
called The Web Is What You Make Of It.
And I'll show you one of the ads here.
And all of the ads are about web heroes, people who have
used the web to make something special of their lives.
Chrome being your gateway into the web and then allowing you
to do something quite unique on the web.
And here's just one version from a pretty famous lady.
[VIDEO PLAYBACK]
[MUSIC - "THE EDGE OF GLORY" BY LADY GAGA]

[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So a couple of things about this campaign.
First of all, Lady Gaga, she really gets the internet.
And you can see this is telling her story.
She's really used the web very smartly to build her brand.
I think she's a phenomenal example of how to build a
brand and a movement through the web, a community.
So she was really keen to do this.
This was actually a creative collaboration with her and not
a sponsorship of any shape or form.
And it's part of a wider journey we're having with her.
It feels more commercial than the first one you saw.
What was interesting is that her fans and all the newer
people we're going after loved this, but our die-hard Chrome
fans, bit of a mixed reaction.
Because it felt more commercial.
So it's that line we have to walk.
That's an interesting line for us.
What's also interesting about this is that she put that song
live for sale on the web and to iTunes on a Monday.
And then she asked on YouTube for her fans to submit their
versions of that song, them singing the song.
In the following two days, we got hundreds of thousands of
videos in of fans singing that song on YouTube.
And we cut the ad in the next two days from the videos we
got in the previous two days.
So on the Monday, the song went for sale.
And the ad was shot and finished by Friday and live on
Saturday Night Live on Saturday night
where she was speaking.
So that's kind of what ad production becomes in a
digital world where you can use real-time communities,
real-time fans, real-time brand consumers, and just turn
it into an ad within five days, and be live with a
brand-new song on Saturday Night Live on Saturday Night.
So that was an experience for us which was a hellish few
days in terms of workload.
But it was an interesting story.
So that's Chrome.
So there are just some examples of the stuff we're
doing on focusing on the user.
All of those campaigns, we then take them global.
They run globally.
We'll tend to have some versions like Lady Gaga, which
we run everywhere.
And then the countries will also do a local version in the
same concept, local stories, so you've got both local
campaigns and global campaigns running around the same thing.
Ideas come from everywhere.
So a big part of our philosophy, especially within
my team, is to make sure that we allow for ideas coming from
all over the world.
I'm clearly not American.
I moved here two years ago.
I ran marketing for Europe for my first six years here.
I felt very strongly that we have to have a very global
voice and a very global approach and that we get much
better ideas that way both internally and externally.
So we're big into creative collaboration.
Lady Gaga is just one example.
At any given time, we would have lots of relationships
with artists, innovators, creative
agencies, media agencies.
We surround ourselves with all kinds of talent, because they
have phenomenal ideas.
Developers.
Our ecosystem of creative collaboration is what makes us
who we are.
Internally, we also build that same kind of ecosystem.
So I'm going to show you an example of each.
So for example internally, we run idea generation contests.
I have one call Dragon's Den, where every year, everyone on
my team who wants to gets to pitch an idea on anything.
It has to be nothing to do with their day job.
It can be anything they want.
And this is last round, we had 150 video entries, of which we
collectively voted as a wide team and picked 25 that went
into pitch face to face in front of a team of dragons,
who are internal entrepreneurs within my group.
And the best ideas get funded.
And those people get to work on their winning ideas.

So many of our best ideas come from that kind of process, not
from a brief to a creative agency and a response.
It's amazing how we end up going back time and time again
to that kind of process.
Secondly, 1/3 of my team is under 25.
So we hire lots of graduates.
And they have the biggest ideas, because they're not as
cynical as the rest of us.
And they haven't heard the word no ever in their lives.
And they think everything is possible.
And actually, if you're as tenacious as they are, it can
be possible, because they refuse to give up.
And they really believe in their idea,
and they get it there.
And they get it across the finish line.
So I'll show you one example of that.
This was an idea that a guy on my team had
a year out of college.
He was a music fan.
And he had this idea, which he pitched to us, which was to
create a global community of fans for classical music.
There was no home for classical music.
And we all thought niche.
And then he said, well, 12% of iTunes sales
are classical music.
That was more convincing.
But his idea was to create a YouTube competition around the
world to allow people to submit a piece of music that
they were playing with a classical instrument.
And the winners voted by the world would get to perform
together as an orchestra.
And this orchestra would come together three days before the
actual event and then perform in Carnegie Hall year one.
This was Sydney in year two.
And of course, everyone said, it couldn't be done.
Everyone in the classical music industry said, it
couldn't be done.
Because there's no way you could put an orchestra
together in three days who have never met nor spoke the
same language.
And of course we did it, because the best thing you can
say to Google is, it can't be done.
We'll always find a way.
But this was an idea came from a kid who had little to no
marketing experience and worked in B2B
marketing in his day job.
And it became a huge brand asset for YouTube.
And not only that, this latest one was partnering with
Hyundai, who are phenomenal partners.
And they sponsored this, and came on board as creative
partners, and used this very cleverly to supplement and
augment their campaigns globally.
So I'll show you a quick video, so you
get a feel for it.
[VIDEO PLAYBACK]
[CLASSICAL MUSIC PLAYING]
-It's my pleasure to welcome you to the YouTube Symphony
Orchestra 2011.
[APPLAUSE]
-We are from many different countries.
We play very different ways, but this is music after all.
-This is not just an ordinary concert.
It's a culminating of a week-long celebration between
the worlds of classical music and technology.

-It's like the most exciting fireworks show you've ever
seen combined with the architectural elements of this
incredible structure.

-There's a real power in 21st-century digital culture.
I wish that every orchestra would stream or broadcast some
of their concerts online.

-This has been exemplary of what we need to do in mankind,
find common threads between each other.

-The spirituality and peacefulness of music is what
we musicians treasure the most. It's what sticks with us
long after the performances are over.
[CHEERS AND APPLAUSE]
-I melted a little bit.
My heart is just--
it's too much.
It's amazing.

[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So we've always found there's a sweet
spot in technology and talent where real magic can happen.
And that's just one example where you bring young people
together, and you use technology in a clever way.
And then you create something that's very big.
And by igniting a community of people who are passionate
about something, you reach a scale that we would never have
anticipated.
This channel is bigger than Britney Spears or bigger than
Michael Jackson on YouTube.
And this was the most viewed performance we've ever had on
YouTube until the Royal Wedding came along and more
than tripled the numbers, not surprisingly.
I would never have anticipated that.
So it was an example of you just don't know where your
next big thing is going to come from.
So we look at everything.
That's an example of internal collaboration.
I have an example now of external collaboration.
And something you may have heard of, which was Wilderness
Downtown, was an award-winning video.
So HTML5 comes along.
How do you showcase the beauty and breadth of HTML5?
And if you think back to MTV 25 years ago, and the first
music videos, and what they were like, and how
game-changing they were, this was the first
music video in HTML5.
We did this in partnership with Chris Milk, who's a
producer, and Arcade Fire, the band.
And we didn't know where it would go, and whether anyone
would look at it, or whether it would get used.
And it's worth going home and doing this.
The URL is there.
You put your hometown address in there, your home street
address in there.
And the entire music video customizes to you, your
hometown, people walking through your streets
where you grew up.
And it's an extremely emotional experience to be
sitting at your computer or your TV at home and seeing
this music video showing your streets, your home streets.
And that's Street View.
That's Google Earth that's being pulled in there.
An extremely powerful, one on one, personal moment that's
being created with that consumer, that person just by
them doing one simple action.
And that's what was clever about this.
So this was then watched by about 50 million people who
put in their address there and did that.
And this costs a couple thousand dollars to do.
So it's an example of how a small idea can again become a
very big thing, because it's personal.
I'll just show you how it worked.
[VIDEO PLAYBACK]
[MUSIC - "WE USED TO WAIT" BY ARCADE FIRE]

[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So this is a very small taste of it.
And it's very out there.
You kind of think, how could I use that or adopt that?
But we love partnering with these producers.
We love pushing boundaries and new technologies, and finding
ways to see where the future is going, and
see what can be done.
And this was just one example.
We have a team in New York called The Creative Lab who do
a lot of this kind of stuff.
We have an in-house creative team, which allows us to have
lots of flexibility and work with all kinds of
collaborators.
And this is the kind of work that comes out of that team.
Championing customers, so incredibly important for us.
You're our customers.
We have millions of customers of all different types,
shapes, and forms. And making sure we make them feel like
heroes, make you feel like heroes, tell those stories in
everything we do is extremely important for us.
From the very little guys, who we help all the time in small
businesses coming on the web, to the bigger guys, who are
trying to grapple this new world that we're a part of,
this digital world, and really understand how they can
embrace it and make it part of their lives.
So one example I wanted to share is a campaign
you may have seen.
It's Watch This Space.
This is an example where Volvo worked with us.
Volvo are doing very clever stuff in using digital
marketing, digital media.
So we worked with them on this ad.
This is a campaign to talk about display as an
advertising space.
You guys were the audience.
You guys are the targets of this campaign.
It's targeting the marketing industry.
But it was really to show our excitement about display and
again, where technology is advancing in the display space
and to showcase some of the innovations we're seeing in
that space, some of the companies who are doing really
clever stuff and make them the heroes, champion those
customers who we see doing smart stuff in this space.
So it's just one example.
One you heard about earlier from the guys in the team
working on ZMOT, which, again, we're quite excited to put out
there as a digital book.
Again, it's about making customers champions, telling
their stories, showing ways that we're seeing people do
clever stuff, and learning, and innovating.
And this is something that we care deeply about.
And the third example I wanted to share here was more for the
small business guys.
So for you guys, you're getting there.
Or you're already there.
You're embracing this.
You know what's going on.
You're really part of this change.
For the small businesses who have gone through a tough
time, who are trying to put their kids through college,
who are trying to not have to fire people, who are trying to
pay off their mortgage, they don't really know how to
grapple with this whole digital thing.
So we have a whole series of programs for them.
One in particular is called Getting
America's Business Online.
This is Getting Canada's Business Online is the example
here, which is really helping small businesses get on the
web, get started, be successful, understand how to
use the web as part of their marketing arsenal.
And it's something we spend a lot of our marketing time on.
So again, whether it's a large customer or small, always
working with our customers to tell their stories and show
their stories and then show the customers who really
understand this stuff and who can help others.
Because by connecting the dots amongst customers, we also
see, whether it's through events like this, whether it's
through getting small businesses together, that they
learn so much from each other.
And again, everybody really starts to understand how to
use all this stuff.
So that's been a big part of what we do as well.
Now taking risks, it's extremely easy to say no.
And it's something I say to my team all the time.
It's easier to say no, and sometimes it's
really hard to say yes.
So I really push my team to take a risk, take a leap, say
yes, and try something.
And it can be scary when it's in our scale, but it's
extremely important.
So this is something we really believe in.
And there's a few examples I can give.
One is something we care deeply about.
This is something, again, I feel that is unique to Google.
One thing I always look at in our marketing when people
bring me creative work, I always say, if you can take
the Google logo out and put somebody else's in, could it
still work?
And if it would, then I typically don't run it.
It has to feeling intrinsically us.
And I think the stuff I've shown you so far feels
intrinsically Google.
This is another example which we run all over the world.
We go into schools.
And millions of kids all over the world, they design their
own doodle.
And it could be a theme like my community,
my future, my planet.
So it was a risk when we first did it.
We thought, what would happen with this?
We've promised the winning kid they could
appear on our home page.
Now what if it's awful?
What if it's terrible?
This is going on our home page.
This is the most valuable real estate we have. And we're
going to let some 12-year-old artwork appear there.
So at the time, it was a big decision to take that kind of
risk, but of course the end result was magical.
Because you then have millions of kids all over the world
designing these beautiful doodles.
And of course, they're wonderful.
And the winning one, as voted by the kids themselves, tends
to always be something very inspiring that we would never
have dreamed up ourselves.
This is a winning doodle in Kenya from an
11-year-old kid there.
So every country has its own competition.
But again, it's a way that we made a decision to take a risk
and do something that is actually very
different for us.
Another one was Androidify, which we did this year.

Again, this is, as I mentioned earlier, making technology
personal, something that we care about a lot.
How do you get people excited about apps?
How do you make technology on the phone personal?
How do you do that?
So we created Androidify.
Again, it was a small thing we did.
It took off, became one of the most popular apps out there.
This is me in the middle, by the way.
This is my version.
You can take the little green guy, the Android robot, who by
the way is Creative Commons.
So anybody can play with him.
We have no control over him.
So this is completely relinquishing your brand.
So anyone can play and do whatever they want with the
Android guy.
In this, we allowed consumers on their phones to make their
phone experience more personal.
You can take the little green guy, give him a hat, change
his skin color, make his legs longer, give him a dress,
whatever your fancy is.
But not surprisingly, this took off and became 30, 40
million people later who've done this.
You now have this experience that's much more personal with
your brand and all those phones.
So again, an example of taking a risk with your brand and
your brand device that you wouldn't necessarily do in a
conventional company.
But it allows you to engage with so many people on a much
more personal note than just sort of offering them your
technology.
So this example I wanted to give you now is back to what I
said earlier about how do you extend your brand?
Where can the Google brand go?
And the kind of risks we sometimes take because we feel
strongly about it.
Again, when you see this, you'll understand why it might
have been a risk for us to take it, but it
meant a lot to us.
It's part of that Chrome campaign I talked about
earlier, The Web Is What You Make of It.
It feels completely different to the Gaga ad you saw, which
felt more commercial.
This is a very different story, but it's a story that
we felt we should get behind.
So I'll just play the video.
[VIDEO PLAYBACK]
[MUSIC PLAYING]
-High school was bad.
I was obviously gay, and some kids didn't like that.
And I did get harassed.
-What I'd love you to take away from it is that however
bad it is now, it gets better.
And it can get great.
-And it's important for adults to reach out to kids and share
our stories so that they can picture futures for themselves
that are worth sticking around for.
-OK, little ones.
Here's the first thing you need to know.
-You are perfect and wonderful exactly as you are.
-You're not alone.
-There are a ton of us out here in this world.
-Who love you without even knowing you.
-It gets better!

-There's art to be made, and there are songs to be sung.
-So hold on.
-Look at me, 80 years old.
It gets better with age.
-Listen to me.
-It gets better.
-It gets better.
-It gets better.
-It does get better.
[SPEAKING FOREIGN LANGUAGE]
-So much better.
-You'll be fine, partner.
-Your life can be amazing, but you have to tough this period
of it out, and you have to live.

[END VIDEO PLAYBACK]
LORRAINE TWOHILL: So as you can see, we took a
risk on that one.
We felt it was the right thing to do.
It was one of three ads, so we always thought, well, we've
got two safe ones.
We'll be OK.
We'll get there with our story.
But the result was, this is the one young people went for,
because they're very idealistic.
Students, who are a really important audience to us, this
is where they're at.
They really want to change the world.
They believe in these movements.
And this is the one the world went crazy over.
Just tremendous response on Twitter, tremendous response
on Facebook.
So from a social media perspective and tapping into
young people, this is the one that they
really resonated with.
So it was very interesting learning for us.
We felt very good about this.
Also, by the way, this is tremendous internally from a
morale perspective.
You can imagine, we hire very young, very idealistic people.
They want to change the world, whether it's helping our
customers be successful or helping people use the web in
a better way.
So when they see this kind of thing, and they see the
company they work for do this kind of thing, it's phenomenal
for retention, and it's phenomenal for morale.
The internal buzz around this one ad was something like
we've never seen before.
But it's an example of taking a risk.
These are not easy decisions.
So that's some of the risk stuff.
But my last category is make it matter.
What it all boils down to in the end is no matter what we
do-- what I always say to my team is, no matter what you're
doing, make it matter.
It has to matter, whether that's impact, whether that's
helping a small business be successful, whether it's
helping some of our larger customers understand how to
work with us and use our products, whether it's helping
crisis response workers in places like Japan, whether
it's helping build a music community on the web, whether
it's helping people understand technology and how to use it.
It has to matter.
And so we use this as a reference point in everything
we look at to see, really, can we say this matters?
And I think it's actually a useful question that you ask
yourself all the time.
I do.
And it makes you eliminate a lot of the bottom 15% of the
stuff on your desk, because it really doesn't matter.
And it makes the team, my team, my young team, feel very
empowered, because they get to feel like the stuff they work
on actually matters.
And to say that every morning gets you out of bed with a
spring in your step, especially if you have a
large, young team, which I have.
But the one example I wanted to give here was something we
did around Japan.
So earthquake in Japan, a very unfortunate natural disaster.
Google, within an hour of the earthquake, put together a
crisis response team.
Within the second hour, had a crisis response page live on
our home page around the world, so people in Japan
could get access to information.
Within another hour, we had our tool called Person Finder
Live, in which you can list missing persons records.
That currently has 600,000 missing persons records in it
for Japan alone.
We very quickly realized that the refugee centers in Japan,
of which there were 2,000, couldn't upload their
spreadsheets to this tool.
So some of the folk in our Japan office thought of
telling them, take photographs with your phone of the sheets
of names, put them in Picasa Web albums. We'll download
them from there and type in the names for you.
So we typed in 140,000 names into Person Finder across our
entire team in Japan plus volunteers that we knew.
Many of our customers came in and helped while also
simultaneously moving their families out of Tokyo.
So stuff that really, really matters.
This is something my team put live, which is called
Messages for Japan.
We're taking all of the messages around the world that
people sent that were saying, we're with you, Japan, we're
thinking of you, which were largely in English or other
languages, and we're translating
them all into Japanese.
And you can see the dots coming in are new messages
arriving all the time.
So you can actually go in there.
And if you ever feel like being inspired for a couple of
minutes, go and read some of these messages.
It's actually very, very inspiring.
But this is the kind of thing that we
really care about doing.
There's this better angel part of our brand that we never
want to lose.
And in my view, it's times like this where you really see
the exceptional goodness that comes out of Google.
Because we step into these situations, and we
really make it matter.
So for example, we had a very large TV campaign and
billboard campaign running in Japan at the time.
We pulled it down as fast as possible.
We did a whole new piece of creative.
We shot a TV ad overnight, which was basically all about
Red Cross, and crisis response, and where
to go to get help.
Used all of our media to get that story out, so people knew
where to go to get help.
And the end result was we're walking into customer
meetings, and the media were saying, thank you, Google.
Your response in Japan has been tremendous.
Now we did it for the right reasons, but we also, of
course, benefit in Japan from that.
Because people see we truly care.
And we're local, not just an American company
coming over to Japan.
So just an example of how you can make it matter, and it
really matters to us.
So from where I started in the very beginning with the doodle
all the way through to Japan, we have such
breadth with our brand.
So I've covered an awful lot of stuff in a few minutes.
So to try and keep the team focused on doing the right
stuff, we have one line in marketing, which is, know the
user, know the magic, connect the two.
And whether that user is a small business trying to make
it on the web or a crisis relief worker, whether the
magic is personalizing your Android experience or
discovering music on YouTube, it's all about knowing that
user, knowing the magic, and connecting the two.
And that's really how we think about marketing at Google and
how we focus.
So that's my story.
Thank you very much.
[APPLAUSE]
LORRAINE TWOHILL: I think I'm introducing my boss now.
Am I?
Yes.
So he thinks he's my boss anyway.