1. Google Confidential and Proprietary 1 Google & Travel: Online advertising & promotion tools Hrabren Suknaić Rimske Toplice, 21.11.2008.

2. Google Confidential and Proprietary 2 Program Google introduction Impact of digital platforms on travel industry Advertising on Google Other Google Tools

3. Google Confidential and Proprietary 3 Google introduction

4. Google Confidential and Proprietary 44 online / week by Western Europeans 49% 1 billion The internet today 1 Billion Google searches per day 118 Billion Emails and IMs sent per day 500 Million Video playbacks per day 14 hours Video uploads every minute to YouTube

5. Google Confidential and Proprietary 55 In this fast growing world our company has a mission…

6. Google Confidential and Proprietary 6 To achieve this in the travel sector we work with the world’s leading National Tourist Organisations

7. Google Confidential and Proprietary 7 We’ve grown quickly from small beginnings…

8. Google Confidential and Proprietary 8 And are becoming a global company Approximately 20,000 full-time employees worldwide

9. Google Confidential and Proprietary 9 Innovation is at the core of what we do Our technology bring consumers and businesses together throughout the online experience

10. Google Confidential and Proprietary 10 Impact of digital platforms on travel industry

11. Google Confidential and Proprietary 11 There are now over 1.3bn online Asia 510m Europe 348m North America 238m Central/South America 126m Africa 44m Middle East 34m Oceania/ Australasia 19m Source: Internet World Stats – Feb 08

12. Google Confidential and Proprietary 12 81% of internet users enter websites via a search engine Source: Forrester Research Inc., “UK Internet User Monitor”

13. Google Confidential and Proprietary 13 Leisure travel is the most-researched product category on the internet

14. Google Confidential and Proprietary 14 Source: FutureBrand Country Brand Index – Oct 07 The Internet influences travel decisions more than ever before Ways someone initially becomes interested in a country Once interested in a country ways information is found

15. Google Confidential and Proprietary 15 These users are purchasing travel online in ever- increasing volumes European leisure/unmanaged business travel online market, €Bn, 2005-08 and YOY growth rates

16. Google Confidential and Proprietary 16 But European purchasing patterns currently lag the US by three years Source: PhoCusWright U.S. Online Travel Overview Sixth Edition – 2006-2008 projected, PhoCusWright European Online Travel Overview Preliminary Results – Mar 07 Leisure/unmanaged business travel online penetration, 2005-08

17. Google Confidential and Proprietary 17 Ad spend is trailing the consumer Source: Forrester’s European Consumer Technology Adoption Study Q2 2007, ZenithOptimedia Advertising Expenditure Forecast Oct 2007 European media consumption (% hours/week)% EMEA Ad Spend 2007 television spend31% internet spend 8% radio spend 5% print spend48% watching tv33% surfing internet24% listening to radio22% reading12% outdoor6%

18. Google Confidential and Proprietary 18 The online travel marketplace 2008 Based on queries on Google platforms and leading partner sites +66% +73% Year on year growth rates marked in grew where available +10% Insights  YoY growth continues to be strong at c. 30%  Seasonal peaks are becoming increasingly important and prolonged; December 2006 to January 2007 grew 66% whilst December 2007 to January 2008 grew 73%

19. Google Confidential and Proprietary 19 Some search trends Source:Google Internal – Estimates based on a sample of available category-related Google data from Dec 04 – Sept 07 for search only. Future results may differ from above. Please use as a directional guide. 30% 23% 16% 34% Hotel searches on Google UK 25% 28% 23% 38% Hotel searches on Google DE Hotel searches on Google IT 32% 38% 26% 40% Hotel searches on Google FR 36% 34% 37% 50%

20. Google Confidential and Proprietary 20 Example: On average there are 12 travel searches prior to (Airline) purchase… Number of travel searches prior to purchase 29 days on average to purchase Source: comScore custom analysis- UK Population, Q1 2007. Travel searchers in January time aligned and monitored over 12 week period from first search. Purchases tracked at set of online travel merchants including Ryanair, easyJet and British Airways.

21. Google Confidential and Proprietary 21 …and 22 travel site visits prior to purchase Number of travel sites visits prior to purchase Source: comScore custom analysis- UK Population, Q1 2007. Travel searchers in January time aligned and monitored over 12 week period from first search. Purchases tracked at set of online travel merchants including Ryanair, easyJet and British Airways. 29 days on average to purchase

22. Google Confidential and Proprietary 22 Advertising on Google

23. Google Confidential and Proprietary 23 Our proposition – to ‘promote’ and ‘engage’ Capture consumers throughout the decision cycle Convert to travellers with digital content Promote Engage

24. Google Confidential and Proprietary 24 Search advertising offers flexibility and control ‘Natural’ search results ‘Paid-for’ search results

25. Google Confidential and Proprietary 25 Google Adwords – how and why? How it works? Why it works? Helps you reach new audiences Excellent control Highly measurable results No minimum spend requirements Choose keywords Set budget Decide where ads will be displayed People click on your ads and connect with your business You create your ads

26. Google Confidential and Proprietary 26 All together, Google search helps create a means to implementing an effective distribution model $1 investment $10 revenue $2 profit The distribution cycle The distribution model Use Search as a distribution model, not a marketing tool Involves a cycle of reinvestment constantly delivering bookings Reinvestment continues provided ROI thresholds are met Investment in Search Customer booking Reinvestment of profit

27. Google Confidential and Proprietary 27 Advertise on the Google Network Active Reach, Global Internet Users network Google, including: The Google Network reaches over 86% of Global Internet users Search partners, including: Thousands of Content partners, including:

28. Google Confidential and Proprietary 28 Google’s Content Network lets you reach the right audience at the right moment Text Display Video 765bn page views/month 566m unique visitors/month Campaigns remains completely flexible – unlike TV or Print Reporting is fully transparent and puts you in control www.Dalmatia.hr Hotels in Dalmatia Hotels in Dalmatia Great range of hotels in Dalmatia Book today for latest prices. www.Dalmatia.hr www.Dalmatia.hr www.dalmatia.hr

29. Google Confidential and Proprietary 29 Other Google Tools

30. Google Confidential and Proprietary 30 Major brands are already using YouTube as an effective promotional medium

31. Google Confidential and Proprietary 31 YouTube is also larger than you might think Selected countries Unique monthly visitors (millions) UK13.9 Germany10.0 France9.1 Netherlands4.5 Russia2.8 Sweden2.5 Source: Nielsen – Aug 08

32. Google Confidential and Proprietary 32 Who is watching YouTube? Male 54 % Female 46 % Source: Nielsen NetRatings, November 2007, Home and Work, UK Gender Age Gender Age Male 52% Female 48 %

33. Google Confidential and Proprietary 33 Embed your uploaded videos on your own site and stream them for free

34. Google Confidential and Proprietary 34 Or use videos to create a YouTube Channel

35. Google Confidential and Proprietary Improve your sites and increase understanding of your customer Free, hosted, web analytics service Evaluate visitor navigation to identify site improvements Gain online insights to support your offline media strategy Measure and evaluate the return on investment of all your online Marketing activity Exploit Google Analytics to maximise revenues

36. Google Confidential and Proprietary 36 Providing Answers to Difficult Questions Which marketing initiatives are the most effective? Is my website design driving people away? Where and why are visitors abandoning my shopping cart? What keywords resonate with prospects and have the power to convert them? What do people do while on my site? Where are my visitors coming from? Quick to set up, easy to use, and it’s free!

37. Google Confidential and Proprietary 37 Web Analytics for Your Organization Track ROI on all online initiatives from a single report Identify long-term trends in online marketing programs Have regularly scheduled reports automatically emailed to you  For Executives Capture the most conversions at the lowest possible cost Target high return regional markets and market segments Test various advertising creatives for each of your campaigns  For Marketers Demonstrate the value of your site usability improvements Show how your site design decisions improve website ROI Identify web design parameters like visitor connection speeds and browser types  For Webmasters

38. Google Confidential and Proprietary 38 Geo products such as Maps and Earth utilise the best of user- generated content

39. Google Confidential and Proprietary 39 And the information is getting richer

40. Google Confidential and Proprietary 40 You should make your travel content available on Maps

41. Google Confidential and Proprietary 41 And use Google Maps on your own sites to assist users with navigation

42. Google Confidential and Proprietary 42 Google Maps is Europe’s leading mapping service Source: comScore Networks MyMetrix Oct 07 Europe, Jan 07 – Oct 07, total unique visitors (000’s)

43. Google Confidential and Proprietary 43 To this we’re adding imagery and data we acquire or license ourselves

44. Google Confidential and Proprietary 44 Use the Keyword tool to get new ideas

45. Google Confidential and Proprietary 45 Use Google Insights for Search for insight into customer search behaviour

46. Google Confidential and Proprietary 46 Mobile phones as the new travel guides?

47. Google Confidential and Proprietary 47 Questions?