Google Inc (GOOG)’s Fourth Quarter 2014 Earnings Conference Call Transcript

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This was a 600% increase in YouTube channel views over the same week in 2013. And while we are all anticipating a certain football game in Arizona this weekend, the action has already begun for its advertisers on YouTube. Nearly 70 ads or teasers related to the big game have been posted to YouTube this year, up 55% from the same time last year. People have been, people have already watched them more than 44 million times, up 25% from last year and for more than 70 million minutes on YouTube nearly tripled the watch time compared to the same point last year. On average people watch each ad for more than a minute and a half. We continue to develop the tools that make digital work for brand marketers, their agencies and premium publishers.

There were two particular areas of focus from Q4 that I would like to highlight: programmatic and measurement. Let’s start with programmatic. Automated ad buying has benefitted performance driven advertisers for years. We’re now extremely well positioned as brand advertising shifts to programmatic as well. We’re seeing great traction overall from our advertising and agency partners. Today, all the top 10 global agencies use at least one product in our double click suite. Specific products within the double click suite have shown exceptional momentum. DoubleClick Bid Manager, our primary frontend for programmatic buying has doubled in volume over the past year. During the re, the recent U.S. mid-term election, programmatic represented nearly one third of advertisers’ Google ad budgets.

We’re seeing that video, the ultimate brand medium, is starting to move to programmatic as well. After launching in June of 2014, Google Partner Select, our premium programmatic video marketplace now has more than 50 publisher partners including Hearst Television, and Food Network and includes brands like BMW. Next, we continue to invest in measurement tools that enable advertisers, agencies and publishers to better understand the results of their digital marketing. It starts with addressing the question of viewability. Nothing else matters if a human did not see your ad. This is the top question for the industry and at Google we are doing our part to address it.

Since July, we have been rolling out view, viewability report across our ad platforms, so that brands will know whether their video ads on digital channels were actually seen or not. We recently extended this activity reporting to video ads. Large advertisers are finding technology like this to be very useful. For example, Kellogg’s used DoubleClick Digital Marketing to buy their inventory programmatically and increased their ad viewability by 70%.

Once a brand knows that their ads have been viewed they need to determine if the right people saw those ads and if they made an impact. That’s where our tools to measure brand lift come in. We’ve run more than 6 thousand brand lift surveys to help determine brand recall and purchase intent. For example, for example, Mondelez wanted to measure the effectiveness of a recent digital campaign for the launch of a gum brand. With brand lift they found a 36% lift in brand awareness versus a control group, and a 97% lift in ad recall versus a control group. Getting these types of feedback in real time is impossible with offline media. This sets digital apart.

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