By Acquire Custom Programmatic

The Insider’s Guide to Digital Advertising

INTRODUCTION

As access to advanced technology increases for both consumers and advertisers, the travel industry has changed and adapted in response.

In 2020, travel planning will be researched in an entirely different way to how it was 5 years ago, therefore travel advertisers need to keep up with the ever-changing technology in order to maintain a fresh and relevant approach.

This brings many challenges and difficulties when attempting to invest in the right channels to engage an audience. Although there are many obstacles, there has never been a better time for marketers to effectively target and measure the success of their digital media campaigns.

COMPLEXITY OF THE TRAVEL MARKET

Travel advertisers face various challenges when attempting to deliver successful marketing. As the travel industry is broad and based upon expiring inventory, it is important that consumer attention is captured in the right way at the right time.

Obstacles to this goal include:

• Tailoring personalised messaging to the right audience that fits their preferences

• Achieving return on investment from advertising and seeing measurability

• Understanding the ever-changing ad tech landscape and making effective use of data

CURRENT TRAVEL ADVERTISING SPEND

Digital now makes up for 47% of all Travel advertising spend.

We expect this figure to increase significantly throughout 2020.

Airline

Hotel

DMO

Attraction

Car Rental

Cruise

74%

64%

73%

71%

70%

77%

DIGITAL MEDIA CHANNELS AND TACTICS

Video has become a key channel for showcasing experiences and providing initial inspiration for in-market travelers.

Video is used through channels such as YouTube, Facebook, Instagram and online. Influencers have also played a key part in using video to increase brand exposure and demand. Many consumers seek visual inspiration through these influencers and will use the attitudes displayed in the creator’s content to shape their own behavior. 1 in 2 marketers plan on using YouTube ads in 2020.

Both large and small travel advertisers are relying on a combination of digital media channels and devices to reach their target audience and achieve their objectives.

Smaller advertisers are relying on online travel agents to generate and support bookings. However, advertisers are now able to access a wide array of digital media platforms that help reach and engage with potential customers throughout the path to purchase.

These platforms also allow them to support more direct bookings and rely less on travel agents. These channels are mainly used to:

• Target new audiences in-market for travel

• Drive reach and brand awareness

• Personalise messaging

• Drive direct bookings

60%

Facbook YouTube Instagram Mobile Video Ads

Other Sites/ Networks

CTV

How Travel Marketers are using and anticipate using Digital Video Ads

50%

40%

30%

20%

10%

0%

Used in 2018 Plan on using in 2019

Don’t currently use or plan on using

Not familiar

APPROACHES TO MEASUREMENT

As mentioned, measurability has been a challenge for marketers in the past. Fewer than 1 in 5 marketers are measuring their brand lift and impact from advertising.

Metrics that savvy marketers are using to measure success from their digital advertising campaigns include:

• Cost per booking

• Brand lift/recall

• Traffic to site

• Online conversion rate

Attribution and customer journey modelling have become crucial for measuring campaign success. Fewer than 1 in 5 marketers are analysing attribution through the entirety of the customer journey. Travel marketers need to look from their customers first interaction right through to the most recent interaction. This helps marketers realise what channels and tactics are providing value.

THE FUTURE OF TRAVEL MARKETING

Traveler research is often done entirely online. Each consumer researching travel is subject to many variations, i.e. the distance of travel, length of the trip, destination, or number of trips planned. Some consumers may be interested in domestic travel over international, or ‘staycations’ – a term for short term travel within driving distance of the traveler’s home.

These specific preferences require specific targeting in order to deliver the most effective message. This can be optimised through data collection to gain knowledge on the consumer’s preferences. First and third-party data will be the most important tool to effectively reach the right audience at the right moment with personalised messaging.

Influencer and social advocacy will continue to be valuable for consumers when researching their next trip.

Marketers will continue to invest in new and existing ad technology that allows them to:

1. Scale across multiple customer touch points

2. Target prospects who indicate intent to travel

3. Have better visibility into traveller behaviour across their site

4. Understand where they’re winning or losing customers along the path to purchase

Cost per Acquisition (CPA) campaigns

Establish KPIs linked to achieving business goals e.g. bookings

We have run many successful CPA campaigns for travel clients where they have only paid a fixed cost per actual booking. On average, this works out to be less than 6% of the booking value, compared to 25% for OTAs.

Use of data

The role of 1st party data – i.e. databases, website visitors etc – is only going to become more important. In 2 years-time Google Chrome is going to phase out the use of 3rd party cookies which will severely impact online advertising.

Acquire has the ability to use your 1st party data to its’ full advantage - reaching users who have previously engaged with your brand and shown interest. Acquire recognises the urgency to grow first party data.

Advance Targeting

Acquire has access to over 150+ AdTech Providers, many of which require enterprise level contracts and high monthly minimum spends.

New AdTech and targeting strategies have been incremental in the success of Acquire’s travel campaigns such as:

1. Geo-location and Geo-fencing - reaching users who have visited travel agents, travel events/expos, airports and ports

2. App Behaviour targeting to users who have apps such as Airbnb, Trivago, Expedia, Booking.com, Tripadvisor installed on their phone

3. Email Database Display Targeting to reach users with Display ads using an email list

GET ONBOARD WITH ACQUIRE!

Dynamic Creative

Dynamic Creative Optimisation (DCO) is the process of tailoring messaging to the user’s preferences, demographic, stage of the purchase funnel and much more.

Acquire has seen DCO contribute to a 2.5x increase in engagement and bookings, compared to standard creative.

Creative Suite

Acquire’s creative partner, BigPixel offers digital expertise that’s flexible, cost efficient and drives better online performance.

Use the know-how to produce the latest Display and Video creatives, from Social to interactive to expandable to rich media.

GET ONBOARD WITH ACQUIRE!

FOR MORE INFORMATION, OR TO JUMP ONBOARD, PLEASE CONTACT

Anthony Ord GM CLIENT SERVICES

Mob: +64 27 649 9198

Email: ant@acquirenz.com

Zane Furtado GM ENTERPRISE

Mob: +64 27 2 834 443

Email: zane@acquirenz.com