Keeping Tabs on Travel and Facebook

Keeping Tabs on Travel and Facebook
Compete Exploration
December 15, 2011

Today’s presenters
Ryan Williams
Director, Client Services, Travel

Lincoln Merrihew
Managing Director, Transportation

Alyssa Maine
Marketing Coordinator, Marketing at Compete

2

Who we are and what we do

• Founded in 2000, joined WPP/Kantar in 2008

• Passionate about understanding consumers to inspire great
marketing

• Fastest-growing operating company within Kantar in terms
of revenue and new customer growth

• World-class advertiser, agency and media clients

• Strategic partnerships to enable marketing optimization and
provide holistic view of consumers

• Largest panel in the industry with 2.3 million US consumers

3

Webinar logistics

• Today’s webinar will be recorded. You will be
emailed a link.

• Please enter your questions in the
Questions box. We will answer as many
as possible at the end.

• If you have technical difficulties, try logging
back in or use a different browser

• The Twitter hashtag for today’s webinar is
#competeauto

4

• Where Facebook and Travel Stand Today
• Exploring The Value of a Facebook User
Agenda

5

State of the Travel Industry

Recovery in the hotel industry is slow but
steady despite the weak economy, with
ADRs up over 4% YoY in North America.

The flight industry is not faring as well,
with YoY declines in reported online
bookings and significant increases in
ATPs to offset higher costs.

The car rental industry is seeing a
surplus of cars as fleet management
becomes increasingly difficult. Rental
rates are down 21% YoY as a result.
6

Vacation Intent is Up Despite Weak CC Trends
• October’s consumer confidence index of 40.9 is the lowest it has been in 2 ½ years but
November projections (not shown) push it back to 56
• While vacation intent is up, the means of travel (not shown) are shifting with intent to fly
actually down 8% Oct vs. Aug and intent to drive up 8%

Consumer Confidence and Vacation Intent
(Feb’08-Oct’11)
60% 90
Read as: As of
80 Oct’11, 49% of
50% consumers
70 intend to take a
vacation in the
40% 60 next 6 months,
but the
50 consumer
30% confidence
40 index was at a
2.5 year low –
20% 30 41. Note, 90 is
considered a
20 “healthy” index.
10%
10

0% 0
Dec-08

Dec-09

Dec-10
Oct-08

Oct-09

Oct-10

Oct-11
Aug-08

Aug-09

Aug-10

Aug-11
Apr-08

Apr-09

Apr-10

Apr-11
Feb-08

Feb-09

Feb-10

Feb-11
Jun-08

Jun-09

Jun-10

Jun-11
Vacation Intended (Left) Consumer Confidence (Right)
7
Source: The Conference Board, Nov’11 Results
7

More of the IBP is Shopping for Travel
• The share of the internet browsing population that shops for travel has increased, both in
aggregate and across major travel lines of business
• With the IBP also growing month to month (not shown), this means there are more
consumers shopping for travel in 2011 than in the past 2 years

Average Travel Visitor Share of IBP
(2009, 2010, 2011 YTD)

33.5%
30.9%
29.2%

18.2% 17.6%
16.5%
14.3% 15.8%
12.4%

3.1% 3.6% 4.1%

All Travel Car Rental Hotel Air

2009 2010 2011
8 8

And More of Those Shoppers are Booking
• Book rates for the IBP have also improved vs. prior years, with nearly 5 of every 100
internet users booking some form of travel in 2011

Average Travel Booker Share of IBP
(2009, 2010, 2011 YTD)

4.5%
3.8% 3.9%

2.3% 2.1% 2.1%
1.6%
1.3% 1.4%
0.7% 0.9%
0.6%

All Travel Car Rental Hotel Air

2009 2010 2011
9 9

Bar is Set Low for Facebook Travel Services
• Travel is consistently a hot topic of discussion and Facebook is often at the epicenter of
those discussions. However, consumer expectations of Facebook travel services are low.
• Across multiple categories, fewer than 10% of survey respondents indicated Facebook
travel services would be better than existing online services

Expectations for Facebook Travel Services
(Survey: Jul’11, n=601, top 2 and bottom 2 box)

Read as:
Ease of Changing Reservation
6.2% of
respondents
Loyalty & Rewards indicate
Facebook travel
services would
Trust w/PII be better than
existing services
Price & Fees with regard to
Loyalty &
FB Better
Rewards
Ease of Booking FB Worse programs

Variety of Destinations

Variety of Brands

Ease of Research

0% 5% 10% 15% 20% 25% 30% 35%
10

Facebook Engagement Metrics Down Since Sep’11
• Facebook made significant and controversial UI changes in September and shifts in user
behavior on Facebook.com were immediate
• While unique visitors are up slightly since the changes, core engagement metrics like page
views and average stay have seen considerable decline

Facebook Key Performance Indicators
(May – October 2011)
10%
Read as:
Target has
generated 7.4M
0% fans of its brand
on Facebook as
of 12/11/11
-10%

UVs (MoM %)

-20% Page Views (MoM %)
Avg Stay (MoM %)
Visits/Person (MoM %)
-30%

-40%

-50%
May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
11

Social Media ROI Not Well Understood

Many companies today are not measuring ROI for
the money they spend on social media marketing,
likely because they don’t have the tools to do so

Brands are indicating they are not prepared for
social media but most still plan to increase its use

According to Compete, Facebook under-indexes
for hotel shoppers when compared to the IBP
• On average, only 8% of Facebook’s monthly unique visitors
shop for hotels in the same month (16% for mapquest, 13%
average for non-travel sites)

12

Travel Sites Not Commonly Upstream of Facebook
• Despite the potential for sharing travel related information on Facebook, travel sites as a
category lag behind most every other web category as a source of traffic to Facebook

Share of Inbound Referrals to Facebook.com, by Category (Upstream)
(Oct’11)

4.4% Read as:
0.3% of sites
immediately
upstream of
Facebook.com
are categorized
as Travel sites
2.4%
2.0%

1.4%
1.3%
1.1%
0.7%
0.6%
0.5% 0.4%
0.3% 0.2% 0.1%

13

Travel’s Downstream Popularity Also Suspect
• The same holds true for post-Facebook activity, with just 0.2% of sites immediately
downstream of Facebook.com being Travel sites

Share of Outbound Referrals from Facebook.com, by Category (Downstream)
(Oct’11)

10.9% Read as:
0.2% of sites
immediately
downstream of
Facebook.com
are categorized
as Travel sites

3.7%
3.3%

1.8%
1.4%
1.1% 1.0% 0.8% 0.6% 0.4% 0.2% 0.2% 0.0%

14

• Where Facebook and Travel Stand Today
• Exploring The Value of a Facebook User
Agenda

15

Impact of Brand Page Interaction on Site Engagement

Page Views per
Unique Visitor

+128%
Visits per Average Time
Unique Visitor Spent per Visit

+90% +156%

70k
Incremental
Bookings in
60 Days

16
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
16

The “Like” Barometer
• A year ago, Mashable.com published an infographic that showed 139 brands had over
1mm likes on Facebook, with Barbie and Lego quickly approaching 1mm

• Today:
• Barbie has 2.8mm likes with Lego at 1.3mm

• The needle can move in a hurry
• Expedia had 130k “likes” at the start of
their FriendTrips campaign and over a
million when it ended 2 months later

• Brand success is tied to more than just “likes” – engaging with your fans and, more
importantly, getting your fans to engage with you is as important as getting them to “like”
you in the first place

17

Are “Likes” a Good Measure of Social Media Success?
• Retail brands are the obvious leaders in volume of “likes”
• This doesn’t necessarily mean Target and Best Buy have been any more successful with
Facebook than Expedia or other travel brands

Facebook Fans
(Number of “likes” for each brand, as of 12/11/11)

7,420,162 Read as:
Target has
generated 7.4M
fans of its brand
5,503,904 on Facebook as
of 12/11/11

1,143,254

273,469

Expedia Delta Target Best Buy

# of Likes (as of 12/11/2011)
18

A Facebook Fan’s Shelf Space is Limited
• Over 60% of respondents indicated they “like” fewer than 6 brands
• Showing up late to the game could mean access to fewer fans

How many retailers and/or consumer product companies do you “like” on
Facebook? (Survey: n=1,627)

Read as:
0 10.4%
13.9% of survey
respondents
1 7.8% indicated they
“like” 5
2 11.5% retail/CPG
brands on
3 11.5% Facebook

4 11.2%

5 13.9%

6-10 18.3%

11-20 7.4%

21-30 4.0%

More than 30 4.1%

19
Source: Compete Spring 2011 Online Shopper Intelligence Survey

Fan vs. Non-Fan
• Brands commonly present a different welcome page to non-fans in hopes of capturing the
all-powerful “like”
• Same URL: www.facebook.com/target

20

Ongoing Conversation is Key
• Smart brands don’t simply launch a promotion and leave it running forever
• URL: www.facebook.com/expedia (screenshots from different dates)

21

Why Visit the Site When You Can Buy on Facebook?
• More and more, brands are offering visitors the ability to initiate shopping and even
complete the booking within their branded Facebook pages
• The idea is ancient – be present when the consumer is ready to purchase

22

Major Campaign: Expedia FriendTrips
• April 2011

• Expedia launched the FriendTrips
game, the largest promotion ever
hosted on Facebook

• Expedia used this campaign to
generate over 1mm “likes”

• Roughly 85% of the aggregate
monthly UVs to Expedia’s branded
pages on Facebook (Jan-Aug’11)
visited in April and May – the months
of the active promotion

23

Major Campaign: Target Summer Fun Finder
• June 2011

• Target’s Summer Fun Finder
Facebook application launched

• Extremely viral and engaging

• 53% of the aggregate monthly UVs
to Target’s branded pages on
Facebook (Jan-Aug’11) visited in
June and July – the months of the
active promotion

24

Major Campaign: Best Buy Deal of the Day
• August 2011

• Best Buy launched their “Deal of the
Day” campaign, and promoted
Facebook as one of the access points
for these great deals

• 42% of the aggregate monthly
UVs to Best Buy’s branded pages on
Facebook (Jan-Aug’11) visited in
August – the month of the
active promotion

• The “Deal of the Day” is no
longer promoted on Best Buy’s
Facebook page

25

Consumers’ Facebook Brand Page Visits Up in 2011
• Consumers this year are 12% more likely than in 2010 to visit a brand’s official Facebook
pages

How often do you visit official Facebook pages of retail and/or consumer
product companies? (Survey: At least once per month; 2010 n=3,061; 2011 n=3,269)

+12% Read as:
27% of survey
27% respondents
plan to visit a
24% brand’s official
Facebook pages
at least once per
month, up 12%
from last year

Spring 2010 Spring 2011

26

Facebook Penetration is Strong for All Brands
• 80-90% of brands’ unique visitors also visit Facebook in the same month
• The share of brand.com visitors visiting the respective brand’s official Facebook pages is
much smaller, but we’re still talking about significant volume

Facebook Penetration
(% of brand.com UVs that also visited Facebook.com in the same month, Jan-Aug’11)

Read as:
14.6% 12.4% 13.9% 2011 YTD,
18.6%
86.1% of
Bestbuy.com
UVs also visited
Facebook.com
in the same
month, but only
0.2% visited
% Not Visiting Facebook Best Buy’s
official
85.4% 87.6% 86.1% % Visiting Facebook Facebook pages
81.4%

% Visiting Brand.com's Official
0.4% 0.1% 0.2% 0.2% Facebook Pages

Expedia Delta Target Bestbuy
27

Big Opportunity to Better Engage With Your Fans
• While a small % of your site visitors actually see your official Facebook pages in the same
month, a much larger % of visitors to your Facebook pages hit your site
• There’s still opportunity to better connect with your Facebook page visitors

Facebook Brand Page UVs and Brand.com - Overlap
(% of unique visitors to Brand.com’s official Facebook pages that also visit Brand.com, Jan-Aug’11)

Read as:
Only 43% of the
50% visitors to
Target’s official
Facebook pages
43% visited
Target.com in
the same month

30%
28%
2011 YTD

28

Impactful Facebook Campaigns Drive Visitors
• This month by month view into unique visitors to each brand’s official Facebook pages
shows when different campaigns were launched
• It is clearly possible to generate strong engagement with the right campaign

Unique Visitors to Facebook Brand Pages
(Number of unique visitors to Brand.com’s branded pages on Facebook, by month)
1,200,000
Read as:
Expedia FriendTrips In Apr ’11,
Expedia’s
1,000,000
official
Facebook pages
received over
800,000 1M UVs

600,000
Target Summer BestBuy DOTD
Fun Finder
400,000

200,000

0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11
29

Facebook Brand Pages Visitors Are Price Sensitive
• Nearly 6 in 10 survey respondents indicated they visit a brand’s official pages in Facebook
to gain access to sales and promotions

Why do you visit official Facebook pages of retail and/or consumer product
companies? (Survey: n=1,627)

Read as:
56.2% of
Keep up to date on sales and promotions 56.2% survey
respondents
indicate they
visit a brand’s
Learn more about a specific retailer 29.0% official
Facebook pages
to keep up to
date on sales
and promotions
Appears in my news feed b/c a friend "likes" it 26.4%

Let others know why I like a specific retailer 13.7%

Connect with other people who like the retailer 13.6%

30

Brand Page Visitors Are More Loyal
• People who visit brand.com and that brand’s official Facebook pages exhibit a stronger
sense of loyalty, allocating more of their category visits to that brand’s site
• Upwards of 41% more in the case of Delta.com

Brand.com vs. Category Visitation by Segment
(Share of category visits allocated to brand.com, by segment, Jan-Aug’11)

56.6% 56.1%
Read as:
Of people who
48.1% visited
48.0%
Delta.com and
Delta’s official
40.1% Facebook pages
38.4% in 2011, their
Delta visits
accounted for
FB
57% of their
25.4% total air supplier
BFB visits over the
21.8%
same period

25% 41% 16% 17%

31

Facebook Brand Pages Visitors Are More Engaged
• Generally, people who visit a brand’s official Facebook pages visit the respective brand.com
site more often

Visits per Monthly Unique Visitor
(Brand.com visits per UV by brand, by segment, Jan-Aug’11)

Read as:
5.3 People who
visited both
Delta.com and
Delta’s official
Facebook pages
had 5.3 visits
3.5 per UV on
Delta.com,
2.9 NFB 139% more than
2.9
general
FB
Facebook
2.1 2.2 BFB visitors who also
1.8 1.8 visited
1.7 1.7 1.7 Delta.com
1.5
90% 139% 69% 63%

7% 5% 19% 6%

32

• It’s not just the variance in frequency of visits – we also see lift in actual brand.com page
views by those who have also visited the brand’s official Facebook pages

Page Views per Monthly Unique Visitor
(Brand.com page views per UV by brand, by segment, Jan-Aug’11)

Read as:
79.1 People who
visited both
Delta.com and
Delta’s official
Facebook pages
had 79 page
52.4 views per UV
on Delta.com,
NFB 187% more than
general
FB
Facebook
31.6 BFB visitors who also
30.3
27.5 visited
24.7 26.0
23.0 Delta.com

128% 204% 15.4
13.2 12.8
9.1 105%
130%
-7% -5% 45% 20%

33

• Time spent per visit to brand.com shows a similar increase for those who have also visited
a brand’s official Facebook pages in the same month

Time Spent per Visit
(Minutes spent on brand.com per visit by monthly UV, by brand, by segment, Jan-Aug’11)

64.8 Read as:
People who
visited both
Delta.com and
Delta’s official
Facebook pages
spent 65
minutes per visit
38.7 on Delta.com,
NFB 136% more than
general
FB
27.5 Facebook
25.2 25.4 BFB visitors who also
visited
Delta.com
16.0 15.1 14.7
156% 157% 11.4 10.3
9.4 9.1
123% 61%
-5% -8% 21% -11%

34

Facebook Brand Pages Do Influence Purchase
• 3 of every 4 surveyed respondents indicated a brand’s official Facebook pages had at least
some influence on their purchase decision

How influential have Facebook pages been on your decision to purchase
products from those retailers? (Survey: n=1,627)

32.9%

22.5%
21.7%

16.7%

6.2%
156% 157% 123% 61%

-5% 5-8 21% -11%
Not at all influential Influence Extremely influential

35

Brand Page Interaction Leads to Increased Conversion
• Consumers who engage with both a brand’s website as well as that brand’s official
Facebook pages show a much stronger propensity to book

Lift in Brand.com Conversion – FB Segment vs. BFB Segment
(Lift in average monthly conversion rates between different segments)

Read as:
People who
Bestbuy 37% cross-visited
Target.com and
Target’s official
Facebook pages
were 69% more
Target 69% likely to convert
on Target.com
than general
Facebook
visitors who also
visited
Delta 57% Target.com

156% 157% 123% 61%

Expedia -5% 5-8 21% -11% 107%

36

Impactful Facebook Campaigns Drive Visitors
• This month by month view into unique visitors to each brand’s official Facebook pages
shows when different campaigns were launched

Unique Visitors to Facebook Brand Pages
(Number of unique visitors to Brand.com’s official Facebook pages, by month)
1,200,000
Read as:
Expedia FriendTrips In Apr ’11,
Expedia’s
1,000,000
official
Facebook pages
received over
800,000 1M UVs

600,000
Target Summer BestBuy DOTD
Fun Finder
400,000

200,000

0
37

Can Facebook Campaigns Drive Conversion?
• It is clear the Expedia FriendTrips game not only sparked visitation to Facebook but also
accounted for a much more significant portion of Expedia’s total bookings
• The success touched multiple lines of business as well – specifically Hotel

Purchase Patterns of Visitors to Brands’ Official Facebook Pages
(Bookings on brand.com by UVs to that brand’s official FB pages, as % of total brand.com bookings
3.5%
Read as:
In Apr ’11, 2.2%
3.0% of Expedia’s
total monthly
bookings were
Expedia FriendTrips
2.5% made by people
who also visited
Expedia Domain
Expedia’s
2.0% Expedia Flight official
Facebook pages
Expedia Hotel

1.5% Delta
Target

1.0% Target Summer Bestbuy
Fun Finder

0.5%

BestBuy DOTD
0.0%
38

The Upside for Some Brands is Significant
• Expedia’s opportunity amounts to incremental booking growth of 2%
• 1% for Target and Best Buy

Opportunity
(Incremental online purchases with 100% overlap between Facebook brand pages and brand.com, Jan-Aug’11)

93,151 Read as:
If 100% of the
visitors to
Expedia’s
official
Facebook pages
also visited
Expedia.com,
this could have
generated over
93k incremental
bookings Jan-
Aug’11

23,796
18,383
156% 157% 123% 61%

5,218
-5% -8% 21% -11%

39

Ten Tips to Building a Brand Worth Liking on Facebook
• People want to believe there’s value in “liking” your brand. Offer exclusive content,
1. Give Your Fans What They Want discounts, etc, but keep it relevant to your brand.

2. Crowdsource Your Website • Another way of staying relevant to your customers is to ensure promotions on your
Content website are relayed on your Facebook pages as well.

3. Encourage People to “Like” Your • Encourage potential fans to “like” your brand by hinting at additional content or
Brand promotions to which they’ll have access after “liking” you.

• Keeping your brand presence simple is increasingly important as time-spent
4. Don’t Dilute Your Own Content metrics on Facebook decline. Too many sub-pages or links could distract your fans.

• Considering a consumer’s shelf-space is limited, you should view this as a
5. Be Persuasive, Not Pushy privilege. Be suggestive in your sales pitches, but not pushy.

• Make it easy for users to access your website from your Facebook pages. The
6. Link to Your Website likelihood of converting a fan to an actual customer will increase substantially.

• By enabling communication between your fans, you empower them to speak on
7. Create Conversations behalf of your brand, leveraging the power of positive word of mouth.

8. Keep Your Tone Social But Brand- • Be careful not to be too serious in your communication or risk taking on a lecturing
Appropriate tone with your fans. Communication should be light and fun but brand-appropriate.

• Keep your brand presence on Facebook fresh and encourage social sharing by
9. Engage With Your Fans giving your fans something to do, talk about or send to friends.

10. Feature Contests, Sweepstakes, • Now that you have thousands if not millions of fans of your brand, think of unique
Games, etc. and inspiring contests that encourage sharing beyond your existing fan base.

40

Questions?
Thank You.

•Ryan Williams •Lincoln Merrihew
•Director, Client Services •Managing Director, Transportation
•rwilliams@compete.com •lmerrihew@compete.com
•206.226.9082 •617.933.5629

41

Keeping Tabs on Travel and Facebook

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