This document discusses precision campaigning in the travel marketing industry. It notes that travel marketers are early adopters of new advertising mediums and technologies due to intense competition and thin margins. Display advertising remains important for visual imagery and time-sensitive offers. The document then outlines how precision campaigns can automate targeted advertising by integrating micro-targeting, creative automation, and buying platforms to test many unique messages cost-effectively and maximize returns. Many travel and hospitality clients are already using these precision campaign strategies with AdReady.
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Precision targeting and creative automation for the travel market
1. Precision Campaigning in the Travel Market Jamie Lomas VP of Sales and Client Services AdReady, Inc.
2. Background (Things you already know but are important to our discussion) Travel marketers are: Early adopters of new ad mediums (and new tactics in general) Pioneers in digital ad technology Why is travel so far ahead of the curve? Intense competition Thin margins Consumers researching and transacting online Why has display always been an important component? Visual imagery is key (aspirational views of the product) Time based offers, Price changes and promotions are key 2
3. Growth and Diversification Total ad spend in the US is rebounding Global ad spend in the first quarter of 2010 increased 12.5 percent year-on-year totaling USD $110 billion – Nielsen Online advertising continues to grow US Internet advertising increased from $22.1 B in 2009 to $25.1 B in 2010. Continued growth is forecasted for 2011. - eMarketer Online display advertising continues to grow Online display advertising impressions in the U.S. totaled 1.1 trillion in the first quarter in 2010, an increase of 15% over the previous year. - ComScore In travel sector, growth in spending on display According to Nielsen, Travel industry display ad impressions were up 28% between September 2009 - August 2010 In Travel sector, display spending is diversifying Airlines account for about 29% of display ad impressions in the travel industry today. That said, overall market spend has been shifting to other areas in the Travel Industry, such as hotels and destination resorts. – NewMediaTrends 3
4. Consumer Research Diversification Consumers continue to research travel online When planning a trip, how many websites do you usually visit?* 1: 1% (US) and 5% (non-US) 2-5: 34% (US) and 48% (non-US) 6-10: 35% (US) and 27% (non-US) 11-15: 10% (US) and 7% (non-US) 16-20: 4% (US) and 3% (non-US) 20+: 16% (US) and 10% (non-US) 4 65% of consumers visit at least 6 different web sites to plan one trip! *ETC New Media Trend Watch 2010
5. Timeline of Recent Advances Advertising networks 1998 Behavioral targeting 2001 Advertising exchanges 2003 Demand side platforms 2006 Dynamic creative 2007 Data exchanges 2007 Precision campaigning 2007 5
6. Precision Campaign Promise: To improve the ability of marketers to achieve their overall goal: to deliver the right message, to the right person, at the right time thereby, increasing ROAS 6
7. What is a Precision Campaign? A new way to cost effectively reach your micro-targeted audiences with unique, tailored messages How would you answer the questions below? How would you advertise a specific promotion or offer that was unique to a region, state, DMA or zip code? How would you deliver a custom re-targeted advertisement with unique creative that coincides with the pages that your prospect viewed on your website? If you wanted to do either of these things at scale, with multiple geo targeted audience segments, retargeting segments or many different offers or promotions, could you do it cost effectively? Is the ad creative that you’ve built for each audience segment precisely correct to maximize your return on ad spend? If you wanted to optimize the creative for your display advertising campaigns for optimal performance would you be able to do this in a cost effective way? More importantly, would you be able to optimize the specific creative targeted to a specific user or placement? 7
8. Who Needs Precision Campaigns? An airline carrier that needs to quickly start and stop hundreds of specific price promotions to small localized audiences and “in market” travel purchasers A hospitality company that manages multiple properties with specific geotargetingneeds A resort and casino that has multiple offers that change rapidly based on season, entertainment, hotel rooms, and gambling A corporate travel agency that has many different landing pages for different types of lead generation and needs custom creative for each landing page 8
9. The Challenge: In the past these Precision Campaigns were difficult to implement because: It was too complicated to implement these strategies in a cost-effective way Production of digital creative was too expensive Display media is increasingly fragmented and requires high minimums 9
10. Previous Solutions: Settle for more generic campaigns where different audience segments aren’t communicated to with unique messages, and lots of different messages aren’t tested in order to find the true winners Result: poor campaign performance Put time, effort and expense into running detailed micro-campaigns using existing solutions Result: unsustainably high costs to manage (i.e., overhead costs equal or exceed working media costs) 10
11. Today’s Solution: Integrate micro-targeting and creative automation for Precision Campaigns 11
13. 1. Automated campaign creation and audience selection toolsets Platforms that can automate the process of cloning campaigns, and modifying multiple campaigns through actionable reporting interfaces 13
14. 2. 14 Proven methods of automating the creative process: Dynamic creative providers, which link up a database and automatically create multiple versions of an ad on the fly Template-based creative tools, that enable many different versions of file creative to be rapidly generated across multiple sizes
16. 3. Buying platforms: Enable integrated access to micro-targeted audiences through publishers, exchanges, networks and data providers 16
17. Result Precision Campaigns. Breakthrough Results When the three items above are integrated together in a seamless environment, marketers can leverage them for Precision Campaigning. This overall methodology drives excellent campaign results, while reducing campaign production costs and total cost to manage, thereby maximizing working media dollars. 17
18. A lot of people are doing this! AdReady has over 100 travel and hospitality clients Clients range from agencies, hotels and resorts, airlines, CVB’s, hospitality companies, and more.
20. US Travel Association Tradeshow Marketing Outlook Forum – 2010 Oct. 26-28 At Marketing Outlook Forum, the travel industry shares: Most recent forecasts Industry's best marketing practices Peer to peer networking opportunities Caesars Palace Hotel, Las Vegas http://www.ustravel.org/events/marketing-outlook-forum AdReady Bronze Sponsor 20
21. AdReady Partner Summit Sep. 22 & 23rd Seattle, Wa - Bell Harbor International Conference Center Here is a quick overview of what you can expect at the conference: The very first look at our enhanced display ad technology platform, AdReady 3.0 Insight from industry leaders including: Clark Kokich, the Chairman of Razorfish Omar Tawakol, the CEO of BlueKai Extend your reach by networking with industry peers and AdReady executives and technologists. Learn valuable best practice tips around Digital advertising Participate in product training sessions one-on-one consulting sessions http://Learn.AdReady.Com 21
Small tests before launching larger campaignsCut down on the man hours it takes to manage the iterative processAllow your team to concentrate on strategy and creativity