Advertisers are Flying High in the Travel Category





From search to social to mobile, brands in the travel category are investing in channels that make it easier for travelers to plan their trip, pack their bags and go. Not every industry takes full advantage of search marketing, but the travel industry is one that does and on a large scale.  According to the latest analysis of the travel vertical GroupM Next, travel advertisers invest more media dollars in search than in all other major media channels combined.  Overall, $636 million dollars were spent in online search alone in 2011, according to data from the Kantar Strategy tool.  Travelers, from novice to experts, conduct online research to find the best destinations, compare prices, read reviews, and book travel arrangements. So, having an online presence really isn’t optional for travel companies, it’s a requirement in order to be competitive. This level of investing in search is an indication that travel companies understand both their audience and their competitive environment.

While the travel industry, as a whole, can be perceived as “search savvy,” it is clear in our analysis that advertisers have their own unique approach to their keyword strategy. The chart below illustrates how differently companies invest in keyword categories.


 This varied bid approach speaks to each site’s unique selling points. Knowing how competitors are bidding can allow advertisers to take advantage of gaps and opportunities within keyword subsets.  We recommended this approach as it will help diversify travel advertisers’ visibility in the digital space and increase their chances of gaining a competitive edge.

 Another interesting trend that stood out in our quarterly review of the category is how advertisers can use search query trends as an indicator for demand and tailor their messaging to capture increased interest in certain destinations.  For example, the diagram below shows the airports that saw a 20% increase in flights during spring break and the top destinations of travelers.



Armed with this type of information, the ideal approach for advertisers would be to run paid ads and adjust their SEO for discounts and promotions that are geo-targeted specifically for departing airports and destination spots.





Looking ahead, just as travel advertisers have acknowledged the value in investing heavily in search, going forward we should plan to see increases in ad spend allocated to mobile search.  We’re seeing a trend emerge with travel companies establishing a stronger presence in mobile search. This increase is a relatively new trend brands are embracing based on consumer behavior trends.  An eMarketer report released in April 2012 estimates that “16 million Americans will book travel from their mobile device, increasing 33 percent from 12 million in 2011” and that roughly “37.8 million will use their phones to research travel this year.”  Most of this activity is done using a Smartphone device, and as the chart below illustrates, continued growth, in this area, is expected to continue over the next four years.



We will continue to watch the trends in the travel industry, as experts are proposing a resurgence in the use of travel agents.  But based on what we learned in Q1, it will be interesting to see the impact, if any, this will have on how travel sites continue to invest and perform in digital.

For all the graphs:

http://groupmnext.com/2012/06/04/vertical-highlights-groupm-3/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+SearchFuel+%28SearchFuel%29