Facebook: The Future of Travel in a Connected World. ITB 2014 Keynote. Lee McCabe.
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Large, people-based platforms allow for three things: inspiration, conversion, and retention. That's what Facebook is for travel marketers—and the most successful marketers incorporate all three.
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Facebook: The Future of Travel in a Connected World. ITB 2014 Keynote. Lee McCabe.
- 1. Facebook: The future of travel in a connected world Lee McCabe, Global Head of Travel Strategy | Facebook
- 3. Infinite memory Instant communication A heck of a lot of processing power
- 5. Everyone is a travel agent Everyone is a publisher
- 6. We’ve come full circle People Back then Algorithm Internet Crowds UGC People Facebook Expert Agents
- 8. Media crossover in terms of time spent Source: eMarketer, US , July 20131950 1960 2000 2010 Television Digital Mobile
- 9. Media crossover in terms of time spent Source: eMarketer, US , July 20131950 1960 2000 2010 Mobile Digital Television
- 10. 50% mobile Source: eMarketer, July 2013
- 11. 79% of smartphone users keep their phones with them for all but two hours of their waking day Source: IDC Always Connected Report, US, March 2013
- 14. Inspiration
- 15. Man watching TV Option 1
- 17. Reach more people than major TV networks Population reach for total day, people 18–24 P R I M E T I M E Network 1 Network 2 Network 3 Network 4 Source: Nielsen TV/Internet/Mobile Data Fusion, January 2013. Facebook data reflects online and mobile reach 0% 10% 20% 30% 40% 50% 60% 70% 80%
- 18. 300MImpressions in Facebook News Feed 16.3MPeople reached in Germany & the US +14%Brand favorability Lufthansa
- 19. Conversion
- 20. 47%revenue increase 30%increase in sales Sixt
- 21. Desktop Travel goes mobile Source: PhocusWright Ownership of web-enabled devices Share of total Travel market 2011 70% 20% 10% 80% 2012 2013 Laptop Smartphone 2011 10% 5% 0% 20% 2012 2013 2014 2015 Tablet 30% 40% 50% 60%
- 22. The paradigm is shifting 80%of mobile activity via apps Then Today Source: Flurry 5 Year Report: It’s an app world. The web just lives in it. Statista 26Apps per average person
- 23. Apps drive efficiency and loyalty
- 24. Apps will drive travel The land grab has begun Apps mean disintermediation
- 25. Be where people are all day, every day Source: US Mobile Total Monthly Minutes, comScore, September 2013
- 26. Get your app in the hands of customers 10xhigher click to install rate from mobile app install ad, compared to traditional banner
- 27. Keep them coming back
- 28. Retention
- 29. Ted, enjoys exotic vacations Neil, owns a private plane Jesse, loves yachting Julie, just got scuba-certified Troy, likes adventure travel William, avid golfer Jane, thinking of taking a cruise
- 30. Source: Nielsen OCR, August 2013 89%The average Facebook reach for narrowly targeted campaigns is accurate 38%The average online reach for narrowly targeted campaigns is accurate
- 31. Lots of people.The right people.
- 32. Social marketing is just marketing.
Editor's Notes
- Welcome, etc. Great to be here. I see some familiar faces here, and some new ones. I have a lot to share about travel and Facebook today, and in the spirit of attending one of the most important conferences in travel, I want to keep this fairly high level.
- -It’s no secret that in just a few short years, our world has changed. -More than ever, people are shopping and sharing online and this represents tremendous opportunity for you, from a business standpoint. -Distinctions like “online” vs. “offline” are fading more every day; people have more choices than ever, and businesses have access to more data every day. -As more people spend more time online, you have more potential to grow your business, to drive sales, and strengthen your brand. -Think about the world we live in. -Think a little bit about how you got here today and all of the things you did along the way.. Things that you don’t normally think twice about….And all the choices you made along the way…
- -<EXPLAIN THIS SLIDE> -Where does this leave us? -What issues are facing the travel marketers of the world?
- -All of these changes have one thing in common: people. Technology in the last five years has given people more power, more connectivity, more voice, more freedom. -From deciding what flight to catch, which hotel was best for you, which restaurant you chose, reviews you read, emails you sent, meetings you put on your calendar, calls you made, you checked - Facebook, you sent a text, you shared a picture…on and on, your lives are filled with choices—infinite choices. And most of those choices dealt with your connectivity… -But more choices for people means more competition for you. -So what does that mean from a business perspective? -The reality is that whether you’re a CVB, an OTA, or a supplier, the most important issues you face are those of inspiration, conversion, and retention. [CLICK]
- -Now, people can act as their own travel agent. Everyone acts as a publisher as well. -People are empowered to use the resources at their fingertips to get recommendations from friends, to book travel, and to share those experiences. -And because so many people spend so much time on Facebook, you are then empowered to reach the right people with the right message, at the right time, to keep people coming back, season after season. -With people acting as their own travel agents, making sure you reach people on all of their devices is critical. -Which is brings me to this next, critical point. -Mobility.
- -We started with people…<EXPLAIN EVOLUTION OF TRAVEL.>
- -And that’s what I want to talk with you about today. -Here’s what I mean: Technology has changed the dreaming phase of travel to be infinitely more shareable. Travel companies can now inspire their customers at scale. -As prices have commoditized to the lowest common denominator, leveraging data for more efficiency and accuracy is essential to conversion. -Third, retention. Keep people. You want to keep people coming back. In a commoditized and increasingly crowded travel ecosystem, customer loyalty is an increasingly important lever. But regardless of your objectives, your business is based on people and people are at the heart of travel… -The landscape we operate in is now dominated by digital, by mobile, by connectivity.
- -We are living in a revolutionary time. Take a look at this chart. -eMarketer: US consumers’ time spent consuming content on digital surpassed that of TV. -Once a generation crossover. Last time: TV surpasses radio (1950s) -I’d be remiss if I didn’t say that the most significant change to travel is mobile.
- -We are living in a revolutionary time. Take a look at this chart. -eMarketer: US consumers’ time spent consuming content on digital surpassed that of TV. -Once a generation crossover. Last time: TV surpasses radio (1950s) -I’d be remiss if I didn’t say that the most significant change to travel is mobile. -[CLICK]
- 50%+ of that time is spent on mobile -[CLICK] 79% of smartphone users keep their phones with them for all but two hours of their waking day (Source: IDC Always Connected Report, US, March 2013). -People continue to add to the total time they spend with media as they leverage the power of mobile to remain connected to the people and things they care about throughout the day. -We have this major shift in consumer behavior, yet marketers’ investments and resources haven’t caught up. They don’t reflect consumer behavior.
- -This picture tells that story. -My friend Erin snapped this of her husband “watching” TV one night… -This is the new normal. Multi-screening is the new normal. -Where marketers used to reach a mass audience, with a generic message, hoping it’d work, they can now be much more strategic bc we know where people are spending their time. -Reach people where they want to be reached. -People are using multiple screens at once. And they expect seamlessness across devices. -And they expect that information to be relevant, beautiful, and to be spot on. -Given this shift massive shift in consumer behavior, there’s a strong business case to be made for investments in digital and mobile. -This shift in consumer behavior screams is opportunity. -What I mean is, you can now influence every stage of travel because of digital…
- -From dreaming, to planning, booking, experiencing, and reflecting. -So—now that technology is shifting more to people— -The internet is where people discover things (formerly, it was search). -So how do you inspire people? How does inspiring people help drive your business?
- Inspiration. -Large, people-based platforms, that offer social context, give marketers more ways to inspire people. -Technology has changed the dreaming phase of travel to be infinitely more shareable. -As a matter of fact, 42% of people on Facebook last year shared at least one travel story. -We are fortunate in that this industry is predicated on creating incredible experiences for people. -You help inspire, you help create memories, and you motivate people to continue to book trips. -Now, people are sharing those experiences more than ever, and in real time, which means people are helping other people—your potentila lcustomers—discover what matters to them.
- -Businesses used to cast wide net with a generic message to reach a lot of people. -You no longer have to push messages at people, hoping they will result in action. -Now, you can be much more strategic. -You can time and tailor our messages.
- -And Facebook News Feed is where a lot of that discovery happens for more than a billion people. 1.2B people, actually. -For the first time, more people logged onto Facebook via mobile than they did via their desktop last year. -People are the easiest lever you have. -Reach people where they are spending their time… -With News Feed, your customers can now hear from you in meaningful and engaging ways. -One example of a company using News Feed to really move the needle. -Lufthasana
- -And timing now is not as difficult as it once was. Primetime is now all of the time. -Facebook can help you access customer segments that have typically been hard or very expensive to reach. -The size of our global audience coupled with our targeting capabilities enables advertisers to find audiences who they may not be able to find consistently or at scale on other media platforms. -For example, on TV, advertisers don't always know who people are, and over deliver to certain people and can't reach other people. So advertisers end up hitting the same people over and over again with a large portion of the audience being underexposed. With Facebook, you can precisely reach the audience you want, and know that your impressions are being delivered to the right people. *Data: Network 1: 56%, Network 2: 55%, Network 3: 61%, Network 4: 59%, FB: 70% Uses Nielsen’s TV/Internet/ Mobile Data Fusion panel to measure differences in reach between Facebook (PC + Mobile) and TV networks looking at a full month of data.
- -Lufthansa wanted to inspire people and win back 18-30year olds. <EXPLAIN THEIR CAMPAIGN> -This kind of campaign is what helps drive conversion, which brings me to my second point.
- -Conversion. Conversion is imperative to your business. -As prices have commoditized to the lowest common denominator, leveraging data for more efficiency and accuracy is essential. -and technology has fundamentally changed efficiency. -You all know better than anyone that a high ROAs is critical to the success and growth of your business. -In such a highly commoditized industry, efficiency matters more every day, especially in marketing. -Reach the right travelers at the right time, in the medium that drives action.
- -Sixt saw the kind of results I’m talking about. -They worked with us set up a remarkable campaign that hugely exceeded expectations. TALK ABOUT THIS CAMPAIGN -I want to back up for a minute and expand on a point I made earlier about the importance of mobile…
- -While the paradigm is shifting, travel bookings have not caught up. -Right now, last-minute bookings are driving the charge, as are smartphones and tablets. -As search continues to decrease, everyday, more people are spending time using apps within the context of using large, people-based digital platforms. -We talk a lot of digital and mobile but if you stop to think about it, when we use these devices, they are often with the framework of apps. -The proliferation of devices and mobile apps allow for huge gains in efficiency and direct sales--conversion. -Apps can serve as huge drivers of loyalty as well, because they provide constant lines of communication with your already-engaged customers.
- Apps will drive disintermediation DRIVING EFFICIENCY & LOYALTY Lee ? Could use more of your language here. Discuss Travel app penetration.
- -So let’s take a step back for a minute. -Provide you with context in terms of WHERE people are spending their time. -A lot of time is spent by people on mobile with Google properties, YouTube, Yahoo!, MSN, AOL, Twitter and Pinterest -[CLICK] But the reality is that more total time is spent on mobile on Facebook and Instagram than all of those combined. -And timing now is not as difficult as it once was. -Your customers are “always-on,” your business should be as well. -We’ve seen some great success stories. Businesses large and small, boutique hotels, large hotel chains, airlines, etc., that have an always-on strategy are seeing great results.
- -Hotel Tonight is a great example… -The shift to mobile is here and the role of apps already commands 80% of all the time users spend on mobile. I talk with Travel clients every day and driving a mobile app strategy is critical to their success now and in the future. With over 900K+ apps in the App Store and over 1M+ in the Google Play store, advertisers have to do more than just build an app and hope users will use it. -With Mobile App Install ads, Facebook has a way to drive downloads of your app directly from mobile devices. Hotel Tonight saw 10X higher click to install rate compared with traditional banner ad -Drive downloads of your app directly from mobile devices -Why use mobile app install: You can reach people on their specific device: Android and iOS apps, smartphone and tablet For maximum impact: Show ads to fans, their friends and non-connected users
- Once you get the mobile app install, retention, engagement, and conversion in app has to be top of mind. Consumers on average have 40 apps on their phone and marketers are working to be THE app that their customers open. -Today, 66% of app users open apps between 1 and 10 times. -Clients who have used mobile re-engagement have already seen streamlined performance and higher LTV from their users. -Which brings me to my third point, RETENTION.
- -Retention can really be thought of in three parts. -CRM. Brand. Mobility. -In an increasingly crowded travel ecosystem—retention is critical…keeping people…brand and customer loyalty are critical. -Digital technology and the abundance of data now available open up massive opportunities for managing customer relations, managing the lifecycle of of your customers. -Instead of transactional relationships that ebb and flow, you can now reach your customers at all the right points in time to form longer, more valuable relationships. -With traditional CRM platforms like email in steep decline, the solution is targeting plus reach. This creates engagement. -And this engagement enables you to build and really strengthen those important relationships with your customers. -With big data--with sophisticated targeting capabilities—you can find all of the people who matter to you…
- -But “big data” really just means “targeting.” -And it represents one of the biggest opportunities you have--for inspiring people, booking people, and keeping people. -Sophisticated targeting helps you access customer segments that have typically been hard or very expensive to reach. -Enables businesses to find and reach audiences who they may not be able to find consistently or at scale on other media platforms. -You can literally merry any data you have, with that on Facebook (and add a third party’s data) to maximize your reach and efficiency of that reach. -But I want to take a minute to dispel a myth. It’s not uncommon to hear in the media, or murmurs in the halls of marketing orgs around the world about Facebook’s “enormous treasure trove of data.” -While we have a LOT of data, the truth is that YOU do too. -But the future of data, and big data in particular, isn’t going to be one company’s treasure trove. -And with structures that allow you to combine that data with our data, people matter to you even more. -Real identity-based networking (like Facebook) plus your data allows for long-term relationships with customers that increase the ROI of each customer over time. -You can use this info to personalize experiences for people. -Make business personal again…with meaningful, relevant, and timely messages. -This data is fueled by efficiency and accuracy. -In fact, 89% of the time…
- -In fact, 89% of the time, FB targeting is accurate, compared to the average narrowly targeted online campaign, which sees only 38% accuracy. -If you were in Monte Carlo or Las Vegas, where would you place your bets? I’d bet on 89% accuracy every time. -Scale is great for business, don’t get me wrong. But reaching A LOT of people won’t necessarily make a difference to you… [CLICK]
- -Reaching all of the people who matter to you, will. -Opportunity is rampant in this new environment. -You have more opportunities to reach all of the people who matter to you, at the right time and with the right message. -As a marketer, you care about your business and how to efficiently drive growth, <SLOW DOWN> but your business is still based on people. -It’s that ability to connect with those people and engage with them in meaningful conversations at just the right moments. -That’s what will make all of the difference in growing your business, particularly in this now-digtal-first world. -When you understand the people who matter to you and what matters to them—you can deliver messages that will also matter to them. -Good for people, good for your business.
- -But the truth is that a lot of people get overwhelmed with the idea of social marketing. -People often ask me what a good ad on Facebook looks like. A good on Facebook looks like a good ad. -Social marketing should be integral to all of your other marketing practices similar to the way that your public relations and communications functions work together. -Or the way marketing teams work with creative shops. -The relationship should be symbiotic. -Not only makes business more efficient, but better for your customers, the people you’re most trying to reach, season after season.
- At the end of the day, large, people-based platforms allow for three things: inspiration, conversion, and retention. That's what Facebook is for travel marketers—and the most successful marketers incorporate all three. -And putting systems in place that allow you to build systems that will allow you to change your future—will actually change your future. -Integral to that is an investment in connectivity because PEOPLE are always connected. -What I mean is: one of THE best investments you can make is in digital, in mobile. -This also includes breaking down the silos within your organization to make those investments possible…Investments that will give you access to reach all of the people who matter to you. -Access to having those meaningful conversations. -We live in a world where large, people-based, digital platforms enable you to reach people—at scale—with personalized messages in ways not possible even a couple of years ago. Make that world—make digital and mobile—work for you. -From inspiring people, booking people, and keeping your most loyal customers close to you, you have more control than ever how to help drive profit. -With digital, -You have the power to drive growth and optimize your market potential. -You have the power to scale farther and faster than ever. -You have the power to harness the power of all of the right people who matter to you. Thank you.
- -With digital, -You have the power to drive growth and optimize your market potential. -You have the power to scale farther and faster than ever. -You have the power to harness the power of all of the right people who matter to you. Thank you.