How Mobile Devices are Changing the Way we Market to Today's Travel Shopper

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  • The mobile devices has multiple benefits: -the device is touch activated – consumers are deciding what they do on the device. It is lean forward – they curate their own content and their own experiences. In Canada, average consumer has 60 apps on their phone and tends to user 5-7 on regular basis. -the device is location aware – you can target the consumer based on location and they also perform certain behaviours on certain devices (smart phone vs. feature phone and vs. tablet). LOCATION: Verve Mobile, a location-based mobile ad platform, studied over 2,500 US mobile ad campaigns served across its platform and found that the percentage of campaigns using geofencing or geoaware targeting had more than doubled, from 17% in 2011 to 36% in 2012. -full screen – in many cases the consumer is only viewing one site at a time and full frame – very task oriented -robust functions – calling, schedule (calendar), web Mobile traffic makes up 10% of all Internet use ~10% of websites are mobile-optimized
  • SEARCH: Online travel consumers are known to conduct in-depth research, evidenced by the fact that they visited more than 17 travel sites and employed more than four travel searches on average before booking a hotel, according to Google andCompete’s “Key Travel Themes, Q4 2012” study of US consumers. Along this winding path to purchase, organic search is most often the last exposure before a conversion, according to a report on the US and Europe byIgnitionOne. As a result, hotel companies place special emphasis on owning their brand keywords. 40% of US online travel consumers entered the purchase funnel through search engines. And as smartphones and tablets become more ubiquitous, some of that search traffic is coming from mobile. And in Q3, 2012 – 16% of clicks were via mobile.
  • Accompanying this growth in mobile consumption is rise in spending on mobile - Video is the fastest-growing mobile ad format. 69% compounded annual growth rate for mobile video ad spending between 2010 and 2015. 52 percent  of consumers say that watching product videos makes them more confident in online purchase decisions. (Invodo) Mobile and tablet shoppers are  three times as likely  to view a video as laptop or desktop users. (NPD) Mobile video ads that include social media buttons drive  36 percent  higher engagement. (Rhythm NewMedia). 92 percent  of mobile video viewers share videos with others. (Invodo) More than  1 billion  unique users visit YouTube each month, spending more than  4 billion  hours watching videos (YouTube). 2 billion  video views per week are monetized on YouTube, and every auto-shared tweet results in six new YouTube browsing sessions (ReelSEO).
  • 57% of US business travelers reported using mobile devices to access travel information this year, compared to just 38% of US leisure travelers. In germany, for consumers over 50, travel was #2 most researched category and many for last minute deals.
  • In US, In Switzerland, 62% of reservations were made directly with hotels, whether via telephone, fax, email or walk-in, very few occurred through the properties’ website reservation systems. Indeed, hotels’ own websites only accounted for about one in 20 hotel bookings, actually losing 0.7% share compared with 2011. US and UK: Travel Bookings Consumers in the 35-to-44 age group were the most likely to research travel via tablet. One in five UK consumers were tablet travel researchers, compared to a quarter of US consumers in the same age group. For example, 19% of UK consumers ages 25 to 34 researched travel via tablet, but only 5% booked. A slightly lower percentage of US consumers in that age group researched travel on tablets; however, 9% booked. According to the study, these trends reversed as consumers aged. UK consumers ages 35 and over were less likely to research travel on tablets than US consumers, but were as likely, or more likely, to book. Looking at the 45-to-54 age group, Tealeaf found that only 8% of UK consumers researched travel via tablet, but 5% booked. On the other hand, 16% of US consumers in the same age group researched, but only 1% booked. Based on this study, the implications for travel marketers are clear: Younger US consumers and older UK consumers are more likely to yield higher tablet conversion rates.
  • In US, 61% of Americans have purchased a travel product on a tablet, 51% on smartphone And while 51% book Hotel on PC, 17% on tablet and 11% on Smartphone – this is the highest of all travel related items – higher than air travel, ground transport, attractions and restaurant. It is also important to look at ages of travelers – again in the US, social is a meaningful influence on purchase decisions. 57% of US millenials said that they are influenced by friends. Many (73%) want as faster way to get personalized recommendations, and 75% prefer their phone to get directions to a destination, and 64% do not like looking through physical guides (Source: emarketer)
  • How Mobile Devices are Changing the Way we Market to Today's Travel Shopper

    1. 1. How Mobile Devices areChanging the Way we Market toToday’s Travel ShopperApril 24, 2013vfmleonardo.com facebook.com/vfmleonardo @vfmleonardo
    2. 2. Vice-President, Best Practices,Online MerchandisingVFM Leonardo Inc.@darlenerondeau
    3. 3. PresidentTapped Networks
    4. 4. CEOScene Marketing Group
    5. 5.  Where and how travelers are usingsmartphones and tablets How consumers are using multiplescreens sequentially and concurrently Differences in how consumers use mobileapps and mobile browser websites Elements required for smartphone andtablet optimized hotel websites How hotels are successfully optimizingtheir stories for smartphones and tablets
    6. 6. PresidentTapped Networks
    7. 7. 20131983
    8. 8. IAB Canada Mobile Advertising Report, April 2012“2012 revenue growth will likely be driven byMobile Search, Rich Media, Video and qualityIn-App inventory.”IAB Canada Mobile Advertising Report, April 2012
    9. 9. comScore MobiLens, Total Canada Mobile / Smartphone Subscribers, Ages 13+, Dec201185% of smartphoneowners indicate ‘UsingApps’ is their top activity.comScore MobiLens, Total Canada Mobile / Smartphone Subscribers, Ages 13+, Dec2011
    10. 10. Sharing: 92% of mobilevideos share videos withothers92%Sources: Invodo; NPDViewing: Mobile and tabletshoppers are three times aslikely to view a video aslaptop or desktop users3x
    11. 11. 48% of users feel frustrated when they visitnon-mobile friendly web-sites52% of users who have bad mobileexperiences are less likely to engage with thosecompanies48% say that when sites don’t work well on theirsmartphones that it makes them feel like companiesdon’t care about their businessSource: Get Elastic, Moving Forward Infographic 2013
    12. 12. 50% of people will admit they use websitesless if they are not mobile friendly even if theyalready like the companies61% of users are likely to leave quickly if yoursite is not optimized well for mobile devices67% of users are more likely to buy frommobile-friendly sites
    13. 13. MarketingStrategy+Role of Web Site Mobile OptimizedLanding PagesBetterROIAnalytics+ =
    14. 14. InteractivePerformance MapsAnalysis byDemos, Distance, etc.PostCampaignAnalysisMobile offers the ability to understand more than justclicks – reporting can provide data on location anddemos so as to better understand consumerbehavior.
    15. 15. 86% want big buttons that are easy to press78% want swift navigation to desiredinformation within one or two clicks76% want better lit screen for thebusiness mobile site74% Clean and efficient look and feel73% Easy ability to save information onthe site for future relevance(% wanting each)
    16. 16. 76% want location and phone hours61% want click-to-call functionality54% want email address(% wanting each)
    17. 17. 1. 19% of all travel inquiries in 2012 came from a mobile device;vs. 11% in 2011. Almost half (44%) of searchesresulted in a purchase.2. 16 MM Americans booked a trip via their smartphone, 4Xincrease vs. 2011. Mobile is here.3. ~36 Million Americans used a smartphone to travel and plantheir vacation. Mobile is part of the purchase journey.4. 2/3 of tablet owners made a travel purchase on their devicein H1 2012 and 90% said they would book on their device inthe future. Mobile is key purchase platform.
    18. 18. Time Spent(Web)Stick Rate(Web)SmartphoneTraffic
    19. 19. 1. It’s finally the Year of Mobile: Your siteneeds to be optimized for mobile as travelersare already there.2. User Interface and Contact Info:Understand top user needs and prioritizeaccordingly.3. A picture (or video) is worth 1,000words: Leverage video on your site. Especiallyfor business travelers.
    20. 20. CEOScene Marketing Group
    21. 21.  Determine the characteristics of your property Use visuals to convey your personality Tell your story on mobile devices and socialplatforms It’s working!
    22. 22. Recording of this webinarFree guideSix Critical Mobile Optimization Tactics EveryHotelier Should KnowDon’t Forget To Download!

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