Travel brands are using mobile advertising to reach the right consumers at the right place and time – no matter where they are in the world. Millennial Media features a spotlight on mobile travel trends.
Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.™)SPECIALTRAVEL REPORT JULY 2012
Travel Industry: Mobile Advertising Trends JULY 2012 This special S.M.A.R.T. report focuses on mobile advertising trends within the travel industry. We highlight what travel brands are doing on mobile, which travel audiences are resonating with brand advertisers, how vacationers are consuming content, what travel-centric purchases mobile users are making, and how travel brands can evolve their mobile advertising strategies moving forward. From booking agents and sites to hotels, resorts, cruise lines, airlines, tourist attractions, tourism boards, regional transit companies, and rental car companies, a wide variety of travel brands are using mobile advertising to reach and engage their customers.Top 10 Global Brand Advertising Verticals Vertical GrowthRanked by Spend Year-Over-Year Spend – Q1 2012/Q1 2011CHART A CHART B RANK CATEGORIES VERTICALS GROWTH 1 TELECOMMUNICATIONS 2 FINANCE SPORTS 287% 3 TRAVEL 4 RETAIL & RESTAURANTS NEWS 261% 5 ENTERTAINMENT TRAVEL 200% 6 CPG/FMCG 7 EDUCATION CPG/FMCG 179% 8 PORTALS & DIRECTORIES 9 AUTOMOTIVE HEALTH: FITNESS & WELLNESS 111% 10 DATING Source: Millennial Media, Q1 2012. Source: Millennial Media, Q1 2012.Insights: Travel was the number three vertical on the Top 10 Global Brand How Vacationers are Using Smartphones & Tablets Advertising Vertical ranking (Chart A). While present among the Percent of Respondents top verticals throughout 2011, travel advertisers were CHART C particularly active in Q1 as they targeted mobile users with Checking Personal Email 85% post-holiday getaway ideas and travel deals. GPS/Maps 67% Spending among travel advertisers grew 200% year-over-year in Q1 2012 (Chart B). Campaigns purchased by booking agents Keeping in Touch with those Back Home 67% and sites, hotels, resorts, cruise lines, airlines, tourist attractions, Searching for Local Restaurants or Attractions 62% regional transit companies, and rental car companies all contributed to this growth. For a more detailed breakout of the Posting Photos/Status Updates to Social Media 58% types of travel advertisers running mobile advertising Entertainment while on Vacation 55% campaigns, see Chart A on page 3. (at the Beach, in a Hotel, etc.) Entertainment while Traveling According to eMarketer data, vacationers stay connected (on a plane, in the car, etc.) 54% through their smartphones and tablets and access a wide Checking Work Email 29% variety of content (Chart C). While most check personal email, two-thirds also access GPS and map content and keep in touch Making Reservations for Restaurants or Attractions 27% with those back home. They search for local restaurants and attractions, make reservations, and use their devices for Checking in at an Airport Ahead of Time 23% entertainment purposes. With such heavy mobile consumption, the opportunity for advertisers to reach consumers – Source: eMarketer, March 2012. particularly during peak vacation periods – is great.Visit www.millennialmedia.com/mobile-intelligence to sign up 2
Travel Industry: Mobile Advertising Trends JULY 2012 Travel Vertical Mix Travel Campaign Goals CHART A CHART B 3% 2% 2% 9% 9% BOOKING AGENTS & SITES SUSTAINED INMARKET HOTELS, RESORTS & CRUISE LINES 11% PRESENCE 11% 57% AIRLINES SITE TRAFFIC TOURIST ATTRACTIONS & 62% REGISTRATIONS DESTINATIONS BRAND AWARENESS REGIONAL TRANSIT 16% INCREASED FOOT TRAFFIC 18% BUSES & TRAINS RENTAL CARS Source: Millennial Media, Q1 2012. Source: Millennial Media, Q1 2012. Data is based on the Top 250 Campaigns on Millennial Media’s Platform in Q1 2012.Insights: Booking Agents & Sites accounted for 57% of the REACHING TRAVEL travel campaigns run with Millennial Media in Q1 AUDIENCES (Chart A). Travel advertisers leveraged mobile to Advertisers leveraging promote getaway specials and trip ideas for spring Millennial Media’s travel break and summer holidays. audiences were Hotels, Resorts, and Cruise Lines made up 18% of all 3X MORE LIKELY travel campaigns in Q1 (Chart A). In anticipation of the to target business travelers summer travel season, a number of campaigns than vacationers. focused on brand awareness, while campaigns Source: Millennial Media, Q1 2012. designed to drive immediate reservations allowed consumers to make reservations and book travel directly from custom mobile sites and apps. Sustained In-Market Presence was the number one campaign goal, representing 62% of the Travel Campaign Goal Mix (Chart B). A number of advertisers SEE HOW ran application download campaigns to encourage adoption of their booking and travel planning apps. TRAVEL BRANDS ARE SUCCEEDING To encourage customers to complete their reservations directly through custom mobile sites, IN MOBILE 16% of campaigns focused on Site Traﬃc as a campaign goal; while just 9% of campaigns focused Download campaign summaries from on driving broader brand awareness – a common Westin Hotels, JetBlue Airlines and more goal among travel & tourism boards (Chart B). at www.millennialmedia.com/brands.Visit www.millennialmedia.com/mobile-intelligence to sign up 3
Travel Industry: Mobile Advertising Trends JULY 2012Post-Click Campaign Action MixCHART A60% TRAVEL ADVERTISERS50% 59% ALL ADVERTISERS40% 42%30% 34%20% 22% 20% 21% 19% 21% 18%10% 17% 15% 2% 2% 7% 7% 7% 9% 9% 0% APPLICATION ENROLL/JOIN/ mCOMMERCE MOBILE SOCIAL PLACE CALL RETAIL SITE SEARCH STORE LOCATOR WATCH VIDEO DOWNLOAD SUBSCRIBE MEDIA PROMOTIONSource: Millennial Media, Q1 2012.Data is based on the Top 250 Campaigns on Millennial Media’s Platform in Q1 2012.Insights: Application Download represented 59% of the Post-Click Campaign Action Mix for Travel Advertisers (Chart A). With 16 million consumers booking travel on their mobile devices (see box on right), and 36 million researching travel options, travel brands have good reason for wanting a persistent presence REACHING TRAVELERS on consumers’ mobile devices. By using mobile advertising to AT ALL STAGES OF drive downloads of their apps, travel advertisers have ensured they are top of mind and can provide consumers easy access THE PURCHASE FUNNEL to research and booking tools when they need them. In 2012, 16 million consumers are expected to Mobile Social Media represented 20% of the Post-Click book travel on their Campaign Action Mix for Travel Advertisers in (Chart A). By smartphones, with 36 million driving mobile users to social media outlets, travel advertisers researching travel.* encouraged these consumers to engage with their brands and provide feedback on their services. Mobile ads help drive these direct bookings. Broader awareness campaigns enable travel brands to expand their DID YOU KNOW? customer base. Retargeted campaigns can reach those Consumers purchase a variety of goods and services on that have already their smartphones. 29% of those who have made a downloaded an app or purchase on their smartphone have booked hotel engaged with an ad to build reservations, 24% have booked rental cars and 24% have loyal brand advocates. purchased airline tickets directly from their mobile device. Source: comScore, 2011. *Source: eMarketer, April 2012.Visit www.millennialmedia.com/mobile-intelligence to sign up 4