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Kayak Advertising strategy


Published on

PPT created by Kulin Marketing founder Elizabeth Kulin and her graduate school teammates.

PPT created by Kulin Marketing founder Elizabeth Kulin and her graduate school teammates.

Published in: Business, News & Politics

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  • Technology: One way that makes revenue is by selling space on its website to advertisers. As more online users visit, the advertisements on its WebPages receive more views, and in turn is able to increase the price of its advertising space. By repeating the brand name (which is also its url) in its advertising online users would potentially be more apt to remember the url and visit the site.   Economics: Although people have always been price sensitive when it comes to buying travel accommodations, they are now traveling less frequently. So should promotes its ability to help consumer travelers research travel deals   Cultural: When attempting to advertise across national boarders, should keep varying cultures, languages, currencies and legal systems, as well as relatively low Internet usage and credit card penetration in mind and build effective advertising per global region accordingly.  
  • Weaknesses: ranked the #16 th travel websites by Mintel Oxygen in 2009,   Threats: Online travel agencies have responded to the recession by revamping their advertising, and they are now majority creating ads that emphasize cost saving travel tips for consumers. As spends almost half of its revenue on ad campaigns in 2010, the brand will have to create advertising that includes what travel consumers currently care about the most (cost saving travel tips) while also cutting through the clutter of the competitions’ advertisements with the same message (Burkitt, 2009).   Strengths:’s website is includes higher functionality than competitors such as Bing. There are a number of additional web tools that travelers can utilize by using that make searching for and booking travel more efficient and easier. should promote this point of difference, and competitive advantage, in its advertising.   Opportunities: there might be an available positioning to promote as a higher functional online travel site. Since has more web tools than its competition, such as a notification service and weekend search, it can promote as the travel site that its target market to be in more control over their travel arrangements and deal searching.
  • - Competition: High & Increasing Largely Price-Based *The rapid change on consumer behavior to booking directly online travel sites increase the level of competition *Expedia , Orbitz and Priceline leader travel sites Competitors such as Expedia and Orbitz use fare comparison, destination guides feature travel-related content, news, and maps Position themselves as “large service provider” and “innovative technology” Travelocity is one of the global leaders offers deals more internationally Bing searches only ¼ of travel-related sites that Kayak does. Uses 7 days prediction & suggestion for the fare rates Kayak one of the top eighth online travel companies Google-like search technology in online travel industry but only making its half of revenue from advertising unlike Google does not sell any travel offers directly from its website focus on uniqueness of their online service that is “ functionality ” Have more tools than other online search engines. Ex: weekend alert tool & program used on the site "sliders”
  • Transcript

    • 2. AGENDAResearch Methods LizCompetitive Analysis MerterTarget Market MeghaAdvertising Goal AnuMarketing Communications Melinda & Megha
    • 3. Research Analysis
    • 4. Research Methods• Secondary Articles, journals, websites• Primary Online Survey – 39 respondents Aided Recall & Top of Mind test – 25 respondents Face to Face in-depth interviews – 25 respondents
    • 5. Research Results Use advertising to increase top of mind:Memorable advertising that promotes POD
    • 6. Environmental factors that affect advertising
    • 7. Situational Analysis Weaknesses StrengthsRanked #16 travel website Functionality Threats OpportunitiesCompetition’s advertising is Available Positioning attractive to travelers. (functionality)
    • 8. Competitive Analysis
    • 9. Competitive Analysis • High & IncreasingCompetition • Largely Price Based • Change in Consumer Behavior • Expedia & Orbitz – fare comparison, destination guides, feature travel related content Direct • Position themselves as “large service Competitors provider” • Innovative Technology • Bing • Various functionality tools • Offer more than its competitors
    • 10. Positioning Map Direct Competition Positioning BrandDirect Competition One And Done. Bing Yapta, Priceline, tripadvisor, yahoo travel, mobissimo, Deals travelocity, bookingbuddy, hotwireIndirect Competition Tech – Website Expedia, OrbitzAvailable Positioning Functionality
    • 11. Target Market Analysis
    • 12. Target Market Analysis-Visits• Kayak has over 5 million hits monthly • Interact 1 – 2 times a monthPasser- • Currently 74% passer-by’s By • Interact less than 30 times a monthRegular • Currently 26% regulars • Interact more than 30 times a monthAddicts • Currently less than 1% addicts
    • 13. Target M arket Anal ysis-D em ographics  0-17 yrs (70%)  Male (45%)  0-2 yrs (91%)  Female (55%)  3-12 yrs (81%)  13-17 (87%)  18-34 yrs (28%)  35-49 yrs (33%)  50+ yrs (34%) No College (37%)  30-60k (23%) College (42%)  60-100k (31%) Grad School (21%)  100k+ (33%)
    • 14. Selected Target Market• 25-44 yrs • Travelers • Increase addicts• Affluent • Deal seekers • Increase regulars • Switch passer-by• Individuals/ • Internet savvy familiesDemographics Psychographics User-Level
    • 15. Advertising GoalsSource: DMI News New York, 2010 Survey
    • 16. Advertising Goals One Stop Search Engine Ability to Easy Key SearchFunctionality Multiple Message Sites Finds the Best Travel Deals
    • 17. Marketing Communications
    • 18. Marketing Communications Creative #1Test Image
    • 19. Marketing Communications Creative #2 Test Image
    • 20. Marketing Communication Testing Creative Ideas Results
    • 21. People Using being used by the target market
    • 22. Proposed Creative Idea
    • 23. Creative for TV• Existing Commercial Example• Kayak & Business Man 30 second commercial
    • 24. Outdoor Advertising SEARCH ONE AND DONE.
    • 25. Outdoor Advertising SEARCH ONE AND DONE.
    • 26. Print Advertising E . DON ND NE A HO SE ARC
    • 27. Key Media IssuesReach– Large Target Market– GeographyMessage– CombinationInformation– Explain various tools & benefitsSeasonality– Flighting
    • 28. Media Strategy & Tactics - Broadcast
    • 29. Media Strategy & Tactics - Print
    • 30. Media Strategy & Tactics - OutdoorBillboards– Freeways SEARCH ONE AND DONE.– Business CitiesBus Stops– Metro CitiesKiosks– Airports– Malls SEARCH ONE AND DONE.
    • 31. Media Strategy & Tactics - OnlineSocial Media – Facebook, YouTube, Twitter – Contests, Updates, Tips – Email blastsSearch Engine Optimization(SEO) – Generic & Specific words – destinationsPartnerships – Co-branding – Website links
    • 32. Media Strategy & Tactics - OnlineKayak does not appear anywhere on the first page
    • 33. Media Strategy & Tactics - OnlineKayak does not appear anywhere on the first page
    • 34. Conclusion GOALS ADVERTISING Increase top of mind Good Quality Research recall Brand Image• Educate the users• Demonstrate Appealing Ads Functionality Strategic Media Consistency & Memorable Planning OUTCOME  Increased top of mind recall  Create emotional connect  Consistent Campaign
    • 35. Thank YouQuestions / Comments Contact Kulin Marketing to learn more