HOSPITALITY AND TOURISM MARKETING AND SALES The Future of Advertising Trends Project Kevin O’Donnell, Jamie Stanton, Penny Swanson 11/16/2012This trend project talks about the history of advertising online over the past year. How advertising isinfluential in the hospitality field along with others, and where advertising will be in the future.
Hospitality and Tourism marketing and sales 1 The Future of AdvertisingAdvertising in the past year Advertising has been around for many years and is how companies reach out tocustomers or potential customers. There are many forms of advertising such as direct mail,emails, radio, television, and more. Over the years the internet has become a new source ofadvertising. Since the development of social media such as Facebook and Twitter, more andmore people have been spending additional time on the internet. With the amount of timespent on the internet it only makes sense for companies to move a large amount theiradvertisements to the internet. Advertising has slowly started to become more popular on theinternet. As it has grown greatly in the last year or so it will only grow more in the future.Companies continue to plan on putting more money into the interactive advertising becausethey are seeing that it is affective and bringing in money. In the first quarter of 2012 the interactive advertising industry had the best first quarteron record. IAB (Interactive Advertising Bureau) said they brought in $8.4 billion which is 15%more than recorded in the year-ago period(Parker, 2012 ). This shows that online advertising isslowly taking over. In just one year revenue jumped up 15% showing that there is great thingsto come. Online advertising is affecting companies both within and outside of the hospitalityfield in numerous ways. This is giving them a new way to attract audiences and draw them intotheir business. When companies start to spend more money on the interactive advertising theyare broadening their business. The hospitality business is reliant on the internet and online advertising. Many hotels,airlines, and restaurants have started to create social media accounts or pages for theirbusiness to help advertise. This viral advertising spreads the word to people faster and canbecome huge in a matter of minutes(Time, 2012). Hotel marketers have started to also focus onthe property websites to help achieve the highest ROIs. With many different social media sitesto advertise on hotels have to remember that their website is also advertisement for theircompany. The hotels have been using the main site for number of years but keep it up to dateand use it as an effective source of advertisement by making sure that they have rich media,and current promotions. The more a company advertises the better they have been known todo.
Hospitality and Tourism marketing and sales 2 The Future of AdvertisingReal Life Cases within and outside of the Hospitality Field Travel Spike is a company that allows hotels, attractions to make reservations throughtheir website. The company uses what hotels have to offer and fits them to the customer’sschedule and the size of the party. They have a structured website that allows people to searchby region, category, and price. This allows them to have a custom marketing website, making iteasy to search for hotels nationwide. In addition to the website, Travel Spike providespodcasting, social networking software, and social media marketing for your resort or hotel.This has a direct effect on the marketing side of everything because they have proven that theyare travel experts that understand customers travel, hospitality, or tourism business. They havethe latest internet marketing and interactive media trends that people are using today toensure they are seen by the public. They use digital strategy, media buying, media planning,and search engine optimization to appear on top sites such as Google, Facebook, Twitter, andGroupon. Travel Spike changes the marketing strategies for hotels because they are a one stopprovider for online marketing for a company. This is a money saving strategy that covers mostof the overall marketing of a company online. Cendy is another company that does online marketing for resorts and hotels. Thecompany specializes in travel and hotel internet advertising by building the individual hotel sitesfor big name hotels. They provide website marketing, website design and development, searchengine marketing, branding and logo development for hotels and resorts.Through thiscompany, an individual is able to search for a specific hotel, read reviews, view amenities, andbook a reservation directly on the site. Similar to Travel Spike, they set up custom profiles onsocial media websites promoting rates for lodging around the world. Cendy changes marketingstrategies because they also attract customers while they are visiting their daily websites andget them to view hotels and resorts. When this happens, the customer becomes a follower ofthe company which just promotes it even further. Cendy connects the ease of using socialmedia and cuts the hassle of searching to find a place. Also, it allows customers to use awebsite they are already familiar with like Facebook. The other way this affects the industry isit takes the rooms that are already going to be empty and it fills them with customers at adiscounted rate. This allows the hotel to reach its ultimate goal of 100% occupancy. Local Corporation (founded in 1999) has been extremely successful within onlineadvertising. They paid close attention to what people viewed, and how often it was viewed. Asthey closely watched some ads being viewed less and less, they would quickly pull them fromthe internet and replace them with something new. This was so successful because theyimmediately stopped losing money on something that did not seem to be of interest toconsumers. Many other companies may not pay such close attention, and will end up payingmuch more to keep advertising something that is not getting any views. The article states that“Local has grown from its big-margin organic revenues and organic traffic which representsforty percent of total traffic” this was true from a few years back, but now they say that Local is
Hospitality and Tourism marketing and sales 3 The Future of Advertisingat record levels for online trafficking! Yahoo has an agreement with Local on paid searchresults. It has been a month-to-month agreement, but recently Yahoo signed a five year plan,which seems as if they want Local to themselves only. Local is anover $5 billon market which isthe fastest growing segment of the $47 billion online advertising industry. It has beat estimates,trafficking users each month (over one hundred million.) Mobile traffic has gone up 275% overthe past year, which means a significant amount of people had visited the site and had seentheir advertisements. In 2012 alone, they have had a 30% gain in revenue. Blue State Digital is a company who strongly advertised president Obama in 2004, andagain throughout this year’s election process. Along with advertising Obama, they racked upmany other campaign wins such as Tammy Baldwin and Elizabeth Warren (for senate), and thefight for gay marriages in Maine, Maryland, Minnesota, and also Washington. They had beenworking on plans for online advertising, for the past few years. They found a way to send overone hundred million emails within just twenty four hours. Aside from the email “bombing” theywere able to provide more online contributions than any other service or company was able to.Blue State Digital was founded in 2004, and executes online engagements, campaigned manypeople throughout the election processes. They have very influential brands, makingthemselves a very successful company. They helpednumerous clients to understand the valuesbeliefs and ideas of the potential individuals and provide everyone with the tools to succeed asvotes and fans. With advertising online, they gained nearly $1 million in just the four years theyhave been working on these educational campaigning projects.
Hospitality and Tourism marketing and sales 4 The Future of AdvertisingProfessional Views and Expert Opinions Brian Decorah is currently the GM (general manager) of the North Star Mohican CasinoResort in Wisconsin. He has worked in the hospitality field for the past 25 years holdingpositions ranging from front-line employee, departmental supervisor, mid-level manager,director and general manager. Brian finds that advertising is critical to the hospitality industrybecause we are a product of advertising and amenities. One great quote he brought up was inthe words of Ted Turner “Early to bed, early to rise, work like hell and advertise!” That quotealone shows the importance of advertising. When working as the Advertising Manager foranother hotel he shared that they had a budget for advertising alone that was over 1,000,000.With experience in all areas of ads from radio and television to social media and online Decorahbelieves that they all serve a purpose. Brian believes that for certain industries onlineadvertising is important and helps business remarkably. For example the hotels in Las Vegas canutilize online ads more so than the current casino he works for. Location plays a large role inwhich type of advertisement works best for the company. His casino uses direct mail (targeted),Radio, Newspaper, Periodical, OOH, social media, and email. Direct mail is their number onesource because majority of their clients are over 60 and are in a close radius. Although hiscasino will continue to use direct mail marketing he believes that in the next year that otherhospitality companies will start to focus more on the online advertising. When asked if hethought it was important for hotels or casinos to advertise online more than they currently arehe thought that many larger well known properties utilize online marketing very successfully tobook hotel rooms, travel, and conference space. The more amenities offered the moreopportunities there are for success. He also believes that it is important to use destinationbased marketing. Decorah believes that for the gaming side of the hospitality industry to makeadvertising affective you need to attract gamers with price and make profits with the add-onsfor example offer guest free room and then make a profit off of them eating the buffet andgambling. Brian believes that the future of advertising depends on the location of the property.Rural casinos will continue to rely heavily on direct marketing while bigger more populatedcasinos and hotels will grow into the social media and interactive marketing. Advertising has impacted the hospitality industry in the past and will continue to in thefuture. If companies do not advertise potential consumers will not know what the company hasto offer compared to other companies within the field that do advertise. Online interactiveadvertising will impact the business landscape. Companies that continue to move forward anduse this newer advertising they will reach out to more potential guest and consumers. They willincrease sales more than companies who are not keeping up with current trends. Onlineadvertising will also help companies reach out and meet the needs of more consumers. Overtime this trend of advertising will continue to develop and grow. Technology is improving daily
Hospitality and Tourism marketing and sales 5 The Future of Advertisingand as that continues to grow so will advertising and the way it is done. Social media is a bigpart of why advertising online is growing so rapidly. Companies want to stay on top of thecharts so they stay on top of the trends as well. Over the next couple of years we believe thatadvertising will be more intricate. No trend stays the same and advertising is not anacceptation. Trends change and this one will continue to change. Companies are going to wantto stay on top of this trend to make sure they have the advantage over other competitors. Tostay on top of the competition they are going to look at what is currently being done and whatwill be happening within the next couple of months and find a way to be even better than that.Companies need to look at what their customers want, what fits their needs, and is going toplease them. They should be studying their target markets and brainstorming advertisementsthat are interactive and going to draw them in and make them unforgettable. Overallinteractive advertising is going to be extremely successful for the hospitality field. It is givingand going to continue to give the consumers what they want and need in a fast usable way.
Hospitality and Tourism marketing and sales 6 The Future of AdvertisingReferencesCendyn. (2012). Retrieved November 14, 2012, from http://www.cendyn.com/solutions/Hotel Marketing. (2012, November 6). Retrieved November 13, 2012, from Hotel Marketers Focus on Property Website in 2013: http://hotelmarketing.com/index.php/content/article/hotel_marketers_focus_on_property_we bsite_in_2013Seeking Alpha. (2012, November 15). Retrieved November 16, 2012, from Local Corporation Dominates Local Mobile and Online Adversting with Record Quarter: http://seekingalpha.com/article/1012171-local-corporation-dominates-local-mobile-and-online- advertising-with-record-quarterDecorah, B. (2012, November 12). Advertising in the Hospitality Field. (P. Swanson, Interviewer)Digital, B. S. (2012, November 9). The Sacramento Bee. Retrieved November 15, 2012, from Digital Campaigning Drives Political Success: http://www.sacbee.com/2012/11/09/4973862/digital- campaigning-drives-political.htmlParker, P. (2012 , June 11). Marketing Land. Retrieved November 14, 2012, from IAB: Q1 Online Ad Revenues Up 15% Over 2011: http://marketingland.com/iab-q1-online-ad-revenues-up-15-over- 2011-13835Time, F. (2012). Chron. Retrieved Novemeber 14, 2012, from Social Media & the Hospitality Industry: http://smallbusiness.chron.com/social-media-hospitality-industry-37599.html