Creating the Media MixPresented by

3

This presentation

will not...• Give you every

answer• Sell you any

media• Make you an

expert

This presentation

will...• Educate you on

basics• Make you want

to learn more• Challenge your

thinking

TARGETMARKETS

DISTRIBUTION

Inbound Tour Operator

RetailTravelAgentConsumer Wholesalers Product

DISTRIBUTION

Inbound Tour Operator

RetailTravelAgentConsumer Wholesalers Product

wwwwww

www

www

www

www

www

DISTRIBUTION

7

Consumer Retail

Travel Agent

Inbound Tour

Operator

Wholesalers Product

What’s Happening to Travel AgentsOnline

Marketing

Proportions of Internet Traffic

9

Travel Search• Google gained 6% market share in

travel searches in July over last year– Up to 30.4% total share

• Yahoo lost 11% travel search market share from last year

• Bing increased by 69% - the most significant increase– Smallest share of travel searches = 3%

10Source: Hitwise data, hotelmarketing, August 20, 2010

Online Usage Trends• 10% use a hotel application on a web-

enabled smartphone• 16% read a positive consumer-generated

comment about a hotel/motel, which influenced their booking decision

• 13% use a social media site to research or plan a trip

Source: Deloitte Survey, May 2010 11

Google Maps to add Hotel Rates

12Source: Talking Travel News, June 2010

Online Travel Purchase Process

• The average consumer makes 22 visits to travel sites (not necessarily different sites) before buying travel online

• 15% don’t know where they’re going when they start planning

• 39% don’t know when they will be traveling

Source: Meskauskas, Jim. ”6 Keys to Vertical Ad Network Success.” December 17, 2008. Via I-media connection e-newsletter. 13

14

Mobile

Mobile Smartphones in U.S.

• 3 in 10 cell phones in the US are smartphones• 19% of which have downloaded a travel-

related app- 47% have navigated to a destination using the

built-in GPS- 29% have compared airfares or hotel rates- 28% have shared photos about their travel

experiences using their smart phone- 18% have booked air travel or lodging

15Source: Portrait of American Travelers, Ypartnership, June 2010

Mobile in Europe

• The number of European consumers accessing travel services via smartphones grew by 125% in May 2010 to 9.8 mm

• 54% of consumers accessing travel services did so from a smartphone in May 2010

• Trend continues

16Source: comScore MobiLens data, August 24, 2010

Mobile in Europe

• Travel accounts for 47% of total European mobile spend

• Consumers expect a website to load in less than four seconds, and in some cases two seconds

• Otherwise, 70% will switch to another website

1718Source: Akamai Technologies, hotelmarketing.com, November 2010

Mobile Advertising Engagement

• 17-23% of people engage in mobile-advertising

• Much higher than for online advertising

• Conversion

18Source: Medialets, bonniercorp.com, August 2010

Apple’s iTravel wants to connect to hotel services

• The most recent Apple iTravel patent reveals travelers will be able to: – make room reservations– make requests about temperature– lighting – the types of food or beverages to have

available• The iPhone could act as a room key and as

a remote control for things like A/V devices.

19Source: U.S. Patent and Trademark Office, via hotelmarketing, August 2010

Increase in Virtual Technology

• Virtual Reality will have a big impact on travelers in the near future.

• Google Googles uses pictures to search the web– Translates menus– Identifies unknown landmarks– Beyond GPS

Source: Nigel Poclington, VP Global Marketing and Strategy, Expedia, via hotelmarketing.com 20

Social Networks

Older Americans Social Networking

• More than 25% of Americans 50+ use social networks

• 55+ demographic grew 922% last year alone

• 73% say they use it to stay in touch with relatives

Source: AARP Report, via hotelmarketing.com June 2010 22

Social Networks

• More than 1/3 of EU citizens use a social networking site

• The average user has 130 friends • Spends 55 minutes a day on the site

23Source: European Commission Eurobarometer, October 2010 and Trendwatching, June 2010

Facebook FANS Are...

• 28% more likely to continue using a brand

• 68% are "very likely" to recommend a product

• 81% feel a connection to the brand

Source: Syncapse Study, via Adage.com June 2010 24

“TripAdvisor Trip Friends”• Launched in June 2010 • Allows travelers to get advice

from their Facebook friends on properties/destinations

• Reviews from friendsand acquaintances hold more value

25Source: Hotelmarketing.com, June 14, 2010

26

TripAdvisor launches private sale site

• SniqueAway.com • “The first members-only

site where each travel deal is endorsed by the people”

• All hotels featured have earned a minimum four-star rating + a minimum 4/5 TripAdvisor rating.

27Source: Travel Weekly. September 7, 2010

Just Launched Facebook Places

28

Just Launched Facebook Places

• The ability to pinpoint where users are located and share information

• Brands can incorporate check-ins on their fan pages

• Can monitor which fans have visited a location or property

29Source: tnooz August 19, 2010

Other Social Networks

• Twitter: 100 million+ users, with 50 million tweets sent each day

• LinkedIn: over 65 million members• Foursquare: has one million users

30Source: Trendwatching, June 2010

Twitter

31

• 71% of tweets are ignored• 6% got retweeted

– 92% of retweets occur within the first hour• 23% got an @reply

– Of those, 85% only got one reply– 96.9% of @replies are posted within the

first hour of the original tweet32Source: CNN, October 12, 2010

33

Four Square• Location-based social network

(Like new Facebook Places)

• Earn points and badges for location check-ins

• Links to your Twitter and Facebook accounts

• Get tips/to-dos at locations• Brands can offer deals/incentives

for coming to a location

34

Flowtown

• Platform that businesses use to connect with their customers everywhere in the social web

• Make sense of online data and turns it into meaningful output in the form of stronger business relationship

35

What Can Flowtown do?

36

Social Media Users Follow Only 5 Brands

• More and more people include brands in their lists of friends and follows

• 77% of users said they followed a brand for free products or discounts

• Users follow 5 Brands consistantly• 58% will stop following a company if it

acts irresponsibly • OR...over-communicates with them

37Source: 2010 Cone Consumer New Media Study, November 2010

53%

1-5None10+6-9

“Like” on Facebook, “Follow” on Twitter or subscribe to an RSS feed:

Online Video

32% of travelers watch travel-related videos when researching hotels online

39Source: Forrester Research, Q1 2010

Viral Video: Evian Roller Babies

• Currently received 100 million+ total views

• Started online and evolved into TV commercials

• Lets take a look

40

What’s Happening to Travel AgentsThe Reality

On line Spend Growing

• Comprised 12.6% of total advertising spend in 2009

• Expected to grow to 13.9% at the end of 2010

• 15.4% in 2011...

42Source: ZenithOptimedia

Average CTR

• Benchmarking CTR for online campaigns is becoming more difficult due to large variations in results dependent upon several factors

• The average CTR is usually around 0.1%

• When it comes to Travel...

43Source: DoubleClick Benchmarks Report: Year in Review 2009

44Source: DoubleClick Benchmarks Report: Year in Review 2009

CTR by Industry

45Source: DoubleClick Benchmarks Report: Year in Review 2009

Case Study - Best Job in the World

46

Case Study - Best Job in the World• Objective: Create international awareness of the

islands of the Great Barrier Reef

• Winner awarded a 6 month paid job as the caretaker of the islands

• 100 Million hits

• Received over 34,000 applicants

47

Case Study - Best Job in the World• Spend was approx. 1 Million USD

• Result for direct increase in visitation...

• Nothing!

48

What’s Happening to Travel AgentsAdvertising Balance

The Credibility Continuum

50

Family/friend recommendations (81)

Travel guidebooks (57)

Online travel agent (54)

Online advisory site (53)

Travel agent (46)

Company/ destination site (46)

Media coverage (43)

Brochures (39)

Blogs (33)

Travel advertising (27)

Facebook/Twitter (19)

YouTube (14)

Have a great deal of confidence in…

Source: Portrait of American Travelers, Ypartnership, June 2010

Advertising Spending

51Sources: DMA’s Power of Direct Marketing/ Ad Age Apr 2010

Direct Mail

Direct Marketing Ad Spending Up

2010 will mark the 5th year in which direct marketing has more than 1/2 of all advertising spent nationwide, with sales growing at 3.5%.

53Source: DMA’s Power of Direct Marketing Report, Dec 2009

What’s Happening to Travel AgentsPublications

Guidebooks on Amazon

• How to Use an Ipad: 11 books• Two have Kindle editions • Other publications available

55

Guidebooks searches on Amazon

Norway: 94 guidebooks

56

Power of Magazines

During the 12-year life of Google to date, Magazine readership has actually increased 11%

57Source: Power of Print Campaign 2010

Power of Magazines

• The Internet is exhilarating...Magazines are enveloping.

• The Internet grabs you...Magazines embrace you.

• The Internet is impulsive...Magazines are immersive.

58Source: Power of Print Campaign 2010

We surf the Internet. We swim in magazines.

59

Magazine Readership Continues to Grow

60

The  average  reader  spends  43  minutes  reading  each  issue  of  a  magazine.  

Source: Bonnier Corp, MRI, Spring 2010

Broadcast TV

Benefits of Broadcast TV• Reaches a large audience in a short

period of time• Allows you to be creative with your

message by utilizing sight, sound and motion

• Opportunity to attach a personality to your business

62

TV Viewership• The average American watches

35:34 (hours/minutes) of TV per week

• Kids aged 2-11 watch 25:48 (hours/minutes) of live TV per week

• Adults over 65 watch 48:54 (hours/minutes) of TV per week

63Source: The Nielsen Company

Broadcast can be Truly Memorable

Outdoor

Outdoor

66

• Spend grew to $1.9 billion in the second quarter

• Billboards, Bus Posters, Outdoor, Subway Posters,Automobile Wraps, ATM Advertising, ElevatorAdvertising, Blimps

• And More!

Case Study - Club Med

67

Case Study - Club Med - NYC

68

• Purpose: Keep Club Med resorts on the mind of consumers during months when people plan vacations

• Media Buy: King Size Bus, Posters and Subway Brand

• Call volume in NY rose 20% in the first 6 weeks

• Sales rose over 25%

Source: CBS Outdoor

Radio

Radio Audience Still Growing

70

• More than 239 million persons ages 12 or older interact with the medium at least once a week

• Four million more than radio’s weekly audience in 2008

• Network radio reaches more than 88% of adults 18 to 34, a 3% increase from the previous year

Source: Arbitron’s new RADAR 106 report

Integrated Media

Online site evolved into a travel magazine

Sherman’s Travel

72

Microsoft TagsScan Tags from your mobile phone for instant access to information, websites, videos, reviews, and more

73

• Use Traditional Media

• 2010• $500 Million

74

I know half my advertising works...

75

I just don’t know which half

The Complete Travel

Experience

Anticipate & Echo

ANTICIPATION

TRAVEL

ECHO

Anticipate & Echo

ROI

Keep In Balance!

83

TAKK

Al Merschenal@myriadmarketing.com

310 545 4200www.myriadmarketing.com