2017 Travel Marketing Trends

3 of the most important marketing trends shaping the travel sector in 2017

It is estimated that during 2016, total retail travel sales across the globe will reach $22.049 trillion, up 6.0% from the previous year. According to Statista, by 2019, the online travel industry is forecasted to grow to 762 billion U.S. dollars.

Today, the majority of people use different websites during the travel purchase journey, either to find information about a destination, read reviews or to book travel online. August 2016 research published by the Association of British Travel Agents (ABTA) found that 76% of UK internet users had booked holidays digitally in the past 12 months. In the US, Emarketer estimates that 52% of travel bookers use online platforms to make their bookings. That makes digital marketing techniques like SEO, UX and Social Media Marketing absolutely critical to success in the travel industry. Keeping up with the latest trends in digital marketing impacting the travel sector is crucial for ensuring future success.

Our full report into 2017 Travel Marketing Trends identifies several key trends set to transform the travel industry. Expert Business members can access the full report here and get a sneak peak at 3 of the trends we’ve identified below:

Virtual Reality

Virtual Reality and ‘near VR’ offers travelers the opportunity to ‘try before you buy’.

From taking a virtual romantic honeymoon walk along a sun-kissed beach to walking through a hotel conference suite, technology brings the mountain to the would-be trekker in ways which only a few years ago would have seemed impossible.

However, in considering virtual reality and travel, it is important to separate the hype from the practical.

Travel companies taking advantage of such technology should primarily consider it as a platform for useful content, rather than an immersive multi-media channel which puts visual effects before substance.

Working with Google Cardboard technology, Virgin Holidays used VR headsets to capture the 360 video sights and sounds at one of their resorts in Mexico. Customers were impressed by the VR experience at Virgin Holidays stores, In fact, their propensity to buy increased. Virgin reported that not only did sales rise across the board, but sales of trips to the featured resort showcased by the VR technology rose significantly.

Delta and Lufthansa, two VR innovators

Airlines were one of the first to test VR as part of their marketing mix. For example, at the Global Business Travel Association conference held in November 2015, two mainstream airlines – Delta and Lufthansa drew on immersive technology to demonstrate differences between various cabin classes.

Delta demonstrating cabin class configurations via an Oculus Rift headset:

Lufthansa VR experience

Lufthansa demonstrated their cabin classes by inviting would-be passengers to sit on a dedicated chair and control the immersive experience via a PlayStation Move Motion Controller.

Qantas’ Samsung Gear VR headsets featured popular entertainment content and tours that showcased the airline’s network destinations.

Shangri-La Hotels was the first international hospitality brand to roll out Samsung Gear VR headsets for each of its 17 global sales offices and 94 individual hotel sales teams.

Finally, a University of Melbourne study found that 40-second-long “microbreaks” immersed in VR nature simulations increased workers’ focus.

Big Data

In 2012, Gartner updated its definition as follows: “Big data is high volume, high velocity, and/or high variety information assets that require new forms of processing to enable enhanced decision making, insight discovery and process optimization.

Big data involves very large data sets which are analysed usually by computers to reveal patterns and trends usually relating to trying to understand human behaviour and interactions.

As travelers seek more relevant and trusted content, OTAs are increasing their investment in Big Data analytics. Robust data capabilities help identify visitors across different channels and devices, driving personalized marketing and customer journeys.

According to a whitepaper published by the World Travel and Tourism Council travelers are more informed than ever before.

In an American Express study, 83% of millennials said they would allow travel brands to track their habits in exchange for a better, more individual experience. Meanwhile, 85% of respondents across all age groups said that customized itineraries are far more appealing than one-size fits all solutions. As analytics become more sophisticated, travel companies are targeting different customer demographics personally in email and social media messages.

However, whilst automated real-time location based triggers sending automated updates such as “you are only steps away from a bargain in London Heathrow Airport’s Terminal Two may be welcomed by some holiday makers seeking a duty-free bargain, a location-based trigger such as “Your Facebook friend just checked in a motel in around the corner” may be taking big data solutions a step too far.

43% of travel companies named “targeting and personalisation” as the top priorities in their digital strategy. Twenty-five per cent of companies are focused on mobile optimization of their online properties.

Multi-channel marketing becomes the norm

A great deal of the traffic diverted away from Bricks and Mortar towards digital platforms is accredited to the rise in people traveling for leisure and business. Globally, the online travel sector is expected to grow at an annual rate of 3.8% over the next 10 years to $11.4 trillion – creating a marketplace four times the total size of the current UK economy.

2016 travel industry experts broadly agree that international terrorism has effected demand in air travel. Yet the International Air Transport Association (IATA) reported that during June 2015, Global passenger traffic data for the crucial travel month of June (measured in revenue passenger kilometres or RPKs) actually rose 5.2% compared to the year-ago period (2015). June capacity (available seat kilometres or ASKs) increased by 5.6%.

Driven by digitization, and consumer reliance on mobile devices OTA’s continue to remain buoyant. For example, Expedia’s second-quarter gross bookings for 2016 grew by 25% YoY (year-over-year) to $18.8 billion. Its main OTA grew by 25% to $17.1 billion. However, in regions such as the US and Europe the online travel market appears to be maturing.

Market Realist claims online booking accounts for more than 40% of total travel sales. In most countries, online bookings are seeing healthy growth. The main market drivers for OTA companies are higher digitization, mobile adoption, and international expansion.

Reportedly many OTAs are expanding in specific countries including: China, Brazil, Germany, India, Italy, Mexico, Norway, Spain and the United Arab Emirates. All such countries have an established tourism industry as well as a digitally savvy middle class.

If you want more detailed information about all the key travel marketing trends we’ve identified, Expert Business members can access the full report here.

from Blog – Smart Insights http://www.smartinsights.com/digital-marketing-platforms/big-data-digital-marketing-platforms/2017-travel-marketing-trends/

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Are Your Multichannel Marketing Campaigns Flying Blind?

The famous Yogi Berra once said, “If you don’t know where you are going, you’ll end up someplace else.” That’s an apt summary of the guesswork many marketers use when allocating their budgets. The process goes something like this: marketers have a budget, run marketing campaigns based on that budget, and then evaluate the results to determine how to move forward.

The problem with this strategy is in pinpointing the best way to proceed. Even when the campaign is successful, marketers have no idea where they should allocate marketing spend for future endeavors.

Fortunately, marketers now have some pretty cool campaign-optimization tools at their disposal that show them exactly what they need to do. One such tool — a marketing-budget simulation — enables marketers to test the efficiency of marketing campaigns in a virtual marketplace that is safe, informative, and cost-effective.

Those who don’t use marketing-budget simulation tools risk sending their marketing campaigns in the wrong direction. Following are three ways to improve your brand’s marketing planning-and-budget-allocation strategy.

1. Get Granular With Your Cross-Channel Measurement.
More accurate forecasting begins with measurement. One brand that has mastered granular cross-channel measurement is Monarch Airlines. Monarch uses a programmatic ad-buying solution that helps them measure key performance indicators (KPIs) such as bookings and revenue. This data helps Monarch ensure each channel is correctly valued while continuing to drive customers to their website.

Programmatic ad buying also helps Monarch purchase keywords more efficiently by allowing the brand to bid on thousands of individual keywords each day. This type of granular approach lets Monarch know which keywords are driving conversions so they can place more-competitive bids on the keywords that matter most.

However, there is one inherent holdup to placing a primary focus on measurement and attribution: while attribution presents marketers with a clear picture of what happened in the past and why, it doesn’t tell marketers how to allocate their marketing spends for current or future periods.

Historically, the allocation problem has been partially refined in a very different field: the stock market. Let’s say, for instance, you are an investor. You want your investments to grow as much as possible, but there are two caveats: (1) you have a specific amount of money to invest, and (2) you want to limit your risk.

This leads to the modern portfolio theory (MPT), which helps risk-averse investors minimize risks according to whatever level of risk each can tolerate. The math behind MPT isn’t exclusive to investors. CMOs allocate media spend across different ad types and media channels because they need to make the most of their marketing dollars, but they also must mitigate risks because media does not always work as effectively as planned. That’s where marketing-budget simulations come in.

2. Improve Allocation With Marketing-Budget Simulations.
Every C-level marketer has revenue goals, and it’s up to them to demonstrate how implementing marketing initiatives will drive revenue. Convincing executives to allocate marketing spend on a specific channel based on a hunch isn’t a strategy you want to take to the boardroom.

Don’t get me wrong: a marketer’s experience is an incredibly valuable tool. Spending years in the marketing trenches helps marketers develop opinions and perspectives worth considering. But, marketers are also human and subject to intrinsic biases and beliefs.

Here’s the bottom line: it’s 2016, and if you aren’t using budget-forecasting tools, you are living in the dark ages. By deploying the right programmatic ad-buying solution, marketers can balance long-held beliefs with actual quantitative numerical data that is highly accurate in its forecasting ability. CMOs can then allocate media spend across the different ad types and media channels to help company executives successfully attain the most for their marketing investments.

Running budget simulations also enables marketers to run multiple campaign scenarios without risking marketing dollars. Imagine being able to show your CEO how much of an ROI he or she could expect subject to a certain amount of variability. Budget simulations are essential risk-mitigation tools, and every digital marketer should be using them.

Budget simulations take painful planning cycles and costly guesswork out of the equation. With simulation tools — such as those available in ad-buying solutions like Adobe Media Optimizer — businesses can improve both marketing efficiency and forecasting efforts.

By leveraging signature forecast simulations in a virtual marketplace, you can be sure the decisions you make are backed by data — without the high price of in-market testing. Campaign optimization doesn’t get more sophisticated than that.

3. Support Your Marketing Team With Budget-Forecasting Tools.
Simulation and budget-forecasting tools were never meant to replace marketers. With the help of a programmatic ad-buying solution, CMOs can spend more time focused on their marketing strategies and less time on fierce quantitative planning exercises.

Think about it: machines help marketers predict the future with almost flawless results — provided the future is similar to the past. While we all know there’s much to be learned from previous campaign outcomes and marketing fails, the future can be very unpredictable.

This makes person-to-machine interaction essential. Use these tools to support your marketing team by letting the machines analyze the Big Data you already collect. You can discover which channels are best at driving your customers to conversions — and which can take a backseat.

Then, when you’re testing a new marketing strategy, product, or approach; let human intuition take the reins. Using simulations and budget-forecasting tools to accurately predict outcomes — such as paid search-advertising performance — frees valuable time for marketers to focus on the next big thing.

Know Where You Are Going.
Deploying marketing-budget simulations can help your brand advance your multichannel-marketing efforts without costing a small fortune. Work to improve your allocation strategy by measuring KPIs while giving attribution its due. Then, run simulations to determine which channels your media spend will benefit from the most. Finally, remember to use budget-forecasting tools as essential tools — not replacements — for your marketing department. By incorporating budget simulations into your marketing strategy, the path to cross-channel campaign success will become crystal clear.

The post Are Your Multichannel Marketing Campaigns Flying Blind? appeared first on Digital Marketing Blog by Adobe.

from Digital Marketing Blog by Adobe https://blogs.adobe.com/digitalmarketing/advertising/multichannel-marketing-campaigns-flying-blind/

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The State of Travel Marketing 2016

The key trends all Travel Marketers should be aware of

2016. What a year. We’ve had Brexit, Trump and all manner of celebrity fatalities. It just makes you want to jet off somewhere nice and forget about your troubles for a week or two doesn’t it?

Well, I’m sure the same can be set for travel marketers. In the UK the falling pound has smashed margins and raised prices for holidaymakers heading abroad, whilst for marketers promoting European destinations the disturbing spate of terrorist attacks this summer may have encouraged some holidaymakers to stay at home.

But take a step back and you’ll be surprised to hear the picture is actually looking rather good for travel marketers, despite the challenges. Tourist numbers have increased in 2016 by over 3%, and 33% of travelers say they will be willing to spend more on a holiday this year than they were last year. What’s more, 49% of tourists said culture was a key reason for them choosing the destination they did, so make sure your advertising taps into the local culture!

Take a good at our infographic to find out more about the state of travel marketing in 2016.

from Blog – Smart Insights http://www.smartinsights.com/digital-marketing-strategy/state-travel-marketing-2016/

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When are Black Friday weekend shoppers planning to hunt for bargains?

Chart of the Day: 74% of Black Friday weekend consumers are planning to shop on the big day.

Black Friday is finally here, whether you love it or hate it, there is one undeniable fact - Consumers spend big during this period.

Consumers in America are buzzing to see the deals online and high street retailers have on offer during the biggest shopping weekend of the year. An estimated 137.4 million people are considering hitting the shops this weekend, that's 59% of the population.

While there is plenty of competition for consumers attention across the whole weekend, the days with the highest potential for your business is on Black Friday and Saturday. With most Black Fridays sales lasting from Thanksgiving (Thursday) to Cyber Monday (and beyond), which day will drive the most sales for you? An annual survey from the National Retail Federation and Prosper Insights & Analytics shows that less than half are planning to shop Saturday (traditionally the most popular day for the rest of the year) and a whopping 74% are planning to hunt for bargains on Black Friday. I know I will be!

• Source: National Retail Federation November Holiday Survey
• Recommended Resource: 10 Common Ecommerce Mistakes

from Blog – Smart Insights http://www.smartinsights.com/ecommerce/ecommerce-strategy/black-friday-weekend-shoppers-planning-hunt-bargains/

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2016 US Digital Marketing Budgets: Statistics and Trends

Retail Industry is set to spend a record 15 billion on digital ads this year

The retail industry spends more on digital ads than any other vertical. It outstripped automotive, travel, financial services, pharma and media this year. It is predicted to smash it’s 2015 record of spending $13 billion on digital ads by $2 billion, racking up an impressive $16 billion in digital ad spend this year.

That’s the good news. The even better news is that these trends are only getting started. e-marketers 2016 predictions forecast digital spending increasing still further to a massive 23 billion by 2020, as you can see from the chart below.

Separate data from CMO survey also confirms this big shift to digital. Their data shows consistent double digital rises in digital ad spend since 2012. This is showing no sign of slowing down, with a healthy 13.2% digital budget increase for 2016.

Spend is increasing, but is knowledge?

With big increases in marketing budgets, you’d think it would be reasonable to expect increased levels of skills among marketers managing the spend. However, data from CMO survey shows no discernable trend in increased marketing excellence. In fact, things remain pretty much stagnant.

CMOs consistently rate their companies as about average, or just a bit above. This is either because CMOs are dedicatedly honest, or because they aren’t seeing the level of increase in marketing skills they’d like to within their organisations. To combat this, companies need to invest in skills and training.

Digital gets better ROI

Although there is no evidence that marketing excellence is increasing, digital is still looking like a good bet.

A survey of 200 US retail marketing executives with the power to make budget allocation decisions shows their views on whether digital or offline channels give greater ROI. Over three quarters reported that digital channels gave them better ROI in 2016 than offline channels.

Social Media spending to increase

Social media spend is set to increase markedly in the next few years: doubling from 10% of today’s marketing budgets to 20% by 2021. B2C services leads the pack when it comes to % of marketing budget on social, with over a quarter of budget to  be dedicated to the channel in 5 years time.

But is social delivering the goods?

Social may be getting more ad budget, but is it delivering results? The answers seems to be maybe a little, but they’re not impressive. Only 3% of CMOs surveyed reported said social was contributing ‘very highly’ to the companies performance, whilst about a fifth said it wasn’t at all important to performance.

Spend follows the eyeballs in shift to mobile

We’ve seen a seismic shift to mobile over the past few years, with mobile now accounting for over half of all time spent on the web. US CMO’s report that they will more than double mobile budgets over the next 3 years. Shifting from just under 6% of current marketing spend to 14.6%. This makes sense as it’s following where users actually spend their time, but given that in 3 years time over 65% of time spent on the web may be on mobile devices, it may make sense to increase mobile budgets even more rapidly.

from Blog – Smart Insights http://www.smartinsights.com/internet-marketing-statistics/2016-us-digital-ad-spend-statistics-trends/

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How to perfect your marketing automation in time for Christmas

Automating your marketing is key in such a busy marketing period, find out how RedEye’s Head of Future email suggests it is done

Summer is long gone and the Bank Holidays have been exhausted for the year. While ‘normal’ people start to stress about when to put their central heating back on, us marketers are in full planning and panic mode. Two key events loom before us: Black Friday Weekend, and of course the run up to Christmas. It’s all become rather stressful.

With more and more focus on the few weekends left of the year before sales season takes over, it’s more crucial than ever for brands to implement perfectly executed, strategic marketing experiences for shoppers on the approach to Christmas. Brands are not only at war with their competitors, but with the expectations from previous years’ performances and their customer’s expectations (all searching for the next big bargain).

Take a little stress out of the planning by making sure you’re Automation ready…

Marketing Automation, especially if you value personalisation, will always be your best option. Not sure what to promote? Let the data speak for itself to ensure you stand out from your competitors by keeping relevance in your campaigns. Sure you can send that email about the warehouse full of 60” TVs that are going for knock down prices, but is it really the item they want to bag in a bargain browse frenzy? Probably not.

Take a leaf out of the classic offline promotion tactics we’re all familiar with but take for granted. If you want your customers to buy more, waft the hypothetic smell of freshly baked bread throughout the store or make sure they pass by the sweets on the way to the checkout. It’s the same with online. You should push those items you want to promote, but give your customers something irresistible. And to make it irresistible base it on their basket or browser behaviour. Your Black Friday emails can contain everything from their last abandoned basket item to the pages your customers were viewing in anticipation of this special weekend. If they are a VIP, let them know you know how loyal they are. If they are a new customer or eager prospect, make sure you recognise this and deliver the goods – and when I say goods I mean the right content!

The stats don’t lie, one research outlet found that relevant emails drive 18 times more revenue than broadcast emails.

It’s also a great time to reactivate some sleepy customers. Take a look at your data. Who was active last year but has disappeared? ‘We miss you’ messages no longer cut it with this segment, so throw them a lifeline. As more Black Friday and Christmas customers move to online, send them some teasers before the event. Get them re-interested and re-engaged. Allow them to share the anticipation via social.

It’s not just the before that matters either – your marketing activity around these events must contain a secondary message, for as they say, ‘the fortune is in the follow up’. Today, you don’t need reams and reams of new content either; send the follow up and change the subject line according to response, gender, customer or prospect. Or change the hero image in the same vain. Using a multi-channel platform will enable quick and easy follow up campaigns using no extra resource or cost during this hectic time.

Most emails are toast after 24 hours. If you haven’t heard back by then, reach out again. Follow up emails are worth the effort. Research has shown that you have a 21% chance of getting a reply to your second email if the first goes unanswered. Experian has also found that remarketing can generate 54% increase in revenues, driven by a follow up email.

And what of your email content? Are you going to splash out on a countdown clock (yawn!) to create some drama and urgency? If so, you will be joining all your other competitors who also believe they will get ahead of the game by counting down to the ‘big event’. While I like to see an animated clock like everyone else, automated agile content can do so much more for you during these months. Add in some video content that will stream inside the email or send an email with a live poll and ask your recipients what they want to see and actively listen to what they want to experience. All in the touch of a button. Add in a slideshow with unique URLs or use some clever personalised imagery. Yes, by all means use a countdown clock if you have to. But how about etching the recipient’s name onto that big screen TV you want to push? Or including a live map displaying their nearest store? Wherever they are.

Automation is key in this marketing quarter. Whether you decide to use dynamic content, agile content, teaser or follow up emails, the most cost-efficient and resource-efficient way to get the most out of marketing online during this time is to be 100% automation ready.

After nine years at RedEye, Danni claims to love all aspects of digital marketing but secretly favours the email channel. Her goal: create the ultimate optimised message for clients. Danni brings oodles of personality to her blogs, identifying topics which are current, and adding a healthy dose of humour to the mix. Enjoy.

from Blog – Smart Insights http://www.smartinsights.com/lead-generation/marketing-automation/how-to-perfect-your-marketing-automation-in-time-for-christmas/

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The Winners and Losers in the Battle of Black Friday

The key trends emerging from this year’s Black Friday marketing campaigns

Total consumer spending on Black Friday has consistently increased over the past few years, to reach heights so dizzying that many retail businesses have realized they can’t afford not to get involved. Over 80% of retailers plan to participate in Black Friday, and it has become an E-commerce phenomenon. This year for the first time ever Black Friday E-commerces sales are set to outpace in-store sales for the first time ever. Many retailers, such as AO.com in the UK are now running campaigns over a full week, or in Amazon’s case, several weeks. Yet, despite the hype, some retailers who have reviewed the profitability of their Black Friday campaigns, or rather lack of it, have decided to stop their campaigns in favour of other tactics where they can get more impact at higher margins.

The infographic below provides some interesting background to the Black Friday phenomenon.

from Blog – Smart Insights http://www.smartinsights.com/ecommerce/winners-losers-battle-black-friday/

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