Professional Documents
Culture Documents
7 Digital Advertising Trends For The Travel Industry in 2020
7 Digital Advertising Trends For The Travel Industry in 2020
7 Digital Advertising Trends For The Travel Industry in 2020
Advertising Trends
for the Travel
Industry in 2020
Presented by
Naxos, Greece
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 2
Executive Summary
The past decade has been a period of dynamic In this report, Sojern and Skift examine seven trends
change for digital advertising in the travel industry. that will shape digital advertising in the travel
Consumers have adopted smartphones at a rapid industry in 2020, offering a roadmap to the most
pace, putting mobile and cross-device campaigns important strategies, ad formats, and techniques
at the center of industry ad strategies. Meanwhile a marketers will need to embrace in the year ahead.
growing trend toward automation and algorithm- The seven trends we’ll focus on are as follows:
driven techniques like programmatic advertising
is remaking the entire process of how marketing 1. Personalization, Loyalty, and
campaigns are planned and managed. On top of the Traveler Data Dilemma
all this, a continuously growing universe of new
2. Industry Gets More Sophisticated
ad formats like social, connected TV, and more are
with Social Advertising
forcing industry executives to make hard decisions
about where to allocate limited ad budgets. 3. Travel Advertisers
Prioritize Creativity
Each of these changes is creating new challenges, as
well as opportunities, for travel industry marketers. 4. TV and Video’s
How should the industry use the growing wealth Advertising Convergence
of information it now has about traveler habits to
5. Automation Takes Over Ad Buying
better understand and target customers while
simultaneously delivering more relevant products? 6. Multichannel and the Continuous,
What’s the best way for marketers to stay ahead Always-On Marketing Strategy
of continuous changes in travel shopping habits?
7. Privacy Comes to the Fore of
Which ad formats and buying techniques will yield
the highest return on investment? the Advertising Debate
Table of contents
Introduction 5
Conclusion 26
Skift is the largest industry intelligence platform Vice President, SkiftX / Katherine Townsend
providing media, insights, and marketing to key Director of Creative Strategy, SkiftX / Matt Heidkamp
sectors of travel. Skift deciphers and defines trends Research Editor, SkiftX / Jeremy Kressmann
for global CEOs and CMOs across travel, dining, and Editorial Strategist, SkiftX / Paul Brady
wellness sectors through a combination of news, Editor, SkiftX / Alison McCarthy
research, conferences, and marketing services. Strategist, SkiftX / Sonali Sen
Associate Brand Strategist, SkiftX / Dawn Rzeznikiewicz
Project Manager, SkiftX / Gianna Greco
About SkiftX
Video Producer, SkiftX / Jose Marmolejos
Designer / Andrea Yang-Yanez
SkiftX is Skift’s in-house content studio. SkiftX
produced this report in partnership with Sojern.
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 4
Executive LETTER
Remember when movies portrayed 2020 as
something far-off and futuristic? Well, now it’s
just around the corner and, while it may not be
the future described by Hollywood, things have
definitely changed. In less than 25 years, the world
wide web was born, Google and Facebook forever
changed the game, and OTAs have risen f rom
nothing to near-dominance. The modern digital
consumer now shops for travel 24 hours a day, 7 days
a week, 365 days a year—from their smartphones…
and their laptops and their tablets. And f inally,
marketing has blended with data science, allowing
brands to effectively reach travelers with custom,
personalized messaging.
Introduction
Over the past 10 years, the travel industry’s marketing Which ad formats and buying techniques will yield
ecosystem has seen unprecedented change. This the highest return on investment?
includes shifts in consumer behavior caused by the
proliferation of mobile, a significant evolution in The financial consequences of how travel firms
ad-buying techniques and formats, and a growing respond couldn’t be higher. The travel industry is
trend toward marketing automation. Each of these expected to spend $9.81 billion on digital advertising
digital innovations has opened up new opportunities, globally in 2019, according to eMarketer. This aligns
as well as some new challenges, for the industry. with the conclusions from Sojern’s 2019 Digital
State of the Industry Report, which found that travel
But as this ecosystem continues to mature, a marketers allocated 47 percent of their ad budgets
number of questions about how to respond to it are to digital in 2018 and two-thirds planned to spend
now emerging. How should the industry use the even more on it this year. To stay competitive, it is
wealth of information we now have on traveler habits imperative that marketers understand the evolving
to better understand and target customers while trends and technical capabilities across digital so
simultaneously delivering more relevant products? they can make smart decisions about how to deploy
What’s the best way for marketers to stay ahead that spend for maximum impact.
of continuous changes in travel shopping habits?
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 7
This report looks at some of the opportunities, In this report, Sojern and Skift examine seven trends
challenges, and emerging best practices offered by shaping digital advertising in the travel industry
the current digital marketing landscape. A few larger in 2020, offering a roadmap to the most important
themes emerge. strategies, ad formats, and techniques marketers will
need to know in the year ahead. The seven trends
The first is that today’s travel consumers are we’ll focus on are as follows:
increasingly screen agnostic, choosing to complete
a variety of shopping tasks across devices, browsing
1. Personalization, Loyalty, and
sessions, and trip occasions. This presents marketers
the Traveler Data Dilemma
with a new challenge: It’s still surprisingly difficult to
track and target customers effectively across those
screens and buying sessions. That said, cross-device 2. Industry Gets More Sophisticated
campaigns and re-targeting are becoming par for the with Social Advertising
course as marketers try to keep up with consumers’
complicated paths to purchase. 3. Travel Advertisers
Prioritize Creativity
In addition, more stringent rules about privacy
and data protection are further complicating how 4. TV and Video’s
marketers use what they know about customers to
Advertising Convergence
deliver more tailored interactions and advertising. The
struggle lies in balancing privacy with personalization,
5. Automation Takes
which consumers increasingly expect from all
businesses operating online. On top of all this, new Over Ad Buying
laws such as the European Union’s General Data
Protection Regulation (GDPR) complicate decisions 6. Multichannel and the Continuous,
about the methods marketers use to collect and Always-On Marketing Strategy
protect personal information and consumer data.
7. Privacy Comes to the Fore
Meanwhile, digital travel ad formats and buying
of the Advertising Debate
techniques continue to evolve. As marketers head
into 2020, they should be prepared for the surprising
resurgence of spending on brand-building formats
like television ads, which are gaining new interest
thanks to the new digital-style targeting strategies,
the advancing complexity of social media and online
video, and the ongoing growth of automated, real-
time ad-buying methods such as programmatic.
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 8
Today’s digital marketing ecosystem offers marketers sophisticated in their personalization efforts, using
more opportunities than ever to personalize nearly what they know about travelers to continuously refine
all aspects of the travel buying experience, whether how they collect and deploy this type of marketing
those are offers, advertising, products or messaging. personalization to serve their business objectives.
Best of all, a growing body of research suggests
that travel consumers increasingly want and expect The consumer perspective on personalized targeting
these types of customized travel interactions from is clear: The modern traveler increasingly expects —
their favorite brands. However, it’s increasingly and wants — their interactions with travel brands
important that personalization is done in a way to be personalized. Consider the results of a recent
that is thoughtful, respectful of a user’s privacy, and survey by Epsilon, in which 75 percent of respondents
contextually relevant. Otherwise it runs the risk of said that they think “it is very cool when they receive
backfiring, potentially hurting a brand’s reputation. personalized offers” and 68 percent said they believe
it’s worth sharing personal information in exchange
That’s why a key objective for many travel brands for offers, discounts and product recommendations.
in 2020 will be figuring out ways to get more Very closely connected to the idea of personalization
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 9
Source: “The power of me: The impact of personalization on marketing performance,” Epsilon, 2018
in the travel industry are loyalty programs, which More critically, not personalizing content can
are an important vehicle for brands to deliver the backfire. In a 2019 Infogroup study on personalization,
bespoke experiences travelers now demand. Today’s 90 percent of respondents called messaging from
most forward-thinking travel brands go well beyond companies that is not personally relevant “annoying.”
points accruals and use loyalty programs as a Further, 40 percent said they would be willing to
customer relationship tool, allowing them to develop switch to brands with more effective personalization
a more sophisticated understanding of a consumer’s in their marketing communications.
needs at any given moment.
Kurt Weinsheimer, chief solutions officer at Sojern, “You can combine loyalty data with
offers the example of a hotelier who uses data to behavioral data gathered from the
personalize his or her offers and in-destination trip-planning process to provide custom,
experiences. Let’s say a loyal customer is running unique and meaningful experiences.”
three hours late to check in. The hotel could send a
text reassuring the customer that their room is being
held, maybe even have their favorite drink on hand. “It is increasingly important to incorporate
“You can combine loyalty data with behavioral data personalization in marketing strategies. The risk in
gathered from the trip-planning process to provide not doing so is annoying consumers who are starting
custom, unique and meaningful experiences,” to expect more personalization,” said Susan Borst,
Weinsheimer said. “The best travel brands are already vice president of the Mobile Marketing Center of
working with partners to use data and technology in Excellence at the Interactive Advertising Bureau (IAB),
this way.” a trade group that represents the digital advertising
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 10
industry. “The key to success is to figure out how “There’s enough data. However, I think figuring out
to personalize without being creepy, based on the how to use it the right way is the tricky part,” said
information the customer has previously supplied.” Adam Kasper, executive vice president and managing
director of iProspect, a digital performance marketing
The “creepy” factor hints at the challenge in agency that works with a number of leading travel
executing personalized campaigns, which can be brands. “It’s still very much in development, having
quite complex. In 2018, 46 percent of travel industry a robust understanding of who customers are and
marketers listed their top challenge as “delivering what their preferences are.”
personalized ads and offers in real-time.”
For a traveler planning to visit a destination like
One challenge is balancing personalization with Mexico City, serving an ad about a hotel is
privacy to ensure compliance with the latest straightforward. But the marketer still lacks enough
regulations — and to ensure the level of individual information to determine whether that traveler
messaging is appropriate to the channel in which it is searching for the destination for a personal or
is received. For example, travelers may expect brands business trip, how many people are going, and
to execute a deeper level of personalization within an what kinds of activities they plan to do once they
email as compared to a display ad. Another challenge arrive. Kasper said marketers are often dealing with
is personalizing effectively when campaigns are incomplete information that makes it hard to “really
executed in multiple formats and across many determine intent at any granular level.”
channels and platforms.
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 11
In 2020, social media will continue to evolve for travel that 68 percent of millennials get travel ideas from
marketers. But instead of just being perceived as just the social network, and that 60 percent do the same
a brand-building tool or a place to engage customers, on Instagram.
social media’s role is starting to transform into a
powerful driver of travel e-commerce as well, offering Now, marketers are seizing on the growing
different ways to sell directly to users and increase sophistication of social ad-targeting tools by directing
the return on investment. Several social platforms, greater portions of their spend into the channel.
including Instagram, Pinterest, and Snapchat, have Social media advertising hit $29 billion in 2018, 30
developed creative ways for marketers to use content percent more than in the year before, according to a
as a way of selling products — now you can swipe right report by the IAB and PricewaterhouseCoopers. “Paid
on a photo of a tropical resort to make a booking. social is the name of the game for distribution of ads
and content, as organic reach and engagement is
This new paradigm matches a similar shift in how difficult to achieve with most social media platform
consumers use social content and advertising to algorithms,” said the IAB’s Borst.
inform their purchase decisions. Facebook estimates
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 13
This broader trend applies to the travel industry as Facebook campaigns, from photos to call-to-action,
well. Social made up the largest share of digital to see where our audiences are interacting with us.”
ad spend for travel marketers and brands in 2018,
comprising 31 percent for small advertisers, 22 Facebook Travel Ads (previously called Dynamic Ads
percent for mid-size ones, and 18 percent for large for Travel) and Facebook Stories in particular saw
advertisers, according to Sojern’s “State of the Travel some of the biggest growth among travel marketers
Industry” report. Fifty-five percent of respondents in the Sojern study, which noted that more than half
also planned to increase their spend on Facebook of travel marketers planned to use these solutions
and Instagram this year. — as well as Instagram ads and Stories — in 2019.
Snapchat, Pinterest, and Twitter were also popular.
“Facebook is important because of the size and scale One in three travel marketers planned to leverage
— you just can’t beat their audience. And because Snapchat and Pinterest ads in 2019.
consumers are on the platform to think about and
aspire to travel, you have to be there,” said Choice The interest in all things social doesn’t stop at these
Hotels International marketing executive Brent platforms. In fact, iProspect’s Richter also notes that
Bouldin. “Our team is testing every aspect of our Twitter has shown strong performance in driving
How travel marketers are using and anticipating using social ads
Used in 2018 Plan on using in 2019 Don’t currently use or plan on using Not familiar
80%
70%
60%
50%
40%
30%
20%
10%
traffic, bookings, and brand lift for iProspect’s travel “There isn’t a KPI that they cannot, at some scale or
clients. “Travel is one of the few verticals where we other, address,” he said, listing off a few: video views,
see actual performance from Twitter.” brand metrics, lower-funnel conversion metrics. “It’s
scale, it’s targeting, it’s diversity of formats. [Social]
Sojern’s report also notes that Facebook and provides a lot of different ways in for brands.”
Instagram dominate because they continue to
innovate with new ad products and enhancements
for marketers. Facebook, for example, offers “Travel is one of the few verticals where
audience-targeting options within destinations, we see actual performance from Twitter.”
hotels and flights. Its travel ads for retargeting
draw availability and pricing from marketers’ sites,
presenting the most relevant products based on Another trend Silver has noticed is that social
what interests the user. Facebook also continues platforms such as Facebook are working together
to hold an advantage in reach, brand awareness, more with brands, creative agencies, and certified
and personalization, according to the study, while Facebook Marketing Partners to share ideas and
Instagram is seen as a better way to showcase a best practices for how to improve the performance
property or a travel experience because of its visual of social campaigns. “We’re trying to facilitate more
nature. Richter also said the Stories features on connection between creative agencies and Facebook
Instagram and Facebook Travel Ads have both shown and the social platforms,” he said.
strong performance for clients.
By working hand-in-hand with social media
companies and their marketing partners earlier in
the creative process, travel marketers can ensure that
“Facebook and Instagram dominate
their campaigns reach the right audiences with the
because they continue to innovate
right message at the right time.
with new ad products and
enhancements for marketers.”
The growing importance of social platforms isn’t just of creative, and the intersection of the media and
affecting where ad dollars get spent. It’s also forcing creative so that the agency [or] publisher ... has more
an overall increase in the quality and creativity of time to build optimized creative for the platform, as
ad campaigns on such platforms. User attention opposed to scrambling at the end.”
spans are short, and the competition for eyeballs,
particularly on social media, is unprecedented. While the travel industry has often focused its
Facebook estimates that users spend 2.5 seconds on marketing efforts in the past on digital formats like
a piece of content when browsing the social platform search and display, the growth of social strategies
on a desktop and just 1.7 seconds when doing so (and more avenues to showcase their offerings) is
on their phones. That means travel brands need to prompting travel marketers to be more artful in their
make a quick impression or, in the face of all the approach. The most common way of doing this is
eye-catching images competitors are posting, risk by using higher-quality images. But it also involves
missing their performance goals. using creative that’s designed specif ically for the
social platform or channel where it will run.
“There’s definitely more thought being given upfront
to creative,” said Silver, of Publicis Media. “We’re Consider, for example, the rise of the Stories format
trying to get more upstream with the planning on Facebook, Instagram, and Snapchat, a recent
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 16
The decline of television audiences will continue to because, unlike TV, it increasingly allows them to track
be a key challenge for travel marketers in 2020 and performance and provide new layers of interactivity.
beyond. But even as advertisers adjust their media
budgets and targeting for this post-TV era, new TV- “If we really want someone to click the site so we can
like advertising opportunities are emerging, part of a nurture them, it’s going to have to be digital,” said
growing convergence between traditional television iProspect’s Richter. “Whereas if … exposure to it is
and online video ad formats. enough, then we might want to go the TV route.”
The shift is largely due to changes in consumer Video is a compelling and immersive medium for
behavior, as how and why consumers watch television marketers to share the experience of travel. It’s also
content evolves. Consider a recent infographic from extremely popular with a broad base of consumers,
Sojern, which cited data suggesting that half of pay- considering the average American consumes 10.5
TV viewers under the age of 32 will “cut the cord” by hours of media daily, per Nielsen. That includes
2025, and that 67.5 percent of Internet users around linear television and all the digital ways to consume
the world will be watching digital video by 2021. video — including over-the-top video services, TV
The initial takeaway from these results may seem everywhere, linear addressable TV, and video-on-
troubling. But this rising consumption of digital demand addressable TV.
video is ultimately a good thing for travel marketers
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 19
Marketers have to adjust to this multiplatform, multi- The platform brings together the best of the TV and
device world by tailoring video to suit the way it is digital worlds by offering the scale of traditional TV
consumed, rather than focusing on the medium. The with the precision targeting once associated only
notion of investing in “advanced TV,” the IAB’s term with digital. According to stats shared by Sojern,
for all the ways video is consumed digitally, is gaining connected TV has a 95 percent completion rate,
traction. A report by the IAB found that, in April, 26 percent stronger “attentiveness level,” and is 67
59 percent of ad buyers planned to increase their percent more effective than traditional TV.
advanced TV spend in the next 12 months, with half
expecting increases in over-the-top (OTT) budgets, Perhaps even more interesting is that more ad
referring to advertising integrated within TV and film platforms are now starting to test programmatic ads
content streamed over the internet. for connected TV. According to Sojern’s Weinsheimer,
this new ad technology is a “…a game changer,
offering the precision targeting of digital, lower CPMs,
“Marketers have to adjust to this and more flexiblity to utilize shorter-duration creative
multiplatform, multi-device world within TVs traditional premium environment.” As
by tailoring video to suit the way an additional benefit, the technology will likely help
it is consumed, rather than focusing advertisers to better reach cord-cutting audience
on the medium.” segments like Gen Z and millennials.
The single most transformative use of automation to $65.6 billion by next year, representing 86 percent
in digital advertising is programmatic buying. Today, of all digital display advertising.
the technique, which refers to the use of software
algorithms instead of humans to make ad buys, is While it has made its mark primarily in display
making advertising more real-time than ever, helping advertising, programmatic is also becoming a more
encourage marketers to shift from more sporadic, common strategy for other formats, like video.
campaign-style approaches to a more continuous By 2020, programmatic video is expected to
advertising strategy. It’s also helping advertisers to account for 83 percent of all US video ad spend,
better optimize and tweak their campaigns as they representing a 171 percent rise from two years prior,
progress, helping to improve their effectiveness. according to Sojern.
Automation is also making it easier than ever for
marketers to reach audiences anywhere online — “One of the exciting things about programmatic
including search listings, social media platforms, and advertising ... is that it’s moved from the old days
mobile — with content that is relevant in real time. where you blindly targeted against travel content,
to where you can actually target travelers when
In 2018, an estimated $46.6 billion went towards they’re ready to book,” Weinsheimer said. “This
programmatic display advertising in the US, makes sure that your money is being spent efficiently
according to eMarketer. That figure is expected to rise and effectively.”
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 21
Another big advantage of programmatic is that it “You used to evaluate media plans on a quarterly
levels the field of play so that smaller brands can get basis, and then it was monthly, and then it was weekly,
the most out of their spend, said Lina Ang, general and then it was daily. Now it’s real-time,” Mark Rabe,
manager of Asia Pacific for Sojern. Sojern CEO, said at the Skift Tech Forum last year.
“Pretty soon, you get into the self-optimizing loops
where AI just takes over. You say, ‘Solve this problem
“You used to evaluate media plans on a for me. I want to sell as many airline tickets as I can
over the next month: ‘Take over.’”
quarterly basis, and then it was monthly,
and then it was weekly, and then it was
This trend will also improve how marketers measure
daily. Now it’s real-time.”
campaign success. “Even though our industry looks
at clicks and other proxy measures as standards,
when you apply AI and machine learning to that, you
“Small hotels who could never afford to hire an entire realize they have very little to do with that outcome,”
marketing department and creative agency can tap Jack Smith, chief product officer at GroupM, North
into a technology partner like Sojern to automate America, said at the 2018 Nielsen Consumer 360
their audience targeting and dynamic ad creation,” event. “AI can help trace the actual moment when a
she said. traveler is inspired to take action or make a purchase,
which may have nothing to do with a click.”
When programmatic is then paired with artificial
intelligence, a technology that helps marketers
identify hidden patterns in their ad campaigns and “Small hotels who could never afford to
then optimize according to the suggestions, it allows hire an entire marketing department
advertisers in the travel sector to access even more and creative agency can tap into a
efficiencies. As the feedback loop between digital ad technology partner like Sojern to
planning and optimization gets shorter and shorter, automate their audience targeting
more marketers in travel will increasingly rely on AI
and dynamic ad creation.”
tools to help them manage their campaigns.
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 22
The way travelers plan trips has fundamentally they provide. That’s not to say that marketers should
changed. Whereas in the past travel marketers were stop planning campaigns such as a winter getaway
able to easily predict when most people would be promotion — far f rom it. Instead, the always-on
booking (for instance, key purchase periods like paradigm suggests they need to be more open to
holidays), today that journey is less clear. Instead, experimenting with new ways to use data to inform
many travelers are likely planning multiple trips digital advertising strategies. This means capturing
at once, using a variety of devices to research and more customer intent data outside the typical
shop at the same time, and conducting research seasons when travelers are thinking about their
throughout the entire year as they look for inspiration winter getaways and employing seasonal campaigns
for future travel. paired with a continuous marketing strategy.
In this era of the always-on, always-searching traveler, Such an approach must also encompass all the
marketers need to adopt a new, more responsive digital engagement channels travelers are using to
strategy — one that is able to sense and adapt to consider trips, whether those are mobile devices,
consumers’ demands and their varying intent signals laptops, browsing sessions at the office, or purchase
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 23
checkouts at home. This means that multichannel get ideas for what his family should do on the trip or
campaigns are now par for the course, and marketers where they might stay. All of this suggests that the
must deliver a seamless, consistent message trip-planning behavior many marketers have long
if they hope to be effective. To illustrate what such taken for granted may not be as simple as it seems.
a journey might look like for a single traveler, follow
the example of “Eric,” a typical travel consumer “Apart from the time that we are looking forward to
planning his family’s visit to an amusement park, in going on a trip, we are getting inspiration throughout
the graphic below. the year,” Cebeci said. “It’s not like I’m all of a
sudden waking up and I’m looking to go to Vietnam.
Not only is Eric changing the parameters of his trip I get that information f rom my social network,
as he goes along, he is also using his mobile and from research or contacts that I got exposed to in TV
desktop devices interchangeably as he shops for and magazines.”
options. In addition to what’s listed, he may also be
posting about his trip on social channels or browsing To keep up, marketers must reexamine their
social media pages and recommendation sites to strategies so that seasonal campaigns are not the
Eric plans his perfect family amusement park vacation from dreaming through planning to booking.
August 2 July 9
July 23 June 13–July 9
Two months after
Searches for On mobile, compares
Converts for planning starts, books
Amusement Park A Amusement Park A’s
Amusement Park B different Christmas trip
on mobile for seven-day Hotel with upper-upscale
on mobile with Amusement Park
trip on November 6 and luxury hotel brands
A on mobile
September 1 September 6–
August 6 October 1 October 1–3
Converts on mobile
Four days later, Searches for flights Searches and books
for a one-day trip to
converts for November from NYC to Orlando a car from airport
Amusement Park A
6 trip on desktop for six people for for November 6 trip
for September 4
November 6
only time of year they are engaged. A data-driven, Doing so is a bit more challenging with future
always-on approach ensures that marketers will customers, who have not yet been identif ied in
be able to pick up on early intent signals when Eric a CRM program, but several best practices have
begins planning his fall trip in spring and to be able emerged for successful execution. A travel marketer’s
to respond to those early in the process, while also approach should focus on building campaigns that
using that data to improve personalization as he integrate each of the following five principles:
moves further along the path to purchase.
1. Holistic — Campaigns must take into
“Once we’ve got them in a database account all consumer interactions with the
and they’re part of a CRM [customer brand throughout their shopping journey,
relationship management] program, not just what they buy.
we can have this ongoing conversation
2. One-to-One — Advertising customization
with them and control our message
should extend to each specific consumer,
to them in a way that we want.”
not only to broad segments of consumers
like leisure or business.
Brands should focus on creating what iProspect’s
Kasper calls a “connective experience” with 3. Always On — Marketers must always be
consumers, carrying them from the first exposure or in market rather than only at specif ic
impression of a brand all the way through to when seasonal moments, so that they can be
they book, experience the offer, and then become a ready to deliver the right message at the
repeat customer. right moment in the purchase journey.
“We’re very close to being able to understand that 4. Dynamic — Campaigns must be able to
entire customer journey,” he said. “Once we’ve adapt to changing traveler whims and trip
got them in a database and they’re part of a CRM motivations as they evolve in real-time.
[customer relationship management] program, we
can have this ongoing conversation with them and 5. Iterative — Campaigns are no longer
control our message to them in a way that we want.” static, and “set it and forget it” is not an
option. As work proceeds past launch,
smart marketers try to interpret the data
found in early results, test their original
assumptions, and then ref ine their
approach when necessary.
The implementation of the European Union’s of Publicis Media. “We’re having conversations
General Data Protection Regulation (GDPR) on like, ‘How do we drive better personalization
May 25, 2018, was a def ining moment for digital through data?’”
advertising. The law has implications for just about
any travel business with operations not only within But despite the challenges, many brands appear
the region, but also in other parts of the world to be rising to the occasion, putting in place
as well. In the US, California has passed its own safeguards to ensure they comply with these
privacy law that will be implemented next year, and new privacy standards. Consider that in the eight
other states are also discussing the possibility. This months following the implementation of the
means that compliance should be top of mind for all GDPR, the IAB Data Center of Excellence and
travel advertisers in the year ahead. Accenture Interactive found that two-thirds
of European brands actually increased their
“We’re operating in a much more restricted sort spending on programmatic adver tising, a
of way, especially with global clients when you format that demands a high degree of customer
think about what we can do in Europe,” said Silver data to function effectively. This suggests that
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 26
Conclusion
In 2020, the travel industry’s digital advertising personalization and privacy, new strategies to address
ecosystem will continue to evolve at a rapid pace. Many the convergence of ad formats like TV and video, the
of the radical changes that kicked off the industry’s rise of automated advertising, or the shift toward a
current era of digital transformation, including multichannel, always-on marketing approach, travel
the adoption of mobile devices and multichannel marketers now have the advertising strategies and
buying, rapid deployment of advertising automation tools they need to thrive.
technology, and a proliferation of new advertising
formats, have already sent shockwaves rippling It’s true that travel advertising may be more
across the travel industry. But these innovations complex than ever. And there’s no question that this
are no longer a novelty. Instead, they have quickly complexity has created new challenges for those in
become the new normal for the industry, with real the industry. But that complexity has also unlocked
business consequences for travel companies that incredible opportunities for those who know where
choose not to adapt. to look, offering unprecedented methods to target
potential buyers, highly engaging creative formats,
Despite the challenges, a growing range of solutions and radically more effective tools to make ad
are now helping travel advertisers evolve for this campaigns more measurable and successful. It’s up
new consumer era. Whether the evolution involves to those in the industry to put them into action.
an increasing need to balance the demands of
7 Digital Advertising Trends for the Travel Industry in 2020 SkifT + SOJERN 28