ADVERTISING TRAVEL PRODUCTS TO MULTI-SCREEN CONSUMERS. A UK Travel white paper November 2012
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1 ADVERTISING TRAVEL PRODUCTS TO MULTI-SCREEN CONSUMERS A UK Travel white paper November 2012
2 THE UNITED KINGDOM - A NATION OF MULTI-SCREENERS With the spread and evolution of mobile devices, be prepared for significant changes in consumer behaviour Jonas Vang Gregersen, Senior Industry Analyst, vang@google.com Insight Facts Opportunities/ Actions Travel research is a multiscreen process Users conduct similar searches across devices Leisure destinations are researched on tablets and desktop Business destinations are researched on smartphones Tablets are our couch companions Last-minute queries has gone mobile 65% of UK internet users go online via more than one device UK users are just as likely to type a brand or generic query string on a mobile device as on a desktop computer 20% of queries related to leisure destinations are made on tablets (versus 12% on smartphones) Users show a higher propensity towards smartphone usage, when they research (predominant) business destinations 89% of tablet owners use their device while watching TV Tablet owners tend to use their devices at home and with an exploratory and leisurely approach Up to 40% of all last-minute queries in the UK are made on a mobile device Align marketing to reflect consumers media touch points Ensure full keyword coverage across all devices Leverage best-practice in regards to keyword match types from desktop search campaigns to mobile Ensure visibility and full coverage for campaigns targeted towards tablets Prioritise tablet campaigns for leisure destinations and tailor ad copy to the consumer s search mode Tailor messaging to accommodate the consumer need for quick and immediate access Prioritise separate mobile campaigns for business destinations Emphasise central venue locations and other business focused value propositions in ad copy Engage with target audience in a way that reflects the research mode Trial Mobile GDN and AdMob rich media in order to inspire the user. Consult an AdWords representative on available options and strategy Align TV advertising with online strategy to pick up on the online traffic coming from offline Specifically target last-minute consumers by allowing for quick and easy booking Ensure late/last-minute keywords are opted into smartphone targeted campaigns to take advantage of same-day booking trend via mobile devices Test site mobile-friendliness on HowToGoMo.com 2
3 ADVERTISING TRAVEL PRODUCTS TO MULTI-SCREEN CONSUMERS More and more people are buying and using mobile devices 1. Already, more than 20% of travel related searches are made on mobile devices and an ever-increasing proportion of travel purchases are conducted via apps and on mobile sites. The mobile opportunity is huge, but so are the challenges. Many travel companies are struggling with the speed of change in the mobile sector and in assessing the scale of the mobile opportunity, in deciding when and how much to invest in mobile, and whether to build mobile optimized sites and/or apps. The travel path to purchase is becoming increasingly complex in a multi-screen world, where customers jump not only from site to site but also from device to device in their online travelpurchasing journey. In this paper we reveal some new data points, trends and insights that may help you shape and assess your mobile strategies for travel. For the UK consumer in 2012, the core facts are: 51% of UK online consumers have accessed the internet via a smartphone 31% have purchased a product or service on their smartphones 29% have searched for travel related products or services on their smartphones 73% have used a search engine via smartphone to find the information they need 2 Travel-related query volume by device (UK only) Mobile is BIG and we need to take it seriously as a sales and advertising platform. But the question still remains of how much to invest in Mobile and how to position it in the overall media mix? 1 When referring to mobile devices we include both smartphones and tablets/pads in this category September
4 1. THE UNITED KINGDOM - A NATION OF MULTI-SCREENERS There has been a tendency to perceive Mobile as 'just-another-sales channel' rather than a driver of change in consumer behavior. Understanding the underlying behavioural patterns in this evolution can potentially present an opportunity for travel advertisers to target accurately and serve the needs of very specific consumer segments. With the spread and evolution of mobile devices, we now have access to digital content via a screen throughout our day. In the UK 65% of all Internet users go online via more than one device 3. The device we choose at any given moment to satisfy our information needs is motivated by our use context: where we are (location), what we want to accomplish (goal) and the amount of time we have. We use desktop computers to stay productive and informed. Use contexts are either at home or work for productive and task oriented goals, which requires time and focus to research intensively Smartphones can be used everywhere often on the move - to communicate and stay connected for short bursts of time and for immediate and quick access to digital content Tablets are used to inform and entertain ourselves, primarily at home with a generally more leisurely and relaxed approach Consumers today own multiple devices and move seamlessly between these devices throughout the day to accomplish their tasks and information needs. 2. TRAVEL (RE)SEARCH IN A MULTI-SCREEN WORLD Search engines are among the most widely used gateways for accessing digital content across all devices, as they provide a flexible way to browse the Internet. According to 86% of UK consumers who purchased a travel product or service used a search engine at some point during their research process. For search behaviour it makes sense to distinguish between 'lean-forward' and 'lean-backwards' search, where the first refers to the searching we generally perform on desktop computers and smartphones and the latter to the kind of exploratory search we tend to perform on tablets. For travel advertisers, an understanding of the underlying behavioural patterns in search usage across devices is essential in order to engage with consumers on all possible media touch points throughout the day. Search on mobile resembles desktop search In terms of WHAT users search for across devices, Google query data shows that UK users are just as likely to type in brand and generic queries on both desktop and mobile devices, and when it comes to holiday and accommodation types, the pattern seems to be the same. The trend reflects the sequential use pattern between devices: I might research accommodation offerings for my holiday in Rome on a tablet, but I book the hotel room the day after on my work computer and then look up the hotel address on my smartphone on my way to the hotel from the airport. 3 IAB Europe, Mediascope Europe study, July
5 Query length for travel related queries (September 2012, UK only) Whereas a few years ago there was a distinct difference in the average length of queries on mobile devices versus desktops, this difference has reduced over time so that the average query length is now almost the same across devices. However, the context of the search in terms of time, location and intent can often vary significantly by device/ screen. % of total search volume from a mobile device (UK only) Queries related to last-minute travel For certain kinds of travel product, the nature of the consumer's needs is reflected in the kind of device predominantly used for search. Searches for last-minute travel products and services saw a notable lift in smartphone queries this summer 41% of queries for lastminute flights were performed on smartphones, 33% for accommodation and 26% for package holidays. 5
6 3. DECIDING ON A DESTINATION IS A MULTI-SCREEN PROCESS Destination research plays an important part of the travel decision-making process. For example, 53% of people who booked a hotel room online looked at an online travel guide site before making their booking, and 67% looked at a map site beforehand 4. In most cases we decide on a destination and then move on to book our mode of transportation followed by accommodation. We recently analysed what devices people were using to perform their research about particular travel destinations. We reviewed the top 10 domestic destinations and the top 10 international destinations based on query volume among UK users in Q We found that in September 2012, 21% of all UK travel queries were performed on a mobile device, but for key destinations, 28% of queries are mobile broadly equally split between smartphones and tablets. % of total search volume by search device (UK only, Q2 2012) Queries related to key travel destinations % of total search volume by search device and destination type (UK only, Q2 2012) Queries related to key travel destinations Queries for domestic destinations are equally searched for on smartphones (13%) and tablets (13%), but international destinations are predominantly searched for on tablets (20%). 4 Source: Nielsen/ Google online customer journey study
7 When we reviewed the figures for international destinations, we found that smartphones and tablets were used for researching a wide variety of resorts and destinations. Interestingly, the highest % queries on mobile devices were for Benidorm with 20% of searches conducted on smartphones and a further 25% on tablets, suggesting that mobile devices are increasingly being used not just for business travel and high-end destinations but also for popular, lower price point destinations. If you are operating in these areas and are not yet optimized for mobile, you may be losing out on sales if you do not make it easy for users to search and book on their preferred devices. Key 10 international destinations for the UK Within the UK, London had the highest proportion of mobile searches, with tablets leading the way whereas for more business-focused destinations like Cardiff and Dublin, smartphone queries dominated. Key 10 domestic destinations for the UK Leisure and (predominantly) business destinations show different trends in device usage, which is worth investigating in more detail. 7
8 LEISURE HOLIDAYS When we travel outside of work, we tend to spend more time on the planning and research stages of the decision process. We look for inspiration about where to travel and like to see pictures and videos, use maps, and read reviews as part of the decision making process. We allocate time to do this and follow an exploratory and relatively relaxed approach in our information gathering - usually at home. This search mode is what we previously described as lean backwards search, which characterises the context in which tablets owners tend to use their devices. BUSINESS TRAVEL When travelling for work, we usually know where we are going and the duration of travel, we will be staying at the destination (as well as the budget). Planning business travel therefore most often is focused on specific tasks like finding accommodation and flights within a budget cap and close to the office or venue. Our travel research is goal oriented and productive and the use context is most often within working hours. This is what we refer to as lean forward search. Mobile sites are the preferred gateways for booking accommodation for both leisure and business travellers, as you do not have to install an app, when you are just looking for accommodation. If we return to the findings from the destination analysis, a clearer picture starts to emerge. A total of 32% of queries for international destinations are mobile, 26% for domestic destinations. Tablets are widely used for leisure destination research, which seems to support our assumption that this is something we do in the comfort of our home in a leaned back position on our sofas. Business travellers tend to use smartphones more than the average traveller due to the on-the-move aspect of their work life 5. It allows for quick and immediate access to digital content, when it is needed. 5 * PhoCusWright: Mobile Hits The Mainstream, January 2012: 73% of US business travellers own a smartphone versus 52% of US leisure travellers 8
9 For predominantly business destinations like Cardiff, Birmingham and Manchester the majority of mobile queries are made on a smartphone rather than a tablet. London, Edinburgh and York are both leisure and business destinations with a relatively higher propensity towards tablet queries. So what have we learned? With the emergence of a broad array of devices, with which we access the internet throughout our day, our use pattern seem to vary by the use context we are in, when the information need arises. Marketers can potentially benefit from this by aligning marketing activities to reflect where the users are (location), what they want to accomplish (goal) and the amount of time they have. 4. TARGETING MULTI-SCREEN TRAVEL CONSUMERS Response marketing in the digital realm is all about serving the right message at the right moment in a digestible format to your target audience. As the number of devices proliferates, advertisers need to consider which devices their consumers prefer to engage with and target their ads accordingly to the most popular devices used by their particular consumer segment. They must then decide how to target the adverts to those devices (search, display, video, keyword contextual targeted, etc.) The speed with which UK consumers have gone mobile has surprised many advertisers. This is perhaps reflected in the fact that the travel industry distributes a disproportionate share of ad impressions towards desktop compared to mobile devices as the diagram, below, shows. There is a 16% gap between queries and impressions. On top of distribution, travel advertisers need to ensure that the messaging is tailored to the (re-)search mode the consumer is in throughout the day. Lean-back search For consumers who are in an exploratory search mode, advertisers can benefit from making content accessible which is engaging and informs about the destination and the products and services on offer. The format is a mix of text/maps but not least rich media like videos and pictures that allow the consumer to get a first hand view of the destination or product. Hotels could potentially showcase their rooms by allowing the user to take a virtual tour and inspect the bathroom and window view. Tour operators could offer to engage travellers via videoconference with their travel representatives on the ground in the resorts for which the consumer has shown interest. 9
10 Car rental companies could provide a 3D tour of available car models, so the client knows, prior to booking, which car is best suited for three children in the back seat. The possibilities are endless. Lean-forward search We usually perform this mode of search on smartphones and desktop computers. It is a task oriented and productive mode of search, and we expect the digital content we engage with to fulfill our needs seamlessly. When targeting smartphones, advertisers should allow for quick and immediate access to information and services. This requires highly tailored messaging and a thorough understanding of the target audience. For business travellers on the move and in the need of last-minute flights, the booking should be achieved with as few clicks as possible. Marketing targeted towards desktop computers should include all of the recommendations outlined above, since 35% of UK Internet users still only go online via their desktop machines OVERALL CONCLUSIONS The shift from desktop-only towards the use of multiple devices to access the Internet has radically changed how consumers engage with digital content and when they choose to do it. It is no longer an activity we solely conduct either at home or our work via a desktop computer, but is something which now also happens on the train, bus, in a café with friends, everywhere possible. In this whitepaper we have seen evidence that usage behavior varies by device, which in turn has made the travel-purchasing process highly complex and therefore challenging for advertisers to fully grasp and benefit from. The only common denominator across all devices is that we, as users, expect to have our needs for information and services fulfilled immediately in a seamless and intuitive way. Travel advertisers must meet these expectations in order for their multi-platform strategies to become successful. Our destination study shows that 1 out 4 destination searches is made on a tablet or smartphone, but that the travel industry in general dis-proportionately targets desktop by up to 16%.. The study also indicated a propensity towards tablet usage for leisure destinations and towards smartphones for business destinations. All of these findings reflect opportunities for travel companies to benefit from. 6 IAB Europe, Mediascope Europe study, July
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