Social advertisement

Opinions: 

Travel Tech

Priceline CEO Darren Huston has recently commented that social media advertisement on Twitter and Facebook does not deliver satisfying results for the company. According to Bloomberg Hauser said that “for Facebook and Twitter, we have endless amounts of money, but we haven’t found anything there.” This comment is only the most recent addition to a debate over which forms of digital marketing are most effective in travel and tourism.

PRICELINE’S AD SPENDING BEHAVIOUR

With annual online marketing costs of $1.8m, Priceline is one of the biggest spenders in digital advertising. Especially for online travel agencies it is vital to generate traffic of users to drive their sales. For Priceline, Google seems to offer the best value, as up to 90% of their advertisement budget is spent on Google search ads. While social media ads are a good way to start communicating with fans and followers, and can be used to target individual market segments, based on specific socio-demographic data (location, age, who they follow, etc.); they have not resulted in significant bookings for Priceline and its associated brands. This does not come as a big surprise. Social networks are not set out as conversion driving channels. While performing extremely well as an awareness channel, the likes of Facebook fall consistently short in driving transactions.

DIVERSIFICATION OF ADD SPENDING

OTAs and major travel brands are continuously looking for alternatives to Google search ads. However, as it seems, social media has difficulties to keep up with the expectations. An increasingly important alternative for travel brands are metasearch sites, such as Trivago, Kayak and TripAdvisor. Priceline’s acquisition of Kayak for $1.8bn and Expedia’s acquisition of Trivago for $564m cash and additional shares, reflect the major OTA’s search for an advertisement hedge against Google.

 

Discussion

comments powered by Disqus

More from #DTTT

  • Global-Takeaways-feature
    In December we present:
    Key Takeaways from #DTTTGlobal2017

    On November 30 and December 1, 250 top destination marketers from all over the world gathered in a colorful amphitheater in downtown Brussels for DTTT Global Conference. The sixth annual conference focuses on real-work examples, insights, change management, lessons learned, and more. We showcased how destinations can be more effective in digital in a fast-changing […]

  • bavaria
    In November we present:
    Bavaria Tourism: Proceeding from Tradition

    Jens Huwald has been CEO of Bavaria Tourism, the official marketing agency, since January 2012. He was previously responsible for communications at the agency for seven years. Prior to that, he held senior positions in the Marketing Communications, Corporate Communications and Public Relations fields at the Omnicom Agency Group, BSMG Worldwide Germany/Weber Shandwick (Munich) and […]

    #dmo story #brand #campaign #destination #marketing
  • visit-geneva-global-feature
    In November we present:
    Geneva Tourism: Business Intelligence & Data

    In the lead up to #DTTTGlobal on 30th November & 1st December in Brussels, we caught up with Jean-Philippe Favre from Geneva Tourism. He will join us on stage to present some insights on ‘Business Intelligence, Data & Destination Marketing’ and share some of the learnings. Ahead of the event, we caught up with Jean-Philippe Favre […]

    #DMO stories #intelligence #Geneva #big data #business #destination #destination marketing
  • Mural-
    In November we present:
    How MURAL is pioneering Remote Design Thinking

    In the lead up to #DTTTGlobal, we spoke to Mariano Suarez-Battan, CEO of MURAL to learn more about how they are pioneering remote design thinking. As avid users of MURAL ourselves, we champion the use of design thinking methods and templates as part of our Launchpad subscription. We are really pleased to welcome Aaron Richman from […]

    #remote design #mural #workflow #collaboration #design-thinking
  • tourism-Iles-Madeleine-feature
    In November we present:
    Iles de la Madeleine: Applying Design Thinking Principles

    Jason Bent works as a Tourism Cluster Manager in the Iles de la Madeleine, an archipelago located in Eastern Canada. He coordinates collaborative projects that bring added-value benefits to the targeted businesses. His recent initiatives, one of which received the Best Strategy for Creative Tourism Development Award as part of the international Creative Tourism Awards, […]

    #dmo story #collaboration #design-thinking #destination #marketing #partners #storytelling
  • Visit-Jersey-article-feature
    In October we present:
    Visit Jersey: Aligning Audiences with Brands

    We are pleased to welcome Adam Caerlewy-Smith, Head of Marketing and Meryl Le Feuvre, Head of Product at Visit Jersey as speakers to #DTTTGlobal on 30th November & 1st December in Brussels to share their story on ‘Aligning Audiences with Secret Escapes’. Ahead of #DTTTGlobal, we caught up with Adam and Meryl to learn more about the […]

    #dmo story #jersey #partnerships #brand #destination #marketing #product
Show more
×
© 2017 Digital Tourism Think Tank

Digital Tourism Think Tank logo imge