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Traditional & online Marketing: Blending the Best of Both Worlds

We had the pleasure to have Al Merschen Managing Partner from Myraid marketing. For more information about the speaker follow the link. (http://www.adventuretravel.biz/connect/summit/summit-agenda/2010-featured-content/speakers/)

Presentation for:

  • Tour operators and destination managers.
  • Target market (B-B or B-C) define
  • Create a business plan a marketing strategy (Physiographic, demographic, surroundings, who is my audience, among others.)

There is a problem with the way we address this sector, the terminology has to change:

  • Adventure Travel è no the same for US than for EU, and tourist and customers don’t even know what it is.
  • Ecotourism è Definition is ambiguous, need to be profitable and competitive if you want to have a stable business.
  • Environmentally friendly has to reduce price in order for the today customer to choose over other cheaper offer. Sustainability is seen as a competitive advantage if there is no price difference.
  • Sustainability has to be a competitive advantage when all the requirement of quality and cost has been addressed. Customer will choose sustainability when there is no difference in cost or quality.

Online Marketing

Theory that the web is dead: People surfing the net is decreasing but the number of people using and interacting in social media is growing.

Travel search:

  • Google increase by 6%
  • Yahoo is losing a bit
  • Bing is connecting with yahoo and is increasing 69% in travel searches

Online Usage trends:

  • 10% hotel application use smart phone.
  • 16% trip advisor positive comments
  • 13% of social media site search.

From a Deloitte study carried on May 2010.

Google maps is going to include prices of hotels (direct competition for bookings and reservations). Average number of visits before buying at travel sites is 22. When travel is over 1.000 $ customers don’t even look. Airport fare stops them from going to that destination.

Mobile:

  • We began with a funny story: A young person approached him at the airport and asked him that there was no internet available and wanted to be assured that giving his details to a person through the phone was safe. Should I give my details over the phone, he preferred to do it through PayPal or via web thought it was safer. This shows the change in the new generations.
  • Europe market grew 125%. During May 2010 is a 9.8 Thousand Million business.
  • 54% accessing travel services from smartphones.
  • Mobile technology is here to stay and is increasing.
  • Customer engagement, how do we do the conversions from social to real customers?
  • Apple i-travel connect hotel services, room reservation, temperature of your room, food and beverages of your taste, i-phone card as a room key and remote control.
  • Virtual technology is creating a big impact.
  • Google launch goggles pictures to search the web, take pictures from the telephone and google will tell me where I am.

Social networks.

  • 50% of the population under 30 years old
  • YouTube is the 2nd largest in the world.
  • 75% of housewife’s use social media.
  • 46% growth rate year over year.
  • 1/5 online users publish or have their own blog.

Older America:

  • Women between 45-55 years old most users and increasing
  • Decreasing the number of teenagers.
  • Facebook 500 million users (average is 137 friends)
  • Almost an hour a day
  • Fans page
    • Product spending, fans 28%more likely to spend and 68% more likely to recommend.
    • Tripadvisor and Facebook are linking
      • More exact information; ask the opinions of your friends.
      • Will have the possibility of only seeing your contact opinions.
      • Facebook Places
        • Where are you in the world. I.e. John is in Scotland.
        • Ability to pin point and target customer when they are close.
        • Brands incorporate check ins on fan page

Figures:

  • Twitter: 100 Million users with 50 million tweets each day
  • Linked in: growing to 65 million users
  • Foursquare: 1 million. Geared form mobile, link to twitter and facebook, get discounts, tips, brands can offer deals, growing quick.
  • Youtweetface: Combien the three.
  • Flow town: platform that business use to connect with their customers everywhere in the social media. Connect all the social media, online data Know your customers.
  • Online video: Hulu, 2.600 TV shows (simpsons, 30 rock, lost glee)
    • Try to advertise in the national geographic channel in Hulu.
    • YuMe
      • Video network, preview viedeo, adverts. Combine video viewing by informing customers data. Ability to target to customers, have their taste.
      • YouTube: viral video, Evian Roller Babaies, 100 Million views, started online and then went as a TV commercial on the US.

http://www.youtube.com/watch?v=XQcVllWpwGs

 

The Reality

Online spending is growing. Companies spend around 12.6% of total advertising in 2009. ON campaigns as CTR Click Through Rate, good ROI? 0.1% one in thousand click on the add.

Travel industry is even worse 0.08% CTR from a flash add. CTR works by size and shape.

Case Studies:

Example was the Best Job in the World.

  • Done by Queensland Tourism (Australia) great barrier Reef.
  • 100 million listed to
  • Received 34.000 applications.
  • Increase in touris 0%
  • The majority didn’t know what destination was been promoted (mainly Australia)

Advertising Balance:

The credibility Continuum (What do tourist think of information from):

Advertising spending: Direct mail 98% read it, direct marketing advertising increasing.

Publications & Broadcasts

How to get the best out of your Ipad. Amazon even has 11 printed books on this issue, very strange for an application that substitutes the paper. (Best out of your Iphone).

Amazon has guide books which people still buy:

  • 624 books on Germany
  • 862 books on Scotland.

Power of Magazines

Increase in 11 % in the 12 years of Google. We surf the internet (43 seconds in our website and we are happy). We swim the magazine (43 minutes average time reading a magazine)

Broadcast TV Benefits:

  • Average US citizen 35 hours of TV watching a week
  • Kids 25 hours per week.
  • Adults 48 hours per week.

Broadcast can be truly memorable and is when it’s most effective. The problem is the cost associated but it’s still the way to get an impact on more potential customers.

I.e. Ocean Spray adverts have created a set of commercials which have been very effective in the US making consumer link cranberry juice with Ocean Spray.

This is just one but there are many others.

http://www.youtube.com/watch?v=YWt3lINvXuE

Outdoor advertising

Can be very effective if done correctly, need to know your client and where to place them to have the most impact.

I.e. Goodwill created a campaign based only on billboards which gave them a return of 9$ per 1$ spent.

Goodwill

“It can be difficult to measure the success of any campaign asking for donations, especially cars because it is not a ‘see today donate tomorrow’ scenario. However, ‘billboards’ was consistently the number one response to ‘How did you hear about Goodwill titled goods?’. Along with that, if we take the amount we spend on billboards (almost exclusively how we advertise) we see that for every $1 we spend on billboards, we get back roughly $9 in revenue.  This has increased as we have kept a billboard program in place over several years.”

Without forgetting the 3D Billboards displays. Use transports as billboards, among others.

e. http://www.beyondtraditional.com/?p=50

I. Miller campaign:

http://www.youtube.com/watch?v=L2qPSQuPEfo

Virginia Tourism Corporation

I.e. Virginia tourism used a billboard campaign in the nearby state Washington DC to attract national tourism.

Another important note is that we had a 142% increase in unique visitors over April 2008. Virginia Beach saw a 45% increase in web visits from DC in April (over March).

Radio

We cannot forget the power of the radio and how the Iphones, Ipods have online radio, podcast, people record their programs and listen to them on their free time, when going to work or during lunch. Internet and local station are allways a good mean to get to potential customers.

Domino’s Pizza is to launch its first national radio campaign for seven years, to promote its Texas BBQ line. The sales increased by 9%!

Integrated Media

The key is not to put all the eggs in the same basket. We have to combine efforts and use the different channels and tools available. It’s a matter of combining efforts. The best campaigns always use a variety of means.

I.e. CNN Heroes was a US program that made people vote online but the winners were nominated on a TV show.

I.e. Donuts / Pepsi Max created a web contest for the top 6 videos, 3 from each brand. They were put on air during the super Bowl. If you wanted to know who won or if your advert was a winner you had to view them live.

I.e. Many online magazines have turned to printing issues.

Failure leads to Insights

This is one of the ideas that the US population is keener on. The trial and error, we have to experience in order to learn. We do not have to be afraid of failure as we can learn some very valuable lessons from it.

Try other means.

Marketing famous phrase:

I know half of my advertising works; the only thing is that I don’t know which half.”

Microsoft Tags: Online and traditional banners have to combine efforts. The idea is to merge social and traditional marketing.

Questions:

  • What about the smaller players? (SME´s)

First we need to define precisely who your audience is and use specific publications as ITN (International Travel News), one full page 13,000 $.

Go directly to consumer or distribution channel, CRM Program, talk to them, and get to know what they are looking for. Work with local tourist boards, tell them our needs, look for help and aid programs, promote, and talk to writers, publishers, among others.

  • Editorial and Advertising Person

Non ethical, no payment. How, when, media is it worth the risk?

One page publication in Travel and Leisure for example: Editorial is 3 times more effective, valuable and reliable than advertising.

Tourist board can be very helpful. Free-lances is difficult and you don’t know when is going to come out as the need 50% of editorial but also 50% form the advertising before they can publish the article. Bloggers be careful and is not a very reliable source according to customers.

  1. “Best reason for Advertising is next year”
  2. Very important to always use the same image so the public know who we are.
  3. Target the audience, create a clear strategy and follow it.

 

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