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OTAs invest in direct marketing rather than branding

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1 July 2014 at 10:00, by

Investment Wave, Google Plus,

Investment Wave, Google Plus,

Get reservations at any price.  An option that will generate more than 4,000 million U.S. dollars this year. Catch travelers attention is more profitable than advertising strategies focused on overpraising the brand value – branding.

Companies such as Expedia or Booking are leading a trend turnaround in the U.S. market which will extend to the entire industry in the near future, eMarketer endorses this new model.

Their latest research says that three quarters of the country’s industry will focus their investment on advertising techniques based on Direct Response Marketing. Such actions are designed to attract users by sending emails or flashy ads online.

The study states that during 2014 most advertising investments will come from the OTAs whose initiative to opt for the Direct Response Marketing reflects their knowledge and familiarity with these formats and the extense experience in generating bookings these formats have.  The study also notes that the model’s success  in such a competitive industry, like tourism, is a good warranty.

Branding vs Direct Response Marketing. eMarketer.com

Branding vs Direct Response Marketing. eMarketer.com

In fact, the publication predicts it will be an example for professionals from all over the world to follow and as far as  mobile devices (tablets and smartphones) are concerned, eMarketer believes it will absorb 35.5% of publicity spending in the U.S. market. A paralleltrial-error testing investment as being a relatively recent format. 

Moreover, Tnooz has examined whether the Billboard Effect is still as relevant as thought,  being a concept that explains how hotels can take advantage to attract traffic and reservations to their own websites from their presence on the online agency webpages. The secret is to take care of hotel profiles on these domains.

The specialized website refers to the Expedia and Billboard Effect study which was published in 2009 by Cbris Anderson, professor at Cornell University and was received with enthusiasm by the industry.

Five years later, Anderson believes that the increase in mobile  users may have reduced the Billboard Effect. “As the number of travellers using tablets or smartphones increases the perception changes. They will not stop buying or searching, but maybe through specific applications, so the effect will be less. “A fairly unanimous position in the sector which is reinforced by the rise of metasearchers. However, the article states that Expedia is convinced the Billboard Effect continues to grow.

Adam Anderson, head of industry relations for the company, confirms this. “All of our partners in over 70 countries are striving to expand their resources to attract bookings from new platforms, and that includes the metasearchers. It is reasonable to conclude that many buyers will use these channels to look for inspiration, research and shopping and then book directly, “he concludes.

 

 

 

Innwise

Innwise

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