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.
Discussioncomments powered by Disqus
More from #DTTT
In May we present:Snapchat Spectacles: The Verdict for Tourism
In the run up to Content | Campus we managed to get our hands on a pair of Spectacles, the latest ‘must have’ piece of wearable tech from Snapchat, currently only available in the US. First of all just to clarify, ‘must have’ refers to agencies and opportune eBay resellers to whom we paid over […]
In May we present:Destination Marketing in a Climate of Fear
Between looming travel bans, terrorist attacks and passengers forcibly being removed from planes, destination marketing has become increasingly difficult. “There is a fear factor of travelling,” says Peter Greenberg, CBS News Travel Editor. Travellers are more anxious than ever before to travel. What does this mean for the industry? How do you as a DMO […]#crisis management #communication #crisis #destination #destination marketing #partners #social
In May we present:Why Nuuk Holds the Key to Greenland’s Tourism Industry
In the world of entrepreneurship, founders are regarded as role models, leaders, ambitious, successful, highly driven and uniquely adept at identifying opportunities overlooked by others. This admiration is well deserved, considering 90% of start-ups fail within the first year, but a recent visit from to Nuuk reveals a richer side to earning a living as […]#Nuuk #tourism development #training #business #destination #Greenland #SME
In May we present:Sojern’s Global Travel Insights
Sojern is travel’s leading performance marketing engine. With 350M global traveler profiles and billions of predictive purchase signals including search and booking data from partners across the industry, we deliver billions of dollars in revenue and put more heads in beds and travelers in seats for our clients worldwide. From global enterprise brands to independent […]#traveler #consumer #data #Insights #Sojern #travel #traveller
In April we present:13 Tips for Forging Successful Tourism Marketing Partnerships
As part of this year’s Content | Campus in Copenhagen, a group of tourism marketers gathered in the chic offices of Visit Denmark to discuss fruitful content partnerships. On Day 2 of the Content | Campus, we were buzzing with the ideas from the previous day’s sessions and excited to begin the Content Partnerships Workshop. […]#content partnerships #brand collaboration #brand #content #tourism marketing
In March we present:5 Tips for Snapchat Stories Content
Here are some tips to ensure your content starts off great. It may only be visible for a day, but being a regular part of locals’ or visitors’ lives on their Snapchat feed has a real long-term impact.#live-content #Snapchat #social media marketing