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2011 Digital Marketing and Content SurveyExecutive SummaryFrommer’s Unlimited, in conjunction with Tnooz, conducted a global survey of 350 travel professionals on digital marketing and content priorities. Once again, digital content is a top priority for travel companies, with 83% reporting a planned increase in budget for 2012. More than half of respondents intend to increase investments in search engine optimisation and custom content development.

This year’s survey confirms the continuing shift of travel companies marketing spend to digital channels with 78% of respondents reporting they will increase spend in 2012. The key priorities for the increased digital marketing budgets were social media marketing, content, and mobile apps/development.

Over the past two years, travel companies have focused on user experience, with global players focusing on engagement in combination with customer acquisition. This shows a maturing of the online marketplace, as marketers look closer at the final stages of the purchase funnel and how they can convert more visitors into loyal customers. This trend is demonstrated by tangible shifts in respondents’:

• Key Content Priorities: The top priority for adding content was to increase conversions, followed closely by attracting search traffic. Last year attracting search traffic was the top priority.

• Average Cost Per Visitor: This year we also saw increases in cost per visitor with 48% reporting a US$1-$5 (€0.75 -€3.60) average compared to 38% last year.

• Content Development Strategy: Custom content development also stood out when reviewing respondents digital content plans, with 52% indicating they would be increasing spend for 2012.

All these factors suggest an even more competitive landscape that requires companies to work harder to win new customers.

Finally, we added a new question to our survey this year about mobile development plans. There was overwhelming support for iOS devices. By the end of 2012, 79% of respondents expected to support iPhone applications, 75% iPad applications, and 74% will be supporting a mobile website. These figures represent strong adoption, although it is interesting to see mobile web in the third spot when it can support all of the operating systems and their devices.

IntroductionFrommer’s Unlimited, the business-to-business division of Frommer’s®, a branded imprint of Wiley carried out this survey, our fourth annual, to determine trends in digital marketing and content development priorities. With the ever increasing importance of digital sales channels, there are tremendous opportunities in the travel sector.

The opportunity to complete the survey was offered in October, 2011, to a wide range of global travel executives in partnership with Tnooz.

Who responded?There were 350 respondents to the survey across a wide range of sectors within travel, including media/publishing, hotels and hospitality, travel agencies, operators and consolidators, airlines, tourist offices, car rental, rail, and cruise. Our respondents represented all global regions: 46% North America; 36% Europe; 11% Asia/South Pacific; 4% Middle East/Africa; and 3% South America.

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Results

Digital marketing budgetOnce again, digital marketing continues to be a priority for our survey respondents. Seventy eight percent (78%) report they are increasing digital marketing spend in 2012, up from 70% and 54% in our prior two annual surveys. Only 3% reported budget decreases for 2012, down from 7% in our last survey and 15% two years ago. We see this as a sign that organisations are seeing increased value in digital marketing initiatives

Increasing

Remaining the same

Decreasing

78%

19%3%

Increasing

Remaining the same

Decreasing

0%10%20%30%40%50%60%70%80%

100%

78%

3%19%

How will your digital marketing budget change in 2012?

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Priorities for digital marketingSocial media marketing (65%) and content (55%) were at the top of the list for digital marketing budget increases again this year. Over half of respondents also indicated increases for their mobile apps/development (54%) and natural search engine optmisation (52%).

Of your digital marketing plans for 2012, will your spend on:

Increasing Remaining the Same Decreasing

Social Media Marketing 65% 28% 1%

Content 55% 37% 3%

Mobile Apps/Development 54% 20% 1%

SEO - Natural 52% 40% 1%

Video 46% 32% 1%

Advertising - Online Display 43% 35% 5%

Advertising - Paid Search 41% 33% 8%

Email Marketing 41% 43% 8%

Advertising - Mobile 39% 31% 0%

SEO - Paid 36% 42% 6%

Meta Search 22% 44% 6%

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Cost per visitorTravel companies are continuing to be effective with their digital marketing strategies, as 85% of respondents reported a cost per visitor of under US$5 (€3.60), identical to the percent last year. Within that group, however, the breakdown has shifted with more respondents reporting a cost per visitor of US$1-$5 (€0.75 -€3.60), 48%, up from 38% last year. Five percent (5% of respondents) indicated a CPV of over US$10 (€7.20), up from 2% last survey.

Under $1 (Under €0.75)

$1 - $5 (€0.75 - €3.60)

$5 - $10 (€3.60 - €7.20)

Over $10 (Over €7.20)

37%10%

4%

48%

What is your average cost per visitor across your digital marketing mix?

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Mobile PlatformsNew to our survey this year, we asked respondents to indicate which mobile platforms their companies currently support or plan to support in 2012. The results clearly demonstrate the dominant position of Apple’s iOS for companies’ mobile strategy. By the end of 2012, nearly 80% of companies plan to have iPhone apps and 75% are aiming to have an iPad app according to the survey respondents.

0% 10% 20% 30% 40% 50% 60% 70% 80% 100%

Currently supported

Plan to support in 2012

iPhone

iPad

Mobile Web

Android

Blackberry

Other Tablet

49%

39%

42%

35%

27%

14% 28%

20%

33%

32%

36%

30%

Which mobile platforms does your company:

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Digital content budgetTrending with the increases in digital marketing budgets, respondents indicated a large increase in digital content budgets for 2012. Eighty-three percent (83%) reported increases, up from 70% last year and 66% the prior year. Only 1% of the group indicated a decreasing digital content budget, down from 5% last year.

Increasing

Remaining the same

Decreasing

83%

16%

1%

How will your digital content budget change in 2012?

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Plans for digital content Search engine optimisation remains the top priority for 2012 digital content plans, with 53% of those surveyed indicating they will be increasing their budgets in this area. Custom content development closely followed with 52% reporting an increase for 2012. This shows a trend in companies needing to separate themselves from their competitors and create a unique voice. These top two initiatives closely relate, as unique content improves SEO.

Of your digital content plans for 2012, will your spend be: Of your digital content plans for 2012, will your spend be:

Increasing Remaining the Same Decreasing

Search Engine Optimisation 53% 33% 3%

Content - Custom Development 52% 36% 2%

Content - Destination Info 47% 34% 3%

Content - User Generated 47% 36% 2%

Video 46% 32% 1%

Blogs 43% 37% 2%

Image Galleries/Slideshows 41% 42% 2%

Content - Product/Property Descriptions 40% 42% 2%

Translations 33% 41% 3%

Maps 29% 52% 3%

Events Info 28% 47% 3%

Multi-lingual priorities We added a new question to the survey this year to inquire about the number of multi-lingual websites operated by respondents’ companies. They reported currently:

• 49% operate a site in one language

• 33% operate a site in 2 to 5 languages

• 21% operate a site in over 5 languages

For 2012, another 26% plan to be in the 2 to 5 language category and 17% plan to have localized websites in over 5 languages. This indicates the importance many companies are placing on reaching a global customer and ties in to the prior survey question where nearly three-fourths of respondents (74%) indicated their plans to keep or increase their budget allocation for translations in 2012.

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Priorities when adding contentFor the third year in a row, the three first priorities when adding content are consistent, however the order is not. This year, increase conversions (32%), overtook attract search traffic (27%) for the top spot. Building brand once again rounded out the top three. These three priorities work together naturally and we are not surprised to see this shift. Attracting search traffic is still very important, but there is a shift to the right kind of traffic – customers that convert.

What are your top 5 priorities when adding content to your website?

1st Priority 2nd Priority 3rd Priority 4th Priority 5th Priority

Increase Conversions 32% 17% 14% 9% 14%

Attract Search Traffic 27% 25% 14% 11% 8%

Build Brand 16% 20% 21% 20% 9%

Improve Service and Loyalty 11% 9% 15% 19% 13%

Build Community 10% 14% 9% 17% 12%

Capture Customer Data 2% 4% 13% 10% 16%

Target Customer Sectors 2% 10% 14% 14% 28%

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Content challengesFor the fourth year in a row, keeping content up to date (62%), was the most common content challenge reported, although less than last year (65%). The need to create content with a consistent tone of voice across brand was again the second most challenging issue indicated up to 51% from 47% last year. This year we also inquired about content challenges with developing mobile strategy and launching multi-lingual websites and these were reported to be issues by 44% and 34% respectively of those polled.

0% 10% 20% 30% 40% 50% 60% 70% 80% 100%

Keeping content up-to-date and accurate

Creating content with a consistent tone of voice across the brand

Developing mobile strategy

Dealing with variety of third-partycontent providers

Launching multi-lingual sites

Integrating content with products

62%

51%

44%

39%

34%

31%

Do you experience any of the following content challenges? (Please tick all that apply)

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ResearchFor copies of our prior digital content and consumer surveys, please visit Frommers.biz/research.

About Frommer’s UnlimitedFrommer’s Unlimited is the business-to-business division of Frommer’s Travel. For more than 50 years, Frommer’s®, a branded imprint of Wiley, has been the trusted source of useful and engaging travel information. Frommer’s Unlimited enables businesses to create high-value propositions for their customers by leveraging Frommer’s travel expertise, rich content resources and technical capabilities. Products and services provided by Frommer’s Unlimited include global destination and events content, private label Websites, mobile applications and custom publishing. Frommer’s is a registered trademark of Arthur Frommer.

For more information visit Frommers.biz or contact us:The Americas UK, Europe & AsiaCraig Schickler Giles LonghurstDirector of E-Business Development Director EMEA 111 River Street, Hoboken, NJ 07030, USA Truman Brewery, 91 Brick LanePhone: +1 201 748 5659 London, E1 6QL, United KingdomFax: +1 201 748 5612 Phone: +44 (020) 7770 6072cschickler@wiley.com Fax: +44 (020) 7770 6051

glonghurst@wiley.com

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About Tnooz - Talking Travel TechTnooz is a provider of news, analysis, commentary, data and business services to the travel, tourism and hospitality industry. Tnooz reaches more than 170,000 monthly unique visitors seeking current news and edgy points of view about travel tech’s impact on the industry.

Launched in the summer of 2009, Tnooz focuses on technology, digital distribution, media and marketing, web strategy, mobile travel, social media, start-ups and financing in the travel sector. The Tnooz team of reporters and editorial nodes based around the world will bring the latest news and analysis to travel and the sector’s many related and diverse industries.

Contact:

Editorial: Kevin May, kevin@tnooz.com

Sales: Gene Quinn, gene@tnooz.com