DST Budget & Strategic Plan 2006/07- 2008/09 13 September 2006.
Wtic 2006 09 13
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Transcript of Wtic 2006 09 13
David SoskinCEOCheapflights18 September 2006
Turks & Caicos
The Internet: an online revolution for the travel industry
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Is the internet still growing?
Online travel advertising options?
The internet: the future?
Today
Is the internet still growing?
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Internet users around the world
Sources: Nua Internet surveys; and IWS
Use
rs a
rou
nd
th
e w
orl
d (
mill
ion
)
September, 2006
www.cheapflights.co.uk www.cheapflights.com
First and foremost
More and more people are using the internet
People have been spending an extra 1 hour 16 minutes each month on the internet since 2001 in the UK
16-24 year olds spend 11 hours 20 minutes per month on the internet in the UK (average: 9 hours 56 minutes)
Source: Ofcom research, April 2006
9hrs 56 mins
8hrs 40 mins
0
2.5
5
7.5
10
2001 2005
Hou
rs
Year
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Question: Compared with a year ago, how much time do you think you spend today using…?
71
27
2
14
4541
25
61
14
7
57
36
7
54
39
10
52
38
11
54
35
More time About the same time Less time
Internet Cinema Radio TV Local Press Magazines National Press
Source: IAB/RAB Media Conjunction Study 2005
Changing UK media consumption
% time
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Traditional media in decline
Travel companies are increasing their online marketing budgets
Research suggests:Overall, TV viewing has deteriorated the
most as a result of more people being online
More young people are turning away from newspapers and magazines
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Reduced consumption resulting from increased internet use
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Increasing internet sales
Travel is already by far the biggest sales category, worth:
$63 billion last year in the USA alone$115 billion in the USA, Europe, and
Asia-Pacific regions combined
In America, total online sales were up by a massive 25% in 2005 over the previous year
Source: The Economist August 19th 2006; and Hotel News Resource 2006
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Sources: ABCe, Doubleclick, Cheapflights Internal
Uni
que
Use
rs (
‘000
) Ja
nuar
y
Unique Users January 1999-2006
-
1,000
2,000
3,000
4,000
5,000
6,000
1999 2000 2001 2002 2003 2004 2005 2006
Th
ou
sa
nd
sCheapflights unique user growth (1999-2006)
Online travel advertising options?
September, 2006
www.cheapflights.co.uk www.cheapflights.com
UK advertising growth rates 2005
3.65.8
-5.1 -4.8
1
-3.9 -4.4
66
-10
0
10
20
30
40
50
60
70
TV Outdoor Classified press ads
Radio Magazines Internet
Direct Mail Local Press
Source: WARC & Advertising Association / IAB 2006
%
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Travel advertising options
PPC
Search
PPC & CPM
Travel Guides
“Community”
PPC & CPMPPC, CPA & CPM
Deals Publishers
“Mega-Search?”
Live-Search
“Meta-Search”
All offer an advertising platform
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Advertising options – search
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Advertising options – meta-search
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Advertising options – deals publishers
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Advertising Options – travel Guides
The internet: the future?
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Personalisation
Websites can be personalised to the user’s needs
A 65 year old would not be interested in advertisements for skate boards, but on the internet he/she can specify what advertisments they can view by defining their interests
Not possible in media such as television and radio
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Personalisation – example 1
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Personalisation – example 2
Weekly newsletter demographically targeted
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Empowering the customer: blogging / RSS
Allows users to “blog” on their
preferred subject
Users are sent the most up-to-date
information without having to check the
site continuously
Users sign up for news/information
reports with specific internet sites
This may lend itself to further advertising options
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Empowering the customer: blogging / RSS - example
Source: http://news.cheapflights.co.uk/flights/2006/08/easyjet_to_canc.html#comments
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Video streaming
Improving and becoming more popular day by day on the internet (YouTube)
Travellers can view video clips of:Their destination (e.g. hotels, beaches)Travel companies’ advertisements (e.g. tourist boards,
airlines)
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Video streaming - example
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Empowering the consumer - Turks & Caicos review
http://www.tripadvisor.co.uk/ShowUserReviews-g147399-d254897-r5688308-Beaches_Turks_Caicos-Providenciales_Turks_and_Caicos.html
Online reviews about holidays and hotels can have a significant effect on the travel industry
September, 2006
www.cheapflights.co.uk www.cheapflights.com
So why the internet?
The internet is ideal for advertising the travel industry:
It can be cheaper than peanuts It avoids the generalisation of traditional mediaPersonalisation (narrowcasting)We wouldn’t see this in a national newspaper...
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Internet specialisation
September, 2006
www.cheapflights.co.uk www.cheapflights.com
Conclusion
More and more people are using the internet today, especially the younger generation
Many new ways to advertise effectively on the internet
Now is the time to maximise our companies’ presence and sell more products on the internet