Each month, Basis Technologies’ Programmatic 101 series tackles a different facet of programmatic advertising—from best practices for buyers, to competitors in the space, to trends you should know.
With the introduction of programmatic media, brands and advertisers suddenly had access to an overwhelming number of options. Whether it be the rolodex of publishers to work with, the various data points available for targeting, or the sheer number of key performance indicators (KPIs) they could measure, there were a lot of decisions to make—and brands and advertisers needed help sifting through all the options.
Bid automation software was developed to answer this call for help. New algorithms and software were created to take on some of the manual work initially required of media buyers, quickening and streamlining the process of programmatic bidding.
Read on to learn what automated bidding is and what benefits it offers, and to explore a few examples of what automated bid management looks like in context.
Manual bidding is when a buyer sets the price of how much they are willing to bid on an impression. Generally, the buyer will use historical performance or will manually pull reports each week to assess eCPM, or effective cost-per-thousand impressions.
Automated bidding strategies, on the other hand, allow technology to decide how much a brand should bid to achieve their goal. The technology can ingest various data points in real time and use that information to update the bid price. That doesn't mean that bidding is out of the media buyer's hands, by any means—in fact, it gives them back the time they would have spent manually assessing reports to better control and optimize high-level strategies.
The biggest advantage of automated bidding strategies is their time- and cost- efficiency. With bidding automation, buyers don’t have to manually pull reports and analyze the data to confirm if their bid is set at the right price. Some automated strategies even ingest high-quality data that isn’t readily available to brands or advertisers—such as historical campaign performance, auction insights, or time of day—adding an extra layer of intelligence and depth to their decision-making.
To illustrate what bidding automation looks like in practice, here are a few examples of automated bidding strategies available within Basis:
Algorithmic optimization (AO) seeks out which inventory is performing best for each tactic included in a campaign. Marketers can set the algorithm to focus on either placement-level or domain-level data. After a learning period, AO adjusts the bid prices depending on how a particular domain and/or placement is performing. It can either increase the bid or stop bidding altogether on under-performing domains and placements.
Machine Learning Optimization (MLO) is a model-based solution that leverages artificial intelligence to optimize towards a campaign’s desired KPI. MLO analyzes data from more than thirty tactic parameters, at the brand level, and dynamically creates models in real-time that determine how much a tactic should bid on each impression based on the likelihood that it will result in the desired outcome—whether that be clicks, conversions, video completions, or viewability.
Bid Shading utilizes an algorithm to analyze historical bid data and determine a minimum price that is lower than the default CPM bid, while maintaining a high probability of winning the auction. Bid shading provides time savings and cost efficiencies that make it a no brainer for programmatic.
Bid Multipliers allows a single tactic to submit various bids based on how the parameter is performing. For example, let’s say a buyer notices that desktop inventory is leading to more conversions. Bid multipliers allow buyers to set rules so that when a desktop impression appears, the technology will automatically bid higher to ensure the impression is won. In the same vein, buyers can also decrease bids for inventory, domains, frequency, or creative if they are under- performing.
Put simply, automated bidding strategies leverage technology to help buyers make informed decisions about their bids. As a result, buyers can:
Curious to learn more? Check out our guide, Meeting the Moment with Advertising Automation, to learn about the many variations of automation, and how they serve to improve the lives of media professionals.
A growing SaaS company boosted its brand awareness with a high-frequency omnichannel campaign that reached 91.4 million people and resulted in 4-point brand lift.
How fast is SaaS (Software as a Service) growing? The SaaS industry keeps growing rapidly in the business-to-business space, with no end in sight. SaaS remains the largest market segment and is forecasted to reach $145.3 billion in 2022, up 19% from the previous year. With more than 15,000 SaaS companies worldwide, competition has never been fiercer. And when companies want to learn more about a particular product, they turn to well-known industry leaders. Our customer, an innovative SaaS company, is one of those leaders. They provide leading B2B software solutions to simplify and automate operations that drive increased profitability and greater efficiencies across an entire organization.
The SaaS company turned to Basis Technologies to provide a strategic digital media recommendation that would achieve their business goals. They had worked with Basis Technologies for numerous campaigns previously and knew they would deliver unmatched digital media planning, buying, and activation through their expert teams and owned and operated demand-side platform (DSP), Basis. Together, the SaaS company and Basis Technologies developed a high-frequency, omnichannel campaign inclusive of walled gardens, rolling it out nationally with a localized heavy-up approach. Additionally, the team leveraged Basis Technologies' Media Sciences to provide in-depth vertical, market, and consumer insights based on syndicated/proprietary media research to improve campaign performance. The team didn’t miss a beat. Basis Technologies provided access to a custom Datorama Dashboard to provide transparency and analytics to manage cross-channel campaigns while providing insight and optimization recommendations to reach and exceed KPIs (key performance indicators).
CTV and Pre-Roll
Basis Technologies focused on a full-funnel approach that leveraged :15 and :30 ads across programmatic CTV and pre-roll video—as well as Basis' extensive private marketplace (PMP) library—to access high-value premium inventory. The video completion rate (VDC) for CTV achieved a high 97%. Additionally, the Pre-Roll video format achieved a high 73% VCR, exceeding the goal of 70%.
Behavioral and Contextual Targeting
The team maximized touchpoints by serving standard and native display ads on mobile devices, tablets, and desktops. Behavioral targeting via LiveIntent and contextual tactics drove the strongest eCPM efficiency with 34% of all display impressions. The campaign achieved a $4.68 eCPM, exceeding the goal of $4.93.
Industry Targeting is Costly but Effective
To move further down the funnel and capitalize on scale, the team implemented a Meta and LinkedIn campaign. Coverage on these platforms provided the most robust targeting capabilities including
by industry, job title, interest, and retargeting engagers. The Meta campaign attained a $1.77 CPLPV (85% over benchmark). Meanwhile, LinkedIn achieved a $27.40 CPLPV (47% over benchmark) and played a critical role in reaching a senior-level target audience at an above-average CTR of 0.42% (among those with founder, CEO, and owner job titles)
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so that you don't have to. Here’s what to read from the week of 6/23/22 - 6/30/22 to stay ahead of the curve:
Did you hear? In the U.S. alone, audio garners upwards of 31% of all media activity—but ad spend is at an underwhelming 8.8%! Podcasts specifically are on the rise and come with many advertising benefits—here's what marketers should know.
How will the overturning of Roe v. Wade impact the marketing world? While it's too soon to know for sure, some marketing experts are weighing in with predictions related to keyword and media bidding, political advertising, and more.
Amidst economic upheaval and uncertainty, marketers might be wondering how to navigate their ad budgets—time to slash them? Double down? Go dark? Abandon all hope?!? Here, experts share why brands should keep advertising, even if they adjust their targeting or messaging strategies.
Megan Thee Stallion, Paris Hilton, and Issa Rae all graced stages at the Cannes Lions International Festival of Creativity, infusing some necessary fun into serious panel discussions about web3, a possible recession, diversity, and climate change.
Netflix was another big topic at Cannes Lions—specifically, their efforts to launch an ad supported tier. The streaming giant is reportedly considering partnering with an established media company to get those capabilities off the ground rather than buying a platform of its own...at least in the short term.
Wait, we’ve got one more Cannes Lions theme to talk about! Beyond the Greenpeace protesters, two panels—both linked in this article—tackled how marketers and agencies can avoid greenwashing and take concrete steps to reduce their carbon footprints.
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Midterms are inherently turbulent periods for political advertisers, but the 2022 election cycle promises an entirely new level of instability.
To begin with, the political and advertising landscapes are each reeling in their own ways from the ongoing pandemic, inflation, and Russia’s invasion of Ukraine. In the world of politics, redistricting, unfinalized electoral maps, and concerns about Russian meddling in this year’s midterms have added an additional level of intensity. In advertising, meanwhile, new consumer privacy regulations and decreased targeting options from giants like Meta are forcing brands and agencies to rethink their approaches to finding their audiences.
As all these factors come together in the context of the upcoming midterms, there’s one question on advertisers’ minds: What could possibly go wrong?
...OK, maybe that’s not the question. Marketers are actually wondering how to target like they have in years past when they are operating without many of the tools and capabilities they had during previous campaigns. And the question of targeting isn’t just about putting the right message in front of the right people—as one factor of a holistic marketing strategy, targeting is wrapped up in everything else advertisers want to do: spend effectively, cut through the noise, create seamless consumer experiences, and foster affinity and loyalty.
Luckily, alternative methods of targeting are available for political advertisers, and while they may look and feel different than third-party cookies, they offer new benefits—the most important one being that they use audience data in non-invasive, consumer-approved ways while staying conversion-friendly and cost-effective.
Read on to learn about the challenges to targeted political marketing in 2022, as well as some new targeting solutions marketers can use to cut through the chaos.
Let’s start with the elephant in the room: The advertising industry is facing an identity crisis as it looks ahead to the impending deprecation of third-party cookies in 2023. As that 2023 deadline looms closer, regulatory bodies and tech providers alike are taking steps to move away from cookie-based targeting and towards less invasive tools for reaching target audiences.
New and proposed digital advertising regulations across the globe further illustrate the need to proactively move away from third-party cookie-based targeting. For example: The UK’s new Digital Services Act, which “aim(s) to create a safer digital space where the fundamental rights of users are protected,” will ban targeted online ads based on ethnicity, religion, or sexual orientation.
Meanwhile, tech giants have adjusted their offerings in response to calls for increased privacy as well. In January, Meta removed many detailed targeting options that were based on potentially sensitive identifiers. These included sexual orientation, religious practices, and the kicker for political marketers: political beliefs.
As governments pass new legislation and tech providers alter their offerings, marketers are tasked with staying up to date on the changes and working around them, all while maintaining performance. It’s a tall order—and in order to fulfil it, marketers will need to tap into new, privacy friendly targeting opportunities.
There’s no silver bullet for replacing third-party cookies. There are, however, a variety of effective and cost-efficient alternative targeting options that meet the new standards for consumer privacy. Below, we’ll discuss two viable opportunities. Note that these aren’t the only privacy-friendly targeting solutions available to political marketers, as there are many, but tapping into these two will put you well on your way to better identifying, understanding, and speaking to your target audiences as you ramp up media buys for your campaign.
In many ways, contextual targeting is a throwback to the times before internet advertising and third-party cookies, when advertisers bought ad space in linear TV, print, and terrestrial radio. To place their ads in front of the right people, marketers identified contextually relevant environments within those channels. For example, a record label might identify Rolling Stone as a contextually relevant environment for their messaging, because they want their ads to reach music fans.
Today, contextual targeting is having a moment in digital advertising because it doesn’t rely on user data. It's clear that the method of using contextually relevant content to group audiences is here to stay—it’s foundational to Google’s new Topics API offering, for example. Contextual targeting is also more cost-effective, on average, than user ID-based targeting. Finally, contextual inherently adds a layer of filtering for page quality, protecting brand safety by avoiding low-quality content. In an age where consumers are rejecting brands that advertise irresponsibly, this is a priceless benefit.
In the political advertising realm, few things are more valuable than accurate and hyper-local geotargeting. This is especially true for congressional, state, and local campaigns, where candidates have finite dollars to reach voters in specific areas.
In days past, political marketers had to manually identify dozens of zip codes for the state and local legislative districts they wanted to target in their campaigns, then upload that data into a programmatic ad platform before using it in their campaigns. However, new capabilities empower political advertisers to reach their target audiences more effectively and efficiently. Basis’ state legislative district geo-targeting, for example, automates the delivery of L2's high-quality voter data into Basis DSP, then streamlines the discovery, selection and exemption of districts to target. This process reduces manual (and human error-prone) labor on the part of media buyers, allowing more time for strategy, creative messaging, and optimizations.
Additionally, L2’s partnership with Comscore combines L2’s data with Comscore’s Predictive Audiences methodology, empowering marketers to access a variety of political audiences without third-party cookies. Using this feature, marketers can tap into audiences based on political behaviors like voting likelihood and political affiliation.
The state legislative district geo-targeting feature is a good example of how to effectively target audiences in a privacy-friendly way—it starts with high quality data, employs automation to streamline the delivery and execution of that data, and combines with additional useful methodologies to offer more granular targeting.
However political marketers decide to approach the 2022 election cycle, privacy must be a focus. While consumers demand authenticity and responsible advertising from advertisers of all stripes, candidates and causes marketing is particularly susceptible to the court of public opinion.
By relying on privacy compliant targeting solutions like contextual and hyperlocal geo-targeting data, political marketers can both find and identify the voter audiences they want to connect with. They’ll also set up new, privacy-friendly advertising workflows that will come in handy in coming years as the industry continues to move away from user ID-based targeting.
And if—scratch that, when—the 2024 election cycle is even more chaotic than this year’s, not having to start from scratch when it comes to cookieless targeting will be a welcome relief.
Looking to make the most of your 2022 election advertising? Connect with Basis Technologies to learn about our award-winning Candidates and Causes team!
What’s new in the realms of paid search and social media? Basis’ Senior Vice President of Paid Search and Social compiles all the latest news, trends, and resources each month for easy access.
Channel Factory’s global research report reveals key insights across the US, UK, Italy, Singapore and Australia to illustrate how people are using social media platforms today compared to in 2020.
According to a recent eMarketer report, social media ranks higher than search, display, or video in terms of ability to measure ROI for paid media.
Search Engine Land summarizes the most important announcements from this year’s Google Marketing Live event.
In partnership with Analysis Group, Meta released a whitepaper discussing the potential contribution of the metaverse to global economic activity—if it were to evolve similarly to prior successful technologies in terms of rate of adoption and impact on GDP.
A new research study by Snap and IPG Magna explores augmented reality's place in marketing and how it’s being embraced across industries.
The Reddit for Business LinkedIn account recently shared a useful infographic to help guide advertisers on the top copy and creative considerations for headlines, static images, video, and overall tone.
The May edition of this Google report provides a look into how consumers are reacting to the rising cost of both essential and nonessential items they need or want to buy.
Google found that more than 80% of people say they use another device while watching TV. With this in mind, they are rolling out a new feature that lets you connect your TV to your iOS or Android phone to bridge cross-device activity.
In an effort to provide more transparency for users, Meta's updated Ad Library will now include information on the social issue, electoral, and political ads a Page runs using each type of targeting (such as location, demographics, and interests).
TikTok's new partnership allows WooCommerce merchants to connect their accounts to TikTok in order to sync store catalogs, implement pixels seamlessly for results tracking, and target custom audiences quickly.
Snapchat recently introduced their own version of dynamic travel ads, likely due to a resurgence in travel since the pandemic began.
An award-winning cannabis retailer leverages Basis Technologies' programmatic expertise to achieve 8x higher return on ad spend.
A Michigan multi-location medical and recreational cannabis retailer was looking to bring their digital advertising in-house to improve their media performance and business goals. They knew it would take time and training to transition, and they would need an expert partner to help lead their campaigns while they migrated their digital media operations.
The cannabis industry is quickly growing and evolving with new regulations and geographic nuances constantly changing the landscape. This chaos creates complicated and confusing paths to execute and reach the right audience at the right time to create a meaningful connection.
The retailer was confident that Basis Technologies' Path to Self-Service solution provided the flexibility and expertise to take their digital media campaigns to the next level. For their first campaign, the Basis Technologies team focused on prospecting through trusted partners such as Fyllo, which offers one of the largest ecosystems of cannabis and CBD-derived purchase data and is available directly through the Basis DSP Platform. The team implemented a data-driven campaign with programmatic, display, contextual targeting with Peer39, and retargeting to reach the desired audience. A universal pixel was also implemented to create various models for targeting, attribution, and subsequently optimization for a more efficient return on investment.
We each encounter a stunning array of stimuli in our daily lives. The images and advertisements that flood our social media feeds, the apartment maintenance team revving up the weedwhacker just as we sign on to a Zoom meeting, our pets softly snoring as we write a blog about podcasts...but we digress.
If everyone was to pause and make a list of all the things they could see and hear in just this precise moment, many would understandably get lost in that sea of sound (and, of course, wind up with some extensive lists!)
Why does this constant state of stimulation matter, specifically for advertisers?
Experts say that it leads to a phenomenon of “continuous partial attention,” in which many things get just a bit of our attention, but a single thing rarely gets it all. This matters for marketers, as attention drives sales. And one particularly under-utilized area of advertising that garners a lot of attention? Podcasts.
Today, we’re digging deep into all things podcast advertising: how it’s currently utilized (or under-utilized), where its value lies for marketers, and where it’s projected to go in the next several years. Read on to learn how podcast advertising can help marketers cut through the noise—pun very much intended!
The vast amount of input we encounter daily is visual—with some images front-and-center, and others in the periphery. This massive visual input is, in no small part, due to the number of ads we see. Sources estimate that most Americans encounter up to ten thousand advertisements each day! It’s no wonder that our attention is constantly divided.
Audio advertising provides a break from visual overload. 56% of Gen Z and millennials agree that audio serves as a much-needed escape. It’s a way to reach consumers without requiring them to focus their attention on an image or video. Within the broad umbrella of audio advertising, podcasts are an especially compelling opportunity, as most people listening are doing so because they want to learn.
Plus, people listen to podcasts everywhere. Recent data shows that most listening happens on smartphones, which means that listening can occur virtually anywhere: in the car, on a walk, at home, etc. As such, podcast ads provide marketers with a captive audience—ripe for high engagement—at any time, and in any place.
Unfortunately, that’s not entirely the case. Despite the popularity of podcasts, podcast advertising is presently an underutilized and undervalued opportunity, especially given the format’s explosive growth in the last several years.
Let’s touch on a few of the current stats on podcasting, which demonstrate this discrepancy between advertising opportunity and utilization:
Now, onto podcast ad spend:
Despite the evidence that podcasts are booming and that podcast ad spend is on the rise, audio advertising is, collectively, under-invested. In the U.S. alone, audio garners upwards of 31% of all media activity. But in terms of ad spend? An underwhelming 8.8%!
Imagine this: a listener of a lifestyle podcast hears the host share their experiences using a certain product. This host is someone the listener trusts, as they listen to the podcast each week. They recall that the host has talked about this product before, and their interest is piqued. Later that week, that same product appears in their Instagram feed or alongside their virtual shopping cart. Because they heard about the product from a trusted source, and have now experienced ads across various channels, they’re ready to hit "Add to Cart."
Podcast ads are a powerful tool marketers can add to their omnichannel strategy that allows them the flexibility to meet their ideal consumer in the right time, and in the right way. They offer opportunities for marketers to authentically engage with consumers, to personalize for distinct audiences, and to employ a flexible marketing strategy.
Let’s dive a bit deeper on these key strengths of podcast advertising.
Advertising within podcasts provides an opportunity to connect with relevant audiences in an authentic way that drives engagement. These ads can captivate listeners with strong storytelling, fostering an authentic connection to a brand or product. Marketers have listeners’ undivided attention, as users cannot listen to anything else while a single audio ad is playing. Though listeners have the ability to skip podcast ads—and this is certainly a challenge with this ad type—audio ads tend to stick in listeners’ minds: upwards of 70% recall audio ads they’ve heard over the past few months!
Beyond the fact that podcasts offer a captive crew of listeners (and the ability to reach them in a way that doesn’t add to visual overload), many podcast listeners are incredibly loyal in their listening habits. Regular listeners are deeply committed to their favorite podcasts, with 46% listening within 24 hours of each episode’s release.
What’s more, podcast hosts have established rapport and trust with their audiences. For most listeners—especially millennial and Gen Z—trust, loyalty, and authenticity are critical factors that drive their purchases, especially during times of economic upheaval and inflation. Reaching them through a platform they regularly use and where trust has already been established is a huge win for marketers, and data shows that podcast ads read by hosts are perceived positively.
Yet another benefit of podcast advertising: its strength when it comes to personalization, especially through contextual targeting.
Marketers can gain significant insight into audiences just by paying attention to the podcast’s topic, tone, and audience. In a land shaped by constantly-shifting digital advertising regulations and the coming deprecation of third-party cookies, using podcasts’ topics and audience demographics to place relevant ads within the context of those podcasts is an impactful strategy.
Advertisers can ensure their message is reaching the audience, in the right way, by placing ads in podcasts that align with their own brand voice and values. An audience already captively listening to a podcast on personal finance will be more receptive to ads directly related to that industry, just as someone listening to a true crime podcast might be more responsive to their podcast hosts touting a home security system.
Once marketers have identified their target audience, using a DSP to access premium biddable and guaranteed direct audio inventory is a great way to ensure they are connecting with that audience. And, utilizing private marketplace inventory allows advertisers to further leverage contextual targeting to reach audiences with precision and in brand-safe audio environments.
Beyond contextual targeting, advertisers can narrow and further personalize their advertisements by embracing dynamically personalized audio messages. These allow marketers to personalize the audio ads that listeners are hearing based on criteria such as age, language, weather, day of the week, and more.
In today’s complex digital landscape, the need for a flexible, dynamic marketing strategy has never been greater. Advertisers need the ability to test new strategies within different channels, as well as employ strategies across channels in a way that keeps brand voice and messaging consistent. Luckily, podcast advertising has developed in a way that allows marketers to lean into these demands.
First, there are many different styles and types of podcast ads that marketers can use. Though 15 to 30 second host reads currently take the cake, longer custom-branded segments are becoming more widespread. As trends continue to shift—both based on what consumers respond to and what the industry can provide—marketers have the flexibility to embrace podcast advertising strategies that meet their distinct needs.
Further, for marketers who are working to expand their reach by employing an omnichannel strategy, podcast ads offer the flexibility to do so without putting a strain on resources. For advertisers who have not yet ventured into video or audio, audio has a lower barrier to entry—podcast ads have lower production costs and have fewer components to edit than video ads. And, unlike video ads, podcast ads do not have to be ‘in-view’ to have an impact on consumers.
Finally, podcast ads offer marketers the flexibility to adapt their strategies to meet consumers where they’re spending the most time. Today, most podcast listening happens on smartphones. In the U.S., the average mobile user spends nearly four and a half hours on their phone each day. Using podcast ads increases the likelihood that consumers will be exposed to your brand or product across a variety of channels. And, as users spend more and more time on their smartphones in the coming years? Podcast advertising will continue to offer marketers the flexibility to increase their interactions with consumers on just that device.
Podcast advertising demand is skyrocketing and will only continue to grow in the coming years. As programmatic audio advertising technologies evolve, alongside AI-driven contextual targeting functionality and improved data capabilities, advertising in podcasts will continue to become more sophisticated and competitive. Savvy marketers can stay ahead of the curve by prioritizing authenticity, embracing the flexibility of this audio format, and staying informed on current trends.
Want to learn more about how audio advertising could be a part of your media plan? Whether you’re looking to add programmatic audio to your digital media strategy or you’re more interested in direct buys through various private marketplaces, the opportunities are many. Check out our Audio Advertising Guide to learn more.
We might just be at the threshold of a new era of travel. With the pandemic showing signs of subsiding and people across the globe hitting the road and taking to the skies with a vengeance, travel brands are finding that the nature of consumer demand and the make-up of the consumer journey are transforming.
The travel industry has been hit particularly hard over the last three years—it was one of the first to suffer back in 2020 and will likely be one of the last to fully recover with eMarketer estimating that digital travel-related bookings won’t return to 2019 levels before 2024. Its 2021 bounce-back was punctured by the Delta and Omicron variants, while its 2022 rejuvenation has been marred by record inflation caused by lingering supply chain issues and a surge in gasoline prices tied to Russia’s invasion of Ukraine.
Yet, despite the economic disruption and the dampener it’s putting on discretionary spending, there is much optimism and hope throughout the travel industry: United Airlines recently launched its biggest branding initiative in a decade, Hotels.com has just kicked off a new global campaign (minus Captain Obvious), and Airbnb is putting serious money behind marketing its new booking by category approach.
So, why do travel brands have such confidence in the market?
Simply put, people are desperate to get out there and make up for lost travel time. Consider these statistics:
Essentially, there remains so much pent-up demand that even with potential problems ahead, the outlook for travel is strong.
To engage with these energized, undeterred vacationers, travel brands should be measured and adaptable to their new pandemic-induced demands and buying patterns. Indeed, the priorities of travelers are changing. The channels where they find inspiration are changing. Their travel inclinations are changing. If advertisers fail to adjust to these shifts, they risk missing out on valuable opportunities to recoup some of the losses they incurred during the height of the pandemic.
Below, we break down six current trends in the travel industry and explore how travel marketers can respond to them accordingly and position their brands as trusted allies to consumers during these uncertain times.
Even as 72% of consumers recognize that vacations have changed since the start of the pandemic, they are still turning to the act of traveling to regain a sense of normalcy. This presents a challenge for travel advertisers, since “normalcy” often conflicts directly with travelers’ concurrent desire for travel providers to maintain COVID-19 mitigation practices. Indeed, just over half (55%) of those planning a vacation this year say that they are still concerned about the spread of the virus, and the same number say they are taking into consideration what measures travel providers are taking to keep them safe. It’s important, then, that brands understand and acknowledge that travelers aren’t necessarily ready for the industry to move on from the public protection policies that enabled it to re-open.
Elevate messaging around your safety and sanitation measures further up on the marketing funnel to give consumers peace of mind and encourage more conversions. Examples of the type of information you may want to note include:
Ultimately, people want to know that they’re in safe hands. Disruption to travel services may linger for years to come, and operators must employ effective, sustainable, and flexible solutions in order to navigate them with as little disturbance as possible.
With stay-at-home orders and the uncertainty caused by COVID-19 variants still fresh in their minds, travelers are eager to gain greater control over their trips and more actively determine the details of their experiences. The biggest expression of this sentiment lies in the strong desire to see cancellation and change fees eliminated—a notion travel providers had no choice but to comply with throughout the pandemic as they chased what precious few consumer dollars there were. Yet, even as the pandemic subsides, travelers expect these policies to remain in place and demand that brands meet them in terms of flexibility.
Address traveler concerns head on by highlighting offerings such as flexible booking in your ad messaging. Provide clear information about your refund policy and use simple, easy-to-understand language so travelers know they can book with you without worrying about any unexpected changes. European airline EasyJet, for example, continues to offer a Protection Promise pledge that gives fliers the opportunity to change their flight to a later date, free of charge, up to two hours before departure.
Despite the pandemic bringing travel to a halt, membership in frequent travel programs (FTPs) increased from 63% in 2020 to 71% in 2022 among internet users age 18+. The largest lift came in membership through credit cards that offer travel rewards, indicating that loyalty program subscribers were content to simply accrue points they could use in the future. Comprehensive loyalty apps are being touted as one of the big future trends in the travel industry, with 55% of loyalty program members saying that belonging to more than one FTP is a hassle, and members under the age of 35 looking to a program’s app not just for information on points, but also inspiration and booking mechanisms. There is also increased appeal in having a community within the loyalty ecosystem, and upstart brands like Travala are leading the way in restructuring loyalty to meet this end.
The rewards landscape is currently in a state of transition due to the slow return of business travel, its (once) main driver. With leisure travel dominating right now, program providers will have to adjust their offerings in order to appear more attractive to vacationers. This can include putting an emphasis on accruing points through spending and buy-now-pay-later (BNPL) financing, rather than travel itself, and expanding rewards to be more relevant to different kinds of leisure travelers such as families. FTP members (and consumers in general) are also becoming more conscious about their affiliation with brands—so, it’s a good idea to continually vet your partners to ensure that their actions align with your own business values.
Social media may be having a moment of crisis amid stock selloffs, stagnant user growth, and tortuous takeovers, but it remains a powerful tool in influencing people’s travel decisions and prompting travel bookings. Meta-owned Facebook and Instagram command the greatest appeal, though both TikTok and Snapchat are increasingly growing in popularity—their trend-centric, video-based nature particularly appealing to the younger generations who prefer authentic, light-hearted content over anything too polished. With US adult TikTokers and Snapchatters spending an average of 45.8 minutes and 30.4 minutes on their respective platforms per day this year (both ahead of Facebook and Instagram, incidentally), travel advertisers should look to build a presence on these channels if they’re not doing so already.
Experiment with #TravelTok in your campaigns to ensure you’re getting in front of your target audiences and, if you can do it in a way that feels genuine and true to your brand, try testing content based on the latest memes or run branded hashtag challenges that actively encourage audience participation. The TikTok environment is fast-paced and creative—whatever your content strategy, ensure you’re conveying information in bite-sized pieces.
Utilize the platform’s new dynamic travel ads designed to maximize relevance by automatically retargeting users who have been to your site or app before with hotel properties, destinations, or flight routes that are most interesting to them.
Sustainable travel was already a burgeoning trend back in 2019, but coming out of the pandemic, consumers around the world are seeking even more ways to have conscientious travel experiences. A recent report by Expedia frames this outlook in numerical terms:
As these habits develop, travel providers will need to take bold action around the subjects of sustainability and environmentally friendly practices—and these actions must be truly genuine. Consumers (especially the younger generations), campaigners, and advertising authorities are quick to call out brands today if they see any false promises or false claims in their campaigns. Case in point? Just recently, Dutch airline KLM wound up in court over accusations its "misleading" advertising amounts to greenwashing in a case believed to be the world's first for the aviation sector. Translation: if you’re going green, you better mean it and have the evidence to prove it.
Seven in 10 consumers feel overwhelmed by starting the process of being a more sustainable traveler so if you do have sustainable credentials and outcomes to share, do so in a way that’s easy to understand. Consumers want to see strong commitments to green themes, so you may also want to consider supporting your messaging with data and other evidence of positive impact. Iberostar Group is one of the pioneers in this area—its Wave of Change initiative that works to understand and combat climate change while preserving ocean ecosystems is a great example of how travel brands can respond to consumers’ expectations.
Mainstream use of the metaverse—and the technologies upon which it is founded—is still some time away for the travel industry (indeed, for all industries!), yet that isn’t stopping brands from experimenting with what is currently available. The rise of consumer tech like the Oculus Quest has empowered travel marketers to get creative with their campaigns and differentiate from their competition. Here are some manifestations of this trend:
These activations highlight how digital innovation can enrich travel marketing and provide advertisers with unique opportunities to engage and inspire people. There are already numerous ways hotel chains, cruise lines, tourist boards, and museums can utilize VR and AR to their advantage, and more are sure to come.
Of course, not everything these nascent technologies have to offer is relevant for every brand, but for those who are looking to explore their possibilities, there are some actions you can take. The first steps should be centered around assessing and strategizing—map out your various customer journeys and key touchpoints and then conceptualize how a virtual ecosystem could enhance those interactions. If you’re looking to make your move into the metaverse sooner rather than later, be sure to deploy small with low-budget initiatives—there are no tried-and-true best practices for metaverse marketing, so err on the side of caution.
Times are changing in the travel industry, but one thing is clear: people want to travel. Even against a backdrop of geopolitical instabilities and economic uncertainties, travel executives remain cautiously optimistic about the months ahead—there is a feeling that pent-up demand will outweigh anything the market can throw at it.
By focusing on the core areas outlined here—maintaining safety-related messaging, offering flexible booking policies, tweaking loyalty programs, staying current on social media, touting sustainability credentials, and investing in digital innovation—travel marketers can provide value as they meet and exceed the needs and demands of their target audiences.
Looking for more travel advertising tips and tricks? Check out Basis Technologies’ dedicated travel resource center.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so that you don't have to. Here’s what to read from the week of 6/16/22 - 6/23/22 to stay ahead of the curve:
Ad-supported VOD platforms are projected to generate nearly $19 billion in revenue this year—more than doubling since 2020—as audiences increasingly seek out diverse content at minimal (or no) cost. No wonder Netflix is so eager to get in on the digital video advertising party!
Do your special interests say more about your buying behavior than demographics like age, gender, and location? TikTok has made the case that subcultures like #MomTok and #FinTok may offer even better targeting opportunities than traditional demographics. P.S.—before diving in, know your TikTok do’s and don’ts!
Sure, inflation rates are soaring, consumers are feeling frustrated by the economy, and economists are warning of a possible impending recession, but retail marketers are doing just fine, OK?! That said, for those who need a little extra support, here are some actionable tips for retail marketing during economic upheaval.
Meta’s housing advertising system has been under fire for discriminating against Facebook users based on demographics like race and gender. On Tuesday, they reached a settlement with the Justice Department that will compel the social giant to address algorithmic discrimination—a landmark decision for digital advertising regulation.
Roku and Walmart recently announced a new partnership to enable single-click shopping directly from Roku devices. While shoppable CTV isn’t a new concept, the partnership could quicken adoption of a new iteration of T-commerce (television commerce)—if consumers are willing to accept it.
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