Agenda: 1 Jon Baron Head of Multinational Sales Using online to tap into the booming Asian travel market 2 Ed Pushman Search Media Strategist The Search.

Agenda:

1

Jon Baron

Head of

Multinational Sales

Using online to tap into the booming Asian travel

market

2

Ed Pushman

Search Media Strategist

The Search Travel

market & adCenter

Eastern Opportunity:How online advertising can help you unlock the potential of the booming Asian travel market

Why Asia? – Tapping into the Consumer Potential

With about 61% of the world’s population living in the region in 2007, Asia-Pacific is a huge consumer market

China and India account for 37% of the world’s population

Source: US Census Bureau, International Data Base, July 16 2007. Emarketer calculations, August 2007

Asian Travellers Are Big Spenders

Singapore currently biggest spenders on travel (6th of personal disposable income) China, India and Indonesia will be among the world’s fastest-growing countries in travel and tourism Growth in Chinese spend on travel & tourism expected to be 4 times US growth

Source: www.Emarketer.com

And a lot of that money is going online...

73% of affluent Asians are online (pax) and spend more time online than any other medium (Asiabus)

1 in 5 of all travel sales in Asia-Pac will be online next year

“In 2007, $17.7 billion worth of leisure or

unmanaged business travel will be booked online in the Asia-Pacific region

- up 28.3% from 2006. Strong future growth will ensure that the market about

doubles to $35.5 billion by 2010 and approaches $42 billion in 2011.”

Jeffrey Grau, Senior Analyst, eMarketer

The Ones to Watch: China & India

China and India are two of the region’s largest and fastest growing online travel markets Last year they combined to capture just over 15% of the total online travel market share By 2011 their share will triple to 46.3%

Market share of online leisure/unmanaged business travel bookings for India and China – 2006 & 2011 (% of Asia-Pacific* total)

Note: includes all online travel bookings whether paid for online or offline* Australia, China, India, Japan, New Zealand, South Korea; Source: eMarketer Sept 2007

What the Money Is Being Spent On

Sample size: 6,736Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate

% Share of Respondents

Travel Services bought online in the last 12 months 2006/07

China Hong Kong India Japan Malaysia

Air Tickets 30% 20% 48%48% 37% 47%

Hotels 30% 22% 21% 48%48% 32%

Event Tickets 11% 12% 10% 15% 12%

Travel Packages 15%15% 8% 15%15% 11% 12%

Travel Insurance 11% 15% 5% 12% 11%

% Share of Respondents

Sources used for planning/ researching travel 2007

China Hong Kong India Japan Malaysia

Internet 81% 76% 81% 93% 83%

Printed Travel brochures 41% 49% 65% 65% 53%

Guidebooks 53% 56% 29% 55% 41%

Newspapers 40% 33% 40% 15% 49%

Travel agents 41% 55% 40% 43% 54%

Friends/relatives/colleagues 56% 46% 40% 29% 58%

Magazines 39% 34% 40% 15% 49%

Online Is Not Only A Place To Spend But A Place To Plan, Share and Discuss Travel Purchases

Base: Those who have traveled for business or leisure (Sample size: 5,871)Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate

Online is a Strong Influencer of Offline Travel BookingsResearched online

Purchased/booked online

Purchased offline

Hotels 55% 33% 26%

Air Tickets 54% 36% 25%

Travel packages 37% 12% 18%

Sightseeing tours 36% 9% 19%

Event tickets 30% 19% 19%

Rental Car 17% 9% 13%

Other Travel related services

33% 8% 15%

European Hot Spots for Asian TravellersUK, Germany & Italy lead the way

Number of tourists arriving from China, HK, India, Japan and Malaysia in 2006

> 1,000,000

500,000 – 1,000,000

< 500,000Source: Euromonitor

Who, Where and Why?

39% Families29% Couples70% Leisure

Top: Singapore, DubaiUS & UKEurope: UK & SwitzerlandEmerging: Germany

BollywoodEmergence of low cost Carriers ‘Open Skies’ govt policy

Targets

Destinations

17% Families11% Couples42% Organised Tours

Top: Macau & Hong Kong (68%)Emerging: South AfricaEurope: Austria,

Backpackers/Independent Traveller

India

13% Families26% Leisure38% Organised Tours

Opportunities

14% Families14% Couples49% Organised Tours

20% Families32% Leisure18% Organised Tours

Top: China (70%)Emerging: Europe, Australia. North America

Business TravellersCruises and sea trips

Top: South Korea, Thailand

Leisure tourism & organised tours

Top: SingaporeEmerging: Macau, Hong Kong, Thailand

Independent Traveller; Flexible travel packages to Australia & New Zealand

MalaysiaHong KongChina Japan

Source: Euromonitor

Case Study Cathay Pacific

The Campaign:

• ‘Born to move’ campaign

• Aim: to increase brand

awareness among frequent

travellers within Asia

• Improve its position as

most admired airline

• Ascertain reach and efficacy of

online branding for its target audience

Campaign results:

• The survey results on MSN exceeded expectations:– Brand message association increased by 35% – Unaided brand awareness increased by 26.9% – The campaign was effective in establishing

the perception of Cathay Pacific as an airline

with the widest network. – Boosted purchase intent by 14.9%

“There is no doubt in our mind that MSN is a great communications partner for the airline industry. We derived great value for our investment and the survey results exceeded our expectations.”

Celine Ho Manager, Marketing Communications, Cathay Pacific Airways

Case Study Tourism Malaysia

Tourism Malaysia : Online Global Branding Campaign

• Campaign objectives:– Increase brand visibility globally by

showcasing Malaysia’s uniqueness– Create hype around Malaysia’s 50th

Golden Celebration in conjunction with Visit Malaysia Year (VMY)

– Encourage potential tourists to visit Malaysia

• Target audience:– Potential travellers globally aged 21+– Covered a total of 13 countries (Asia,

Europe and North America)

• Online tools used:– MSN / Windows Live Platform which

includes:> MSN Homepage> Windows Live Hotmail> Windows Live Messenger> Windows Live Agent

Snapshot of Campaign Impact on target audience : Singapore & Australians 91% Of Australians & 69% of Singaporeans exposed to the campaign were

main/ joint decision makers for family travel (the campaign reached the desired audience)

Positive uplifts were seen by all key brand metrics indicating the online campaign initiated positive influence and achieved the set objectives.

Source: AdIndex Advertising Effectiveness Research 2007 conducted by Dynamic Logic

UnaidedAwareness

AidedBrand

AwarenessOnline

Ad AwarenessBrand

FavorabilityPurchase

Intent

Not exposed to the online campaign

Exposed to the online campaign

9%6%

96%94%

44%

34%

54%49% 52%47%44%41%

MessageAssociation

0

20

40

60

80

100

+10%+5%

+3%+5%

+3%

Ongoing Online Engagement With Siti

• Promotion of Malaysia continues with a Travel World First launched on 1st November 2007

• ‘Siti’ – new digital brand ambassador to promote national tourism via Windows Live Messenger

• Taking Tourism Malaysia to the next level of interactivity via innovative technology

• Potential to reach more than 285m instant messenger users across multiple markets worldwide

Add Siti to your Windows Live Messenger buddy list today : [email protected]

Why Microsoft? We connect with your audience all day

Global reach, local knowledge, one point of contact

Multinational Sales team have offices located in Hong Kong, Japan, London, New York, Paris, Singapore

465m unique users in 42 markets and 21 languages

MSN & Windows Live Hotmail – more than 300 million active accounts worldwide

More than 294 million active Windows Live Messenger accounts worldwide

More than 111 million unique users worldwide (Source: Comscore, August 2007)

Over 2.16 billion worldwide queries each month

Some of our Travel Customers:

adCenter and travel

Edward PushmanSearch Media Strategist

Microsoft adCenter

The Search Market Place

Live.com Search

Live Maps and Virtual Earth

adCenter

Microsoft’s UK Search Opportunity

Users (UK-only)

7Million

28Million

9Million

Share of Users

Share of QueriesShare of Queries

6.6.11%%

81.81.22%%

5.5.44%%

Source: comScore MediaMetrix, Aug 2007; queries per user per month

23%

89%

29% No. 2 for share of users

Integration

CoreQuery Query RefinementRefinement

CoverageCoverage

Query IntentQuery Intent

Local,Local,MapsMaps

• Coverage4 x increase in index size

• Query intentAdvanced query analysis

• Query refinementAuto Spell / Query Suggestions

• RankNetMore intelligent algorithm

• Structured information extractionProduct reviews / related people

• Rich answersAnswers & multi media results (Coming

soon)

Autumn 2007 Core Investments

RankNetRankNet

Structured Structured Information Information

ExtractionExtraction

Rich AnswersRich Answers

High Interest High Value Verticals

CoreShoppingShopping EntertainmentEntertainment

HealthHealth

Local, MapsLocal, Maps

ShoppingShopping EntertainmentEntertainment

HealthHealth

Local, MapsLocal, Maps

Local, Maps Find local business listings quickly and easily

Sources: Microsoft Research Mapquest User Survey 82007; comScore MediaMetrix, August 2007

CoreShoppingShopping EntertainmentEntertainment

HealthHealth

Local,Local,MapsMaps

Local search begins at asearch engine

Queries have local intent

Active internet users use maps and directions

Local Local & Maps& Maps

The VE platform provides customers, partners, and developers with a set of integrated

services for programming and building intelligent Web applications for location-based

information.

Aerial and Satellite Imagery

Bird’s Eye View

Proximity based Results

JLScoot: BE boosted online visits to highest levels ever & increased return visits by 47%.

Number of unique visits per month increased by 11%

Number of new visitors per month increased by 15%

Microsoft adCenter increasing your ROI

Convert more with adCenter

High quality audience

Paid Search and Travel

Future of Search

Convert more

Why Microsoft adCenter?

Our audience is more likely to convert than any other

* NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website

Percentage of click throughs that lead to conversion

MSN/LiveSearch

Con

vers

ion

%

GoogleSearch

Yahoo!Search

AOLSearch

TotalAverage

5.8%

3.0%

4.2%

3.2% 3.2%

Our audience is more likely to convert than any other

* NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website

MSN/LiveSearch

Con

vers

ion

%

GoogleSearch

Yahoo!Search

AOLSearch

TotalAverage

9.4%

6.3% 6.7%

5.6%6.6%

Travel

Percentage of click throughs that lead to conversion

High quality audience

Why Microsoft adCenter?

Our audience is more engaged on your site

*TGI Internet 2006 ** NNR Jan-March 2007

MSN/LiveSearch

Ave

rag

e t

ime

sp

en

d o

nth

e d

est

ina

tion

site

(m

ins)

GoogleSearch

Yahoo!Search

AOLSearch

TotalAverage

4.01

2.39

3.22

2.50 2.48

Level of Engagement

Our audience is more engaged on your site

*TGI Internet 2006 ** NNR Jan-March 2007

Level of Engagement

MSN/LiveSearch

Ave

rag

e t

ime

sp

en

d o

nth

e d

est

ina

tion

site

(m

ins)

GoogleSearch

Yahoo!Search

AOLSearch

TotalAverage

4.11

3.394.04

3.063.46

Travel

Paid Search and Travel

Spend for paid search

11% of travel companies said they spent more than £500,000 per year on PPC, and 25% said they spent over £1 million

£600

£500

£400

£300

£200

£100

0%

Spending in first half 2006 - £millions

Paid-for Online Online Interruptive Search Display Classifieds Formats

Spending

UP 57%

UP 33%UP 23%

DOWN 9%

Paid for search listings increased from £337million in 2005 to more than £531 million in 2006

Click throughs

12%

10%

8%

6%

4%

2%

0%

Average Click Through Rate

Car H

ire

Cruise

s

Ferrie

s

Flight

s

Holida

ys

Specia

list H

olida

ys

Touris

m

Trains

and

Bus

es

Trave

l Agg

rega

tors

Accom

mod

ation

Average Click Through Rate in Travel Microsoft adCenter

Actionable audience Intelligence

70

65

60

55

50

45

40

35

0

Females are More Likely to Click!

Categories

Ski Flights Car Hire Hotels Cruises Holidays Holidays Generic Brands

Sea

rch

Im

pres

sion

s

Female Male

Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Impact of Events

Unique intelligent targeting

Why Microsoft adCenter?

Using our unique demographic targeting, adCenter can deliver your adto the right customer at the right time

Compared to other search enginesadCenter achieved:•Click-to-sale ratio 35% higher

Eurostar Case Study

•Cost-to-sale rate 16% lower•Click-through-rate nearly fivetimes higher• The only search engine to achieve an increase in conversion rate from the previous month

Key Takeaways

• Your audience is online and growing

• Spend on travel is on the rise

• Internet is key tool in research, planning & purchase of travel

• Be relevant, creative and engaging and the opportunity is yours

• The web can connect your brand with consumers the other side of the world and in multiple markets simultaneously

• Display plus search delivers measureable results

Thank you