The Travel Purchase Funnel Disruption TECHNOLOGY TRENDS THAT ARE DISRUPTING THE CONSUMER PATH TO PURCHASE Adriana Peña Ruiz EVP, International Marketing and Sales Development Entravision
Travel purchasefunneldisruption ap2015
Aug 20, 2015
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The Travel Purchase Funnel Disruption TECHNOLOGY TRENDS THAT ARE DISRUPTING THE CONSUMER PATH TO PURCHASE Adriana Peña Ruiz EVP, International Marketing and Sales Development Entravision
Knowledge
Attitude
Behavior
General Awareness Specific Awareness
Attractiveness
Purchase Intent Proximity
Purchase Advocacy
Traditional Purchase Funnel: Is getting less traditional
TRADITIONAL STAGES FROM AWARENESS TO PURCHASE AND REFERRAL HAVE CHANGED JUST AS THE STAGES OF MODERN HUMAN LIFE
The consumer purchase funnel is being dramatically disrupted by Technology
Source: Navigating the new patch to purchase, MillwardBrown
CONSUMERS REGRESS BACK TO RESEARCH AT BRINK OF PURCHASE. RESEARCH AND SOCIAL MEDIA REFERRALS CAN REDIRECT ORIGINAL PURCHASE DECISIONS.
General Rules are Not the Rule
Source: Navigating the new patch to purchase, MillwardBrown
EACH PURCHASE FUNNEL PHASE IS DRIVEN BY DIFFERENT CONSUMER DRIVERS AND BRAND TOUCH POINTS THAT HAVE BEEN AFFECTED BY TECHNOLOGY
Traditional Rules Some New Trends
Primary Drivers to Buy
General Awareness
Purchase Intent
Purchase
Advocacy
Length of Purchase Journey
Key Brand Touch Points
Use or Share a Car:Freedom and convinience; Uber, SideCar:, Lift
Unknown brands can appear overnight – Uber, Airbnb etc.
“e-window shopping”
Mobile Payments, Beacons, Brick+Mortar In-Store online integration
Yelp Reviews, TripAdvisor, Imdb Movie Rankings, etc.
Months- Last Minute on-the-go booking- Impulse clicks e-shopping
SoMo, Mobile, websites, apps
Own a Car: transportation and status.
Strong Brands were always the top consumer choices
Window Shopping…
Brick+Mortar, “traditional” e-commerce
Traditional Media, Stores, Digital
Word of Mouth, Bumper Stickers, Tattoos, etc.
Months- Same day impulse buying at store or mall
Sources: Navigating the new patch to purchase, MillwardBrown, Snikers Urbania http://www.havas-se.com/our-awards/festival-of-media-valencia . .
Technology has impacted key drivers of purchase
High Category Involvement Products like auto are heavy in online research before expressing interest to buy. • Family Vacation • Honeymoon
Low Category Involvement Brand loyalty and consumption frequency can be affected by digital branded content and social media engagement. • Weekend escapade • Online Search • Display Re-targeting • Online Coupons
Not A One Size Fits All Approach
Strong Brand Pre-Disposition Brand Memory assets can be reinforced with Video Content, Website with robust content and product features to drive stronger intents to purchase. • Travel to Grandparents home town Low Brand Pre-Disposition Search Engine Optimization and Paid Search, contextual targeting and, social media endorsements can ambush well known brands and get low Pre-Disposed Brands in front of line in the discovery process. • Travel to a bucket-list type of trip or the closest to it
consumer can afford
Sources: Navigating the new patch to purchase, MillwardBrown,.
THE DISRUPTION OF THE CONSUMERS’ JOURNEY IS DIFFERENT BY THE TYPE OF BRAND
Knowledge
Attitude
Behavior
General Awareness Specific Awareness
Attractiveness
Purchase Intent Proximity
Purchase Advocacy
Travel Purchase Funnel: The most disrupted consumer journey!
THE BIGGEST E-COMMERCE INDUSTRY
THE ALWAYS CHANGING TRAVEL PURCHASE FUNNEL
THE TRAVEL JOURNEY HAS BECOME A SET OF VARIOUS “STAND ALONE STEPS” ALL STILL BEING DISRUPTED
The Travel Path to Purchase is More Complex It’s the Most Complicated Category
Discovery + Awareness Purchase Intent + Purchase
Upsell + Re-purchase Referrals and Advocacy
Travel Funnel: Purchase Intent + Purchase DISTRIBUTION OF TRAVEL SITE VISITS 30 DAYS BEFORE BOOKING
54% of consumers prefer to visit multiple travel sites 30 days prior to booking!
12% 12% 19%
54%
4 Months Out
3 Months Out
2 Months Out
1 Month Out
12 Visits to OTAs in the same month of booking"
50% of them occur during the last week and 48hrs!
Sources: Navigating the new patch to purchase, MillwardBrown Digital,.
The Top 10 Travel Websites
#1 Maps are the most visited sites by Travelers
Google Maps
MapQuest
TripAdvisor
Expedia
CheapOair
Southwest
Booking.com
Priceline.com
Hotels.com
Delta Air Lines
New challengers like TripAdvisor are competing for a share on digital sales attracting consumers with content.
Source: eMarketer, with data from Experian Marketing Services 2014, Top Travel Sites visited Among US Internet Users
DISCOVERY TRIGGERS VISITS TO TOP 3 SITES: WHERE IS THIS, WHO IS IT?
The Top 15 Most visited sites among Hotel Bookers
#1 Expedia.com is the most visited site for hotel bookers within 30 days of booking
Expedia
Priceline.com
Hotels.com
Hilton
Travelocity
Southwest
Marriott
Orbitz
Tripadvisor
Hotwire.com
Intercontinental Hotels
Delta
American Airlines
TravelZoo
ChoiceHotels.com
15.5 Number of travel sites visited in the week of booking
Source: The Travel’s Patch to Purchase Millward Brown Digital, 2013
Travel Sites visited by Online Vacation Package Bookers Prior to Booking
47% Visit an Online Travel Agency (OTA)
Online Travel Agencies
Airline Suppliers
Planning and reviews
Destination Websites
Lead-gen
Hotel Supplier
Vacation Packages
Car Rental
Source: The Travel’s Patch to Purchase Millward Brown Digital, 2013
47%
11.2%
6.8%
6.4%
4.7%
40 Visits to Travel Sites before making the purchase
4 %
MOBILE AND SOCIAL MEDIA
TECHNOLOGY TRENDS THAT ARE SHAPING THE TRAVEL PURCHASE FUNNEL.
Mobile, Mobile, Mobile!
2012 2013 2014 2015 2016 2017 2018
$126.26 $136.36
$145.22 $153.21
$160.87 $168.11
$174.83
$8.00
$16.36 $26.14 $36.77
$46.65 $55.47
$64.69
$118.26 $119.99 $119.08 $116.44 $114.22 $112.63 $110.14
U.S. Digital Sales by Device, 2012 -2018 Billions and % change
Desktop sales will begin to shrink in 2014 While mobile sales continue to grow.
Source: eMarketer, April 2014; confirmed and republished, Oct 2014
Geo-localization – Right Here, Right Now
Smartphone Computer / Tablet
Home 53% 76%
Workplace 33% 24%
On-the-go (car, bus, etc.)
51% 16%
Hotel / Motel 25% 18%
In-store 41% 15%
Restaurant / Bar 33% 12%
Airport 20% 11%
Source: eMarketer, Google, “understanding consumers, local search behavior,” in partnership with Ipsos MediaCT and purchased, May 1, 2014
Locations where US Smartphone users search for local information, by Device, Jan 2014 % of respondents
PEOPLE TRAVEL LESS PREPARED RELYING ON THEIR MOBILE SEARCH AND APPS TO FIND HOTELS, CARS, AND LOCAL SERVICES
Hotels are the leading category that benefits from proximity and mapping mobile capabilities."
There is an app for Everything THE AVERAGE TRAVELER HAS 3 APPS AND USE 2 OF THEM
Source: eMarketer Travel Trends for 2015 How Digital will Drive New Opportunities for Revenue and Distribution
86% Of mobile time is spent on Apps!
The Rise of On-the-Go Searches And proliferation of apps is changing the way consumers make the journey to purchase: + last minute bookings + geo located purchases
Source: eMarketer Travel Trends for 2015 How Digital will Drive New Opportunities for Revenue and Distribution
Winning the Click of The Traveler ONLINE DISCOVERY PHASE HAS BECOME MORE EXPENSIVE
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Healthcare $4.63 $3.75 $4.58 $4.13 $3.68
Travel & Leisure
$1.08 $1.07 $1.34 $1.59 $1.72
Retail $1.28 $1.13 $1.37 $1.53 $1.65
Real Estate & Construction
$1.03 $0.94 $1.04 $1.06 $1.13
Consumer Services
$0.63 $0.64 $0.77 $0.81 $0.86
Business Services
$0.91 $1.02 $1.17 $1.23 $0.68
Total $1.04 $0.94 $1.15 $1.25 $1.33
US Paid Search Cost per Click, by Industry Q4 2012 – Q4 2013
Some Travel Ad Spend is shifting back to TV As a result of online ad competition.
60% Increase In the Avg. price of a travel click in one year vs. 30% of the Avg. cost of a click price increase
Grabbing the attention of the consumer during the discovery phase of the Purchase Funnel is becoming more challenging for destinations, airlines, hotels and local tourism services.
Source: eMarketer Travel Trends for 2015 How Digital will Drive New Opportunities for Revenue and Distribution
Consumer Attention: Most Rare Element in the Galaxy
Source: eMarketer Travel Trends for 2015 How Digital will Drive New Opportunities for Revenue and Distribution, Cardiff Metropolitan University, Destination Brands, Professor Nigel Morgan, Trptale, Tine Thygesen
• Increasing prices of paid search • Concentration and specialization at the same time of online travel agencies (OTAs) • Easily perceived undifferentiated offering of destinations, hotels and airlines • Digital Journeys can take people to a perception of infinite options, they can go to the
moon or to the bottom of the sea in two clicks
Command Attention and Maintain Relevancy IS THE HARDEST CHALLENGE FOR DESTINATIONS AND TOURISM PROVIDERS
Source: eMarketer Travel Trends for 2015 How Digital will Drive New Opportunities for Revenue and Distribution, Cardiff Metropolitan University, Destination Brands, Professor Nigel Morgan, Trptale, Tine Thygesen
Content is King but for Travel brands its King Kong VISUAL NETWORKS ARE KEY DRIVERS FOR TOURISM
1.8 BILLION Photos uploaded and shared per day.
Stories & Experiences People crave stories and experiences, they want to be immersed in it and make everyone know that they did.
Source: Triptale, Tine Thygesen. Destination marketing has changed. How to Succeed with digital, mobile & the new travel behavior
UNSTOPPABLE NEED FOR SOCIAL MEDIA SHARING IS A GREAT OPPORTUNITY FOR TOURISM DESTINATIONS TO TRIGGER ORGANIC DISCOVERY
I Share therfore I Exist, “Posteo y luego Existo”
Content Disseminators People who already visit can be your content disseminators.
Trigger Sharing on Sites • Pic Frames at Landmarks • Seeding Wacky and fun stuff in
Iconic Locations at Destination • #mamitasplayadelcarmen • #playadelcarmenbeachparty
Highly Shared Posts Affects people in such a way that they want to share with others.
4. AMUSE Funny pictures and quotes, as long as they’re not offensive to any group – sometimes the humor isn’t quite as strong or edgy – it has to appeal to a general audience. 5. INSPIRE Inspirational quotes 6. AMAZE Amazing pictures or facts. 7. UNITE A post that acts as a flag to carry and a way to brag to others about your membership in a group that’s doing pretty darned good.
It’ not about you, It’s about me “No eres tu soy yo” SHARABILITY IS ALL ABOUT WHAT THE POST DOES TO PEOPLE
1. GIVE Offers, discounts, deals or contests that everyone can benefit from, not just one sub-group of your friends. 2. ADVISE Tips, especially about problems that everyone encounters; for example, how to get a job or how to beat the flu. 3. WARN Warnings about dangers that could affect anyone
STRONG BRAND STORY- TELLING ACROSS ALL RELEVANT TOUCH POINTS
LAST THOUGHTS FOR THE JOURNEY: MIX LOVE AND MATH
Show me Love! : What’s your brand story and why should your consumer care about it? Boost discovery and retention in all stages of the funnel with strong compelling reasons why to travel/purchase to your destination: CONTENT, CONTENT ALWAYS CONTENT
Don’t go shy with your TV, Radio and other traditional media copies, make stories to be shared, not ads to skip.
Think Digital First from the creative perspective.
Mobile IS the first window.
Impeccable Search Optimization Marketing in all your mobile and web presence
Content Always-On: Become a Content Publisher, Robust site with rich content, social media, traditional media branded content (Print Editorials, TV Specials, Product Placements) are not a luxury are a matter of survival.
Become a Provocateur: We all have a “SoMHo” inside, provoke your visitors and customers to share your content.
Follow your consumer like a sniper, watch your web and mobile metrics and your traditional media exposure at the same time .
Be found or be dead: Responsive design, smart apps presence and geo-target messages should be essentials in your communication tool kit. Track your consumers until they are
back home: mix your media data with your destination, occupancy and other transaction and consumption data before-during-after trip
Crack your Social Media Numbers: Engaging Rankings (Shares, Likes, Total SoMo Reach) Sentiment Indicators
Use Retargeting and Contextual Programmatic Digital Media Tools
Eat your Vegetables and do your homework: Data Driven Campaign management
Becoming a Data Junky comes with the uniform
A PATH ONLY FOR THE BRAVES
TRAVEL MARKETING: THE FRONT LINE OF INNOVATION
ADDENDUM
Upgrade to HD, Internet Connected and bigger screens Traditional media, previous experiences, friends and family referrals Online Research, (Web SEO and Mobile In-store SEO) Online/Offline In-Store Offline Store Social Media and One-2-One Mobile referral 11 weeks Bran Websites, Offline Stores, Media
Case Study: Disruption of TV Products Purchase Funnel and Key Brand Touch Points IT CAN ALSO DRIVE CONSUMER THAT LEARN ABOUT THE TECHNICAL FEATURES AND FIND THOSE FEATURES IN A CLICK AND OTHER BRANDS WITH FAR LESS UNAIDED AWARENESS
Primary Driver General Brand Awareness Specific Brand Awareness
Purchase Intent Purchase Advocacy
Avg Length of Consumer Path to Purchase Key Touch Points
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