Welcome to the Layer Cake: "How to Find the Marketer Sweet Spot"

HOW TO FIND THE MARKETER SWEET SPOT

Partnering With Your Agency In Complex Ad Technology World

WELCOME TO THE LAYER CAKE

Brad Wilson, GM, Travelocity

Dustin Engel, Head of Analytics and Data Activation, PMG

@bradleywilson

@agencypmg

PMG ranks #61 on the 2014 INC

500 list, #5 among Advertising

and Marketing companies.

Leading travel provider who inspires

you to “Go & Smell the Roses” and

creates memorable travel experience

with innovative apps, competitive

prices and 24/7 customer service.

$2.4b estimated VC investment in ad technology for 2015

*Source: StrategyEye

221 transactions

$10.86mm per transaction

“Unicorn Chasing” creates a noticeable effect on brands and their agencies

HORIZONTALIZATION

Gap

Horizontal Solutions

Vertical

Advertiser

Needs

The U.S. travel market is large and fiercely competitive

277 293

307 318 334

2011 2012 2013 2014 2015E

U.S. Total Travel Market – Offline and Online 2011 thru 2015 Expected ($ in Billions)

Source: October 2014, PhocusWright

…and customers have more choices than ever

Having more options has not made it easier on the customer

Source: October 2014, PhocusWright

13

Avg. Number of Website Visits while Dreaming & Planning

42

Avg. Hours spent across the entire online travel cycle

1k

Average Website Look-to-Book Ratio

Source: Google Think Travel, Boston Consulting Group, September 2012

The world of travel search….beyond bid optimization

…consumers have more options than

ever Source: October 2014, PhocusWright

New ‘meta’ travel search engines are designed to improve the consumer experience, reduce clicks

and move closer to the wallet – particularly in an ever-increasing mobile world

We are here

Maybe, we helped you along the way….

We addressed our unique needs together

Hotel Search Feeds & Distribution

Social Media Integrations

Mobile Shopping Relevance

May Jun Jul Aug Sep Oct Nov Dec

Jan Feb Mar Apr

We achieved best-in-class Brand equity

#1 OTA Brand

Equities

Orbitz Priceline Expedia TravelocityOrbitz Priceline Expedia Travelocity

Brand Consideration

Favorite OTA

We saw record hotel sales in 2013 and 2014

Expedia Travelocity

6x

Our social media engagement ranked 6x higher than the rest of the category

#1 OTA Social

Engagement

#1 Record

Hotel Sales

Category Avg.

Source: 2014, Internal Brand Tracker with YouGov

Source: 2014 and 2015, Internal Social Media Tracker

Source: 2014, Internal Data

…consumers have more options than

ever

50

30 22 13

14

5

14 9

6/30 7/14 7/28 8/11 8/25 9/8 9/22 10/6

Our iOS app cracked the top 10

#5 Ranked iOS

Travel App

Source: 2015, Apple iOS rank data

How did we do?

Expectation

for agency

Let Them Eat Cake

Client Benefit

“Vertically

Dismissed”

Attribution

RTB

Activation

RTB

Vertical Analytics Vertical

Meta Search

Size = Resource Effort

Attribution

Change

Management

Koddi (Icelandic for “pillow”)

• Concepted and refined from a need to solve a complex problem for Travelocity

• “Vertical Dismissal” created a large opportunity in the marketplace…more than expected

• Spun out as a standalone business with 3 of the top 5 hoteliers on the platform

200k

Total Unique Hotels

$150MM

Total Annual Spend

900k

Daily Bid Changes

Be mindful of the ad technology gap

Develop a plan to fill the gap

Execute the plan in PARTNERSHIP