Travel mobile commerce boosts digital advertising spend, more opportunities for advertisers

The increasing use of mobile devices as a replacement for the PC to research, book and buy travel, hotels and other services, has created numerous opportunities for travel advertisers to leverage on this trend, according to the Travel Report by Millennial Media, an independent mobile advertising platform company.

The study found that consumers are spending more of their time across multiple devices to engage in mobile activities, with a trend towards increased time spent in mobile.

This trend has led to rise in mobile usage for travel. It currently accounts for 12% of total digital advertising spend in the travel vertical, and climbing. Travel m-commerce sales in the U.S. are forecasted to grow 247% from US$16 billion in 2013 to US$55.5 billion in 2017, according to eMarketer.

The report, which provides mobile insight for travel brands and is part of the Mobile Intel Series, highlights key travelling trends around the world over the last year, with focus on how brands are using mobile to reach and engage consumers, types of brands investing in mobile and travel audience-targeting strategies.

Some key takeaways from the study: (see the full report in slides below)

The majority of the mobile travel audience is between 25-44 and male
The mobile travel audience is comfortable using multiple devices to research and book travel.
Consumers are using mobile at all stages of the travel process: research travel options, hotels, and attractions; book directly on their device; find their way while travelling; provide feedback and reviews upon returning home.

Millennial Media added that travel was ranked as the fifth largest brand vertical in APAC region on its platform in 2013 from five different sub-categories – airlines, booking sites and services, tourism and hotels. It also stated in its report that:

Airlines made up the largest travel sub-vertical on, driving 47% of the retail advertiser spend in 2013,
77% of travel campaigns leveraged mobile advertising to drive site traffic on the Millennial Media platform in 2013.
When compared to all advertisers, travel campaigns focused on driving site traffic at 294% the rate of the platform average.

The company said travel advertisers can take advantage of the mobile trends and tactics outlined in the report by investing in and leveraging innovative mobile advertising to reach and engage travellers

“Consumers expect a mobile-friendly experience when accessing travel content. Seamless integration across devices, such as saving account information, mobile boarding passes, and consolidated itineraries gives travellers the mobility they need to stay connected on the go, which in turn helps attract, engage, and retail loyal mobile travel consumers.”

It suggested that travel advertisers invest in an expanded mobile sites and apps, and leveraging innovative mobile advertising to reach and engage these consumers.

“Developing branded applications and mobile-friendly sites that allow travellers easy access while on the go is now table stakes for brands. Another way to reach consumers is by using one or more methods of campaign targeting to help deliver personalised, relevant messages. Engaging creative can also help consumers give your mobile ad an inviting look, such as including a catalogue of beautiful images of a destination to swipe through, or video of an attraction in action,” it said.

• Report methodology: The insights are based on a study Millennial Media commissioned with mobile measurement firm, comScore, and Millennial Media’s global platform observations across thousands of mobile ad campaigns.

• Photo credit (tablet collage): Sergey Nivens/Shutterstock