posted by: Overview: The increasing online advertising landscape
Online advertising is a big business. According to recent eMarketer estimates, online display spending is supposed to exceed $10.1 billion in 2011. The continued influx of ad dollars is due, in part, to the emergence of branding funds into the online media budget, but can also be attributed to the fact that online media buys are becoming increasingly targeted.
*eMarketer ad spend projections through 2014
Stay Top of Mind with Retargeting
There’s been a lot of hype in the industry surrounding the concept of retargeting. By utilizing advanced forms of targeting, such as retargeting, marketers have witnessed the intersection of mass media and interpersonal communication. This technology allows advertisers to stay in front of individual consumers that have previously shown an interest in the product. Retargeting has given advertisers the frequency needed to influence a conversion, a number most experts will say should be in the range of 7-12 marketing touch points. The retargeting process will look similar to the diagram below:
Retargeting Results
Across the portfolio of retargeting campaigns Sabre Hospitality has managed, the average CTR was .40%, which is 4 times higher than the industry average for traditional display advertising. Flexing its revenue generating muscles, retargeting has produced an average of a 6.55 to 1 direct ROI in four recently completed retargeting campaigns.
Retargeting Best Practices & Recommended Strategy
Advertisers can siphon the retargeting audience pool from any page, or set of pages on their Website. Through Sabre Hospitality Solutions’ extensive campaign management experience, the most successful campaigns have applied the following best practices:
- Derive the retargeting audience from consumers who have already checked availability within the Guest Connect Booking Engine, and have abandoned the process prior to booking
- Tie a special offer or an exclusive rate to the retargeted messaging in order to add incentive and influence the eventual conversion
- Drive the audience to a dedicated landing page that details a special offer
- After a targeted user has completed a conversion, they will be removed from the audience pool and will no longer receive that retargeted ad
- Set impression caps to limit the number of times the ad is shown to the consumer to avoid oversaturation
- Set the duration of the cookie in line with typical booking latency
Taking into account retargeting’s performance to date; the media planners at Sabre Hospitality Solutions have made retargeting a staple of recent media plans. However, retargeting is still only a single component of a comprehensive online media strategy. In order to learn more about the retargeting opportunities available, or other online travel industry trends, please contact a Sabre Hospitality Solutions representative.
