2016 digital marketing budgeting planning webinar - back by popular demand
TRANSCRIPT
#HotelDMBudget
Webinar: 2016 Digital Marketing Budget Planning
#HotelDMBudget
Your Speakers
Victoria HsiaSenior Interactive Media
Specialist
Sara O’BrienAssociate Director,
Marketing
Jennifer AlbertsAccount Supervisor
Mariana SaferSenior Vice President,
Marketing
#HotelDMBudget
Industry Outlook & Trends
Structuring the Budget
Budget Outline and Allocations
Agenda
2016 Budget Snapshot
Your Budget Timeline
BUDGETTIMELINES
#HotelDMBudget
2016 Digital Marketing Budget TimelineSet Yourself Up for Success in 2016
Budgeting Meetings & Initial Budget Drafts
By Mid-October2016 Digital Marketing Budgets – First Review
Detailed Review of 2016 Digital Marketing Budgets
August – September
Mid-October – Mid-November
Approval of 2016 Digital Marketing BudgetsIDEAL: Mid-November
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Budget Approvals
Start Ahead of the Competition and Strategically Plan for Q1 2016
Allow Digital Marketing Team to Plan Resources and Assets Accordingly
Launch Without Commotion during Holidays
STATE OF THE INDUSTRY
#HotelDMBudget
US Industry OutlookOccupancy Levels Stabilize as ADR Growth Drives RevPAR Increase
DEMAND GROWTHDeceleration of demand growth (3.3% in 2015) as US economic growth moderates.
2.3%SUPPLY GROWTHExpected to accelerate, exceeding the long-term average for first time since 2009.
2.2%OCCUPANCY INCREASEOccupancy levels are expected to stabilize..1%
$ ADR & RevPAR INCREASEStable occupancy levels + stronger US Dollar expected to give hoteliers confidence to increase rates.
6.1%Source: PWC May 2015
FACTORSAFFECTING
OURINDUSTRY
1.
Mobile Isn't a Trend; It's Here.
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Mobile is NowThe Vatican in 2005
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Mobile is NowThe Vatican in 2013
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Multi-Device BehaviorCross Device Usage Rising
Destination Selection Shopping
BookingSharing
Tablet Smartphone Desktop
90% of people use multiple screens sequentially90% 65%
65% started their research on a smartphone, 60%
continued on a PC and 4% continued on a tablet
Presenting the best user experiences on desktop, mobile and tablet has never been
more important.
Source: Google Research
It should be part of the overall strategy.
Mobile should never be an afterthought.
2.
Real-Time Data More Important Than Big Data for Improving Engagements and Conversions.
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Real-time Data VS. Big DataYou Just Need To Know Your Own Site Visitors & Bookers
Site User Purchasin
gBehavior
Loyalty Member
Data
Site User Browsing Behavior
On Property Behavior
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Real-time DataHow to Use in Marketing Campaigns
Multichannel Campaigns
Personalization
Email Marketing
REAL-TIME DATALeverage “small data” or real-time data in marketing campaigns:
Loyalty Program
eCRM
3.
Engaging Customers at all Touch Points Critical to Maximizing Online Revenue.
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The Customer JourneyMulti-channel Campaigns Reach Customers
Throughout the Path to Purchase
ON AVERAGE, THE TRAVELER’S JOURNEY TO A DECISION IS 17 DAYS.THEY’RE VISITING 18 SITES DURING 8 SESSIONS MAKING 6 CLICKS.
17 DAYS
18SITES
8SESSIONS
6CLICKS
Source: Google Research
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4.
Dynamic Content Personalization Maximizes Website Revenue.
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The Web is Getting PersonalWe No Longer Just Have “Visitors”
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The Web is Getting PersonalWe Have Unique Personas
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Visual
Textual
Promotional
Dynamic Content PersonalizationServing Content Based on the Visitor
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Why is This Valuable?
UPLIFTIN ONLINE SALES
40%
COMPANIES WHO PERSONALIZE
CONTENT REPORT
Source: Forrester Research & eMarketer
5.
Website Merchandising Strategy Needed to Sell Rooms on Every Page of the Website.
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Hotel Website Purpose?Sell Rooms & Engage Users
GENERATE GROUP
LEADS & RFPS
MAXIMIZE ROOM
BOOKINGS & REVENUE
ENGAGE & CONVERT
POTENTIAL CUSTOMER
S
SELL & PROMOTE
HOTEL SERVICES (DINING,
SPA, ETC.)
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Merchandising StrategyHow it All Works Together
Promo Tile
Main Marketing Message
6.
Digital Content Marketing Engages Travel Consumers and Converts them into Bookers.
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So Much Attention Lately
Source: Google Research
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MULTI-DEVICE BEHAVIORMOBILE DEVICE USAGE RISING
We are witnessing unstoppable year-over-year growth in the mobile and tablet device categories, while desktop traffic, bookings and revenue lose ground.
Source: HeBS Digital Portfolio Statistics
BOOKINGS% CHANGE FROM 2014 TO 2015
5.6%
122%
REVENUE% CHANGE FROM 2014 TO 2015
3.6%
136%
NIGHTS% CHANGE FROM 2014 TO 2015
0.2%
156%
VISITS% CHANGE FROM 2014 TO 2015
5.9%
21%
PAGE VIEWS% CHANGE FROM 2014 TO 2015
3.2%
18%
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Does your content inspire a booking?
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Poll: What industry trend do you think will impact your digital marketing budget the most in 2016?
a) Shift from Desktop to Mobile
b) Real-Time Data
c) Engaging Customers at all Touchpoints
d) Dynamic Content Personalization
e) Website Merchandising Strategy
f) Digital Content Marketing
2016:BUDGETACTIONPLAN
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2016 Budgeting SpendBudget Recommendations for Driving ROI
MARKETING BUDGET
4% of total revenue should be
allocated to marketing4%
DIGITAL MARKETING BUDGET75% of total marketing budget
should be allocated to digital marketing75%
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2016 BudgetTake a Dual Focus
SEASONAL +
BUSINESS-NEED
FOCUSED
YEAR-ROUND PROVEN REVENUE
GENERATORS
DIRECT RESPONSE
SEM / SEO, Email Marketing, Meta Search, Dynamic Rate Marketing,
etc.
ANALYTICS + HOSTING
STRATEGY +
CONSULTING
ADAPTIVE / RESPONSIVE DESIGN
FOR THREE SCREENS +
CMS
Digital Assets, Strategy & OperationsFoundation for
digital marketing initiatives
Targets high-value customer segments in
a multi-channel campaign.
Marketing Campaigns
$
DIRECTRESPONSEMARKETING
YEAR-ROUND
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SEOKeep Content Fresh and Generate Traffic Via Search
7 – 9 %
Per Google’s mobile-friendliness updateMobile-Friendly
Industry leading tracking platformUse BrightEdge Tracking
Update local search listings, create fresh content, optimize existing content
Ongoing Strategy
TOP ACTION ITEMS FOR 2016
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SEO: Case StudyONGOING SEO BOOSTS NATURAL TRAFFIC BY 37%
YOY
RESULTS
Y-O-Y NATURAL TRAFFIC
+37%
Y-O-Y KEYWORD VISIBILITY (GOOGLE)
+107%
Y-O-Y PAGE 1-3 KEYWORDS (GOOGLE)
+67%
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SEM / PAID SEARCHIncrease Bookings and Revenue From the Search
Engine Results Pages (SERPs).
20 - 22%
67% of leisure & 78% of business travelers use a smartphone
Mobile Strategy
RLSA, Affinity Audiences, In-Market, etc.
New Targeting Options
YouTube TrueView & Gmail AdsNew Google Initiatives
TOP ACTION ITEMS FOR 2016
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SEM / Paid Search: Case Study SEARCH ENGINE MARKETING (SEM) GENERATES
1,494% RETURN
RESULTS
RETURN ON AD SPEND
1,494%
CLICKS
44,952
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Dynamic Rate MarketingBoost Campaign Effectiveness with Real-Time Pricing
11 - 12%
On TripAdvisor & Google Hotel FinderDaily Bid Management Tool
Sojern, Adara, Google Display Network
Banners on Top Travel Ad Networks
TOP ACTION ITEMS FOR 2016
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Dynamic Rate Marketing: Case StudyTRAVEL AD NETWORK DYNAMIC RATE
MARKETING GENERATES 1255% ROAS
RESULTS
CONVERSIONS121
REVENUE$50,429
ROAS1,255%
CLICK-THROUGH RATE.10%
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Online MediaAddress business needs,
increase reach, and boost bookings for a need period
Mobile Ads
Sojern, Adara, Google Display Network
Smarter Targeting
TOP ACTION ITEMS FOR 2016
Switch to HTML5
Address concrete business needsOne Part of Larger Campaign
11 - 12%
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Online Media: Case Study TRIPADVISOR HTML5 BANNER CAMPAIGN
GENERATES 1,069% ROAS
RESULTS
CONVERSIONS807CLICK-THROUGH RATE.20%
ROAS1,069%REVENUE$187,146
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RESERVATION RECOVERYOnly 5% of website visitors that go to a hotel
website actually complete the booking.
Reservation Email Retargeting
Marketing message when someone abandons the booking process
Reservation Abandonment Banners
TOP ACTION ITEMS FOR 2016
Email sent if the guest abandons the booking process
Visitors set a date for a reminder email
Reservation Reminder
4 - 5%
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RECOVERY: CASE STUDYRESERVATION RECOVERY GENERATES 17.6%
INCREASE IN CONVERSION RATE
RESULTS
RETURN ON INVESTMENT
2,637%
YOY INCREASE IN WEBSITE CONVERSION RATE
+17.6%
REVENUE RECOVERED$20,524
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Dynamic Content PersonalizationPersonalize promotions, visuals and marketing
copy for the visitor
Business Analysis
TOP ACTION ITEMS FOR 2016
Which visitors would benefit most?
Logical first step to boost conversionsTarget Feeder Markets
“welcome back” message or promotionTarget Repeat Visitors
4 - 5%
Visual
Textual
Promotional
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DCP: Case StudyDYNAMIC CONTENT PERSONALIZATION
DOUBLES CONVERSION RATE AMONG TARGETS
RESULTS
CONVERSION RATE INCREASE 3% TO 6% AMONG TARGETED AUDIENCE
3%
PERSONALIZED CUSTOMER ENGAGEMENTS
6,045INCREMENTAL BOOKINGS
201ROAS
38,308%
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Email Marketing
Responsive Design
1 – 2 promotions, and amobile-friendly landing page
Smaller Screens & Attention Spans
TOP ACTION ITEMS FOR 2016
Vertical scroll, larger text, and thumb-friendly buttons
Video animation or animated GIFAnimated Emails
4 - 5%
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Email Marketing: Case Study EMAIL MARKETING generates 5,000% RETURN
RESULTS
OPEN RATE
17.03%
ONLINE REVENUE
$15,044
5000%ROAS
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Social Media 2 - 3%
First-party travel data to target usersUtilize Ad Networks
TOP ACTION ITEMS FOR 2016
Use a conservative budget with smarter targeting
Pay-to-play
Organic posts only reach about 2-3% of fans
Promoted Content
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Social Media: Case Study FACEBOOK PROMOTED POST GENERATES 674%
ROAS
RETURN ON AD SPEND
674%
REACH
47,456
REVENUE GENERATED
$1,637
PAGE VIEWS
2,372
RESULTS
DIRECTRESPONSEMARKETING
SEASONAL &BUSINESS NEEDS
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Multichannel CampaignsAddress business needs, increase reach, and
boost bookings and revenue for the slow season or need period.
Seasonal & Business Needs
Determine the target audience and deep dive into their online behavior
Target Customer Segment
TOP ACTION ITEMS FOR 2016
Pinpoint seasonality and specific business needs
Brainstorm campaign themes that will resonate with the audience
Campaign Messaging
Determine campaign initiatives and channels to best reach the audience
Campaign Initiatives
10 - 12%
CAMPAIGN
SEM
SOCIAL MEDIA
EMAIL MARKETING
DISPLAY ADVERTISING
MINI WEBSITE
INTERACTIVE APPLICATIONS
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Length of StayWeekdaySummer
SEASONAL & BUSINESS NEEDS
Drive-in Feeder Markets
MillennialsLeisure Travelers
TARGET SEGMENT
Sun, Fun, and
Savings
The Cure for a Case
of the Mondays
A Mid-Week Summer’s
Dream
POTENTIAL CAMPAIGN THEMES
Multichannel CampaignsExample
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Multichannel CampaignsReach the customer segment at multiple
touchpoints to generate the highest returns.
Search
Social Media
Visits 21 Touchpoints
Reads TripAdvisor Reviews
Compares Prices Across Sites
Search
Social Media
Visits 21
Reads Trip
Compares Prices
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Interactive Marketing AppsIncrease traffic to the site, encourage repeat
visits, and ultimately increase bookings overall
4 - 5%
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Multichannel CampaignExample
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Multichannel Campaign: Case StudyNYC MULTI-PROPERTY BOUTIQUE HOTEL BRAND
GENERATES 6,470% ROAS ON CYBER MONDAYMULTICHANNEL CAMPAIGN
RESULTS
RETURN ON AD SPEND
6,470%
UNIQUE VISITORS
10,808
EMAIL OPT-INS
842
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Poll: Do you plan on launching at least one multichannel campaign in 2016 to address your property’s business needs?
a) Yes, it is already in the marketing plan
b) No, but I wish we could
c) No, and I don’t see a need to
d) Maybe, we haven’t planned it yet
DIGITAL ASSETS, STRATEGY & CONSULTING
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Adaptive / Responsive DesignProperty Website
8 - 10%
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45% Visits from NON-Desktop
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CMS: It’s about revenue-driving capabilities 8 - 10%
Complete control over the website content (visual, textual, promotional)
Smart Personalization Engine and one-to-one marketing
Enhanced merchandising capabilities
Seamlessly manage your website presence on the three screens
Can Your Hotel Website Do That?:
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WEBSITE ENHANCEMENTS4 - 5%
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WEBSITE ANALYTICSMeasure online AND offline reservations,
optimize for better results.
2 - 3%
Online & Offline
See how initiatives work togetherConsider path to purchase
Fully understand results
Optimization is never overOptimize again and again
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CLOUD HOSTING & CDNTHE NEED FOR SPEED
“47 percent of web users expect a website to load in under two seconds.”
“75 percent of consumers are willing to visit competitor sites instead of dealing with a slow loading page.”
Just “a one second delay can cost you 7 percent of sales.”
2 - 3%
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8 - 10%
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QUESTIONS?