The 2019 Report on Travel Advertising for Hotel Marketers Perspectives from 300+ Hotel Marketers Around the WorldIf theres one trend uniting the hotel marketing industry today from small boutique hotels to large multinational brands, its that travelers are researching, planning, and choosing their travel experiences more actively than ever before. With what feels like an unlimited amount of information at their fingertips, todays travelers are savvy, well-informed, and comfortable with searching out the information they need before making purchasing decisions. As a result, hotel marketers are increasingly using digital advertising to communicate their value to potential guests. Sojern set out to understand how hotel marketers are using advertising their channels to reach this new type of travel consumer. This report summarizes the digital advertising experiences of more than 300 hotel marketers around the world in six major hotel segments:* International Luxury Hotel Chain International Mid-Tier Hotel Chain Hotel Groups (1-3 Properties) Franchise and Independent Property B&Bs, Inns, and Motels Homeshare and Housing Rental In this report, youll learn: How todays travel trends are directly impacting the use of digital marketing in the travel industry Which digital advertising channels and formats are being used, and which are most effective, to drive business, from brand-building and awareness to bookings and completed stays How hotel marketers are using data and technology to measure campaign successand influence travelers along the path to purchase The digital advertising ecosystem grows increasingly complex for travel marketers. * For abbreviation in this report we refer to the segments as follows: International Luxury Chain, International Mid-Tier Chain, Hotel Group, Independent, Inn, and Homeshare.The 2019 Report on Travel Advertising for Hotel Marketers 3 The 2019 Report on Travel Advertising for Hotel Marketers The Complexity of Engaging Todays Guest 4 The State of Hotel Advertising Spend 8 Successful Digital Advertising Tactics and Channels 18 Campaign Measurement Tactics 33 Executive Summary 38 About Sojern 40 Methodology 41The 2019 Report on Travel Advertising for Hotel Marketers 4 The Complexity of Engaging Today s Guest Chapter 1The 2019 Report on Travel Advertising for Hotel Marketers 5 Almost half (48%) of hotel marketers indicated their top challenge in 2018 was keeping up with the fast-paced advertising and technology landscape. This challenge encompasses everything from knowing where your most desired audience is spending time online to mastering the algorithms channels utilized to serve digital ads to prospective travelers. With these algorithms constantly changing and consumer habits shifting from platform to platform, it can feel like a moving target. Indeed, delivering personalized ads and offers in real time was identified by almost half of hotel marketers as another key challenge in the current marketing landscape. The Complexity of Engaging Todays GuestThe 2019 Report on Travel Advertising for Hotel Marketers 6 The Complexity of Engaging Todays Guest The top challenges of digital marketing in the hotel industry are varied and depend on many factors, including market timing, seasonality, travelers online habits, and the specific offerings of a particular hotel or hotel group.Achieving ROI and profitability targets for my advertising investments 55%Delivering personalized ads and offers in real-time 52%Driving direct bookings 60%Delivering personalized ads and offers in real-time 44%Managing integrated campaigns across Google, Facebook, and other media partners 64%Targeting travelers during a specific point along their path to purchase and Managing pricing and profitability across my distribution and marketing partners 45% International Luxury Chain Independent Homeshare Inn International Mid-Tier Chain Hotel GroupThe 2019 Report on Travel Advertising for Hotel Marketers 7 Top Marketing Challenges International Luxury Chain International Mid-Tier Chain Hotel Group Independent Inn Homeshare Achieving ROI and profitability targets for my advertising investments 55% 39% 37% 50% 41% 43% Proving incrementality 53% 36% 38% 36% 35% 57% Keeping up with the fast-paced advertising and technology landscape 52% 45% 38% 52% 41% 43% Driving direct bookings 51% 43% 34% 60% 28% 43% Understanding how to use my customer data more effectively 48% 41% 41% 48% 35% 29% Managing pricing and profitability across my distribution and marketing partners 47% 46% 30% 43% 45% 36% Managing integrated campaigns across Google, Facebook, and other media partners 46% 43% 37% 38% 28% 64% Targeting travelers during a specific point along their path to purchase 45% 39% 42% 52% 45% 36% Reaching new travel audiences 44% 43% 35% 41% 41% 43% Ensuring brand safety 42% 34% 32% 26% 28% 50% Delivering personalized ads and offers in real-time 38% 52% 44% 45% 38% 36% How challenging would you describe each of these common travel marketing challenges? (Percentage of respondents who selected “very/extremely challenging”) Source: Sojern, 2019 The Complexity of Engaging Todays GuestThe 2019 Report on Travel Advertising for Hotel Marketers 8 The State of Hotel Advertising Spend Chapter 2The 2019 Report on Travel Advertising for Hotel Marketers 9 Every marketer knows the key to successful advertising: reaching your consumers where they are, right at the moment when they are most likely to be looking for you. In response to the growing trend of researching travel experiences online, todays travel marketers across all verticals are increasingly moving their campaign budgets to digital channels. The investment in digital marketing also coincides with profound changes in consumer behavior. Travelers are researching options more often, starting far earlier, and piecing together research from a myriad of sources before booking their trips. Never has there been more information available to the prospective traveler, and it can feel like everyone is an expert. The result is a highly informed consumerone who wants to be reached with the right message, in the right place, at the right time. The downside? The advertising landscape can seem like a very noisy and competitive space, requiring targeted strategies and harnessing the power of data, to reach prospective and even your most loyal travelers. Stephen Taylor Chief Revenue Officer “Were at the forefront of seeing users changing behaviors. Searching for and booking travel is not linear and travelers are not loyal to specific brandseven if theyre a part of a loyalty program. We often see more than 500 touch points in a travelers path to purchase, across multiple channels and devices, and its only continuing to expand. So how can you scale your marketing campaigns with the same approach and marketing budget when you need to be everywhere?” The State of Hotel Advertising Spend