Journey to Success: How Streaming and CTV Advertising Can Help Travel Marketers
After two years of global pandemic-induced conditions, concerns and emergency restrictions and regulations that severely impacted airlines, hotels and tourism programs, the travel industry surged back in 2022. Bookings increased across sub sectors with consumers unleashing their pent-up travel fever — and the money they saved in 2020 and 2021 — on everything from cruises to theme parks to luxury vacations and more.
The UN World Tourism Organization reported that more than 900 million tourists made foreign trips in 2022, representing 63% of pre-pandemic levels but a 97% increase from 2021. According to Morningstar, November’s air passenger count was at 95% of 2019′s level, while occupancy levels across the hotels and cruise lines rose to 75% on average in the third quarter of 2022, a roughly 20-point increase from the year-ago period.
Now, of course, the macroeconomic environment has moved into recession-like conditions for Americans, which will obviously impact discretionary spending. As Bloomberg reported, a January 2023 sentiment survey from tourism market researcher Longwoods International found that half of American travelers say concerns over their financial situation will impact travel decisions in the coming six months. However, in spite of economic concerns, nine out of 10 American travelers in the Longwoods survey still say they have plans to travel within six months.
Travelers Are Watching Streaming and CTV
Streaming is now the single most popular channel for TV consumption in the U.S., according to Nielsen, attracting more viewers than not only traditional broadcast and cable, but also more time spent than social media, gaming and music. And when it comes to advertising, adults in the U.S. pay more attention to streaming TV than another media channel, eMarketer found, thanks to the full-screen presentation, immersive experiences and non-skippable ad formats.
Reaching the Right Customers: The Advantages of CTV Advertising for Travel Marketers
While online advertising can be targeted to specific demographics, it's limited to people who are actively browsing digital or social platforms. Plus, ad-blocking software has become increasingly popular among consumers, which can make online advertising less effective. CTV advertising, on the other hand, reaches viewers who are watching streaming services as well as the streaming apps associated with linear networks, making it a more effective way to reach potential customers.
Streaming and CTV Advertising: A Cost-Effective Solution for Travel Marketers
Streaming and CTV offer travel marketers specific capabilities that are superior to other media, such as addressable targeting, deterministic measurement, campaign flexibility and speed, performance-led optimizations, cost-effectiveness and audience engagement. And when it comes to return on investment, streaming TV delivers a 30% higher ROI than all other marketing channels, including digital video, digital display, paid search and social, according to Analytics Partners. Streaming and CTV advertising can also provide a more premium, safe environment for brands, which can help build trust and credibility with potential customers.
How CTV Advertising Complements Existing Digital and Social Strategies
Streaming and CTV advertising can be a cost-effective complement to a travel marketer's existing online, social, or digital advertising strategy. By using a multichannel approach, travel brands and companies can reach potential customers through a variety of platforms, increasing the chances of their message being seen. Additionally, CTV advertising can provide measurable results, allowing advertisers to track the effectiveness of their campaigns and adjust them as needed, making the most of their advertising budget.
The Need for Flexibility & Speed in Travel Marketing
From cruises to theme parks, travelers are making plans last-minute like never before, requiring similar agility on the part of marketers looking to take advantage of consumer demand and account for changes in economic conditions and shifts in public health guidance. Travel advertisers will need to be more proactive and nimbler in their strategies based on market conditions and other unforeseen needs, and have a solution to get their streaming campaigns live in a matter of days or even hours – not weeks.
Going Beyond Traditional Travel Marketing Targets
Going beyond traditional target audiences in the travel industry using streaming/CTV advertising can provide several benefits for travel marketers and advertisers. CTV advertising allows for more targeted and personalized advertising, which can result in higher engagement and conversion rates. Additionally, CTV advertising allows for more accurate measurement of ad performance, providing insights into which segments of the audience are most responsive to the advertising. This can lead to more efficient use of marketing budgets and better ROI. Furthermore, CTV advertising can also help travel marketers and advertisers reach new, untapped audiences that may not have been reachable through traditional advertising methods.
Simulmedia’s Unique CTV Advertising Solution for Travel Marketers
Simulmedia’s TV+© is the only streaming TV advertising platform designed to prioritize an advertiser’s needs. Here’s how we can help travel marketers create campaigns that reach your audience — no matter their destination:
- Our technology allows us to build your audience target by who they are, how they’re watching and what they’re watching so we can confidently reach them at the most high-engagement, high-attention moments and at the most efficient cost.
- Our direct integrations with virtually every ad-supported streaming service, publisher and app – plus every linear network and channel – allows us to place your ads in premium, brand-safe environments with full transparency into where you’re running.
- To ensure maximum results with minimal waste, we deduplicate audiences and manage frequency across ad-supported streaming services so you’re not overdelivering your message to the same viewers.
- Our team of experts and TV veterans manage all aspects of your campaign from start to finish.
- We provide more granular measurement of the KPIs that matter to you than you’ve ever enjoyed before while our dedicated Simulmedia team optimizes your campaign for continuous improvement throughout your flight.
Streaming to Success: How CTV Advertising Can Help Travel Marketers Reach the Right Audience
In conclusion, as the travel industry continues to grapple with economic turbulence in 2023, travel marketers must adapt to the changing landscape and find new ways to reach potential customers. One effective solution is streaming and CTV advertising, which offers a range of benefits such as addressable targeting, deterministic measurement, campaign flexibility and speed, performance-led optimizations, cost-effectiveness and audience engagement. With a 30% higher ROI than other marketing channels, streaming and CTV advertising is a cost-effective way to reach potential customers and build trust and credibility with them. And when used in conjunction with existing digital and social strategies, CTV advertising can help travel marketers reach their target audience and make the most of their advertising budget.
Download our free Travel Marketing on Cross-Channel TV playbook for an in-depth look at the current state of the industry and how advertisers can engage potential travelers no matter where they’re watching.
Find out how Simulmedia’s unique TV+® platform for TV and streaming advertising provides unified access to premium linear and CTV inventory across all networks and publishers. Request a demo or email us at email@example.com.