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Posts tagged ‘Advertising’

Travel Is NOT About Branding

January 3, 2014


Conventional wisdom says that branding is really important. It drives higher value, promotes loyalty. etc etc.

Well in the USA that doesn’t seem to be the case. Travel is a chronic under-spender in the category of advertising. But worse how its spent shows that the US at least has totally wasted a significant amount of its ad spend by going after direct response. In airlines that probably means that branding on the planes is irrelevant.

Have a look at this chart. This is from eMarketer. Its scary in its direct numbers.


Let’s look at the context. Travel is 5% of the total US GDP. The US GDP in 2012 was $15,684.80 billion US dollars in 2012 . Travel’s value was $855.4 billion Travel as a category represented 8% of the total ad spend so as a category it punches above its weight.

This should help put to rest whether price matters. Of course it does and price advertising in Travel is the door opener. If you dont tell people you have a price deal that they can assess in the opening moments of their decision process – you WILL BE EXCLUDED from the sale.

Sadly this points to some bad habits by brands and a continued shoveling of cash at Google.

Think about that as you set up your ad plans for next week’s campaigns.


(Images taken from eMarketer email).


But go to the original chart and you see that in fact Travel has the highest disproportionate spend of any category of brand vs Direct Response.

Digitial Ad Growth Powering Ahead – But Why?

November 16, 2013


Google is laughing all the way to the bank (once again) and those other folk – Facebook, Twitter, Linked in are all smiling broadly too. The number from SIG on Digital Ad growth in the last quarter would make anyone smile – if you were one of the companies. However I am perplexed at the growth in Social ad spending because I dont think it is justified.

I have a belief that a lot of this is good money chasing bad as people dont really understand Social and no decent performance metrics for Social spend are yet out there to accurately reflect the effectiveness of Ad spend on Social.

I encourage you to read the report (Link below).ec2b9b14-ca8b-4c45-855f-bbc3460428b8

It certainly makes for interesting reading but I hope those who are opening their wallets to Social and closing them to traditional advertising REALLY know what they are doing because if not – some media will go away and we will be left with a ton of schlock stuff.