TravelGet more out of your mobile campaigns

Table of contents

Mobile user behavior trends: Travel

Yahoo Bing Network marketplace performance trends

Travel subvertical engagement and performance

Recommendations

Source: Expedia Media Solutions. Travel Decisions in a Multiscreen World, conducted by comScore Inc., November 2014

58% or 90 million U.S. travelers use a smartphone to access travel content.

Travel consumers are digital and mobile

Source: BCG Perspectives. Travel Goes Mobile, June 2014

95% of consumers use a combination of 19 websites and mobile applications to:• Get inspired and plan their trip• Book reservations and tickets• Find in-trip activities• Share their plans and experiences

Tracking their digital path can be difficult:

• Nearly 50% of these digital consumers started planning their trip on one device and completed it on another

Travelers rely on search engines to start their plans

Source: Ipsos MediaCT, The 2014 Traveler’s Road to Decision, June 2014

Top online sources used in travel planning

Leisure travelers

Car rental sites/apps

Map sites/apps

Online travel agency

Airline sites/apps

Search engines

Hotel sites/apps

44%

45%

45%

53%

55%

60%

Business travelers

Travel search sites/apps

Map sites/apps

Airline sites/apps

Online travel agency

Hotel sites/apps

Search engines

33%

38%

39%

40%

48%

60%

How do you typically research information about smart electronics?*

Where leisure travelers typically first start online travel planning

Shows change from 2013 to 2014

Brand sites/apps Search engines

Car rental 38% -6%

24% 8%

Air travel 45% -4%

18% 5%

Overnight accommodations 31% -6%

26% 8%

Cruises 36% 0%

19% 5%

Note: brand sites/app = airline/hotel/car/cruise sites/apps

Source: Ipsos MediaCT, The 2014 Traveler’s Road to Decision, June 2014

Mobile search plays a key role in travel spending

Source: Skift. Megatrends Defining Travel in 2015: Yearbook / Issue: 01

58% of travel spending happens during the trip…

$$ spent before trip

$$$ spent during trip, on location

42%

58%

…and mobile becomes the de facto means of discovery of activities on which to spend that majority of travel dollars.

Source: Expedia Media Solutions study by comScore, Travel Decisions in a Multiscreen World, 2014

92% of all people who engage with travel content on a mobile device use a mobile browser.

45% of luxury travelers intentionally clicked on a smartphone ad.

45%

55%

Clicked on an adDidn't click on an ad

92%

8%

Used a mobile browserDid not use a mobile browser

Yahoo Bing Network marketplace performance trends: Travel

30% of all Yahoo Bing Network queries come from smartphones

Source: Bing Ads Internal Data

77%

23%

Mobile Query Share March '14

All Devices Mobile

70%

30%

Mobile Query Share March '15

All Devices Mobile

261% growth in mobile clicks delivered for Travel over two years

Source: Bing Ads Internal Data

2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1

Travel & Transportation Click Trend

(February 2014 to February 2015) Travel (all up)—impressions and clicks

Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication

Impressions and clicks on smartphones are growing at a faster pace than on other devices.

Mobile impressions are growing at a monthly average rate of 7%, compared to a -1% decline for PC+Tablet.

Mobile clicks account for an average of 14% of total clicks across all devices.

Mobile14%

PC+Tablet86%

Travel & Transportation, All: Average share of total clicks

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Travel & Transportation: All Impressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

Travel (all up)—CTR and CPC

Source: Bing Ads internal data, Yahoo Bing Network O&O, US

Advertisers pay roughly 66% of the CPC cost on PC or tablet.

Use the mobile bid modifier to adjust your mobile budget to capture user engagement.

October November December January February4.00 %

4.50 %

5.00 %

5.50 %

6.00 %

6.50 %

Travel & Transportation, All: CTR

Mobile PC + Tablet

October November December January February $0.25

$0.35

$0.45

$0.55

$0.65

$0.75

Travel & Transportation, All: CPC

Mobile PC + Tablet

(October 2014 to February 2015)

Air SupplierLodging TransportationOTA/Aggregator

(February 2014 to February 2015)

Mobile impressions are growing at a monthly average rate of 10%, compared to a 2% growth for PC+Tablet.

Mobile clicks account for an average of 13% of total clicks across all devices.

Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication

OTA/Aggregator—impressions and clicks

Mobile13%

PC+Tablet87%

Travel & Transportation, OTA/Aggregator: Average share of total clicks

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Travel & Transportation: OTA/Aggregator Im-pressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

OTA/Aggregator—CTR and CPC

Source: Bing Ads internal data, Yahoo Bing Network O&O, US

Advertisers pay roughly 63% of the CPC cost on PC or tablet.

Use the mobile bid modifier to adjust your mobile budget to capture user engagement.

October November December January February2.00 %

2.50 %

3.00 %

3.50 %

4.00 %

4.50 %

5.00 %

Travel & Transportation, OTA/Aggregator: CTR

Mobile PC + Tablet

October November December January February $0.40 $0.45 $0.50 $0.55 $0.60 $0.65 $0.70 $0.75 $0.80 $0.85

Travel & Transportation, OTA/Aggregator: CPC

Mobile PC + Tablet

(October 2014 to February 2015)

(February 2014 to February 2015)

Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication

Mobile impressions are growing at a monthly average rate of 8%, compared to a decline of -1% for PC+Tablet.

Mobile clicks account for an average of 15% of total clicks across all devices.

Lodging—impressions and clicks

Mobile15%

PC+Tablet85%

Travel & Transportation, Lodging: Average share of total clicks

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Travel & Transportation: Lodging Impressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

Lodging—CTR and CPC

Advertisers pay roughly 70% of the CPC cost on PC or tablet.

Use the mobile bid modifier to adjust your mobile budget to capture user engagement.

Source: Bing Ads internal data, Yahoo Bing Network O&O, US

October November December January February2.00 %

3.00 %

4.00 %

5.00 %

6.00 %

7.00 %

Travel & Transportation, Lodging: CTR

Mobile PC + Tablet

October November December January February $0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

Travel & Transportation, Lodging: CPC

Mobile PC + Tablet

(October 2014 to February 2015)

(February 2014 to February 2015)

Mobile impressions are growing at a monthly average rate of 1%, compared to a flat monthly growth rate of PC+Tablet.

Mobile clicks account for an average of 18% of total clicks

Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication

Transportation—impressions and clicks

Mobile18%PC+Tablet

82%

Travel & Transportation, Transportation: Average share of total clicks

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Travel & Transportation: Transportation Im-pressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

Transportation—CTR and CPC

Source: Bing Ads internal data, Yahoo Bing Network O&O, US

Advertisers pay roughly 60% of the CPC cost on PC or tablet.

Use the mobile bid modifier to adjust your mobile budget to capture user engagement.

October November December January February3.00 %

5.00 %

7.00 %

9.00 %

11.00 %

13.00 %

15.00 %

Travel & Transportation, Transportation: CTR

Mobile PC + Tablet

October November December January February $0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Travel & Transportation, Transportation: CPC

Mobile PC + Tablet

(October 2014 to February 2015)

(February 2014 to February 2015)

Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication

Mobile impressions are growing at a monthly average rate of 4%, compared to a decline of -3% for PC+Tablet.

Mobile clicks account for an average of 12% of total clicks across all devices.

Air Supplier—impressions and clicks

Mobile12%

PC+Tablet88%

Travel & Transportation, Air Supplier: Average share of total clicks

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Travel & Transportation: Air Supplier Impressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

Air Supplier—CTR and CPC

Source: Bing Ads internal data, Yahoo Bing Network O&O, US

Advertisers pay roughly 64% of the CPC cost on PC or tablet.

Use the mobile bid modifier to adjust your mobile budget to capture user engagement.

October November December January February12.00 %

13.00 %

14.00 %

15.00 %

16.00 %

17.00 %

18.00 %

Travel & Transportation, Air Supplier: CTR

Mobile PC + Tablet

October November December January February $0.10

$0.14

$0.18

$0.22

$0.26

$0.30

Travel & Transportation, Air Supplier: CPC

Mobile PC + Tablet

(October 2014 to February 2015)

Recommendations

Increase mobile booking with this strategy

Drive users through the purchase funnel with a mobile-friendly site and a mobile app designed to make it easy to book and buy

Develop traveler identity profiles and engage along their path through your website and app

Engage key audiences effectively throughout the travel planning process with an integrated, cross-platform marketing approach

Drive downloads of your travel app by displaying app extensions when consumers search for your brand

Bing Ads Google AdWords

Targeting selection Unified across devices

Unified across devices

Bid modifiers

Desktop

Not available Not available

Tablet -20% to +300%* Not available

Mobile -100% to +300% -100% to +300%

‘If mobile’ URLs Yes Yes

Mobile Preference Yes Yes

Use the mobile bid modifier to adjust budget allocation

Bing Ads enables bid modifiers for tablet, unavailable in Google AdWords.

Parity with Google on mobile negative bids.

Campaign structures will become parallel, reducing overhead in account management.

Tweak bid adjustments to secure ad position 1 and 2

Source: Marin Software; 2014 Annual Report

Tweak bid adjustments to secure ad position 1 and position 2 spots

Location, location, location applies here too

Smartphone: 116% drop in CTR from position 1 to position 2

PC: 108% drop in CTR from position 1 to position 2

1–2 2–3 3–4 4–5

5.0%

2.4%

1.7%1.3%

5.2%

2.4%2.1%

1.0%

5.1%

2.9%

1.9%

1.3%

Computers Smartphones Tablets

Tablet: 76% drop in CTR from position 1 to position 2

SITELINK EXTENSION

S

CALLEXTENSION

S

LOCATIONEXTENSION

S

Bing Ads’ mobile extensions

LOCATION TARGETING

APPEXTENSION

S

Multiple Extensions No Extensions

Source: Microsoft eye-tracking study

Multiple extensions drive greatest engagement with mobile adsMaximize ad footprint and consumer’s attention

of smartphone searchers used a store locator or location extension to help them find and visit a local store

One tap to launch maps and directions

Source: Nielsen, The Digital Consumer Report, 2014

If you have a brick and mortar store, Location Extensions drive foot and web traffic+15% CTR lift for campaigns with Location Extensions

76%

E-Commerce sites: Sitelink Extensions drive deeper site engagement+10%–15% CTR for campaigns with Sitelink Extensions

Use Sitelink Extensions to feature:

Locations

Social channels

Deals

Products/offers

Mobile content

1Search Engine Land, Study: 61 Percent Of Mobile Callers Ready To Convert, Sep 24, 2013

Click-to-call drives engagement across online and offline stores15%–25% lift in CTR for campaigns with click-to-call

52%

Check business hours

Schedule appointment/make reservation

51%

Check product availability47%

Top reasons for calling from search results1

App Extensions: driving app discovery and download

• Drive downloads: Promote app downloads with Bing Ads on mobile tablet and PC

• Automatic device targeting: Automatically targeted to each user’s device/OS; links directly to App Store, Google Play or Windows Store

• Actionable reporting: Measure installs of and engagement with mobile app

Extensions are automatically targeted to correct OS and app store

1Internet Retailers, Oct 2014

Mobile-optimized websites drive higher conversion rates

Based on study of 53 websites and 180 million online sessions

Conversion rate for smartphone shoppers on mobile-optimized sites

is 160% higher than the rate on non-optimized sitesAverage order value on smartphones on mobile-optimized sites is

102% of the average order value for shoppers on PCs of those same retailers’ desktop sites; that number drops to 70% on sites that are not optimized for mobile

Thank You