2016 digital marketing budgeting planning webinar - back by popular demand

#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

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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.

#HotelDMBudget

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.

#HotelDMBudget

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

#HotelDMBudget

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

#HotelDMBudget

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?