Statistics From 2019–2024
The statistics show the percentage of change and total digital ad spending from 2019 to 2024. It includes search, video, and display ads on mobile and non-mobile advertising. In 2019, the US travel industry spent 26.8% on digital advertising, which dropped to ‑50.9% in 2020 due to the coronavirus pandemic, as travel wasn’t possible by that time. In 2021, the travel industry bounced back and showed unexpected growth in digital ad spending, reaching 42.7%. This year, the US travel industry will maintain the pace by spending 22.5% more on digital advertising than the previous year. In 2023, digital ad spending will reach 20.0% and 15.3% in 2024. So, the double-digit growth shows that the travel industry is taking flight.
On the other hand, if you analyze the percentage change in digital ad spending, it is evident that it will increase gradually. From 2020 to 2024, the percentage change in digital ad spending will become 2.3% from 2.0%. So, the highest percentage change was around 4.6% in 2019. After that, the change shows an increase in digital ad spending, but there is no significant difference. However, among very few industries, the US travel industry is the one that is spending more on digital advertising than before. Other than that, only the retail sector is expected to increase its digital spending faster.
After analyzing how the US travel industry will spend on digital advertising in the coming years, the other question that pops up is, “How will the US travel industry split their spending on display and video ads between mobile and non-mobile advertising?”
Rise In Mobile Ad Spending In the Travel Industry
Another marvel is the rise in mobile ad spending in the travel industry. A significant share of ads has recently been shifted to mobile devices, even though many travelers use desktops for research and vacation shopping. Since travelers have started using smartphones to plan their traveling, the industry is now more focused on mobile ads than desktop ads. The only hurdle the users may face while browsing on mobile phones is the lack of personal preferences and poor user interfaces. The ad share on mobile has not yet reached the required level but is continuously growing. However, the need of the hour is to know about the correct advertising methods and target audience.
Here are a few changes that might help the travel industry reach its goal.
- The vendors must provide advertisers with more effective models to analyze how spending affects purchases.
- Travel sites must know about their users’ personal preferences and behavior to target them more effectively across the web.
- Advertisers need to address the issues of fraud and vulnerability as a priority to get more fruitful results from their marketing campaigns.
- If programmatic advertising gets paired with real-time bidding, it will allow advertisers to present the best offer to their targeted audience at the most appropriate time.
Tips For the Travel Industry to Make their Advertising Successful
Since the travel industry is spending more on digital ads than other industries, it must also know the best ways to make its advertising campaigns successful to ensure that the investment pays off.
Up the Push Notification Game in Travel Apps
Travel apps are more popular after the pandemic. Travel app downloads have increased significantly in the last few years. However, marketers must up their push notification game in travel apps as it is one of the most effective marketing tools. According to the analysis, it increases the retention rate up to ten times.
Use Native Ads to Boost Travel Business
The use of native ads can be pretty helpful in boosting the travel business. Content can make or break a consumer’s experience. It has taken a lot of forms today, so marketers can use images, videos, blogs, and infographics to engage consumers. Since travel consumers are more concerned about the content experience, you can use native ads to expand the reach of your content.
Pick the Right Time
Traveling has become a popular activity for consumers all around the world. Not only are older ones traveling after retirement to enjoy life, but Gen Z also has the high spirits to explore the world. According to a survey, 83% of old-aged people plan to travel in the next six months.
On the other hand, 68% of Gen Z are also ready to travel despite their tight budgets. However, you must know the right time to target them. For instance, spring break is the best time to run advertising campaigns to attract Gen Z, as they will spend at least 8 hours a day on the internet. So, make sure you use the best practices at the most suitable time of the year to inspire the upcoming holiday season.
Tabinda has been writing since forever, and it seems that her educational background in Economics, politics, management sciences, and psychology has given her an incredibly deep and comprehensive approach when it comes to display ads and PPC.