The internet offers a convenient way to find the best deals on flights, research locations and hotels, take virtual tours, and read fellow travelers’ reviews. So it’s no surprise that, according to eMarketer, the number of people who do travel research and bookings online is growing year over year (1).
At the same time, 40% percent of Americans reported that the economic downturn over the past few years has not reduced their personal/leisure travel, according to Expedia.com’s American Traveler survey. (2)
Advertisers in the travel industry may benefit from these trends. Small businesses can be intimated by the omnipresence of major travel portals, and the array of travel choices on the web can easily turn into a burden. Considering that the U.S. offers on average only 13 days of paid vacation (as opposed to 42 days in Italy, 37 in France, and 35 in Germany) travel decisions for those precious 13 days become extremely important. The wrong decision made online could ruin a costly trip to the destination of your dreams. But this is exactly where small businesses can distinguish themselves and compete successfully. Online searches can turn up the lowest prices and best deals in split seconds, but they can’t offer the personalized service that experienced professionals can.
Looking back at 2011, travel-related searches started to climb in May and peaked in July (3), so April is the perfect time to optimize your account for the travel season ahead.
Choosing Keywords: long-tail versus head terms
An analysis of travel keywords of adCenter advertisers reveals that building out specific terms is the best strategy. For instance, the highest click-through rates (CTR) are consistently found on longer keyword entities, called long-tail terms that include the destination and an offer such as “Hawaii all inclusive vacation packages.” Even when the destination was not included, terms like “all inclusive vacation” or “last minute vacation” still had strong CTRs. When building your keyword list, start with generic terms (“cruises”), then add specifics (“Hawaii cruises,” “Alaska cruises”) and details (“Hawaii cruise packages,” “Alaska cruise specials”). Find a keyword list with examples here*.
Here is an overall view of how the number of words in a keyword entity influences CTR:
Generally, a shorter keyword, called head terms, will generate more impressions and clicks, while the long-tail terms typically generate higher CTRs (4)
Take some time to find the right balance between head and long-tail terms. When adjusting your bids, keep in mind that position 1 has by far the highest click volume. The graph below shows that 42% of all clicks came when the keyword and the corresponding ad were in position 1. At the same time, CTR dropped with each position, from 6.98 in position 1 to 0.3 in position 8. (5) Getting your keywords into top positions is a strategy that usually pays off.
Adding Negative Keywords
When bidding on destinations only, you should have a robust list of negative keywords. While a keyword like “New York” will certainly give you great exposure, you do not want your ad shown for weather-related queries, traffic information, or local sports teams.
Negative keywords are also important when things unexpectedly go wrong. When you bid on cruise-related keywords, you may want to choose negative keywords to prevent your ad from being shown for searches related to the recent cruise ship accident in Italy or other such incidents.
Finding the Right Match Type
Match types let you take control of your ad delivery. We strongly recommend bidding on all match types, ideally with the highest bid on exact match. Less experienced search advertisers often believe that bidding only on broad match will cover all variations of the keyword. However, exact match typically has much better CTRs and lower CPCs.
An easy way to see average costs per click by match type and position is to install the Microsoft Advertising Intelligence tool from the tools section in adCenter. This tool will help you to determine which match type is the right one for each keyword.
Writing Effective Ad Copy
The large travel portals may be good for booking simple trips – flight and hotel to one city – but travelers seek help with complex trips. Small businesses specializing in travel can provide the level of guidance many leisure travelers desire.
- When writing your ad copy, focus on personalized services and experience. Travel agents’ unique knowledge of the destinations makes their help invaluable to the traveler.
- Travelers with a budget are likely to spend more for authentic experiences that only a travel agent can provide. While it’s good to include incentives in your ad copy, catering to luxury travelers is a niche that may pay off.
- Specialization distinguishes you from the competition. Many travelers are weary of the beaten path and search for unique destinations and a highly individualized vacation experience. Mentioning the more exotic places in your ad copy helps attract this segment of potential customers.
- Plan ahead. In a 2011 survey commissioned by the Mark Travel Corp., 19% of respondents said they were booking trips at least six months in advance, compared with 16% in May 2010. And 22% said they were booking between four and five months ahead, compared with 19% a year ago (6). So while you may be offering last-minute deals for summer, potential customers for a winter journey may already be exploring their options.
Targeting the right customers
The better you know your audience, the more precisely you can target it. Even if you have limited time to manage your adCenter account, two reports can quickly help you to better understand searchers’ intentions and their profile.
The Search Query Performance Report shows exactly what queries a Bing or Yahoo! Search user entered in relation to your keyword. The report helps you identify additional keywords to bid on and provides a list of potential negative keywords to exclude unwanted traffic.
The Age Group and Gender Report offers valuable insights into your audience’s demographic profile. You can choose incremental bidding to increase your standard bid for certain age groups or gender. Your ads are more likely to show in a better position for those targeted groups.
Bear in mind age demographics. Hitwise data from March indicate that travel-related searches are very popular with people 55 or older (7).
Going Mobile
eMarketer predicts that the number of US mobile users who research travel on their mobile devices will climb from 19.7 million in 2010 to 29.7 million in 2012. People booking via mobile will nearly double in the same timeframe, from 8.7 million to 15.1 million. (8)
We recommend duplicating your search campaigns to target mobile devices separately. Keep in mind that the display screen is smaller, meaning fewer ads can show, so mobile campaigns should be optimized for top positions.
Thanks for reading!
Peter Haubold, Vertical Specialist
*NOTE: Always review keyword lists for applicability to your own campaigns and revise as necessary to ensure the best possible experience.
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(1) eMarketer: “Travel Companies Must Take Online Reputation Management Seriously” November 2011
(2) Travelweekly.com; March 2, 2012
(3) Hitwise.com
(4) adCenter internal data
(5) adCenter position analysis; based on 20 most popular travel keywords
(6) Travelweekly.com; June 1, 2011
(7) Hitwise.com
(8) eMarketer: “Mobile Travel Takes Off”, March 11, 2011
