In the current era of disruptive marketing strategies there some companies who have recently rolled back to conventional marketing strategies. ‘Trip Advisors’ recent marketing strategy is to emphasize TV advertising and reduce online marketing expenditure in areas where the channels are less profitable.
TripAdvisor aims to focus primarily on an extraordinary brand-building through TV advertising. The company will build on the $74 million it spent on TV last year, which began in the second half of 2017, and will nearly double that commitment.
The companies average spending on the different platforms for online marketing or performance marketing on channels such as Google will be reduced in the current year.
As a part of company’s hotel segment, they will continue to reduce performance marketing expenses to achieve a higher return on investment from online marketing channels. TripAdvisor stated in prepared remarks.” The net result will be lower Hotel selling and marketing expenses
Online travel companies, hotels, and airlines nearly always strive to make their marketing spend more efficient. For example, several years ago Delta stopped advertising with a couple of dozen metasearch and online travel agency companies because the airline wasn’t getting sufficient bang for its bucks.
Despite a great partnership with Expedia & Priceline; TripAdvisor will rely more on TV advertising in 2018 hence it is possible that Expedia and the Priceline Group may likewise decide to reduce their marketing spend in TripAdvisor.
Online advertisement is considered as a powerful source of revenue for companies such as Google. Stepping away from online platforms and switching to a visually interactive medium can highly impact companies whose revenue chain relies more on online advertising. Source: https://skift.com/2018/02/15/tripadvisor-has-a-tv-heavy-marketing-strategy-that-competitors-are-trying-too/
- Yash Desai & Ziting ZHAO
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