Personalization is key in advertising with 49% of millennials willing to share personal data in exchange for bespoke destination recommendations
NEW YORK, NY – November 1, 2017: Over 40% of vacationers spend between one and three hours reading online content before committing to a trip, with almost half then booking their summer vacation on their smartphone. That’s according to findings from a new study1 by Teads, the inventor of outstream advertising and the No. 1 video advertising marketplace in the world by unique visitors, according to comScore.
The study analyzes the online behavior of more than 2,000 U.S. consumers to reveal how they research and book vacations, as well as the factors that influence their final purchase. With Americans spending nearly $4,580 for a family vacation2, there is a massive market for travel brands to tap into.
The research reveals Gen Z are moving towards smartphones for research, in comparison to a laptop (37%). This is relatively in line with all Americans who research, 44% of whom do so on smartphones and 41% who research on desktop.
When it comes to booking, Americans almost evenly book summer vacation trips on smartphones and laptops. Furthermore, millennials are most likely to book a vacation on their phone (52%) but just a quarter of Gen X prefer to book on this device (25%).
The research also reveals the impact of video ads in driving consumer action, with almost all of consumers (86%) taking some kind of action after seeing one. Almost half (49%) have searched online after seeing an ad, 38% checked out reviews online and 27% clicked on the ad.
Personalization is key to compelling video ads – almost half of Americans (39%) prefer video ads with personalized recommendations and nearly half (47%) are willing to share personal data in order to receive bespoke destination recommendations – this rises to half of millennials (49%) and almost half of Gen Z (40%).
Consumers say interactive video ads would help them make decisions about their vacation, with over a third of respondents (35%) excited to explore destinations through 360 videos. One in five (20%) of millennials would be interesting in being able to interact with chatbots to ask questions before purchasing.
Brands are already using chatbots to successfully engage customers online. The global cruise line, MSC Cruises, integrated chatbots into its outstream video ads this year to drive more leads to its website.
David Arcifa, Senior Digital Marketing Manager at MSC Cruises, said: “The goal for us was to raise brand awareness and consideration with a special focus on our ship, MSC Magnifica, based in Southampton from 2018. Thanks to conversational bots, we have been able to build authentic relationships with potential customers, behaving like a personal online consultant that could reply to specific questions related to our itineraries, food experiences or entertainment on-board.”
Younger consumers also demand a higher standard of advertising compared to other generations. Over a third of millennials (36%) find travel video ads that automatically play sound frustrating. Younger generations also expect a higher level of targeting, with over a third of Gen Z (41%) saying that irrelevant ads are irritating. A fifth (21%) of Gen Z are also frustrated by seeing an ad for a destination they have just booked.
Emi Gal, Teads Studio CEO and Group CMO at Teads, said:
“It’s great to see that video advertising is having a big impact on how consumers make their travel decisions, and by incorporating interactive elements such as chatbots or data capture forms, these ads are even more powerful. This study reveals a real opportunity for brands to deliver personalized and interactive ad experiences that can really move the needle when it comes influencing consumers’ travel purchase decisions.”
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Notes to editors
- Teads commissioned independent research company Censuswide to survey a national representative sample of 2095 U.S. adults who travel for a holiday (abroad or in the UK) at least once a year OR who have traveled for a holiday in the last year and who book their travel online. The research was conducted between 22nd and 26th September 2017.
- American Express, Summer Travel Soars; Many Americans to Spend More, 2014
Teads, founded in 2011, is the inventor of outstream advertising and the No. 1 video advertising marketplace in the world. Publishers work with Teads to create brand new inventory and manage their existing inventory, monetizing it through their own sales force, Teads sales force, or programmatic buying.
Teads’ native advertising solutions encompass a series of formats inserted into media content, like inRead, which plays inside articles. It is changing the game within the advertising market by creating unprecedented levels of premium inventory, which did not exist before.
Brands and agencies can access this top-tier, premium inventory, available on the web and on mobile, through programmatic or managed services. Through its managed services capabilities, the Teads team executes on its clients’ behalf using its platform.
Teads has a team of over 500 employees, 100 of whom are on the innovation team, across 27 offices in 21 countries. In May 2017, Teads became part of the Altice Group, a convergent global leader in telecom, content, media, entertainment and advertising. For more information, visit Teads.tv
Nicole Matthews, email@example.com, (408)386-4244