Destination-Marketing Webinar Presentation

DEVELOPING NEW KPIS FOR
TRAVEL
Proprietary & Confidential. Copyright © 2014.
Q4 2014
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01 THE CURRENT LANDSCAPE
Proprietary & 2 Confidential. Copyright © 2014.

DMO CHALLENGES
Destination Marketing Organizations face several challenges when advertising online:
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• Lack of Strong KPIs
With no eCommerce action or “true” conversion in place to associate with the campaign, DMO
advertisers lack a concrete way to measure whether the consumers exposed to tourism ads are
actually traveling to their destinations, and at what rate.
• Poor Proxy Metrics
Additionally, proxy metrics for these—typically clicks, ad interactions, or survey-based
measurement—do not show a strong relationship with travel.

POSSIBLE APPROACHES
We considered several methods to solve this problem.
GEODATA
Identify whether consumers exposed to
DMO ads for a specific area eventually
“show up” in that area later on.
PROs: Shows actual travel to destination
Cons: Difficult to measure; long time
between exposure and conversion—no
“real time” optimization possible
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OTA/HOTEL/AIRLINE DATA
Look at how consumers exposed to DMO
ads respond to OTA, Hotel, or Airline
campaigns, see if they book travel to the
target destination.
PROs: Shows actual travel to destination,
easy to measure
Cons: Not “fool-proof,” difficult to separate
business and vacation travelers

02 MEASURING SUCCESS

THE MEASUREMENT PLAN
By tracking bookings with OTA and hotel advertisers partnering with Rocket Fuel, we
can identify whether consumers exposed to DMO advertising later booked travel to the
target destination through either source.
DMO Travelhaus
1. Identify consumers served
DMO advertising
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2. See if they booked travel to
the destination being
advertised on a hotel, OTA, or
airline partner site
3. Measure effectiveness and
set up automated
optimization toward
generating conversions

DEFINING NEW KPIs FOR TRAVEL
By tracking bookings with OTA and hotel advertisers partnering with Rocket Fuel, we
can identify whether consumers exposed to DMO advertising later booked travel to the
target destination through either source.
Destination OTA Site Bookings Hotel Site Bookings TOTAL
California (state park) 22 0 22
Florida (city) 36 610 646
Florida (attraction) 292 3,905 4,197
USA (from Japan) 0 1,765 1,765
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CASE 1: FLORIDA TOURISM
We looked at 2 tourism campaigns in Florida in our sample, one
of which was focused on a city and the other for a major tourist
attraction near that city. The campaign for the attraction
actually did have a conversion pixel associated with sales, which
accounted for 20,135 conversions during our observed time
frame.
In this case, the 4,197 additional bookings we were able to
measure for the attraction showed consumers who wanted to
book separate accommodations after exposure to ads. For a
single hotel, this meant 20% more measurable conversions for
the campaign post-exposure!
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CASE 2: US TOURISM (f/JAPAN)
One of the clients examined for this study had
several initiatives focused on driving tourism to
the United States from other countries, including
Japan. The campaign we examined delivered
interactive banners to Japanese consumers, using
ad interactions as the key measure for success.
Surveys were also placed in field, though at this
time adequate data for consumers responding to
the survey and also booking travel was
unavailable.
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DETERMINING LIFT
If we then look at the rate of “conversion” for consumers in the target audience
exposed to ads (and those not exposed), we can generate a lift metric that shows the
effect of advertising to a particular population.
US Hotel Bookings among Japanese Consumers, June 2014 – July 2014
# US Tourism Ads seen # Consumers US Bookings Conversion Rate
124,902,137 15,074,264 1,765 0.0117%
0 85,610,210 6,448 0.0075%
LIFT +55.5%
*Estimated based on % of Japanese citizens with a passport
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CLICKS SHOW LITTLE VALUE
Looking at how the US Tourism click activity affected conversion rates (measured via US
bookings on the hotel site) showed little correlation between the two. In fact, of the
1,765 conversions that occurred during our sample time, only 20 happened following a
click on a US Tourism banner ad.
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US Tourism
impressions
Hotel
impressions
US Tourism clicks Hotel clicks Hotel US
bookings
29,026 7,327 20 8 1,765
0 2,481 0 4 107

AD INTERACTIONS
Ad interactions were a different story, however: 177 Japanese consumers who booked a
US hotel stay following exposure to the US Tourism campaign also interacted with
campaign ads, doing so at a rate 16% higher than consumers who just saw ads. On
average, consumers who interacted with the banner did so 1.76 times.
US Hotel Bookings based on # of banner interactions
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# US Tourism ad
interactions
# Consumers # of consumers
booking US rooms
Conversion Rate
0 13,753,144 1,588 0.0115%
2,239,248 1,321,120 177 0.0134%
LIFT +16%

03 ECOSYSTEM BENEFITS

THE PATH TO TRAVEL
Consumers seldom make travel
decisions on impulse. Prior research
shows that 90% of consumers planning
a vacation do so more than a month in
advance.
Even when identifying consumers in-market,
it takes several days to drive a
AVERAGE TIME BETWEEN FIRST AD EXPOSURE AND
CONVERSION, BY TRAVEL CAMPAIGN TYPE
Hotel
All Travel
Airline
consumer from first exposure to final
purchase, as most vacation travelers
will research one or more digital
sources in the week prior to booking. 2.1
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2.3
3.1
4.2
OTA

THE PATH TO TRAVEL
Frequency of Hotel bookings by number of days in
advance of start date, June-July 2014
5,904
6,683
9,421
11,416
13,295
16,144
More
91
84
77
70
63
56
49
42
35
28
21
14
7
1
Looking at the time between a
consumer’s conversion and the
first day of their stay shows that
while consumers most
commonly book a hotel within
2-7 days of travel, half of
bookings will occur 3 or more
weeks (21+days) prior to the
actual trip.
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26,374
34,403
29,265
118,347
71,599
47,172
33,817
20,088
8,010
49,176
0

EFFECTS OF DMO EXPOSURE
When looking at U.S. OTA bookings among anyone exposed to a DMO
campaign for a US location, we can see the impact of how exposure to both
improves efficiency for OTA advertisers and any other effects that exposure to
both ads might have.
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DMO
DMO
DMO
OTA = +147%

EFFECTS OF DMO EXPOSURE
Compared to converters who only saw OTA ads, OTA converters exposed to
both ads took nearly half as many OTA impressions to drive to a conversion.
Essentially, we can think of DMO ads as a type of ‘added-value’ impression for
OTA advertisers.
OTA IMPRESSIONS PER CONVERSION BASED ON AD EXPOSURE
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OTA Impressions
DMO
Impressions
OTA
Conversions
OTA Conv
Rate
OTA Ads per
Conv
220,286 0 37,188 16.88% 5.92
251,920 705,815 105,127 41.73% 2.40
LIFT +147% -41%

EXPOSED CONSUMERS STAY LONGER
By looking at the bookings, we can see how long travelers plan to stay and how much
they are spending. Consumers exposed to DMO advertising prior to converting on an
OTA campaign booked trips 81% longer (+2 days) and spent 50% more on average when
compared to consumers only exposed to OTA ads.
OTA TRIP LENGTH AND AVG. SPEND BY AD TYPE EXPOSURE, APRIL 14 – MAY 14
Group # Consumers
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Avg. DMO
ads seen
Avg. OTA
ads seen Avg. Spend # Days
OTA ads only 21,443 0 10.3 $261.88 2.46
OTA + DMO ads 65,488 24 18 $390.32 4.45
LIFT +49% +81%

BENEFITS ON BOTH SIDES
Thus, OTA/Hotel/Airline advertisers benefit from the additional ad
efficiency when their ads reach consumers already exposed to DMO
advertising, and they can reap the benefits of additional incremental
revenue from these exposed consumers even when they aren’t
advertising.
On the other side, DMO advertisers benefit from having potential
concrete measurements of success to point to and optimize toward
when this data is shared. DMO advertisers can also potentially use
this data to further optimize to different traveler types, such as
families vs. business travelers.
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OTA
DMO

04 LOOKING AHEAD

This analysis isn’t definitive! Here are a few ways it might be improved in the future:
IDENTIFYING TOURISTS
Another major concern for DMOs is
reaching tourists and not business
travelers. By using information about the
trip itself—such as duration of stay, the day
of week of the trip (weekdays vs.
weekends), the number of beds in the
booking, and the number of travelers—we
can identify likely business travelers vs.
tourists, and train an AI to separate them
accordingly.
NEXT STEPS
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PREDICTING SPEND
By using information about the number of
travelers, price and location of the booking,
and profile data about the consumer, we
can develop a model to predict how much
they are likely to spend at the target
destination, and optimize accordingly.

GOING FURTHER
Better models can be
developed with the addition of
actual spend data at the
location and geodata for
consumers who see DMO
advertising and then visit the
location later. These too can be
incorporated into ad-serving
and optimization decisions.
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NEXT: THE FULL ECOSYSTEM
Finally, better measurement can be developed by folding in additional
partners, such as other Hotel brands, OTAs, and airlines to create a full picture
of the ecosystem that allows for optimization along the entire funnel.
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DMO
AIR
HOTEL
CRUISE

05 PARTNERING WITH THE DMAI

A TRUSTED PARTNER
Top DMO’s find success with us:
~50+ DMO’s & CVB’s active with
Rocket Fuel at any given time
COMMON DESTINATION KPIs
• Completed Video Views
• Click Thru Rates
• Key Pages Visited
EXCITING NEW WAYS TO
ATTRIBUTE SUCCESS
• Audience Guarantees
• Credit Card Spend in market
• Mobile location

ROCKET FUEL’S PARTNERSHIP WITH DMAI
• Rocket Fuel is committed to the destination marketing sub-vertical
has partnered with the Destination Marketing Association
International in an effort to share knowledge, data and best
practices
• We’ll be co-producing white papers, webinars and coordinating
round tables
– On panel @ DMAI CEO Summit
– Spoke at DMAI 100th Annual Convention
• Working with DMAI to provide unique offerings to DMO and CVB clients globally:
• Bundling DMAI membership fees and products with media buys
• Unique advertising products that will help attribute marketing spend that drives visits and
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in-destination spend

WHY JOIN DMAI?
• Connect to a community of 600+ official DMO marketing
professionals worldwide representing $2B+ in annual budgets
• DMAI is a passionate advocate and definitive resource for DMOs
• Powerful research, reporting and benchmarking tools
• Professional development and education for DMO professionals
(i.e. CDME and PDM certifications)
• Be first in line to hear about the exciting projects that Rocket
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Fuel is working on with DMAI

THANK YOU FOR
YOUR TIME
QUESTIONS?
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