Agenda:
1
2
Jon Baron
Ed Pushman
Head of
Search Media Strategist
Multinational Sales
Using online to tap into
the booming Asian
travel market
The Search Travel
market & adCenter
Eastern Opportunity:
How online advertising can help
you unlock the potential of the
booming Asian travel market
Why Asia? – Tapping into the Consumer Potential
 With about 61% of the world’s population living in the region in 2007, AsiaPacific is a huge consumer market
 China and India account for 37% of the world’s population
Source: US Census Bureau, International Data Base, July 16 2007. Emarketer calculations, August 2007
Asian Travellers Are Big Spenders
 Singapore currently biggest spenders on travel (6th of personal disposable income)
 China, India and Indonesia will be among the world’s fastest-growing countries in travel
and tourism
 Growth in Chinese spend on travel & tourism expected to be 4 times US growth
Personal travel and tourism spending
for select countries/regions worldwide,
2007 (% of total personal consumption)
Singapore
15.6%
Australia
12.5%
UK
11.9%
Japan
11.2%
European Union
11.1%
China
10.1%
US
9.0%
South Korea
India
Worldwide
Source: www.Emarketer.com
7.0%
4.0%
9.7%
And a lot of that money is going online...
“In 2007, $17.7 billion worth of leisure or
unmanaged business travel will be
booked online in the Asia-Pacific region
- up 28.3% from 2006. Strong future
growth will ensure that the market about
doubles to $35.5 billion by 2010 and
approaches $42 billion in 2011.”
Jeffrey Grau, Senior Analyst, eMarketer
 73% of affluent Asians are online (pax) and spend more time online than any
other medium (Asiabus)
 1 in 5 of all travel sales in Asia-Pac will be online next year
The Ones to Watch: China & India
Market share of online leisure/unmanaged business travel bookings for
India and China – 2006 & 2011 (% of Asia-Pacific* total)
Note: includes all online travel bookings whether paid for online or offline
* Australia, China, India, Japan, New Zealand, South Korea; Source: eMarketer Sept 2007
 China and India are two of the region’s largest and fastest growing
online travel markets
 Last year they combined to capture just over 15% of the total online
travel market share
 By 2011 their share will triple to 46.3%
What the Money Is Being Spent On
% Share of Respondents
Travel Services
bought online in the
last 12 months
2006/07
China
Hong Kong
India
Japan
Malaysia
Air Tickets
30%
20%
48%
37%
47%
Hotels
30%
22%
21%
48%
32%
Event Tickets
11%
12%
10%
15%
12%
Travel Packages
15%
8%
15%
11%
12%
Travel Insurance
11%
15%
5%
12%
11%
Sample size: 6,736
Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate
Online Is Not Only A Place To Spend But A Place
To Plan, Share and Discuss Travel Purchases
% Share of Respondents
Sources used for planning/
researching travel 2007
China
Hong Kong
India
Japan
Internet
81%
76%
81%
93%
83%
Printed Travel brochures
41%
49%
65%
65%
53%
Guidebooks
53%
56%
29%
55%
41%
Newspapers
40%
33%
40%
15%
49%
Travel agents
41%
55%
40%
43%
54%
Friends/relatives/colleagues
56%
46%
40%
29%
58%
Magazines
39%
34%
40%
15%
49%
Base: Those who have traveled for business or leisure (Sample size: 5,871)
Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate
Malaysia
Online is a Strong Influencer of Offline Travel Bookings
Researched
online
Purchased/
booked online
Purchased offline
Hotels
55%
33%
26%
Air Tickets
54%
36%
25%
Travel packages
37%
12%
18%
Sightseeing tours
36%
9%
19%
Event tickets
30%
19%
19%
Rental Car
17%
9%
13%
Other Travel related
services
33%
8%
15%
European Hot Spots for Asian Travellers
UK, Germany & Italy lead the way
Number of tourists arriving from China, HK, India,
Japan and Malaysia in 2006
> 1,000,000
500,000 – 1,000,000
Source: Euromonitor
< 500,000
Who, Where and Why?
India
Targets
Destinations
Opportunities
China
Hong Kong
Japan
39% Families
29% Couples
70% Leisure
17% Families
11% Couples
42% Organised
Tours
13% Families
26% Leisure
38% Organised
Tours
Top: Singapore,
Dubai
US & UK
Europe: UK &
Switzerland
Emerging:
Germany
Top: Macau &
Hong Kong
(68%)
Emerging:
South Africa
Europe:
Austria,
Top: China (70%)
Top: South
Emerging: Europe, Korea, Thailand
Australia. North
America
Backpackers/
Independent
Traveller
Business
Travellers
Cruises and sea
trips
Bollywood
Emergence of low
cost Carriers ‘Open
Skies’ govt policy
Source: Euromonitor
14% Families
14% Couples
49% Organised
Tours
Leisure tourism
& organised
tours
Malaysia
20% Families
32% Leisure
18% Organised
Tours
Top: Singapore
Emerging:
Macau, Hong
Kong, Thailand
Independent
Traveller; Flexible
travel packages to
Australia & New
Zealand
Case Study
Cathay Pacific
The Campaign:
• ‘Born to move’ campaign
• Aim: to increase brand
awareness among frequent
travellers within Asia
• Improve its position as
most admired airline
• Ascertain reach and efficacy of
online branding for its target audience
Campaign results:
• The survey results on MSN exceeded
expectations:
– Brand message association increased by 35%
– Unaided brand awareness increased by 26.9%
– The campaign was effective in establishing
the perception of Cathay Pacific as an airline “There is no doubt in our mind
that MSN is a great
with the widest network.
communications partner for the
– Boosted purchase intent by 14.9%
airline industry. We derived
great value for our investment
and the survey results
exceeded our expectations.”
Celine Ho Manager, Marketing
Communications, Cathay
Pacific Airways
Case Study
Tourism Malaysia
Tourism Malaysia : Online Global Branding Campaign
• Campaign objectives:
– Increase brand visibility globally by
showcasing Malaysia’s uniqueness
– Create hype around Malaysia’s 50th
Golden Celebration in conjunction with
Visit Malaysia Year (VMY)
– Encourage potential tourists to visit
Malaysia
• Target audience:
– Potential travellers globally aged 21+
– Covered a total of 13 countries (Asia,
Europe and North America)
• Online tools used:
– MSN / Windows Live Platform which
includes:
>
>
>
>
MSN Homepage
Windows Live Hotmail
Windows Live Messenger
Windows Live Agent
Snapshot of Campaign Impact on target
audience : Singapore & Australians
 91% Of Australians & 69% of Singaporeans exposed to the campaign were
main/ joint decision makers for family travel (the campaign reached the desired
audience)
 Positive uplifts were seen by all key brand metrics indicating the online
campaign initiated positive influence and achieved the set objectives.
94%
100
96%
+5%
80
+10%
44%
60
49% 54%
+5%
47%
+3%
52%
41%
44%
34%
40
20
0
+3%
6%
9%
Unaided
Awareness
Aided
Brand
Awareness
Online
Ad Awareness
Not exposed to the online campaign
Exposed to the online campaign
Source: AdIndex Advertising Effectiveness Research 2007 conducted by Dynamic Logic
Message
Association
Brand
Favorability
Purchase
Intent
Ongoing Online Engagement With Siti
• Promotion of Malaysia continues
with a Travel World First launched
on 1st November 2007
• ‘Siti’ – new digital brand
ambassador to promote national
tourism via Windows Live
Messenger
• Taking Tourism Malaysia to the
next level of interactivity via
innovative technology
• Potential to reach more than 285m
instant messenger users across
multiple markets worldwide
Add Siti to your Windows Live
Messenger buddy list today :
sitimalaysia@hotmail.com
Why Microsoft?
We connect with your audience all day
Global reach, local knowledge, one point of contact
465m unique users in 42 markets and 21 languages
MSN & Windows Live Hotmail – more than 300
million active accounts worldwide
More than 294 million active Windows Live
Messenger accounts worldwide
More than 111 million unique users worldwide
(Source: Comscore, August 2007)
Over 2.16 billion worldwide queries each month
Multinational Sales team have offices located in Hong Kong,
Japan, London, New York, Paris, Singapore
Some of our Travel Customers:
adCenter and travel
Edward Pushman
Search Media Strategist
Microsoft adCenter
The Search Market Place
Live.com Search
Live Maps and Virtual Earth
adCenter
Microsoft’s UK Search Opportunity
Share of Queries
Share of Users
Users (UK-only)
9
29%
5.4%
7
23%
6.1%
28
89% 81.2%
Million
Million
Million
Source: comScore MediaMetrix, Aug 2007; queries per user per month
No. 2 for share
of users
Integration
Autumn 2007 Core Investments
•
•
Local,
Maps
Rich Answers
Coverage
Query
Refinement
•
•
Core
RankNet
•
Structured
Information
Extraction
Query Intent
•
Coverage
4 x increase in index size
Query intent
Advanced query analysis
Query refinement
Auto Spell / Query Suggestions
RankNet
More intelligent algorithm
Structured information extraction
Product reviews / related people
Rich answers
Answers & multi media results (Coming
soon)
High Interest High Value Verticals
Local, Maps
Shopping
Core
Health
Entertainment
Local, Maps
Find local business listings quickly and easily
Queries have local intent
Local search begins at a
search engine
Active internet users use maps
and directions
Local,
Maps
Shopping
Core
Entertainment
Health
Sources: Microsoft Research Mapquest User Survey 82007; comScore MediaMetrix, August 2007
Local
& Maps
The VE platform provides customers, partners, and developers with a set of
integrated services for programming and building intelligent Web applications for
location-based information.
JLScoot: BE boosted online visits to highest
levels ever & increased return visits by 47%.
Number of unique visits per month increased
by 11%
Number of new visitors per month increased
by 15%
Aerial and Satellite
Imagery
Bird’s Eye
View
Proximity
based Results
Microsoft adCenter increasing your ROI
Convert more with adCenter
High quality audience
Paid Search and Travel
Future of Search
Why Microsoft adCenter?
Convert more
Our audience is more likely to convert than any other
Conversion %
5.8%
4.2%
3.0%
MSN/Live
Search
Google
Search
Yahoo!
Search
3.2%
3.2%
AOL
Search
Total
Average
Percentage of click throughs that lead to conversion
* NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website
Our audience is more likely to convert than any other
Travel
Conversion %
9.4%
6.3%
6.7%
6.6%
5.6%
MSN/Live
Search
Google
Search
Yahoo!
Search
AOL
Search
Total
Average
Percentage of click throughs that lead to conversion
* NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website
Why Microsoft adCenter?
High quality audience
Our audience is more engaged on your site
Higher spend
Average time spend on
the destination site (mins)
The average Windows
Live customer spent
£2000 or more online
in the past
six months*
4.01
3.22
2.39
MSN/Live
Search
Google
Search
Yahoo!
Search
Level of Engagement
*TGI Internet 2006 ** NNR Jan-March 2007
2.50
2.48
AOL
Search
Total
Average
Our audience is more engaged on your site
Average time spend on
the destination site (mins)
Travel
4.11
4.04
3.39
3.46
3.06
MSN/Live
Search
Google
Search
Yahoo!
Search
Level of Engagement
*TGI Internet 2006 ** NNR Jan-March 2007
AOL
Search
Total
Average
Paid Search and Travel
Spend for paid search
Paid for search listings increased from £337million in
2005 to more than £531 million in 2006
Spending in first half 2006 £millions
£600
UP 57%
£500
£400
£300
UP 33%
UP 23%
£200
£100
DOWN 9%
0%
Paid-for
Search
Online
Display
Spending
11% of travel
companies said
they spent more
than £500,000 per
year on PPC, and
25% said they
spent over £1
million
Online
Interruptive
Classifieds
Formats
Click throughs
Average Click Through Rate in Travel Microsoft
adCenter
12%
10%
8%
6%
4%
2%
0%
Average Click Through Rate
Actionable audience Intelligence
Females are More Likely to Click!
70
Search Impressions
65
60
55
50
45
40
35
0
Ski
Flights
Car Hire
Hotels
Cruises
Categories
Female
Male
Holidays
Generic
Holidays
Brands
Impact of Events
Monaco
Grand Prix
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Why Microsoft adCenter?
Unique intelligent targeting
Using our unique demographic
targeting, adCenter can deliver your ad
to the right customer at the right time
Eurostar Case Study
Compared to other search engines
adCenter achieved:
•Click-to-sale ratio 35% higher
•Cost-to-sale rate 16% lower
•Click-through-rate nearly five
times higher
• The only search engine to achieve
an increase in conversion rate from
the previous month
Key Takeaways
• Your audience is online and growing
• Spend on travel is on the rise
• Internet is key tool in research, planning &
purchase of travel
• Be relevant, creative and engaging and the
opportunity is yours
• The web can connect your brand with consumers
the other side of the world and in multiple markets
simultaneously
• Display plus search delivers measureable results
Thank you