Online Travel Advertising Gains Momentum

Strategic Insights -

As the world becomes increasingly connected through the internet, the online travel advertising market is experiencing significant growth, with travel agent businesses leading the industry in online advertising. According to a new report released by AdRelevance, a division of Media Metrix, online consumer travel is expected to continue to soar, with almost half of the 70 million web users visiting travel-related sites.

Key Takeaways:

  • Travel agent businesses are leading the pack in online advertising, accounting for more than 80 percent of all travel industry impressions.
  • Airlines are taking the lead in the non-travel agent segment, with 41 percent of impressions, followed by hotel/accommodations and car rental companies.
  • The number of new companies entering the industry's online advertising arena increased by 45 percent during the first quarter, with numerous resorts and vacation tours beginning to advertise on the web.
  • Online travel agent companies, such as Lowestfare.com and Travelscape.com, are the leading advertisers in this segment, with over 50 percent of all impressions last quarter.
  • Seven of the top ten online travel advertisers are travel agent companies, with Delta airlines dominating the non-travel agent advertiser segment, with just under one-quarter of all ad impressions.
  • Most travel industry advertising is hosted on portals, with Yahoo, Altavista, AOL, and GO carrying 62 percent of impressions.
  • AdRelevance estimates suggest that travel advertisers committed four-and-a-half percent of their total ad budget to online advertising, twice that of recent Internet Advertising Bureau projections.

Statistics:

  • 70 million web users visited travel-related sites, with online consumer travel expected to continue to soar.
  • Travel industry advertising impressions grew by 3 percent during the first quarter, compared to the 4 percent industry average.
  • The number of new companies entering the industry's online advertising arena increased by 45 percent during the first quarter.
  • 80.1% of travel industry impressions are from travel agent businesses.
  • Online travel agent companies account for over 50% of all impressions last quarter.
  • 62% of travel industry advertising is hosted on portals such as Yahoo, Altavista, AOL, and GO.

Sources:

  • AdRelevance, a division of Media Metrix.
  • "Online Travel Advertising Gains Altitude" report available at www.adrelevance.com.
  • Media Metrix press release, "Media Metrix Reports on Net Rates of Growth in Online Travel Advertising Industry"
  • Internet Advertising Bureau projections on online advertising expenditures for most industries in 1999.