Wednesday 27 May 2015

ADI: Marketers May Need To Rethink Mobile Strategies This Summer

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A new study by Adobe Digital Index (ADI) has found that marketers should expect a drop in mobile-related activity this summer. That’s because approximately 33% of consumers with summer travel plans expect to visit destinations with limited or no cellular and Wi-Fi access.
That will affect their social media behavior, as well, ADI predicts.
“Marketers may want to rethink their strategies, reducing the focus on tactics such mobile search,” said Tamara Gaffney, principal at ADI. “Our recommendation is that marketers fine-tune their social media strategies to place less of an emphasis on mobile.”
ADI also found that despite limitations to social access while vacationing, 64% of consumers plan to share photos and factoids about their travels on social media networks. Gaffney said this will most likely happen when people get back from their vacations.
ADI’s “2015 Travel Report” is based on the responses of 1,000 U.S. consumers who have travel plans this summer. ADI surveyed them about how they plan for and book their travel, including what role mobile devices play in the process. ADI found that while mobile phones may not be prevalent during vacations, they will play a big role in bookings.
“Because of the mobile-friendly nature of travel Web sites, we predict that this will be the first summer where purchases from phones surpass purchases from tablets in the travel industry,” Gaffney told CMO.com.
Sixty-six percent of people surveyed said they anticipate spending more on travel this year--$2,788 on average, with 57% of that being online. According to the report, $1 out of every $5 spent on travel this summer will come from mobile devices.

ADI expects a 7% YoY growth in online travel bookings, with overall spending on summer trips reaching $65 million.
So where are people going this summer? Social buzz and bookings data indicate that the top five domestic leisure destinations for summer 2015 will be Washington D.C., Los Angeles, New York, Las Vegas, and San Francisco.

London, Paris, and Rome lead for Europe.

Separately, ADI’s analysis of 15 billion online visits related to trips between January 2014 and April 2015 found a massive gap between the best time to buy flights and hotels vs. when people actually book.
For example, consumers who book their domestic air travel 90 days in advance can expect an average discount of 15%, while smart shoppers can get up to a 30% discount. Furthermore, each day after the 20-day-prior mark sees an average price increase of about 3%--and yet one in three consumers wait to book during this period. For international flights, consumers should book 60 days in advance, according to ADI.

“The findings suggest that one factor in price hikes is how much fliers procrastinate, putting pressure on themselves to pay higher prices,” Gaffney said.
ADI suggested booking hotels 30 to 50 days in advance to get the most bang for the buck. One in five consumers said they book their hotels just one week before their trips, missing out on the potential of saving at least 15%.

“I was surprised to see that only budget hotels offer any early buying discounting. If you’re in the hotel business, it seems like a good opportunity to undercut the competition by offering some early-bird rate for more premium hotel inventory,” Gaffney said.
For folks looking to get the deal on the fourth of July, the cheapest day to book travel has already passed. But late bookers still have a few days left to get a discounted rate if they book before May 23. For Labor Day, consumers should aim to book travel before July 21.

Press play to view the video below for more details on ADI's findings:

Here is the full report:

 
To view a larger version of this SlideShare, click here. 
About Adobe Digital Index
Adobe Digital Index publishes research on digital marketing and other topics of interest to senior marketing and e-commerce executives across industries. Research is based on the analysis of select, anonymous, and aggregated data from over 5,000 companies worldwide that use the Adobe Digital Marketing Cloud to obtain real-time data and analysis of activity on websites, social media, and advertising.

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