TripAdvisor has signed Expedia.com as a new key customer. Expedia.com is using TripAdvisor`s InventoryLink technology to optimize the online marketing of its product inventories.
Built to address the well-publicized shortcomings of traditional impressions-based banner advertising, TripAdvisor`s InventoryLink consistently delivers average click-through rates for travel products of more than 10% - a 40X improvement in response rates versus traditional banner advertising.
TripAdvisor`s performance-based marketing model delivers numerous benefits to travel advertisers over other traditional advertising technologies. Unlike banner ads where marketers pay upfront for impressions and hope to obtain leads, with TripAdvisor`s Cost Per Click (CPC) model, marketers only pay for the leads they actually get. These leads are travel consumers ready to buy, highly qualified by product, price and geography.
TripAdvisor`s InventoryLink is also built to optimize the conversion ratio of lookers to bookers. While banner ads bring consumers to the home page of a travel marketer, where they still need to search for their intended product, TripAdvisor`s technology deep links the consumer to the relevant product page on the travel marketer`s site where the consumer can quickly purchase the desired product. Additionally, with TripAdvisor`s InventoryLink, there is no involvement required from an advertiser`s IT department. TripAdvisor`s search technology can automatically index an advertiser`s entire product database, create unique HTML commerce links for each product and synch these links with its search database with no involvement from the advertiser`s IT department.
Research has shown that travel is the largest market right now on the Internet. Consumers spent $19.4 billion in 2001 on U.S. travel sites, accounting for 36% of the $53 billion spent by online consumers at all U.S. retail sites. And the growth continues to escalate in 2002. According to ComScore Networks, January 2002, online travel spending reached a record of $557.5 million for the week ending January 13, 2002. Industry experts have also predicted a dramatic rise in performance-based marketing over other advertising models. Companies such as Google
have proven that performance-based (cost per click) marketing models work very well.
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