TripAdvisor`s advertising model, which emphasizes click-throughs over banner-advertising impressions, has made an impression with Expedia, which is a new TripAdvisor customer.
Instead of charging advertisers for impressions (the number of times the advertisement is viewed) at www.tripadvisor.com, TripAdvisor gets compensated from advertisers for click-throughs.
The rate is about $1 per click, said TripAdvisor chief executive officer Stephen Kaufer.
The company, which claims to be the only performance-based marketing service targeted at the travel industry, said its InventoryLink technology averages 10% click-through rates, a vast improvement over banner ads.
Instead of transporting the user to an advertiser`s home page, TripAdvisor`s technology delivers the consumer to the relevant inventory page.
The performance-based advertising approach represents a change in business model for TripAdvisor. Founded in 2000, TripAdvisor initially intended to license its search engine to portals and CRSs.
Although the company licenses its search engine to Lycos Travel, today its business model is focused on attracting advertising revenue.
Related stories on ITN:
(03/12/2001) TripAdvisor Technology Matches Customers Needs With Products.
(13/01/2001) TripAdvisors Top 10 U.S. Attractions Online