The evolution of digital advertising for travel

After a dramatic reduction in marketing spending by travel companies in 2020 and 2021, the money is flowing again.

Two of the biggest global brands illustrate that point.

In their financial reports for the first quarter of this year, Booking Holdings and Expedia Group reported spending $1.15 billion and $1.34 billion, respectively, on marketing – compared to figures of $461 million and $487 million, respectively, in Q1 2021.

But while this year’s first quarter numbers indicate travel advertising may be on pace to approach 2019 levels, the digital advertising landscape is in the midst of major shifts that requires marketers to employ new strategies to understand and reach their customers.

According to Phocuswright’s latest report, The State of Digital Advertising in Travel: Time for a Rethink, two of the biggest drivers of change are legislative action to protect consumers’ privacy and the elimination of third-party cookies.

At the same time, a new model for personal data is gaining traction: self-sovereign identity, which gives consumers complete control over how and when their share their personal information and preferences. 

The challenge for travel marketers is to understand this new landscape and how balance privacy with personalization. 

The full report addresses the immediate, near-term and mid-term factors impacting digital advertising, the issues they represent and strategies to consider to address these challenges.