Seasonal & emerging travel trends on the Bing Network

Netherlands

2

*

Contents

• Digital Travel Sales Growth

• Summer Travel Trends on the Bing Network

• Optimisation Tips

• Summary

Digital Travel Sales Growth

Digital Travel Sales Growth in 2016 (vs. 2015)

$40 Billion+8%

$32 Billion+6%

$24 Billion+5%

$6 Billion+7%

$9 Billion+7%

$11 Billion+10%

Global Digital Travel Sales$593 Billion+11%

Western Europe Digital Travel Sales$162 Billion+7%

Source: eMarketer 2016

5

Digital Travel Sales Growth in the Netherlands

2014 2015 2016 2017 2018

Digital Travel SalesNetherlands, 2014 - 2018

Digital travel sales (Billions)Search ad spending (% of total digital ad spending)

Source: eMarketer 2016. includes leisure and unmanaged business travel sales booked via any device; converted at the exchange rate of US$1=EUR0.7536

Digital Travel Sales continues to grow with search advertising making up 45% of total digital ad spend

$5.46$5.98 $6.37 $6.69 $6.99

43.6% 43.8% 44.3% 44.8% 45.2%

Summer Travel On The Bing Network

Source: Internal. Travel searches by month across all devices on Bing and Yahoo sites in the Netherlands, Oct 14 - Oct 15

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Travel all up: 21%Holidays: 36%Skiing: 26%Cruise: 25%

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-150%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Travel Seasonality on Bing and Yahoo Sites• Year on year travel search volumes up 133% from Oct-14 to Oct-15• June to September attracts highest volumes

Average search volume per month

Travel Searches by Month

Source: Internal. Monthly travel searches by sub-category across all devices on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Travel all up: 21%Holidays: 36%Skiing: 26%Cruise: 25%

Travel Searches during Peak MonthsWeekend Breaks and City Escapes, Lodgings, Summer Holiday and Flights were the most searched categories from June to Sept 2015

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Travel all up: 21%Holidays: 36%Skiing: 26%Cruise: 25%

Travel Searches by Month during Peak MonthsSearch activity shows consistent trends across peak months

Source: Internal. Travel searches by month across all devices on Bing and Yahoo sites in the Netherlands, Oct 14 - Oct 15

June Ju ly August Sep tember5% 4% 5% 5%4% 3% 4% 4%

15% 16% 13% 16%1% 1% 1% 1%7%

16%7% 5%

19%17%

20% 21%

9%6%

10%12%

21% 21%19% 16%

20% 17% 21% 20%

Car Holiday Far and Away FlightsHoliday Deals Last Minute Holiday LodgingSki Vacation Summer Holiday Weekend Breaks and City Escapes

Source: internal. YoY travel growth by sub-category across all devices on Bing and Yahoo sites in the Netherlands, Oct-14 to Oct-15

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Year on Year GrowthWhile Weekend Breaks and City Escapes, Lodgings, Summer Holiday and Flights are the most searched categories in the peak months, Car Holiday, Ski Vacations, Far and Away and Weekend Breaks and City Escapes are the fastest growing categories year on year

All up Tr

avel

Car Holid

ay

Far a

nd AwayFlig

hts

Holiday

Deals

Last M

inute Holid

ay

Lodging

Ski Vaca

tion

Summer

Holiday

Weeke

nd Breaks

and City

Escap

es

133%

1173%

240%104% 151%

64% 111%261%

96%183%

YoY Growth from Oct-14 to Oct-15

Source: Internal. Device split by travel sub-categories on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

75% of travel searches last summer were made on PC

Al l up Travel

Car Hol iday

Far and Away

Fl ights

Hol iday Deals

Last Minute Hol iday

Lodging

Ski Vacation

Summer Hol iday

Weekend Breaks and Ci ty Escapes

25%

45%

35%

24%

11%

17%

17%

40%

20%

28%

70%

54%

61%

70%

81%

74%

79%

59%

73%

69%

5%

1%

4%

7%

8%

9%

4%

1%

6%

3%

Travel Searches – Device Split by Sub-Category (June to Sept 2015)

Mobile PC Tablet

Travel Searches by Device during Peak Months• PC is the dominant device, accounting for 70% of all travel searches in the peak months• Mobile has a noticeable presence in some sub-categories, Car Holiday (45% of total searches), Ski Vacation

(40%), Far and Away (35%) and Weekend Breaks and City Escapes (28%)

Source: Internal. Device trends on travel searches on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

75% of travel searches last summer were made on PC

Travel Searches by Device during Peak MonthsSearch behaviours differ across devices during the peak months. PC searches rise consistently from June to September while Mobile searches rise more dramatically (+26%) from July to August and Tablet searches hit a peak in July

June 2015 July 2015 August 2015 September 20150%

50%

100%

150%

200%

250%

Travel Searches – Device Trends (June to Sept 2015)Mobile Indexed Volume PC Indexed Volume Tablet Indexed Volume

Source: Internal. Top travel search days on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

Top Travel Search Days during Peak MonthsPC and Mobile searches predominantly peak on weekdays, with Tablet on weekends

June 2015Mon Tues Wed Thurs Fri Sat Sun

1 2 3 4 5 6 78 9 10 11 12 13 14

15 16 17 18 19 20 2122 23 24 25 26 27 2829 30

July 2015Mon Tues Wed Thurs Fri Sat Sun

1 2 3 4 56 7 8 9 10 11 12

13 14 15 16 17 18 1920 21 22 23 24 25 2627 28 29 30 31

August 2015Mon Tues Wed Thurs Fri Sat Sun

1 23 4 5 6 7 8 9

10 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28 29 3031

September 2015Mon Tues Wed Thurs Fri Sat Sun

1 2 3 4 5 67 8 9 10 11 12 13

14 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30

Top 10 PC Search Days Top 10 Tablet Search Days Top 10 Mobile Search Days

Travel searches particularly strong earlier in the week (Monday +6% vs. index for the week)

Travel searches increase on Mobile and Tablet leading into the weekend

Travel Searches by Day during Peak Months• Search activity is more dominant on weekdays, particularly earlier in the week• Mobile and Tablet searches grow on the weekends

Daily Split per Device – June to Sept 2015

Source: Internal. Weekly travel search volume and daily split per device on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

Monday

Tuesd

ay

Wednesd

ay

Thursd

ayFri

day

Saturday

Sunday80%

85%

90%

95%

100%

105%

110%

Indexed Travel Search Volume – June to Sept 2015

Monday

Tuesd

ay

Wednesd

ay

Thursd

ayFri

day

Saturday

Sunday0%

10%20%30%40%50%60%70%80%

Mobile PC Tablet

Aver CTR 16%

Aver CPC €0.77

Aver CTR 23%

Aver CPC €0.73

Aver CTR 10%

Aver CPC €0.44

Travel Searches and CTR & CPC Performances• Travel searches have strong CTR’s across all devices in the peak months• While CTR is lower on Mobile than PC or Tablet, average CPC on Mobile presents significant opportunities

CTR and CPC Breakdown in the Top Ad Position, June to Sept 2015

Source: Internal. CTR and CPC in Mainline 01 across per device on Bing and Yahoo sites in the Netherlands, June-Sept 2015

Travel Searches and CTR & CPC Performances• Flights (26%), Holiday Deals (26%) and Last Minute Holidays (23%) have highest CTR’s in the top Ad Position from

June to Sept 2015• CPC’s are competitive throughout each subcategory; lowest CPC’s in Holiday Deals (€0.41) and Weekend Breaks

and City Escapes (€0.46)

Source: Internal. CTR and CPC by travel sub-category on Bing and Yahoo sites in the Netherlands, June to Sept, 2015.

All up

Trav

el

Car H

oliday

Far an

d Away

Flights

Holiday

Deals

Last M

inute

Holida

ys

Lodgin

g

Ski Va

cation

Summer

Holida

ys

Weeken

d Brea

ks an

d City

Escap

es0%5%

10%15%20%25%30%

€0.72 €0.50

€0.85 €0.67

€0.41 €0.62

€0.93

€0.49 €0.69

€0.46

CTR and CPC per subcategory, June to Sept 2015

'CTR 'CPC

Summer Travel Audience

Source: Internal. Travel search volumes by sub-category and age group on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Travel all up: 21%Holidays: 36%Skiing: 26%Cruise: 25%

Summer Travel Audience• 58% of travel related searches are from ages 35 to 64• Holiday Deals are more heavily favoured by older age groups

Age Group (Travel Search Volume, Split by Subcategory, June to Sept 2015)

All up T rave l

Car Ho l iday

Far and Away

Fl ights

Ho l iday Dea ls

Last Minute Ho l idays

Lodging

Ski Vaca tion

Summer Ho l idays

Weekend Breaks and C ity Escapes

3%

3%

3%

3%

2%

3%

3%

3%

3%

3%

14%

9%

14%

16%

10%

15%

14%

13%

14%

14%

18%

18%

20%

18%

13%

18%

16%

18%

19%

17%

30%

30%

25%

30%

26%

34%

28%

39%

29%

28%

28%

28%

31%

26%

39%

26%

30%

22%

28%

31%

7%

11%

8%

7%

10%

4%

9%

4%

7%

7%

13-17 18-24 25-34 35-49 50-64 65+

Monday Tuesday Wednesday Thursday Friday Saturday Sunday0%

5%

10%

15%

20%

25%

30%

35%

Summer Travel AudienceConsistent search behaviour throughout the week across all age groups with marginal fluctuations on Saturday

Travel Search Volumes Split by Age Group, June to Sept 2015

35-4950-64

25-3418-24

65+

13-17

Source: Internal. Travel search volumes by age group on Bing and Yahoo sites in the Netherland, Jun-Sep 2015.

Source: Internal. Travel search volumes by gender on Bing and Yahoo sites in the Netherlands, Jun-Sep 2015.

Flights: 24%Travel Info: 22%Lodging: 14%Car Hire: 12%

Trains: 4%

Summer Travel AudienceWomen dominate all travel related searches across each of the sub-categories

All up Travel

Car Holiday

Far and Away

F ligh ts

Holiday Deals

Last Minu te Holidays

Lodg ing

Sk i Vacat ion

Sum mer Holidays

Weekend Breaks and City Escapes

58%

51%

58%

54%

58%

59%

57%

53%

59%

62%

42%

49%

42%

46%

42%

41%

43%

47%

41%

38%

Female Male

Gender (Travel Search Volume, Split by Subcategory, June to Sept 2015)

Optimisation Tips

Average CTR by Served Number of Ad Extensions

Source: Internal. Ad extension analysis in the Travel vertical on Bing and Yahoo sites in the Netherlands, March 2016.

Text

Ad + Im

age

Text

Ad + ES

L

Text

Ad + Mult

iple A

d Exte

nsion

s

Text

Ad + CEX

Text

Ad + SL

Text

Ad + App

Text

Ad + LE

X

Text

Ad

Grand T

otal0%

5%10%15%20%25%30%

Average CTR

Ads with more and richer extensions perform significantly better than text Ads in isolation

LegendESL = Enhanced Site LinksSL = Site LinksLEX = Location ExtensionsCEX = Call Extensions

Editorial Tips

Keywords

Ad Copy

Site + Other

• Ensure relevance to the content, brands & products on offer• Awareness of policy nuances by country• Gambling bidding permitted (i.e. a hotel bidding on “casino” but

offering a casino-based stays) with no online gambling services offered

• Ensure affiliates, for aggregators in particular, have content

• Ensure ad copy is truthful and not misleading• Bing-user expectations are managed• Correct display and dest. URL formatting (i.e. domain.com/brand or

product)• Ad copy should not provide airline flights advertiser does not offer

directly or not a confirmed affiliate to promote.

• Site: landing page should contain advertised hotel or airline info• Advertisers should unnecessarily redirect user • Site should share flight and hotel costs directly, opposed to having

the user to call for pricing.

Quality Score• Great editorial and user experiences drive better QUALITY SCORES

Action Result

Violating content can result in ad, site, account and

customer-level rejections

All our investments in maintaining good quality

ads and advertisers Is targeted to improve

advertiser experience along with elimination of bad

actors

Compliance Detection

Bing Ads has well defined policies in place for allowed

content and behaviour

Any policy violation or risk is assessed using

combination of automate machine learning systems

and human reviewers

DublinCanada

New YorkAmsterdam

MalagaAustralia

DubaiAlicanteTenerife

Barcelona

United Kingdom

United States Canada GermanyBrusselsLondonCanada

ParisChina

CancunMexicoCubaIndia

Toronto

LondonNew YorkLas VegasChicagoOrlandoBostonMiamiParis

Los AngelesBuffalo

AmsterdamParis

JordanTenerifeLondonMalta

ValenciaIbiza

MadridDubai

Italy France Spain

NetherlandsAustraliaArgentina

ArubaFinland

BarcelonaNorwayJakarta

PortugalCuracaoMorocco

MallorcaItaly

New YorkBarcelona

CroatiaEEUU

AmsterdamGreecePortoSpain

BrusselsParis

AustraliaCuba

NetherlandsVeniceLondon

LanzaroteBerlin

Amsterdam

EdinburghBarcelona

SpainItaly

PortugalTurkeyCuba

LisbonThailandMadrid

Top International Travel Destinations Searched per Market (March 2016)

Source: Internal. Most popular travel destination by market, March 2016

wintersportwintersport oostenrijkwintersport frankrijk

last minute wintersportwintersport la plagne

wintersport inclusief skipaswintersport flachau

wintersport duitslandwintersport saas fee

wintersport trysil

Ski Vacation

Car Holiday Far and Away Flightsautovakantie

autovakantie spanjeautovakantie frankrijk

autovakantiesautovakantie duitslandautovakantie kroatie

autovakantie oostenrijkautovakantie costa del

solautovakantie portugal

autorondreis noorwegen

rondreis amerikacuracao vakantierondreis thailandamerika reizenthailand reizenrondreis china

rondreis vietnamrondreis kroatiereizen amerika

individuele rondreis thailand

weekendje weg aanbiedingenstedentrips aanbiedingen

hotel aanbiedingenvakantie aanbiedingen

weekend weg aanbiedingenlast minute aanbiedingen

aanbiedingen vakantieparken nederland

vakantie aanbiedingvakantie curacao aanbieding

bungalow aanbiedingen

Holiday Deals Last Minute Holiday Lodging

All up Travelvliegticketscheapticketscheap tickets

weekendje wegvakantie

goedkope vliegticketslast minutecheap ticket

weekendje weg aanbiedingen

hotelaanbiedingen

vliegticketscheapticketscheap tickets

goedkope vliegticketscheap ticketvliegticket

goedkoopste vliegticketsvliegtickets vergelijken

vliegen vanaf eeldegoedkope vluchten

hotelaanbiedingen

hotel amsterdamhotels amsterdamhotels maastrichthotel maastrichthotels antwerpen

hotel parijshotel boekenhotels parijs

hotel rotterdam

last minutelast minute reizen

last minuteslastminute vakantielast minute vakantielast minute turkije

last minute bungalowlastminuteslast minute wintersportlast minute vliegtickets

Top Travel Searches per Sub-Category

Source: Internal. Top searches per sub-category on Bing and Yahoo sites in the Netherlands, Oct-14 to Oct-15

Summer Holidays

Weekend Breaks and City Escapes

vakantiezonvakantie

vakantiexpertsvakantie italie

vakantie griekenlandgoedkope vakantie

vakantiehuizenvakantie turkije

vakantiehuisvakantie spanje

weekendje wegweekendje weg aanbiedingen

stedentripstedentripsnachtje weg

stedentrip londenweekend weg

stedentrip romestedentrip parijsstedentrip berlijn

SummaryDigital travel sales in the Netherlands is up to $6.37 billion in 2016 (+7% on 2015)• Search advertising accounts for 44% of total digital ad spend

Year on year travel searches in the Netherlands were up 133% in 2015, peaking from June to September• Weekend Breaks and City Escapes (20%) Lodgings (19%) and Summer Holiday

(19%) are the most searched categories in these months• Car Holiday (+1173%), Ski Vacation (+261%), and Far and Away (+240%) are the

fastest growing categories year on year

PC was the dominant device for travel searches in the Netherlands in 2015 accounting for 70% of travel searches in the peak months • Mobile searches showed the biggest indexed growth in the peak months, rising 26%

from July to August

CTR on Mainline 01 ads grew steadily in 2015• CTR was highest for ads containing Image Extensions (24%) and Enhanced Sitelinks

(24%) and multiple ad extensions (15%)

CPC’s in Mainline 01 remained consistent even during the peak months• CPC’s on mobile were the lowest of all devices, averaging €0.44 in the peak months

35 to 64 year olds accounted for 58% of all travel searches in the peak months in 2015

Females dominated all travel subcategories and 58% of total travel searches

• Ensure there’s room in your budget to capture the summer surge in travel search volume, June – September was a key period for travel search volume last year

• Invest in PC and mobile campaigns given the dominance of PC and the growth of mobile during June - September

• Take a look at your demographic bid modifiers as over 58% of summer travel searches came from women and 58% from those aged 35-64 last summer

• Up your visual appeal: Opt into Sitelinks, Enhanced Sitelinks, Call and Image extensions

• Capitalise on emerging trends in the travel sector

Summary & Top Recommendations this Summer