Exploring Expedia's Strategy to Dominate the Travel Media Network Industry

Expedia unveiled a new travel media network at its annual Explore partner event on May 14. The network leverages two decades of advertising expertise from Expedia Group Media Solutions. It combines traveler intent and purchase data with various advertising tools, planning and measurement capabilities, and access to an in-house creative team.

The launch of Expedia Group’s Travel Media Network comes at a time when more companies are entering the rapidly growing media network space. Players like Chase, Marriott, Uber, and Lyft are joining a list that already includes major retailers and grocers. In 2023, U.S. retail media ad spend nearly reached $50 billion, rivaling national and local linear TV ad spending. This figure is projected to increase by 30% this year, according to Advertiser Perceptions U.S. Advertising Market Outlook.

Expedia is now focusing on expanding its media network, leveraging its decades of experience in selling advertising and its extensive global reach. The company operates 200 booking sites in over 70 countries and has a B2B network with over 60,000 partners, as highlighted by Rob Torres, senior vice president of media and affiliate solutions.

According to Torres, who joined Expedia in 2022 after working at Google for 16 years in the travel advertising sector, this shift towards building a robust media network is relatively new in the travel industry. Many smaller companies lack the necessary data and insights to create a comprehensive media network like Expedia's. Torres believes that Expedia has a unique opportunity in this space and is excited about the potential it offers.

Preparing for Travel Adventures

Before embarking on their own journeys, customers need to navigate through a complex travel purchase journey. According to data from Expedia, travelers typically browse through 141 pages of travel content in the 45 days leading up to booking a trip. Additionally, almost 3 out of 5 travelers either do not have a specific destination in mind or are considering multiple destinations.

"We're working on a solution to help our advertisers," explained Jennifer Andre, who is the vice president of business development at Expedia Group Media Solutions. She mentioned that advertisers often find it overwhelming to target the right travelers and streamline their media buying process.

Expedia's travel network uses first-party intent data to reach valuable travelers through onsite and offsite advertising on platforms like YouTube and connected TV. They have a dedicated team of media experts who spent over 12,000 hours in 2023 assisting advertising partners in optimizing their campaigns. Additionally, the network has partnerships with publishers and platforms like Netflix and Disney+ to expand advertising opportunities.

Torres explained that they can create comprehensive campaigns for their partners that are effective in reaching customers at every stage of their travel journey.

As an illustration of Expedia's capabilities, they highlighted a successful campaign done in collaboration with Visit California at London's Heathrow Airport. Expedia utilized their inventory to secure all billboards in Terminal 5 and recommended targeting UK travelers for Visit California. This strategy led to the brand dominating the terminal with a 100% share of voice and generating a total of 275 million impressions.

Opportunities for Growth

Andre explained that Visit California's investment in out-of-home advertising was not done in isolation. Instead, it was part of a larger strategy that included our travel media network, owned-and-operated channels, and other components.

Media networks are constantly improving their capabilities, from creating content to measuring results. Expedia aims to provide a comprehensive solution for travel advertisers with its advertising options, data insights, and in-house creative team.

Andre mentioned that for their current partners, this presents an opportunity to deepen their relationship with Expedia. It allows for a more holistic approach beyond just driving bookings, creating awareness and reaching travelers across various platforms.

Expedia executives have also brought attention to a lesser-known service - a B2B network that connects with over 60,000 partners. Torres mentioned that this B2B network is expected to drive growth for both the network and Expedia as a whole.

Andre added that many of these partners receive hotel supplies from us, along with our sponsored listings for hotels. This allows our partners to expand their reach. He also highlighted that some may not realize the extent of Expedia's presence in this area and how we support other players in the industry.

The company is now making a refreshed presence in the media network space. Industry leaders are exploring what this can mean for all advertisers. Walmart Connect and Home Depot's Orange Apron Media network are reaching out to non-endemic brands. This could be a great opportunity for Expedia, according to Andre.

According to Torres, they currently work with some non-endemics. However, they believe this new opportunity could open doors for working with more brands. This could potentially be a significant development for the company.

Editor's P/S:

Expedia's entry into the rapidly growing media network space is a testament to the company's commitment to innovation and its understanding of the evolving travel landscape. With its decades of experience in selling advertising and its extensive global reach, Expedia is well-positioned to capitalize on this opportunity and become a major player in the media network market.

The article highlights the growing importance of media networks in the travel industry. As travelers become increasingly overwhelmed by the vast amount of travel content available, they are turning to media networks to help them navigate their travel purchase journey. Expedia's Travel Media Network is well-equipped to meet this need, with its access to valuable traveler data, its team of media experts, and its partnerships with major publishers and platforms.