A Win-Win for Brands and Consumers

• Travel commerce media is a growing trend where companies monetize their websites by allowing advertisers to use their customer data for targeted advertising.
• With this approach, travel companies like Expedia, Booking.com, Marriott International, and Uber have created media networks that generate significant revenue.

Travel commerce media is making waves in the travel industry, offering a fresh way for companies to monetize their web traffic. How? By providing brand advertisers access to their first-party customer data for targeted advertising. Big players such as United, Expedia, Booking.com, Marriott International, and Uber have all jumped on board, creating their own media networks and earning impressive revenue.

But what’s the real magic behind this trend? It’s the evolution of targeting. It all started with display advertising, progressed with Google’s search data improvements, and was further refined with demographic data from Facebook. Now, we’re in an era where commerce data is used for effective targeting and creating enhanced experiences for consumers and travelers.

Eric Brackmann, the vice president of commerce media at ad tech specialist Koddi, believes travel commerce media is a win-win for everyone. For travel companies, it means better margins on advertising and improved profitability. For consumers, it’s a more personalized and enjoyable experience.

For instance, Uber’s ad network, which was launched just two years ago, is now a whopping $1 billion business. Ads relevant to the user’s location or preferences can be served at the bottom of the Uber app when booking a ride. Brackmann says one in every five media dollars will be spent on commerce media this year.

Despite the potential for impressive returns and improved customer experience, there are challenges for travel companies to consider. These include getting the enterprise on board, finding the right skill set, dealing with a talent war, ensuring data protection, and building the technology.

However, industry experts are united in their excitement about artificial intelligence’s potential impact on commerce media. As Brackmann says, the combination of generative AI and commerce media could lead to highly personalized, monetized organic and individual content.

Travel commerce media is revolutionizing the travel industry, presenting a win-win scenario for brands and consumers. This trend is set to grow, offering exciting opportunities and challenges in equal measure.

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