World Travel Market Presentation

Agenda:: 

Agenda:

Eastern Opportunity:How online advertising can help you unlock the potential of the booming Asian travel market: 

Eastern Opportunity: How online advertising can help you unlock the potential of the booming Asian travel market

Why Asia? – Tapping into the Consumer Potential: 

Why Asia? – Tapping into the Consumer Potential Source: US Census Bureau, International Data Base, July 16 2007. Emarketer calculations, August 2007

Asian Travellers Are Big Spenders: 

Asian Travellers Are Big Spenders Singapore currently biggest spenders on travel (6th of personal disposable income) China, India and Indonesia will be among the world’s fastest-growing countries in travel and tourism Growth in Chinese spend on travel & tourism expected to be 4 times US growth Source: www.Emarketer.com

And a lot of that money is going online...: 

And a lot of that money is going online... 73% of affluent Asians are online (pax) and spend more time online than any other medium (Asiabus) 1 in 5 of all travel sales in Asia-Pac will be online next year “In 2007, $17.7 billion worth of leisure or unmanaged business travel will be booked online in the Asia-Pacific region - up 28.3% from 2006. Strong future growth will ensure that the market about doubles to $35.5 billion by 2010 and approaches $42 billion in 2011.” Jeffrey Grau, Senior Analyst, eMarketer

Slide7: 

No. of hours & time share on each medium per week Magazines 3.7 Hrs – 7 % Markets: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand Universe (Sample): Top/Mid Management – 16,519,992 (1,473) Source: Synovate AsiaBUS Survey June/July 2007 The Internet surpasses TV in time spent Top/Middle management Radio 10.6 Hrs – 19%

The Ones to Watch: China & India: 

The Ones to Watch: China & India China and India are two of the region’s largest and fastest growing online travel markets Last year they combined to capture just over 15% of the total online travel market share By 2011 their share will triple to 46.3% Market share of online leisure/unmanaged business travel bookings for India and China – 2006 & 2011 (% of Asia-Pacific* total) Note: includes all online travel bookings whether paid for online or offline * Australia, China, India, Japan, New Zealand, South Korea; Source: eMarketer Sept 2007

What the Money Is Being Spent On : 

What the Money Is Being Spent On Sample size: 6,736 Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate

Online Is Not Only A Place To Spend But A Place To Plan, Share and Discuss Travel Purchases: 

Online Is Not Only A Place To Spend But A Place To Plan, Share and Discuss Travel Purchases Base: Those who have traveled for business or leisure (Sample size: 5,871) Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate

Online is a Strong Influencer of Offline Travel Bookings: 

Online is a Strong Influencer of Offline Travel Bookings

European Hot Spots for Asian TravellersUK, Germany & Italy lead the way: 

European Hot Spots for Asian Travellers UK, Germany & Italy lead the way Number of tourists arriving from China, HK, India, Japan and Malaysia in 2006 Source: Euromonitor

Who, Where and Why?: 

Who, Where and Why? 39% Families 29% Couples 70% Leisure Top: Singapore, Dubai US & UK Europe: UK & Switzerland Emerging: Germany Bollywood Emergence of low cost Carriers ‘Open Skies’ govt policy Targets Destinations 17% Families 11% Couples 42% Organised Tours Top: Macau & Hong Kong (68%) Emerging: South Africa Europe: Austria, Backpackers/ Independent Traveller India 13% Families 26% Leisure 38% Organised Tours Opportunities 14% Families 14% Couples 49% Organised Tours 20% Families 32% Leisure 18% Organised Tours Top: China (70%) Emerging: Europe, Australia. North America Business Travellers Cruises and sea trips Top: South Korea, Thailand Leisure tourism & organised tours Top: Singapore Emerging: Macau, Hong Kong, Thailand Independent Traveller; Flexible travel packages to Australia & New Zealand Malaysia Hong Kong China Japan Source: Euromonitor

Case Study Cathay Pacific: 

Case Study Cathay Pacific

The Campaign:: 

The Campaign: ‘Born to move’ campaign Aim: to increase brand awareness among frequent travellers within Asia Improve its position as most admired airline Ascertain reach and efficacy of online branding for its target audience

Campaign results:: 

Campaign results: “There is no doubt in our mind that MSN is a great communications partner for the airline industry. We derived great value for our investment and the survey results exceeded our expectations.” Celine Ho Manager, Marketing Communications, Cathay Pacific Airways

Case Study Tourism Malaysia: 

Case Study Tourism Malaysia

Tourism Malaysia : Online Global Branding Campaign: 

Tourism Malaysia : Online Global Branding Campaign Campaign objectives: Increase brand visibility globally by showcasing Malaysia’s uniqueness Create hype around Malaysia’s 50th Golden Celebration in conjunction with Visit Malaysia Year (VMY) Encourage potential tourists to visit Malaysia Target audience: Potential travellers globally aged 21+ Covered a total of 13 countries (Asia, Europe and North America) Online tools used: MSN / Windows Live Platform which includes: MSN Homepage Windows Live Hotmail Windows Live Messenger Windows Live Agent

Snapshot of Campaign Impact on target audience : Singapore & Australians: 

Snapshot of Campaign Impact on target audience : Singapore & Australians 91% Of Australians & 69% of Singaporeans exposed to the campaign were main/ joint decision makers for family travel (the campaign reached the desired audience) Positive uplifts were seen by all key brand metrics indicating the online campaign initiated positive influence and achieved the set objectives. Source: AdIndex Advertising Effectiveness Research 2007 conducted by Dynamic Logic Unaided Awareness Aided Brand Awareness Online Ad Awareness Brand Favorability Purchase Intent Not exposed to the online campaign Exposed to the online campaign 9% 6% 96% 94% 44% 34% 54% 49% 52% 47% 44% 41% Message Association +10% +5% +3% +5% +3%

Ongoing Online Engagement With Siti: 

Ongoing Online Engagement With Siti Promotion of Malaysia continues with a Travel World First launched on 1st November 2007 ‘Siti’ – new digital brand ambassador to promote national tourism via Windows Live Messenger Taking Tourism Malaysia to the next level of interactivity via innovative technology Potential to reach more than 285m instant messenger users across multiple markets worldwide Add Siti to your Windows Live Messenger buddy list today : sitimalaysia@hotmail.com

Why Microsoft? We connect with your audience all day: 

Why Microsoft? We connect with your audience all day

Global reach, local knowledge, one point of contact: 

Global reach, local knowledge, one point of contact Multinational Sales team have offices located in Hong Kong, Japan, London, New York, Paris, Singapore

Some of our Travel Customers:: 

Some of our Travel Customers:

adCenter and travel: 

adCenter and travel

Microsoft adCenter: 

Microsoft adCenter Live.com Search Live Maps and Virtual Earth adCenter

Microsoft’s UK Search Opportunity: 

Microsoft’s UK Search Opportunity 7 Million 28 Million 9 Million 6.1% 81.2% 5.4% Source: comScore MediaMetrix, Aug 2007; queries per user per month 23% 89% 29% No. 2 for share of users

Integration: 

Integration

Autumn 2007 Core Investments: 

Coverage 4 x increase in index size Query intent Advanced query analysis Query refinement Auto Spell / Query Suggestions RankNet More intelligent algorithm Structured information extraction Product reviews / related people Rich answers Answers & multi media results (Coming soon) Autumn 2007 Core Investments

High Interest High Value Verticals: 

High Interest High Value Verticals

Slide30: 

Local, Maps Find local business listings quickly and easily Sources: Microsoft Research Mapquest User Survey 82007; comScore MediaMetrix, August 2007

Slide32: 

The VE platform provides customers, partners, and developers with a set of integrated services for programming and building intelligent Web applications for location-based information. JLScoot: BE boosted online visits to highest levels ever & increased return visits by 47%. Number of unique visits per month increased by 11% Number of new visitors per month increased by 15%

Microsoft adCenter increasing your ROI: 

Microsoft adCenter increasing your ROI High quality audience Paid Search and Travel Future of Search

Slide36: 

Convert more Why Microsoft adCenter?

Our audience is more likely to convert than any other: 

Our audience is more likely to convert than any other * NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website Percentage of click throughs that lead to conversion MSN/Live Search Conversion % Google Search Yahoo! Search AOL Search Total Average 5.8% 3.0% 4.2% 3.2% 3.2%

Our audience is more likely to convert than any other: 

Our audience is more likely to convert than any other * NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website MSN/Live Search Conversion % Google Search Yahoo! Search AOL Search Total Average 9.4% 6.3% 6.7% 5.6% 6.6% Travel Percentage of click throughs that lead to conversion

Slide39: 

High quality audience Why Microsoft adCenter?

Our audience is more engaged on your site: 

Our audience is more engaged on your site *TGI Internet 2006 ** NNR Jan-March 2007 MSN/Live Search Average time spend on the destination site (mins) Google Search Yahoo! Search AOL Search Total Average 4.01 2.39 3.22 2.50 2.48 Level of Engagement

Our audience is more engaged on your site: 

Our audience is more engaged on your site *TGI Internet 2006 ** NNR Jan-March 2007 Level of Engagement MSN/Live Search Average time spend on the destination site (mins) Google Search Yahoo! Search AOL Search Total Average 4.11 3.39 4.04 3.06 3.46 Travel

Slide42: 

Paid Search and Travel

Spend for paid search : 

Spend for paid search 11% of travel companies said they spent more than £500,000 per year on PPC, and 25% said they spent over £1 million UP 57% UP 33% UP 23% DOWN 9% Paid for search listings increased from £337million in 2005 to more than £531 million in 2006

Click throughs: 

Click throughs Average Click Through Rate in Travel Microsoft adCenter

Actionable audience Intelligence: 

Actionable audience Intelligence 70 65 60 55 50 45 40 35 0 Females are More Likely to Click! Categories Ski Flights Car Hire Hotels Cruises Holidays Holidays Generic Brands Search Impressions

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Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Impact of Events

Slide47: 

Unique intelligent targeting Why Microsoft adCenter?

Slide49: 

Compared to other search engines adCenter achieved: Click-to-sale ratio 35% higher Eurostar Case Study Cost-to-sale rate 16% lower Click-through-rate nearly five times higher The only search engine to achieve an increase in conversion rate from the previous month

Key Takeaways: 

Key Takeaways Your audience is online and growing Spend on travel is on the rise Internet is key tool in research, planning & purchase of travel Be relevant, creative and engaging and the opportunity is yours The web can connect your brand with consumers the other side of the world and in multiple markets simultaneously Display plus search delivers measureable results

Thank you: 

Thank you