Internet advertising plays a key role in attracting Chinese travellers, says Nielsen Travel Monitor – 21/08/09

CHINA. The Internet has become the most popular medium for Chinese travellers seeking information about their trips, according to the latest China Outbound Travel Monitor from research firm Nielsen.

The Nielsen survey found that Chinese travellers searched for conventional destination information ahead of their trips (61% of leisure trips taken) and then turn to online travel discussion forums (48%) to fine-tune their plans. Conventional travel agents were approached on only two in five (41%) travel occasions.

The Nielsen survey also found that travellers were much more likely to recall seeing Internet advertising for travel destinations, compared to seeing travel advertising across other media. Nearly 70% could recall seeing travel advertisements on the Internet, with only four in 10 recalling seeing a travel ad in a magazine or newspapers, at a travel agent, or on TV and radio.

The Nielsen China Outbound Travel Monitor also uncovered the media expenditure of the top 15 destinations for Chinese travellers and spending by various destinations’ national and state tourism bodies. According to Nielsen, in 2008, the total destination media expenditure in China from the top 15 destinations (by visitor number) was approximately US$68 million.

Asia Pacific led the way, with South Korea the biggest spender in China on advertising Korean destinations and parts of the country, such as Jeju Island, and accounting for 31% of share of voice (SOV).

Singapore came a distant second with 22% of SOV, followed by New Zealand with its ‘100% Pure New Zealand’ marketing campaign (15% of SOV), and Australia (with 11%).

Nielsen found that some destination tourism bodies advertised across all five major media formats to promote their destinations. For example, tourism bodies from South Korea, Singapore, New Zealand and Australia used all the major media types in promoting their destinations to Chinese consumers. However, tourism bodies from European countries mainly promoted themselves in newspapers and magazines.

Nielsen estimates that only 1.55% of the total destination media expenditure was spent on Internet advertising. Moreover, many countries did not spend any money on Internet advertising. With the Internet the most widely used channel for information searching, tourism boards at destinations would be well-advised to focus on advertising on the Internet, said Nielsen.

“Among the total destination media expenditure in China in 2008, Internet advertisements only accounted for 1.55%. However, the Internet was the most widely used channel for information searches and would be a highly effective media channel to reach Chinese travellers. Therefore, tourism relevant bodies shall explore new media channels, such as the Internet, in addition to traditional media channels when promoting their destinations in China,” commented Nielsen China Head of Travel and Leisure Research Dr Grace Pan.

In reviewing the Travel Monitor findings, Pacific Asia Travel Association (PATA) Strategic Intelligence Centre Director John Koldowski said: “In today’s tough business environment, every Dollar, Euro or RMB invested needs to have the best possible ROI outcome attached to it.

“With these results showing that the largest proportion of China’s outbound travellers – both business and leisure – use the Internet as a pre-trip information tool, it makes sense that marketers should leverage that usage to increase the visibility of their own products and deals. The fact that the cost of doing so is minimal, relative to more traditional media formats, suggests that this is one way of achieving that much sought-after balance – more consumer contact, with higher product recall, at a much lower unit cost.”

About the Nielsen China Outbound Travel Monitor

The Nielsen China Outbound Travel Monitor highlights Chinese leisure and business travellers’ behaviour, attitudes and opinions of various destinations, and includes comprehensive topics such as the decision-making process, information sourcing, booking choices, accommodation and more.

Using a combination of telephone and online interviews, the Outbound Travel Monitor covers Beijing, Shanghai and Guangzhou and a further 23 cities in China. In addition, exclusive data on media expenditure by travel destinations, covering TV, magazines, newspapers and Internet in China and share of voice (SOV) in different cities and regions in China are added in the 2009 report to help marketers win Chinese consumers.

The ACI Airport Business & Trinity Forum, Macau, China, 23-25 September


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