Marriott and Yahoo are the media advertising platform to dig up hundreds of millions of dollars in business opportunities

1%of the market share can bring hundreds of millions of dollars in revenue.

Marriott announced the cooperation with Yahoo for the launch of Marriott Media Network this summer, allowing brand marketers to advertise for hotel customers. Marriott said that this omni -channel and cross -platform advertising solution is the first global media network in the hotel industry. Marketing will provide passengers with personalized brand experience, as well as related products and services to help passengers make more during the whole trip. Wise purchase decision.

This seems to be an ordinary cooperation, but in the view of Humphrey Ho, the executive of Huayang Lianzhong America, the multimedia advertising company, the cooperation between the two parties will create billions of dollars in business opportunities.

01

Let the scarce first -hand data play value

In recent years, countries have strengthened the supervision of online users' data security. Third -party cookies, which used to be a personalized and precise marketing magic weapon, are now challenging. Google plans to gradually eliminate online user tracking tools by 2022. Apple plans to allow users to choose whether to show the ID information of their mobile devices, which will prevent cross -application tracking of website visitors.

A survey of Adobe last year found that 63%of companies have not been ready to welcome a world without cookies, which means that the priority is to turn to the first -hand data strategy to create huge opportunities for long -term differentiation.

He Junxuan predicts that most of the continuous growth of Marriott will come from this new media network.

After the media network was launched, advertisers used passengers' personal information, search history, and booking records as the first -hand data, and pushed the targeted advertisements to passengers through APP and guest room TV.

With the end of the third party cookies, first -hand data has become an increasingly scarce resource. With more than 8,000 hotels in the world and 160 million loyal members, the media network created by the hotel industry leader will bring huge influence.

02

Advertising potential to be developed

According to the data of Marriott Finance, the group's revenue in 2021 was $ 13.86 billion. He Junxuan said that with the media network, according to conservative estimates, Marriott's annual advertising business revenue increased at least 662 million US dollars, equivalent to 7%of Marriott's total revenue in 2021. In addition, the advertising business can bring 29%or higher net interest rates to Marriott, which is almost twice the net interest rate of the hotel industry. Moreover, the cost of advertising with Yahoo is not high.

In addition to Marriott, hotel groups such as Hilton and Intercontinental also strive to expand the Chinese market. They have 15.33 million rooms in China, and China is the largest consumer market. He Junxuan believes that consumers have high loyalty to the brand, high net worth passengers, and high net worth passengers. There are also many, which is undoubtedly a huge opportunity for major hotel groups. This is a chance that Marriott will not miss. Even if there is a regulatory impact, after the passengers joined the loyalty plan, their data were entered into the Marriott's system, so Marriott still had influence on users.

03

The role of online TV should not be underestimated

Each room of Marriott Hotel has a 55-75-inch TV, which provides a perfect display channel for advertisers. But the role of this TV is far more than that.

Imagine what will happen if the TV can be connected to the Internet?

Network TV (CTV) is usually used for brand promotion activities, and the display effect is better. The playback rate can reach 94%, which is much higher than PC (74%) and mobile devices (69%).

Paramount Plus, Netflix, Sling, Disney+, Apple TV, and Hulu and other streaming platforms are all monetizing the audience through CTV inventory. Marriott opened a new playback environment through the new CTV inventory, incorporating advertising into the guest's journey.

04

Precision marketing

Although the demand for leisure and travel has returned to the level before the epidemic, the demand for travel and conference activities is still different from 2019. For companies that want to aim at a specific customer base, grab the entire attention of passengers through the hotel room screen will be an opportunity to be unsuccessful.

Chris Norton, senior vice president of Marriott marketing channels and optimization departments, said that passenger travel needs to understand transportation, pack personal belongings, and also need to relax entertainment when you stay. Through the media network, Marriott can provide platforms for advertisers to help them meet the needs of passenger. Some passengers are interested in luxury goods and certain types of cars, and advertisers can also market marketing for such customers.

Andrew Lipsman, chief analyst of digital analysis company Insider Intelligence, said that although there are many competitors in the field of digital media networks, as the market expands, even if the market share has won 1%of the market share, it can bring hundreds of millions of dollars in revenue, and the profit margin is very good. high. Even if the share is not large, it is also very important for the company's business.

He Junxuan believes that the cooperation between Marriott and Yahoo represents the development trend of the tourism industry, and the giants such as United Airlines may also follow suit.

Through the media network, tourism companies can offset the pressure brought by the continuous rise in operating costs, and can also obtain new sources of income. Why not do it?

Reference materials:

1. Marriott ’s Media Network is a Billion-Dollar Opportonity.

3. Marriott Rolls Out Media Network that Lets Brands Reach Travelers on ITS Apps and TV Screens. (WSJ)

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