Travel marketing switches to online

Travel companies played a major part in a seismic shift in the marketing world by switching significant chunks of their advertising budget onto the internet.

A report by Thomson Intermedia and KPMG revealed travel clients in the first quarter of 2006 slashed their expenditure on advertising in traditional areas such as television, radio and cinema by as much as a fifth, in favour of digital and online.

A switch in advertising by travel companies to online, alongside a decrease in activity by entertainment, cosmetics and toiletries clients, contributed to a slip in expenditure of 2.6% in television in Q1 2006 on the same period in 2005.

Total advertising revenues in the so-called traditional media fell by 2% year-on-year, the report said.

Direct mail has also seen strong growth in the first quarter of 2006.

“Evidence is building that digital and direct media continue to thrive and are underpinning the growth of the advertising industry,” the study found.

Chief executive of Thomson Intermedia Sarah Jane Thomson said: “A modest increase in overall advertising expenditure hides a number of inter4esting changes in patterns of spend.

“In traditional media, TV’s performance includes a stark shift between two sectors – travel fell 18% but finance rose by a surprising 24%.

“In absolute terms these shifts of tens of millions of pounds show advertisers and their agencies respond quickly to achieve the best return for their clients.”

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