In today’s digital age, the travel industry is not just about getting from point A to point B. It’s also about creating personalized, contextual advertising experiences for travelers through retail media networks (RMNs). These networks, which leverage rich data from guests and connections with other verticals, offer brands a unique opportunity to reach a captive audience at scale in a post-cookie world.
Retail advertising is on the rise, with spending in the segment expected to grow by about 30% in 2024. This increase is largely driven by RMNs and their programmatic offerings, which are projected to generate $20 billion in spending by 2024. Travel companies, including hotel chains, airlines, and ride-share companies, are capitalizing on this trend by launching their own RMNs to monetize their owned media platforms and connect brands with their audience.
Marriott, Uber, Lyft, United Airlines, and Expedia are just a few examples of travel companies that have embraced the retail media network model. These companies have launched their own RMNs, such as Marriott Media Network, Journey Ads, Lyft Media, Kinective Media, and Expedia Group Media Solutions, respectively. By leveraging their vast amounts of first-party data and customer touchpoints, these companies are able to offer advertisers a highly targeted and engaged audience.
One of the key advantages of RMNs for travel companies is the ability to transform dwell times into advertising opportunities. For example, an advertiser can offer a traveler waiting for a flight the option to order a grocery delivery in advance. By understanding traveler habits and preferences, brands can deliver more relevant and tailored experiences, ultimately driving engagement and return on investment.
However, with the rise of RMNs comes challenges, particularly around data privacy and collaboration. Many RMNs rely on data “clean rooms” to protect data privacy while allowing brands to collaborate effectively. Additionally, travel companies must educate themselves and their partners on the value of their data and assets to maximize the potential of their RMNs.
Overall, RMNs offer travel companies the opportunity to turn their loyalty programs from a cost center into a revenue opportunity. By reclaiming ownership of their data, content, and customer relationships, travel companies can create a win-win situation for brands, travelers, and themselves. As the retail advertising landscape continues to evolve, RMNs will play an increasingly important role in shaping the future of travel marketing.
