Broadband leads the Travel MarketWho is using Broadband?Until recently, slow internet connections limited the use of online video. To conserve bandwidth, early marketers used watered down versions of video that resulted in a viewer experience that was far from impressive. Thankfully, the days of tiny video formats with tin-cup audio are numbered as the majority of internet users have switched to broadband for a better online experience. Consumers, especially high income earners, are jumping to broadband at record rates, watching more video and making more online purchases than ever before. Their favorite online pastime? Researching that next vacation destination! Travel bookings reached roughly $50 billion in 2004, a figure nearly four times the next largest e-commerce segment. RedStream produces PhotoVideo productions for the Travel Industry that play over broadband internet connections with crystal clear sound and razor sharp images in attention grabbing full-screen mode. Size matters on the web - larger advertisements have been proven to get noticed and have greater impact than small format ads. Learn about the growth of Broadband and its effect on Travel purchases in these articles.... Broadband is now available to 99% of USA
According to an FCC (Federal Communications Commission) report, by December, 2004, broadband was available to 99% of the USA population, with broadband subscriptions rising 34% in 2004 alone. Broadband's tally: 50+% of web connections, 79% of web page views and 69% of online retail purchases.
Nielsen NetRatings reported that by December, 2004 more than half of all internet users connect via broadband, with 68% of all Internet Sessions and 79% of Web Page Views loaded via broadband.
It is estimated that Broadband will surpass 70% of USA internet connections by the end of 2005. Broadband users connect to the internet more frequently and for longer periods of time than narrowband users, visiting more retail sites and spending more than narrowband users. As a result 69% of all online retail purchases were conducted over broadband in Nov/2004. High earners rush to Travel sites over Broadband
High income earners (family income over $150,000) are the fastest growing internet group, and they focus significant web viewing time on travel. Travel sites comprised 3 out of 5 top sites for men and 2 of 5 top sites for women in January, 2005. "Our research indicates that savvy advertisers trying to reach both mean and women efficiently in this group should target online travel sites in their marketing campaigns" says Heather Dougherty, senior retail analyst, Nielsen//NetRatings. Studies have consistently shown that the higher income groups are more likely to connect over broadband and more likely to view video over the internet. Further, this group consumes far more travel products than lower income groups, making online video an ideal way to reach the target purchaser for most hotels and travel destinations. Video streams grow by 80% in 2004
Video streams rose by 80.7% in 2004 to 14.2 billion served and are forecast to grow by 48% in 2005 to over 21 billion served. Broadband streams made up 79.3% of total streams served in 2004. Narrowband video streams were 20.7% of total streams served, largely driven by AOL, which makes its content libraries available at narrowband bit rates. Web influence beats Personal Recommendation
Globally, consumers researching holiday plans are now influenced more by Web search 55% than by personal recommendation 47%. Personal recommendation has long held the highest standard of influence over purchases, providing a level of influence that advertisers could only dream of achieving. Web search is now the most common method of researching holiday plans beating Travel Agents, TV, Newpapers or any other source of information, according to poll results released in June, 2005 by Global Market Insite. |
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