蘑菇AV

On today's podcast episode, we discuss what commerce media encompasses, the size of the financial and travel networks, and the companies to pay closest attention to in this space. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Senior Analyst Arielle Feger and Principal Analyst Sarah Marzano.

On today鈥檚 podcast episode, we discuss what traveler media can do that retail media can鈥檛, what makes travelers more receptive to personalized ads, and the possibilities that emerge once fast, free WiFi becomes ubiquitous on planes. Join Senior Director of Podcasts and host Marcus Johnson, Principal Analyst Sarah Marzano, and the CEO of MileagePlus, United Airlines Richard Nunn. Listen everywhere and watch on YouTube and Spotify.

Post-pandemic, China鈥檚 economy, including its retail sector, faces a pivotal moment. On one hand, all travel restrictions have been removed. But on the other, consumption has been dragged down by a deflated property sector and high youth unemployment, among other difficulties. For brands and retailers, the conundrum has created nearly unprecedented challenges to growth.

US travel industry digital ad spend will grow by 8.9% this year and 7.9% next year, per our forecast, representing a slow down after years of double-digit growth.

Commerce media networks are expanding beyond retail into new verticals like travel and financial services, creating opportunities for targeted advertising using first-party purchase data. The key to growth will be achieving a delicate balance, and engaging鈥攔ather than alienating鈥攃onsumers.

US travel media network (TMN) ad spend will reach $2.13 billion this year and increase to $2.96 billion in 2026, per our September 2024 forecast.

鈥淎fter watching or engaging with our content, you walk away learning something a little bit more about Amtrak, a little bit more about train 迟谤补惫别濒,鈥� Lopez said. Amtrak avoids appearing out of touch with these posts by thoroughly researching trends. 鈥淚 think a lot of people tend to go for speed, which makes sense. It pays off,鈥� said Lopez. Amtrak works slower.

Rivals set their sights on Southwest Airlines customers: Frontier is temporarily offering perks that consumers associate with Southwest, including a free checked bag and no-fee flight changes.

The travel industry鈥檚 total media ad spending declined by almost 60% in 2020, but as of this year, it will have fully regained the lost ground.

With no shortage of spending options, advertisers weighing whether to invest in TMNs will be considering what travel companies can do better or at a better value than comparable channels. First-party data, captive audiences, and a diverse array of ad inventory are some components of the travel media value proposition.

As of 2023, about 21% of American Express (Amex) network volume came from co-brand (both travel and non-travel) cards, per our estimates. A full 10% came from Delta alone. Similarly, roughly 16% of Citi鈥檚 volume came from its co-brand cards, including those with American Airlines. All that volume means valuable interchange revenues鈥攁nd interest payments鈥攆or issuers.

Other airlines like Alaska Airlines have also pushed into the premium space as the cards can bring in higher volume and revenues

Leisure travel demand remains strong to close out 2024: American Airlines and Southwest expect bookings to pick up in the final months of the year.

More retailers open restaurants: Muji, Coach, and Louis Vuitton are among the companies relying on hospitality concepts to boost store visits and spending.

Holiday travel demand is strong, United and Delta say鈥攅xcept for during the presidential election: Uncertainty is pushing some consumers to defer discretionary spending.