Agenda:

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Agenda

• 1
• Jon Baron
• Head of
• Multinational Sales
• Using online to tap into the booming Asian travel
  market

• 2
• Ed Pushman
• Search Media Strategist
• The Search Travel
• market adCenter

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Eastern OpportunityHow online advertising can
help you unlock the potential of the booming
Asian travel market
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Why Asia? Tapping into the Consumer Potential

• With about 61 of the worlds population living
  in the region in 2007, Asia-Pacific is a huge
  consumer market
• China and India account for 37 of the worlds
  population

Source US Census Bureau, International Data
Base, July 16 2007. Emarketer calculations,
August 2007
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Asian Travellers Are Big Spenders

• Singapore currently biggest spenders on travel
  (6th of personal disposable income)
• China, India and Indonesia will be among the
  worlds fastest-growing countries in travel
• and tourism
• Growth in Chinese spend on travel tourism
  expected to be 4 times US growth

Source www.Emarketer.com
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And a lot of that money is going online...
In 2007, 17.7 billion worth of leisure or
unmanaged business travel will be
booked online in the Asia-Pacific region - up
28.3 from 2006. Strong future growth will ensure
that the market about doubles to 35.5 billion by
2010 and approaches 42 billion in 2011.
Jeffrey Grau, Senior Analyst, eMarketer

• 73 of affluent Asians are online (pax) and
  spend more time online than any other medium
  (Asiabus)
• 1 in 5 of all travel sales in Asia-Pac will be
  online next year

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The Internet surpasses TV in time spent
Top/Middle management
No. of hours time share on each medium per week
Radio10.6 Hrs 19
Magazines3.7 Hrs 7
Markets Australia, China, Hong Kong, India,
Japan, Malaysia, Singapore, South Korea, Taiwan,
Thailand Universe (Sample) Top/Mid Management
16,519,992 (1,473) Source Synovate AsiaBUS
Survey June/July 2007
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The Ones to Watch China India
Market share of online leisure/unmanaged business
travel bookings for India and China 2006 2011
( of Asia-Pacific total)
Note includes all online travel bookings whether
paid for online or offline Australia, China,
India, Japan, New Zealand, South Korea Source
eMarketer Sept 2007

• China and India are two of the regions
  largest and fastest growing
• online travel markets
• Last year they combined to capture just over 15
  of the total online
• travel market share
• By 2011 their share will triple to 46.3

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What the Money Is Being Spent On
Share of Respondents Share of Respondents Share of Respondents Share of Respondents Share of Respondents
Travel Services bought online in the last 12 months 2006/07 China Hong Kong India Japan Malaysia
Air Tickets 30 20 48 37 47
Hotels 30 22 21 48 32
Event Tickets 11 12 10 15 12
Travel Packages 15 8 15 11 12
Travel Insurance 11 15 5 12 11
Sample size 6,736 Source MSN/Windows Live
Online Travel Survey 2007 conducted by Synovate
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Online Is Not Only A Place To Spend But A Place
To Plan, Share and Discuss Travel Purchases
Share of Respondents Share of Respondents Share of Respondents Share of Respondents Share of Respondents
Sources used for planning/ researching travel 2007 China Hong Kong India Japan Malaysia
Internet 81 76 81 93 83
Printed Travel brochures 41 49 65 65 53
Guidebooks 53 56 29 55 41
Newspapers 40 33 40 15 49
Travel agents 41 55 40 43 54
Friends/relatives/colleagues 56 46 40 29 58
Magazines 39 34 40 15 49
Base Those who have traveled for business or
leisure (Sample size 5,871) Source MSN/Windows
Live Online Travel Survey 2007 conducted by
Synovate
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Online is a Strong Influencer of Offline Travel
Bookings
Researched online Purchased/ booked online Purchased offline
Hotels 55 33 26
Air Tickets 54 36 25
Travel packages 37 12 18
Sightseeing tours 36 9 19
Event tickets 30 19 19
Rental Car 17 9 13
Other Travel related services 33 8 15
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European Hot Spots for Asian TravellersUK,
Germany Italy lead the way
Number of tourists arriving from China, HK,
India, Japan and Malaysia in 2006
Source Euromonitor
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Who, Where and Why?
Malaysia
Japan
Hong Kong
China
India
20 Families 32 Leisure 18 Organised Tours
17 Families 11 Couples 42 Organised Tours
13 Families 26 Leisure 38 Organised Tours
14 Families 14 Couples 49 Organised Tours
39 Families 29 Couples 70 Leisure
Targets

Top Singapore Emerging Macau, Hong Kong,
Thailand
Top China (70) Emerging Europe, Australia.
North America
Top South Korea, Thailand
Top Macau Hong Kong (68) Emerging South
Africa Europe Austria,
Top Singapore, Dubai US UK Europe UK
Switzerland Emerging Germany
Destinations
Independent Traveller Flexible travel packages
to Australia New Zealand
Leisure tourism organised tours
Bollywood Emergence of low cost Carriers Open
Skies govt policy
Backpackers/ Independent Traveller
Business Travellers Cruises and sea trips
Opportunities
Source Euromonitor
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Case Study Cathay Pacific
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The Campaign

• Born to move campaign
• Aim to increase brand
• awareness among frequent
• travellers within Asia
• Improve its position as
• most admired airline
• Ascertain reach and efficacy of
• online branding for its target audience

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Campaign results

• The survey results on MSN exceeded expectations
• Brand message association increased by 35
• Unaided brand awareness increased by 26.9
• The campaign was effective in establishing
• the perception of Cathay Pacific as an airline
• with the widest network.
• Boosted purchase intent by 14.9

There is no doubt in our mind that MSN is a
great communications partner for the airline
industry. We derived great value for our
investment and the survey results exceeded our
expectations. Celine Ho Manager, Marketing
Communications, Cathay Pacific Airways
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Case Study Tourism Malaysia
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Tourism Malaysia Online Global Branding Campaign

• Campaign objectives
• Increase brand visibility globally by showcasing
  Malaysias uniqueness
• Create hype around Malaysias 50th Golden
  Celebration in conjunction with Visit Malaysia
  Year (VMY)
• Encourage potential tourists to visit Malaysia
• Target audience
• Potential travellers globally aged 21
• Covered a total of 13 countries (Asia, Europe and
  North America)
• Online tools used
• MSN / Windows Live Platform which includes
• MSN Homepage
• Windows Live Hotmail
• Windows Live Messenger
• Windows Live Agent

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Snapshot of Campaign Impact on target audience
Singapore Australians

• 91 Of Australians 69 of Singaporeans exposed
  to the campaign were main/ joint decision makers
  for family travel (the campaign reached the
  desired audience)
• Positive uplifts were seen by all key brand
  metrics indicating the online campaign initiated
  positive influence and achieved the set
  objectives.

94
96
5
5
3
10
54
49
52
47
44
44
41
34
3
9
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Aided Brand Awareness
Online Ad Awareness
Brand Favorability
Purchase Intent
Message Association
Unaided Awareness
Not exposed to the online campaign Exposed to
the online campaign
Source AdIndex Advertising Effectiveness
Research 2007 conducted by Dynamic Logic
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Ongoing Online Engagement With Siti

• Promotion of Malaysia continues with a Travel
  World First launched on 1st November 2007
• Siti new digital brand ambassador to promote
  national tourism via Windows Live Messenger
• Taking Tourism Malaysia to the next level of
  interactivity via innovative technology
• Potential to reach more than 285m instant
  messenger users across multiple markets worldwide

Add Siti to your Windows Live Messenger buddy
list today sitimalaysia_at_hotmail.com
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Why Microsoft? We connect with your audience all
day
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Global reach, local knowledge, one point of
contact
465m unique users in 42 markets and 21 languages
MSN Windows Live Hotmail more than 300 million active accounts worldwide
More than 294 million active Windows Live Messenger accounts worldwide
More than 111 million unique users worldwide (Source Comscore, August 2007)
Over 2.16 billion worldwide queries each month
Multinational Sales team have offices located in
Hong Kong, Japan, London, New York, Paris,
Singapore
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Some of our Travel Customers
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adCenter and travel

• Edward Pushman
• Search Media Strategist

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Microsoft adCenter

• The Search Market Place

Live.com Search
Live Maps and Virtual Earth
adCenter
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Microsofts UK Search Opportunity
5.4
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No. 2 for share of users
9 Million
6.1
23
7Million
81.2
89
28 Million
Source comScore MediaMetrix, Aug 2007 queries
per user per month
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Integration
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Autumn 2007 Core Investments

• Coverage
• 4 x increase in index size
• Query intent
• Advanced query analysis
• Query refinement
• Auto Spell / Query Suggestions
• RankNet
• More intelligent algorithm
• Structured information extraction
• Product reviews / related people
• Rich answers
• Answers multi media results (Coming soon)

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High Interest High Value Verticals
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Local, Maps Find local business listings quickly
and easily
Sources Microsoft Research Mapquest User Survey
82007 comScore MediaMetrix, August 2007
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• The VE platform provides customers, partners, and
  developers with a set of integrated services for
  programming and building intelligent Web
  applications for location-based information.

JLScoot BE boosted online visits to highest
levels ever increased return visits by
47. Number of unique visits per month increased
by 11 Number of new visitors per month increased
by 15
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Microsoft adCenter increasing your ROI

• Convert more with adCenter

High quality audience
Paid Search and Travel
Future of Search
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Why Microsoft adCenter?
Convert more
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Our audience is more likely to convert than any
other
5.8
4.2
3.0
3.2
3.2
Conversion
MSN/Live Search
Google Search
Yahoo! Search
AOL Search
Total Average
Percentage of click throughs that lead to
conversion
NNR Jan-March 2007 Conversion equals a visit
to a secured section of an advertisers website
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Our audience is more likely to convert than any
other
Travel
9.4
6.7
6.3
6.6
5.6
Conversion
MSN/Live Search
Google Search
Yahoo! Search
AOL Search
Total Average
Percentage of click throughs that lead to
conversion
NNR Jan-March 2007 Conversion equals a visit
to a secured section of an advertisers website
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Why Microsoft adCenter?
High quality audience
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Our audience is more engaged on your site
Higher spend The average Windows Live customer
spent 2000 or more online in the past six
months
4.01
3.22
2.50
2.39
2.48
Average time spend on the destination site (mins)
MSN/Live Search
Google Search
Yahoo! Search
AOL Search
Total Average
Level of Engagement
TGI Internet 2006 NNR Jan-March 2007
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Our audience is more engaged on your site
Travel
4.11
4.04
3.46
3.39
3.06
Average time spend on the destination site (mins)
MSN/Live Search
Google Search
Yahoo! Search
AOL Search
Total Average
Level of Engagement
TGI Internet 2006 NNR Jan-March 2007
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Paid Search and Travel
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Spend for paid search
Paid for search listings increased from
337million in 2005 to more than 531 million in
2006
11 of travel companies said they spent more than
500,000 per year on PPC, and 25 said they
spent over 1 million
UP 57
UP 33
UP 23
DOWN 9
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Click throughs
Average Click Through Rate in Travel Microsoft
adCenter
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Actionable audience Intelligence
Females are More Likely to Click!
70 65 60 55 50 45 40 35 0
Search Impressions
Ski Flights Car Hire Hotels
Cruises Holidays Holidays
Generic Brands
Categories
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Impact of Events
Sept Oct Nov Dec Jan Feb
Mar Apr May Jun Jul Aug
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Why Microsoft adCenter?
Unique intelligent targeting
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• Using our unique demographic targeting, adCenter
  can deliver your adto the right customer at the
  right time

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Eurostar Case Study
Compared to other search engines adCenter
achieved

• Click-to-sale ratio 35 higher

• Cost-to-sale rate 16 lower

• Click-through-rate nearly five
• times higher

• The only search engine to achieve an increase in
  conversion rate from the previous month

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Key Takeaways

• Your audience is online and growing
• Spend on travel is on the rise
• Internet is key tool in research, planning
  purchase of travel
• Be relevant, creative and engaging and the
  opportunity is yours
• The web can connect your brand with consumers the
  other side of the world and in multiple markets
  simultaneously
• Display plus search delivers measureable results

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Thank you