How Media Works: Advertising and the Purchase Funnel for Travel/Travel Website Advertising A Yankelovich Study for the Television Bureau of Advertising

Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: The role of television advertising in driving consumer actions throughout the purchase decision process How television interacts with other media platforms, including new media such as the Internet How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2 Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodology Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. Each respondent then completed an ad survey for up to three of these categories. The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. 3 Source: TVB/Yankelovich “How Media Works,” April 2009

Over 40% of Respondents are In the Market 4 “Are you currently considering a purchase in the Travel/Travel Website Category?” (Asked of those who recalled seeing a TV ad for Travel/Travel Websites in the last 2 months) Source: TVB/Yankelovich “How Media Works,” April 2009

Customer Profile: Travel / Travel Websites 5 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw a Travel/Travel Website TV Ad that Made an Impression Currently Considering a Purchase in This Category Made a Purchase in this category in the past year Made a Purchase in this category in the past 4 weeks Male 48.7%49.6%50.4%49.1% Female 51.3%50.4%49.6%50.9% A %35.5%33.1%40.0% A %67.9%65.0%65.5% A %65.4%63.9%60.0% A %25.6%28.6%29.1% Urban 30.6%31.2%30.8%41.8% Suburban 49.4%52.6%56.8%50.9% Rural 19.9%16.2%12.4%7.3% HHI <$30K 16.2%12.4%6.8%3.6% HHI $30-$70K 43.9%42.3%41.4%30.9% HHI $70K+ 34.1%39.7%45.5%56.4% HHI $100K+ 15.9%20.5%22.9%36.4%

More Than One in Three Consumers Have Seen a TV ad For Travel or a Travel Website That Got Their Attention 6 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw an ad that got your attention:

About Half of Travel Commercial Viewers Have Made a Travel Purchase in the Past Year 7 Source: TVB/Yankelovich “How Media Works,” April 2009 Small percentages are in the transaction phase at any given time Last time made a travel purchase: 49% of those who recently saw a travel/travel website TV ad made a travel purchase in the past year

Travel and Travel Website Ads Make a Positive Impression 8 Source: TVB/Yankelovich “How Media Works,” April 2009 Type of impression made by TV ad for travel/travel website: 74% of those who saw these advertisements rated them positively

Travel and Travel Website Ads are Seen as Attention-Getting 9 Source: TVB/Yankelovich “How Media Works,” April 2009 Ratings of Travel/Travel Website Television Ads: 53% total 47% travel How informative was it? 42% total 37% travel How relevant was it? Total Travel How much did it get your attention? 54% total 56% travel

Travel/Travel Websites TV Ads Prompt Viewers To Seek Information, Initiate Discussion, Consider a Purchase 10 Source: TVB/Yankelovich “How Media Works,” April 2009 Actions Taken After Seeing TV Commercial for Travel/Travel Websites Travel/ Travel Websites Any (Net)49% Went online to learn more about the product or service advertised22% Considered purchasing the product or service16% Talked with others about the advertisement16% Remembered you had seen the product or service advertised before12% Tried to find the advertisement on the Web6% Purchased the product or service online5% Contacted the company in the advertisement3% Sent someone a Web-site link about the product or service3% Other action3% Sent someone an about the product or service2% Looked in a newspaper or magazine to learn more about the product or service2% Visited a store or location to learn more about the product or service1% Purchased the product or service in a store1% Did nothing52%

Younger Adults are More Likely to Take Action After Seeing Travel and Travel Website Ads 11 Source: TVB/Yankelovich “How Media Works,” April 2009 Actions Taken After Seeing TV Commercial for Travel/Travel Websites: Age Travel Any (Net)49%60% 46%42% Went online to learn more about the product or service22%32% 22%15% Considered purchasing the product or service16%18% 12% Talked with others about the advertisement 16%23%15%11% Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 12%8%16%12% Tried to find the advertisement on the Web6%11% 6%2% Purchased the product or service online5%8% 3%4% Contacted the company in the advertisement3%4% 2% Sent someone a Web-site link about the product or service 3%4%2% Sent someone an about the product or service2%3% 4%1% Looked in a newspaper or magazine to learn more2% 1% Visited a store or location to learn more1%3% 1% Purchased the product or service in a store1%2% 1% Other action3%1%4% Did nothing52%40%54%58%

Most of These Ads Were Seen on TV Multiple Times 12 Source: TVB/Yankelovich “How Media Works,” April 2009 Number of times saw travel/travel website TV commercial in past 2 months:

Those Who View Ads for Travel/Travel Websites Multiple Times are Much More Likely to Take Action 13 Source: TVB/Yankelovich “How Media Works,” April 2009 Among those who recently saw a TV ad for Travel/Travel Websites # TV Ad Exposures Travel Recall 1-3 ad exposures Recall 4+ ad exposures Any (Net) 49%44%53% Went online to learn more about the product or service 22%20%24% Considered purchasing the product or service 16%13%19% Talked with others about the advertisement 16%13%19% Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 12%9%15% Tried to find the advertisement on the Web 6%5%7% Purchased the product or service online 5%4%6% Contacted the company in the advertisement 3%2%4% Sent someone a Web-site link about the product or service 3%2%3% Sent someone an about the product or service 2% 3% Looked in a newspaper or magazine to learn more 2% Visited a store or location to learn more 1% 2% Purchased the product or service in a store 1% Other action 3% Did nothing 52%56%47% Actions taken after seeing a Travel/Travel Website TV ad

In Addition to TV Ads, Respondents are Likely to Recall Internet and Magazine Ads and Offers 14 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw ad for same product or service in a media other than TV: Total Travel/ Travel Websites Index to Total Any (Net)46% 100 On the Internet20%30%150 In a newspaper18%6%33 On the radio12%6%50 In a magazine11%13%118 In an offer8%11%138 On a billboard or other outside sign7%3%43 Other media3%1%33 Did not see, hear, or read in any other media35%34%97 Not sure19%20%105

Travel & Travel Websites Advertising Impact at Various Stages of the Consumer Purchase Funnel 15 Source: TVB/Yankelovich “How Media Works,” April 2009 AwarenessInterestConsider Want toVisit Make Purchase Purchase Store/Website Purchase Index = 109 Index = 112 Index = 113 Index = 120 Index = 107 Index = 111

Travel & Travel Websites Media Impact at Various Stages of the Consumer Purchase Funnel 16 Source: TVB/Yankelovich “How Media Works,” April 2009 Media cited by less than 3% of respondents were incorporated into the total for “other.”

ConclusionsConclusions Travel and Travel Websites are highly responsive to advertising, outperforming the impact scores at every stage of the consumer purchase funnel. Television is the key media driver for this category, particularly at the top of the funnel - in the Awareness and Interest phases – and also drives customers to travel experts and websites. TV commercials work particularly well in stimulating further action in this category. They prompt consumers to seek further information and create consideration and conversation around their offers. 17 Source: TVB/Yankelovich “How Media Works,” April 2009

ConclusionsConclusions Internet is a key co-driver with Television in this category, particularly in the middle of the funnel for Consideration and Desire, and also in the Transaction phase at the bottom of the funnel. Actual travel behavior exceeds consumer intent, suggesting an opportunity for ads to stimulate travel behavior. 18 Source: TVB/Yankelovich “How Media Works,” April 2009