Online Video vs. Television

Advertising in the Digital Age

By Frank Vertolli Co-Founder, Net Conversion | February 02, 2014

Co-authored by Ryan Fitzgerald, Co-Founder, Net Conversion

Global advertising spend in 2013 will see steady growth of 3.5 percent, reaching $503 billion by the end of the year, with the largest share in television advertising, according to ZenithOptimedia.(1) The travel and hospitality industries are in the top five markets advertising on this medium, spending more than $152 million collectively.(2) Although television still leads the way, consumer expectations have shifted, and your marketing dollars should too.

Television Advertising

The idea of primetime is somewhat dead. People are still consuming content, but the desire to consume it and pay for it on their own terms based on individual wants and needs has caused a shift in behavior. People have gone from actually sitting in front of a television to watch shows when they air to making sure shows are recorded to watch at their convenience. Oh, and they also avoid commercials whenever possible.
This has led to the growth of Internet streaming video services such as Netflix, Hulu, HBO Go, Amazon, YouTube, all of which are easily accessible from a variety of devices, 24/7. According to Sandvine, the future will see real-time entertainment applications dominate fixed access networks, accounting for two-thirds of total data usage in 2018, driven largely by ubiquitous integration between devices (e.g. smart TVs set-tops, game consoles) and streaming services.)(3) These companies are already producing their own commercial-free content such as the critically acclaimed House of Cards and Orange is the New Black on Netflix.

Nielsen reports there was a 22 percent increase in users watching video on the Internet in Q4 2012, with an 80 percent increase in the time spent among users watching this medium. There was an even larger spike in users watching mobile video (206 percent).(4)

We're not saying television is dead – considering its reach and fact that everyone still uses it – it's not going anywhere anytime soon. However, there is a shift in advertising that hoteliers should be aware of when planning advertising budgets: moving some television advertising dollars into online advertising, specifically digital video ads.

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Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.