Online video viewership continues to grow exponentially, but it doesn’t stop there – mobile video viewing is also expected to increase. According to eMarketer, the population of mobile video viewers in the US will grow nearly 30% in 2010 to reach 23.9 million, they predict it is poised to double by 2013. More viewers means more opportunity for revenue and eMarketer predicts that mobile video revenues, including direct downloads, subscriptions and ad-supported video, will roughly triple between 2009 and 2014, rising from $436 million to $1.34 billion.

There is no better time than the present to get in on the action, so grab a digital camera and hit record. As a hotelier, what video content appeals to users, travelers and potential guests and how do you create it? We’ve put together a few ideas to get you started.

The Tools

Camera

The cost of video equipment used to be one of the biggest hurdles to creating video content yourself. Now, with the advance of technology, you can be a budding film maker for under $200. Check out the various models of the Flip Cam or Kodak’s HD pocket camera line.

Platform

No way to put the videos on your site? No problem – link to them. It takes minutes to start up a YouTube Channel and don’t count out social media channels. Facebook is a great place to share helpful videos with your fan base.

The Script

Keep your content casual and make sure what you film is a resource to viewers. Think about subjects that travelers would be interested in.

No one really wants to watch a video of your bar opening party (unless there are celebrities present) but they’d love to watch your expert mixologists walk them through how to make the most popular cocktail. This way you highlight your staff, service and product while still providing guests with useful information.

Some other ideas are to have your Concierge walk through the neighborhood and point out his or her picks for the best places to go and see. Or, film your housekeeping staff with their best tips for packing and where to look before you leave to avoid a trip to lost and found.

Check out how the Trump International Hotel and Tower Chicago used video to promote their fitness center with a Special Pumpkin Workout during the month of October. They also posted their video on their Smartstay mobile phone application for the iPhone and Android. Video is very popular with smartphone users and hotels can easily post their videos on the Smartstay app for their guests to enjoy.

The Campaign

Really want to attract mobile or traditional online viewers? Create an entire campaign around an idea. Pick a weekend or two to post special rates and hand out a few flip cams to lucky guests. Ask them to film their stay (this is a big hit with families with teens) for a chance to win a free trip with all the bells and whistles. Post all of the submitted videos to your Facebook page and have fans vote for the best trip video. You can also post the videos on your mobile app. And, don’t forget to film the winner when they arrive for their VIP treatment to bring it all full circle!

For more information about Online Hotel Marketing or the Smartstay mobile app for hotels, please call O’Rourke Hospitality Marketing at 978-465-5955 or send an e-mail to info@orourkehospitality.com.

(June 2, 2010) O’Rourke Hospitality Marketing will be at HITEC 2010, June 21-24, Orlando, Fla., where they will introduce their one-of-a-kind iPhone app for hotels called Smartstay. Visitors to the O’Rourke Booth (#1234) can also enter to win an Apple iPad.

Smartstay is a new ‘white label’ iPhone app that hotels can customize to represent their own brand. Hotels can easily enter their hotel information, images, videos, and news updates with an easy to use content management system that they can access online.

The main benefit of the Smartstay app for hotels is that it opens up a new communication channel where hotels can connect with their guests before, during, and after their stay. Hotel guests also benefit from the app and can make a reservation with their iPhones, access information about a hotel, and use the interactive map.

O’Rourke invites conference attendees to visit booth #1234 and try Smartstay for themselves on the demo iPhones that will be available. Visitors can also learn more about how O’Rourke’s services can enhance their marketing efforts and increase their ROI. O’Rourke focuses exclusively on the hospitality industry and provides hotels with Website Design and Optimization, Internet Marketing, Search Engine Optimization, and Print Design.

Visitors to the O’Rourke booth can enter the Giveaway by filling in a raffle form which can be downloaded from the Smartstay website. Raffle forms will also be available at the booth. The drawing will be held on Thursday, June 24^th at 11:00 at the O’Rourke booth (#1234). The winner must be present at the time of the drawing to claim their prize.

HITEC is the World’s Largest Hospitality Technology Show and offers educational sessions, as well as an unsurpassed expo which showcases the latest industry products and services from over 300 companies. O’Rourke is looking forward to participating in HITEC and welcomes the opportunity to meet hoteliers and introduce them to Smartstay.

O’Rourke recognized the hospitality industry’s need for a mobile solution and has created a high-quality, robust, unique app that will take hotels into the mobile market and allow them to tap into a new source of revenue.

For More Information Contact:

O’Rourke Hospitality Marketing

e-mail:                        info@orourkehospitality.com

phone:                        978-465-5955

website:                     www.orourkehospitality.com

Smartstay – The Mobile Division of O’Rourke Hospitality

e-mail:                        info@smartstayapp.com

phone:                        888-965-5966

website:                     www.smartstayapp.com

HITEC:                      http://www.hftp.org/HITEC

About O’Rourke Hospitality Marketing

Founded in 2001, O’Rourke is an award-winning hospitality marketing firm headquartered in Newburyport, Massachusetts. Serving national and international clients, O’Rourke provides hotels with a complete range of services including Internet marketing, hotel website design and development, mobile marketing, and print design. Clients include major brands as Marriott International, Renaissance Hotels, and Winegardner & Hammons, Inc.

Many hoteliers are asking themselves that very question, ‘Does my hotel really need a mobile strategy?’ They are questioning the reasons why they should enter into the mobile market, how their hotel and their guests will benefit from mobile, what amount of time and financial commitment is involved, and what type of mobile strategy would be best for them and deliver the highest return on investment. In this article we will offer our insights to the questions posed above, and provide you with an overview of the mobile market today and the many opportunities that mobile opens up for the hotel industry.

Why should my hotel enter into the mobile market?

Mobile is no longer just a future trend – it is here now.

We used to talk about mobile as a future trend, but with the rapid growth of smartphone usage, and the mobile guests’ increased expectations, it is clear that mobile is here now and hotels need to adapt and develop a mobile strategy.

As Mary Meeker of Morgan Stanley stated in a recent report, “The current cycle is the era of the mobile Internet and within the next 5 years it is predicted that more users will connect to the Internet over mobile devices than desktop PCs.”¹ She also predicted that the companies that invest in mobile will likely win big (potentially very big) while many will wonder, ‘What just happened?’

A PC-style website is not suitable for mobile.

Just as a standard hotel website is vital for desktop users, a mobile web site, or an app, is vital for smartphone users. Guests need to be able to find your hotel, access information, and have the option to make a reservation through their mobile devices. A standard PC-style website is not suitable for mobile and guests won’t bother trying to navigate through it. Mobile web sites or apps are specifically designed for mobile and are very easy to use.

Your guests now expect to interact with your hotel through their mobile devices.

Smartphone users are very tech-savvy and have increased customer service expectations that your hotel must meet. Your guests want to be able to use their mobile devices to access information about your hotel, make a reservation, and receive up-to-the-minute news about special offers and events. If your hotel doesn’t provide the convenience of mobile you may be losing business to the competition.

How will mobile benefit my hotel?

Mobile opens up a whole new communication channel.

A main benefit of mobile is that it opens up a new communication channel and allows you to connect with your guests in a more personal way. Mobile is unique in that it is always with your guests, and it is always on. An app is an excellent option for hotels and makes it possible for them to communicate with their guests before, during and after their stay in a way that isn’t possible in traditional marketing.

O’Rourke Hospitality Marketing has recently launched one of the first ‘white label’ iPhone apps for hotels called Smartstay^SM. Hotels can purchase the app and then brand it for their own hotel. They can then send their mobile guests exclusive offers, news posts about events at their hotel and in their city, and last minute deals that the guest can use while they are on property.

Mobile allows hotels to manage their own content.

The Smartstay iPhone app is designed with a content management system which allows hotels to create, edit, and instantly publish their own content. Hotels can post special offers and news updates as often as they choose with no added cost (unlike e-mail, SMS, or traditional advertising).

Mobile helps hotels acquire new guests and increase ROI.

Your own hotel Smartstay app will help generate brand awareness and increase publicity about your hotel. Guests will appreciate the added convenience of mobile and it will help build customer loyalty. With Smartstay you can inform guests of special offers and up-sell other hotel offerings to guests while they are on property. You can also keep guests informed of future events and promotions and encourage repeat visits.

Mobile makes booking convenient for guests.

A mobile web site or an app will make your hotel accessible for travelers looking to make a reservation through their mobile device. An iPhone app such as Smartstay makes it very easy for guests to make a reservation because once the guest downloads the app, the hotel app icon will appear on the main screen of the guest’s iPhone. The guest can simply tap on the icon and then select ‘book now’ to connect with the hotel’s booking engine.

Mobile will help distinguish your hotel and appeal to savvy travelers.

Hotels who embrace mobile now will benefit from increased exposure which will in turn increase bookings. Mobile will allow hotels to get ahead of their competitors who don’t offer the convenience of mobile. It is also a powerful opportunity for smaller independent hotels to stand out. Savvy travelers are attracted to hotels that offer the best technology and customer service to their guests.

How will mobile benefit my guests?

Guests can make travel arrangements anytime, anyplace.

Many travelers today spend a lot of time on the road and often have to make hotel reservations on the go. They often depend on their mobile devices to make a reservation or access information about a hotel such as directions, check-in times, or restaurant hours. Guests appreciate the convenience of a hotel app or mobile web site.

Guests will enjoy exclusive offers and up-to-the minute news and information.

With an iPhone app such as Smartstay, guests can receive exclusive offers and promotions. Studies have shown that people are more receptive to receiving offers on their mobile phones than they are to more traditional forms of advertising. Guests will appreciate the news updates about special events at your hotel or in your city. Your hotel can also send guests last minute deals that they can take advantage of while they are on property such as a free drink at the lounge or a discount on a spa service.

Mobile will engage your guests and enhance their stay at your hotel and in your city.

A mobile app can be very engaging and often includes fun and useful features. For example the Smartstay app comes with an interactive map that guests can use to find the location of all the hotel-recommended restaurants, bars, cultural venues and more. Guests can also view images and videos of your property and city. Users will also enjoy the fun features of the app such as the virtual postcards that they can send to their friends and family.

WHAT AMOUNT OF TIME AND FINANCIAL COMMITMENT IS INVOLVED?

Some hotels are wary of developing a mobile strategy because they are unsure of the time and financial commitment involved. As with any marketing endeavor there is a necessary amount of planning and execution time involved, however it is by no means an overwhelming amount of effort. Of course it also depends on the mobile strategy you choose. We believe an iPhone app is the best option for hotels for reasons that we will explain later on in this article. Therefore, below we will look at the time and financial commitment involved in maintaining an iPhone app.

What is involved in setting up and maintaining an iPhone App?

First let’s take a look at an iPhone app. We will use the Smartstay hotel iPhone app as an example. How much time is involved in setting up and maintaining the Smartstay app? The answer may sound too good to be true, but the reality is that you can get your own hotel app up and running within a matter of weeks.

O’Rourke provides you with the app and you can enter in your own content with the intuitive and very easy to use content management system that you can access online. There is no programming involved and all you have to do is simply type in the content. It is also very easy to upload images and videos. You can create and enter the content yourself, or O’Rourke can create and enter the content for you as an additional service.

O’Rourke then submits your hotel app to the Apple Store. The approval process varies, but the average waiting time is usually 2 weeks. Once the app is approved your guests can download it from the Apple App store on their iPhones, iPods, or iPads. The app is designed exclusively for the iPhone so your hotel won’t have to worry about any technical problems.

The hotel can now use its Smartstay App to send out exclusive offers and news posts to their mobile guests. Again, this is not a huge time commitment but it is a task that needs to be assigned to someone on the hotel staff. Typically someone in the marketing department will take on the responsibility. O’Rourke also offers to update content for the hotel as an additional service.

The quantity and quality of the offers and news updates depends on the level of commitment at the hotel (unless O’Rourke is updating content for the hotel). We recommend that hotels keep the news posts updated with fresh information on a daily basis. The posts must contain information that is valuable and relevant to your guests. Hotels can also include their Twitter stream in the news posts.

The hotel must also have clear goals in mind about what they want to achieve with the app. Does your hotel want to boost revenue on property – for example at the restaurant or spa?  Perhaps you want to use the app mainly to generate cutomer loyalty. The app can be used to achieve multiple objectives simultaneously.

How much does an iPhone App cost?

The financial commitment of an iPhone App varies. For example it would be more costly to have an app made from scratch just for your hotel. A more cost-effective option is to invest in a ‘white label’ app such as Smartstay and brand it for your own hotel. There is typically a one time set-up fee which costs a lot less than a website, and then there is a minimal monthly charge to maintain the app. Overall it is a very small price to pay for such a powerful tool.

WHAT IS THE BEST MOBILE STRATEGY FOR MY HOTEL?

Some hotels don’t bother creating a mobile web site or an app because they think their PC style website will also suffice for mobile. Unfortunately that is not the case because a PC style website is very hard to read on a mobile phone. Other hotels would like to enter the mobile market but they aren’t sure where to start.

Two popular options are an iPhone app or a mobile web site. An iPhone app can be downloaded from the Apple App store and the app icon will appear on the main screen. When users click on the icon the app will open and display the hotel content and images in a very mobile-friendly way.

The mobile web site is also designed for small screens and render their pages in narrow columns. Below is an image of an app, a mobile web site, and a PC-style website (which is crossed out because it is simply not a good option).

Which is better, an app or a mobile web site?

There are advantages and disadvantages to both the app and the mobile web. We believe an app is the better choice for hotels for the following reasons; an app is faster, it has a better user interface, it allows for more features, it provides an easier navigation, and has better overall usability.

The main advantage that a mobile web site has over an app is that it can be used on many different phones and browsers. However this can cause technical problems and the site may not display correctly on so many different devices. Many apps, including the O’Rourke Smartstay app, also offer a mobile web version which can be used by guests who have smartphones other than an iPhone.

In a recent article, Adam Kirby referenced Tishman Hotel Corp. who uses both mobile web sites and iPhone apps. He stated, “ Even the best mobile sites are not as user-friendly as downloadable apps, which have the benefit of operating even without an Internet connection. In terms of usability, if accessing the mobile web is like flying coach, then using an app is like upgrading to business class.” ²

People prefer to use apps on their mobile devices over search. On a PC people typically search to find what they are looking for, but on a smartphone they can quickly access the information they need from an app. As Steve Jobs said in his introduction to iPhone OS4, when people want to go out to dinner, they don’t search for restaurants on their iPhones, they go right to the Yelp app.  People do the same with hotels. It is much easier just to tap on a hotel app icon then it is to search for a hotel website.

THE MOBILE MARKET TODAY

When deciding on a mobile strategy that is best for your hotel, it is important to look at the mobile market today and predict where it is going. What technology is currently available and which smartphones do people use most to download apps? How popular are travel apps, and do your guests download them?

Do my guests use Smartphones?

The use of smartphones is growing at a very rapid pace and experts predict that they will overtake feature phones in the US as early as 2011.³ Below is a recent survey by the Nielsen company which shows the rapid growth of smartphones. The falling blue line in the chart below represents feature phones (phones other than smartphones) and the rising green line represents smartphones.

source: Nielsenwire: http://blog.nielsen.com/nielsenwire/consumer/smartphones-to-overtake-feature-phones-in-u-s-by-2011/

Which phone do people use most to browse the web and download apps?

O’Rourke decided to create an app for the Apple iPhone because people clearly use it more than any other mobile device to browse the web and download apps. As mentioned earlier there is also a mobile web version available for guests with smartphones other than the iPhone.

The chart below was used in Steve Job’s presentation of the iPhone OS4 and reveals that the iPhone has the largest share in US Mobile Browser Usage with 64%. Everything else added together is only half the iPhone.

source: Steve Jobs: http://www.apple.com/iphone/preview-iphone-os/

People also download more apps with the iPhone and iPod touch than any other mobile device. The chart below shows the average number of apps downloaded per user per month. As you can see the average user downloads about 8.8 apps a month on the iPhone and 12.1 on the iPod touch.

source: AdMob Mobile Metrics: App Usage Survey, February 2010

http://metrics.admob.com/2010/03/january-2010-metrics-%E2%80%93-app-survey-data/

Will my guests download my hotel app?

Travel Apps are extremely popular and rank in the 5^th category (out of the 20 categories in the Apple App store). Guests will be happy to download your hotel app because of the convenience it will offer them.

The hotels that currently offer mobile apps have reported a very high number of downloads. Choice Hotels International was one of the first hotels to create an app and as of August 2009 it had reportedly been downloaded more than 225,000 times in 73 countries. The Starwood Hotel app is also very popular and is being downloaded at a rate of 2,000 per week. ⁴

WHAT ARE THE OPPORTUNITIES IN MOBILE?

Mobile is a new frontier that offers hotels numerous opportunities to connect with their guests, tap into a new source of revenue, enhance customer service, and increase customer loyalty. Hotels are aware that they need a mobile solution but they are still trying to work out which strategy would be best for them and understand what their opportunities are in mobile.

Below is a chart from an EyeforTravel report based on a survey of people working in the travel industry and the opportunities that they have identified in mobile.

Opportunities identified by the travel industry

Source: EyeforTravel Report
The Introduction – http://www.eyefortravelresearch.com/reportsales/record/id/10

In closing, Mobile is here now and it is here to stay. As a recent EyeforTravel report states, till recently the “growth and uptake has been slow and identifying the right opportunities continues to be the hardest part of setting a mobile agenda,” but it is emphasized that the use of mobile in travel distribution is “unavoidable” and “the key success of any travel business in the future.”⁵

If you would like to learn more about the Smartstay iPhone App for Hotels please call the mobile division of O’Rourke Hospitality Marketing at 888-965-5966 or send an email to info@smatstayapp.com. You can also visit the Smartstay website at www.smartstayapp.com.

O’Rourke will be attending HITEC 2010, June 21-24, Orlando, Fla. Stop by our booth (#1234) and enter to win an Apple® iPad.

¹ Mary Meeker: Mobile Internet will Soon Overtake Fixed Internet (April 12, 2010)

http://gigaom.com/2010/04/12/mary-meeker-mobile-internet-will-soon-overtake-fixed-internet/

²Adam Kirby: Hotels Get App Happy (Aug 31, 2009)

http://www.usablenet.com/in-the-news/hotels-get-app-happy/

³ Smartphones to Overtake Feature Phones in U.S. by 2011 – March 26, 2010

http://blog.nielsen.com/nielsenwire/consumer/smartphones-to-overtake-feature-phones-in-u-s-by-2011/

⁴Adam Kirby: Hotels Get App Happy (Aug 31, 2009)

http://www.usablenet.com/in-the-news/hotels-get-app-happy/

⁵Eye for Travel: Travel Industry gets serious about Mobile

http://www.eyefortravelresearch.com/liveresearch?h=91#tab-recentfindings

Smartstay is a revolutionary iPhone app customized to your own hotel brand. The Smartstay hotel app serves as a 24/7 concierge and provides users with a micro mobile website, real-time news about events, and an interactive city guide.

Hotels have unlimited opportunities to communicate with their guests and can send them exclusive offers. Smartstay is a mobile solution for hotels looking to capture a wider market share, tap into a new source of revenue, and enhance the guest experience at their hotel and in their city.

For more information call 888-965-5966
http://www.smartstayapp.com/

A free Demo Version is available for download at the Apple Store. Just tap on the apple store icon on you iPhone and search for Smartstay or click on this link:  http://bit.ly/bgSC4Y

O’Rourke Hospitality Marketing, a full-service marketer specializing in the hospitality industry, has just launched Smartstay a one-of-a-kind iPhone app that hotels can customize to reflect their own hotel brand.

Smartstay is a mobile solution for hotels who have been looking for a way to enter the mobile market and who recognize the many benefits the mobile platform can provide their hotel and their guests. Tom O’Rourke, Founder/CEO of O’Rourke Hospitality Marketing explains, “We’re opening up a channel that has never been used before in the hotel industry. This is not just another app – it’s an opportunity through a mobile channel to connect with a guest before, during, and after their stay.”

O’Rourke explained that the mobile platform is new for hotels and is often overlooked in their marketing plans. Many hotels still spend millions of dollars on traditional media that aspires only to attract guests to their hotel. The mobile platform allows hotels to communicate with their guests in a continuous and connected manner.

Smartstay provides many benefits for hotels and it can help them capture a wider market share, tap into a new source of revenue, and enhance the guest experience at their hotel and in their city. Hotels can send exclusive offers directly through the Smartstay app and the user is then prompted to make a reservation with the single touch e-mail and dialing options.

The hotel can also cross-sell and up-sell guests on amenities, their spa services, the hotel restaurant or events at their hotel through the news feature of Smartstay. The hotel can enter posts as often as they choose and they can also incorporate their Twitter stream to supply their guests with real-time information that their guests can use at that moment. For example if the hotel posts a last minute deal at their restaurant, guests with Smartstay will receive the message on their iPhone and may decide to have dinner at the hotel restaurant to take advantage of the offer.

The Smartstay app also serves as a micro mobile website and guests can see images, videos, and useful information about a hotel. The hotel can manage all the content on the Smartstay app through a very easy-to-use back-end program that they can access online. Hotels can instantly update their content and choose the information they want to display such as directions, specials & packages, room rates, restaurant information and more.

Smartstay appeals to travelers and helps them make the most of their stay at a hotel and in a city. Many people today make travel plans from the road and they appreciate the convenience of managing their stay at a hotel directly from their iPhones. Once a guest downloads a Smartstay hotel app from iTunes, the hotel icon appears on the user’s iPhone. The next time the Smartstay user travels, they are more likely to tap on the hotel iPhone icon and make a reservation at that hotel because of the convenience it offers and the time it saves them from searching the Internet for hotels.

Guests will also enjoy the interactive city guide which will help them find the location of the nearest shops, bars, restaurants, cultural venues, transportation services, and more. Guests simply tap on the icons to see detailed information about a specific place. They can also tap on the phone number if they would like to learn more or make a reservation. Local area businesses such as bars and restaurants may also promote special offers on their detailed description page with the consent of the hotel. With the interactive map feature, guests are able to find their way around an unfamiliar city at any time without the help of a concierge.

The Smartstay app is an asset to any hotel and will help them increase revenue, improve guest loyalty, and enhance the guest experience. O’Rourke has officially launched the Smartstay hotel app and is currently filling requests from interested hotels. However, as Tom O’Rourke pointed out, “There are unlimited opportunities for hotels to use the iPhone app and we are constantly working to add new features and find creative ways that hotels can use the app to connect with their guests and increase revenue. Once a hotel has obtained their customized  iPhone app that is not the end, but just the beginning. We are confident that hotels and hotel guests alike will find the Smartstay app an invaluable resource for travel.”

Contact Information

For more information about the Smartstay hotel app please contact the mobile division of O’Rourke Hospitality Marketing:

Toll Free Phone Number: 888-965-5966

Watch a Demo Video: http://www.smartstayapp.com/

Try it for Free!

A free Demo Version is available for download at the Apple Store. Just tap on the apple store icon on you iPhone and search for Smartstay or click on this link:  http://bit.ly/bgSC4Y

About O’Rourke Hospitality Marketing

Founded in 2001, O’Rourke is an award-winning hospitality marketing firm headquartered in Newburyport, Massachusetts. Serving national and international clients, O’Rourke provides hotels with a complete range of services including Internet marketing, hotel website design and development, and print design. Clients include major brands as Marriott International, Renaissance Hotels, and Winegardner & Hammons, Inc. For more information see the O’Rourke website: http://www.orourkehospitality.com/

We met up with Colleen Curtis, Midwest Regional Director of Yelp, at SES Chicago in December. Tom ORourke, Founder/CEO of ORourke Hospitality Marketing, asked Colleen if she could explain the new augmented reality app from Yelp. Colleen explained that there is a Yelp app for the iPhone and one for the Android. The iPhone has Monacle, which has an augmented reality function which allows users to point their phone on the street and find out the location and ratings of nearby bars and restaurants. The virtual listings appear as an overlay of the (reality) image you see through your camera. This app is great for travelers and can be thought of as the new e-concierge to help your guests find their way around your city!

Sir Martin Sorrell finally appeared at Ad Tech NY this year, after turning down the invitations of the last three years. He opened Ad Tech with his keynote presentation on ‘What’s coming in 2010.’ He focused on New Markets, New Media, and Consumer Insights.

Sir Martin Sorrell is the founder of WPP, one of the world’s leading communications services groups and a member of the FTSE-100, FTSE-Eurotop 300, the MSCI and BusinessWeek’s Global 1000 companies. GroupM, JWT, Ogilvy and Mather, Young & Rubicam and Grey are all part of the WPP Group.

Sir Martin holds an MBA from Harvard University Graduate School of Business Administration and an Honorary Doctorate from London Guildhall University. He is on the Board of Dean’s Advisers of Harvard Business School, and on the Board of the Indian School of Business. He is a governor of London Business School, a member of the advisory board of IESE in Spain, and also on the Dean’s Advisory Council for Boston University School of Management, and Deputy Chairman, London Business School.

Sir Martin was under the impression that he would be speaking to a small intimate group ad Ad Tech but that was not the case as the large room was completely filled. He chose not to have a formal presentation on stage, and instead he walked through the crowd as spoke about the future of advertising in today’s changing landscape and how to work with these changes. We have compiled Sir Martin’s thoughts on the topics below and how they are relevant to your hotel.

Sir Martin’s Forecast

Mobile Phones

Sir Martin began his talk with a theme that was repeated throughout the conference, and that is the mobile phone. Mobile phones play an important role in the world today and this will continue in the future.

He stated that China and India have the largest growth rate in mobile and that the corporation China Mobile rated number 5 in the top most powerful valuable brands in the world.

He said that growth in mobile in the more traditional markets of Western Europe are led by the following five countries; The U.K., France, Germany, Italy and Spain.

As far as WWP is concerned, he stated that mobile advertisements have not been as successful as quickly as they would like to see.

Change from Traditional Agencies

Sir Martin stressed that agencies need to change from their traditional structure and adapt to the global markets and digital media.

“People who run agencies tend to be resistant to change. If you spend 10 to 20 years trying to get to the top, you don’t want to change. You want to spend the last 3 years of your time to go around the world and enjoy yourself with some stability. The last thing you want to do, as I do, is get up and deal with massive change every day,” said Sir Martin.

Recession

Sir Martin wasn’t very encouraging about the recession and stated, “I have worked in Advertising for 33 years and I have never known times more focused on cost than there are now.”

However he encouraged companies to invest in brands in times like these and said they will come out stronger when the recession is over.

He stated that corporations are more open to digital media now because it gives them quantitative opportunities to evaluate spending in ways they never have before.

Growth and L-U-V

One of the main points of Sir Martin’s keynote was how the growth of developing countries and new markets are affecting us, and he stated, “100% of the growth in our 2007 – 2008 came from growth in China and growth in India. In 2009 growth in China has been more than 100%.”

In regards to economic recovery Sir Martin stated that the world is operating at different speeds and he referred to the idea of L-U-V, first coined on a blog entry by Stella Dawson, Treasury correspondent of Reuters. L-U-V is meant to represent economic recovery in the following way:

• The L-shape represents the recovery in Western Europe where there is slow recovery after a long drop.

• The U-shape represents the recovery in the U.S. (he included Spain in this category and then noted they have dropped down), where there a feeble recovery that takes a little longer than a V-shaped one.

• The V-shaped recovery represents the countries of Brazil, Russia, India and China (often referred to as the BRIC countries which was first used by Goldman Sachs) where there is a short recession with a quick rebound again.

New Markets, New Media & Consumer Insights

Sorrell said if he had to sum up WWP strategy in one sentence it would be: New Markets, New Media, and Consumer Insight.

• New Markets

The shift in the market is clear with the focus on the fast-growing developing economies of the BRIC countries (Brazil, Russia, India, and China). There is a large population growth in these countries and an increasing percentage is joining the middle class. South America is also an emerging market.

Sorrell said that every single client they deal with is focusing on those parts of the world for growth. He said that 26% of WPP business was in these countries and he predicts that will increase.

• New Media

Sir Martin states that digital and new media are the strongest forces of growth and the majority of his clients spend 12% to 13% of their world-wide budgets in new media in one shape or form. He believes this will increase significantly over the next five years to 20%.  New media accounts for almost 25% of WPP’s revenue.

• Consumer Insights

Sir Martin stated that a large part of WPP’s business is data information. He said they are the fourth largest information service in the world. “If we were starting from scratch we would have tried to bring these three elements more closely together; media planning and buying, digital piece and the data piece,” said Sorrell.

He referred to a market research project his company will be doing with Google on validating the importance of web-based marketing. Sorrell stated that he believed that Google has become even more important in the last 6 months as they have focused more on core products of Search and Mobile Search.

Sorrell also brought up product overcapacity and stated that most industries, such as the auto industry, is working with an overcapacity of products. He also stated that there is an under capacity of talented workers and he expects that this will worsen as a huge part of the population begins to retire.

Growth in Retail

Growth in retail will become a powerful thing. Some of the most fundamental change is in retail. He stated that Walmart controls 8-10% of the US in retail services and Tesco is the leader in the U.K. Companies that have immense power in the domestic market will have stronger buying power as they move to markets around the world.

Doing Good is Doing Good Business

Sorrell states that corporations will embrace environmental friendly policies and fair business practices. Corporations today are becoming more responsible and are working towards creating products that are more environmentally friendly. Consumers would rather buy from companies who are more environmentally conscious than those who aren’t.

Governments Have Become Major Clients

Governments around the globe are taking initiatives to supply financial stimulus packages to accelerate the growth of the sustainable economy globally.  He stated that the governments are spending trillions of dollars on sustainability related spending.

Branding

There are many new opportunities for brands in this new era. A cultural shift means corporations can change their point of view, or how the consumers perceive them. Sir Martin states, “You can have innovation without branding, but you can’t have branding without innovation.”

Internal Communication & Structural Change

Sir Martin said the biggest problem for a chairman is communicating internally strategic and structural change. New Media has given the CEO opportunities to communicate in a quick flexible way like they never have before and that has implications. He used WWP as an example and said that communicating in a corporation that is multi-branded is very difficult.

He said it was true that companies are becoming more global, it is true that we are seeing consolidations, but as companies become larger and become more complicated, at a country level there is still an intriguing role for country managers. We are not going to go back where we were 10, 15, or 20 years ago, but we are going to see country managers almost as ambassadors, or stronger, dealing with governments, dealing with technological change, dealing with CSR (Corporate Social Responsibility), dealing with education, and dealing with research & development at a company level.

See video at end of this article of Sir Martin Sorrell discussing this topic.

What’s the Role of the Agency in the Changing Landscape?

It’s about strategic thinking. We are embracing technology in a way that traditional media hasn’t done before. Agencies must plan, place, and measure media. It’s about creativity in a much broader sense. He also stressed that the lines between advertising and editorial are becoming more blurred.

What Does This Mean for the Hotel Industry?

Much of what Sir Martin discussed is very relevant to the hotel industry. Although he didn’t discuss specific industries let’s look at what his forecasts for the future can mean to your hotel.

Incorporate Mobile Phones in Your Marketing Budget
Many people are now ‘on the go’ and they use mobile devices such as the iPhone, to search the web, send emails, and use the thousands of apps available. Many markets such as Asia Pacific are worlds ahead of the U.S. in mobile usage, but we will catch up.  Hotels must take this into consideration for the future and integrate mobile websites and mobile marketing into their budgets.

Expand to New Markets and The BRIC Countries

The BRIC Countries (Brazil, Russia, India & China) are projected to dominate the global economy by 2050. You may already have properties in these countries or you may be considering acquiring some.

At the Global Travel & Tourism Summit last May, Luiz Barretto, Brazil’s Minister of Tourism stated the following about the travel industry in Brazil:

The flow of international tourism also rose in 2008.  More than 5 million foreigners visited Brazil last year, leaving here almost US$6 billion, or 16.8% more than in 2007 – an historic record.

In addition to the flow of overseas tourists, it is important to point out that Brazil is like a continent, with a potential internal market of 100,000,000 tourists.  Eighty-five per cent of tourist activity in this country is sustained by Brazilians themselves.  It is this great internal consumer market that explains the good results for Brazilian tourism, even in the face of the adverse international scenario and the economic downturn in the most important tourism source markets.

We have shown a robust performance since the beginning of 2009, when Brazil was at the peak of its summer.  The sector has grown by about 20% in comparison with the same period in 2008.  The increase has occurred in almost all segments of the tourist chain: hotels, airline companies, car rental and among tour operators and travel agencies.

I am certain that these results are a reflection of the combined actions of private companies and the Brazilian Government.  In the past six years, the Ministry of Tourism has invested US$2.5 billion in infrastructure for tourism destinations.  And that number does not include the significant contributions of the Brazilian Government in the context of the great national investment plan for infrastructure that is fully underway.

In the next few years, in addition to the resources that are in the budget of the Ministry, we will have another US$1 billion from the Inter-American Development Bank, to be spent exclusively on tourism infrastructure.

Brazil is also preparing for the 2014 FIFA World Cup and it is estimated that it will bring in 500,000 overseas tourists. Then of course there is the 2016 Summer Olympics. According to CNN the games will be held in four zones with varying socioeconomic characteristics; Barra, Copacabana, Maracana, and Deodoro.

Market Your Hotel With New Media
There is unlimited potential to market in Digital Media in the Hospitality Industry, and hotels need to incorporate this in their marketing strategies. This includes Internet Marketing, Videos, Social Media, Organic Search, Paid Search and Reputation Management, just to name a few.

Consumer Insights
Hotels now have an ability as never before to gain insight about their consumers. There are so many inexpensive and effective ways to do so. Collect your guests’ email addresses and create profiles which you can segment into groups (i.e. type of traveler, age, marital status, and personal preferences). You can manage these profiles in your database and send out very targeted email campaigns to the separate groups.

Interact with your guests in social media sites such as Facebook and Twitter. Read their reviews of your hotel on review sites such as Trip Advisor and respond. Find out who they are, what they like, where they spend their time. When you know who your guests are you can target your message to them in the places where they go, online and offline.

Go Green – Go Global
It is a given that corporations should be practicing policies that are environmentally friendly and culturally aware. Your guests will appreciate this as well.

Branding
In this new era you have new opportunities to brand yourself, whether it be to create a new brand or re-invent and existing one. Be creative and create a niche.

Watch Video

Below is a clip from Ad Tech of Sir Martin Sorrell’s presentation.

If you would like to learn more about Internet Marketing for the Hospitality Industry please call at 978-465-5955 or send an e-mail to info@orourkehospitality.com