November 05, 2012

Facebook an expensive marketing channel, says TripAdvisor

Facebook is always touting TripAdvisor as its best buddy in travel, but despite all the hype, TripAdvisor is now saying Facebook is a “somewhat expensive” channel, and that the jury is out on whether marketing through Facebook will sufficiently “move the needle.”

In response to an analyst’s question during the conference call about TripAdvisor’s return on investment from marketing on Facebook, TripAdvisor CEO Steve Kaufer said the company “gets a certain amount of uptake” from advertising TripAdvisor’s apps on Facebook, but does so “at a somewhat expensive rate.”

Kaufer explained that its Cities I’ve Visited app on Facebook enables TripAdvisor to build a large database of travelers, find out where they’ve traveled, and it provides access to their friends’ social networks so TripAdvisor can use the social data when — or if — the friends visit TripAdvisor.

After all, at that point, the Cities I’ve Visited users, who must join TripAdvisor to use the app, are just members and don’t yet represent travel bookings to TripAdvisor’s clients.

Get the full story at Skift

Read also "Despite investor enthusiasm, TripAdvisor struggles on a few fronts" at Tnooz