TripAdvisor 2015 Annual Report Download - page 35

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resultedinhigherCPCpricingpaidbyourpartners,duetohigherqualityclicksbeingdelivered,offsetbyrelativelylowerratesofhotelshopper
conversion.
Key Drivers of Display-Based Advertising Revenue
FortheyearsendedDecember31,2015,2014and2013,11%,11%and13%,respectively,ofourtotalrevenuecamefromourdisplay-basedadvertising
products.Substantiallyallofourdisplay-basedadvertisingrevenueisincludedinourHotelsegment.Thekeydriversofourdisplay-basedadvertisingrevenue
includethegrowthinnumberofimpressionssold,orthenumberoftimesanadisdisplayedonoursite,andtherevenuewereceivedforsuchimpressions,
measuredincostperthousandimpressions(“CPM”).Accordingtoourinternallogfiles,thenumberofimpressionssoldincreased14%fortheyearended
December31,2015over2014andincreased19%fortheyearendedDecember31,2014over2013,primarilyduetoincreasedsalesproductivity,aswellas
increasedsellableinventoryduetotrafficgrowthandintroductionofnewproductsandfeatures,whilepricingdecreased1%forboththeyears,respectively.
Key Growth Areas
Wecontinuetoinvestinareasofpotentialgrowth,includingourcontentandcommunity,productinnovation,andinternationalexpansion.
Content & Community .TripAdvisorisawebsiteonwhichtravelerscanresearchcontentandsharetheirtravelexperienceswiththerestoftheworld.
EstablishingandnurturingasenseofcommunityamongusersandbrandloyaltyisakeypriorityandacompetitiveadvantageforTripAdvisor.Asaresult,we
continuetolookforwaystomakeiteasierforuserstoplan,compareandbooktheirperfecttriponTripAdvisoraswellastosharetheirexperiences.
Mobile .Innovatingandimprovingourmobileproductsisakeypriority.AsofDecember31,2015,wereached290milliondownloadsofourmobileapp
andaveragemonthlyuniquevisitorsviasmartphoneandtabletdevicesgrew32%year-over-year,accordingtoourinternallogfiles.Weanticipatethattherateof
growthinmobilevisitorswillcontinuetoexceedthegrowthrateofouroveralluniquemonthlyvisitors,andthatanincreasingproportionofuserswillusemobile
devicestoaccessthefullrangeofservicesavailableonoursites.Weareinvestingsignificantresourcestoimprovethefeatures,functionalityand
commercializationofourmobilewebsitesandapplications.
Direct Hotel Bookings on Our Websites. WebelievethatallowinguserstobookdirectlyonlinewithoutleavingourTripAdvisorwebsiteswillresultina
betteruserexperienceaswellas,ultimately,additionalrevenuetotheCompany.Instantbookingisafeaturethatenablesuserstobookahotelreservationdirectly
withahotelorOTApartnerwhileremainingontheTripAdvisorwebsite.WehavebeengraduallyrollingthisfeatureoutintheU.S.sinceJune2014,andin2015,
acceleratedtherolloutofinstantbookingforhotelsacrossourU.S.andU.K.platformstoallusersonalldevices.Wealsoplantocontinuerollingoutthisfeature
toadditionalinternationalmarketsin2016.Ourbusinesssuccessdependsinlargepartonourabilitytomaintainandexpandrelationshipswithourpartnersinthe
travelindustry.Thesepartnerspowertheinstantbookingfeatureonourwebsiteandwebelievethatthesepartnerswillalsobenefitfromthisfeature,through
increasedreservationsandmoredirectrelationshipswithtravelers.
International Expansion. Wearefocusedonstrengtheningourbroadglobalfootprintaswebelievethatpenetratinginternationalmarketsrepresentalong-
termopportunityforus.WecontinuetoimprovelocalizationandgrowouruserbaseinEurope,AsiaandSouthAmerica,especiallyinemergingmarkets,suchas
Brazil,RussiaandChina.Inaddition,wecurrentlyhavealeadproductofferingintheChinesemarket—re-brandedMaoTuYing(orTripAdvisorChina)—
headquarteredinBeijing.DuringtheyearendedDecember31,2015,internationalrevenueaccountedfor50%ofourworldwiderevenue.
Attractions & Restaurants. TripAdvisorhasinformationanduser-generatedcontenton3.8millionrestaurantsand625,000attractionsaroundtheworld.
Asasignificantpercentageofourusersarenothotelshoppers,webelieveTripAdvisorhasauniqueopportunitytomonetizeitscommunityofthesenon-hotel
shopperslookingforplacestoeatandthingstodo.Withtheacquisitionsofouronlinerestaurantreservationbusinesses,includingLafourchette,andViatorfor
onlinebookabletoursandattractions,weareattemptingtomatchmoreuserswithmorebusinesses.
Vacation Rentals .Weofferindividualpropertyownersandpropertymanagerstheabilitytolisttheirpropertiesusingafree-to-list,commission-based
structureorasubscription-basedfeeoptionandwebelieveourhighly-engagedandmotivatedusercommunitycreatesacompetitiveadvantageforusinthis
market.IntheyearendedDecember31,2015,VacationRentalpropertylistingsgrew18%to770,000properties,drivenbystronglistingsgrowthinourfree-to-
listmodel.
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