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    The Travel Advertising Market is Estimated to Hit a Magnificent Revenue Target, Growing at a CAGR of 9%

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    A recent market analysis conducted by future market insights (FMI) projects that the compound annual growth rate for the travel advertising market currently sits at 9%. According to their projections, The current $9.7 billion travel advertising market will reach $15 billion in 2032. 

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    Future Market Insight Inc. forecasts a consistent 9% growth for the travel advertising market between the growth period of 2022 and 2032. The forecast is aligned with the growing trend of global travel content and the desire to learn and experience other cultures. 

    Despite hiccups in the travel market from the COVID-19 pandemic, travel advertising continues to attract a growing number of tourists yearly. 

    Past Forecasts for the Travel Advertising Market

    Previous travel forecasts from 2017 to 2021 showed that the travel advertising market was in good shape up until 2019. During this time, top methods for advertising by travel agencies focus on digital and online advertising. 

    Unfortunately, the travel advertising market took a turn in Mid-2019, as travel restrictions were imposed thanks to the COVID-19 pandemic, which rendered travel advertisements ineffective. The travel advertisement market experienced a total market crash. Fortunately, 2020 and 2021 experienced surges in sales for travel and travel advertising as travel restrictions loosened. 

    The Impact of Social Media on Travel Advertising

    Like other market sectors, social media and social platforms have been major players in the travel advertisement sector. Thanks to the limitless capabilities of reaching audiences all around the world, social media has been an ideal tool for marketing and advertising in the travel sector. 

    Brands and agencies have been using social media to promote themselves, image and short video posts have effectively replaced infomercials, and aside from brands and agencies building their platform on social media, some have even gone out to collaborate with social media influencers for advertisements. 

    Harnessing the Power of AI for Travel Advertisement

    A trend amongst the biggest players in travel advertising is the implementation of artificial intelligence throughout the sales and marketing funnel. Agencies have been investing in AI chat boxes with the capabilities of responding to basic questions and learning new facts based on customer responses. Artificial intelligence has also played a pivotal role in market research and data collection. 

    Attracting the Right Audiences

    The travel advertisement sector has been paying close attention to family travelers and backpackers. In general, the two segments are vastly different from each other. Family travelers often search for destinations more suited to group activities and relaxation. While on the other hand, solo travelers tend to focus on adventure. 

    Source: Yahoo News

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