Facebook has launched Dynamic Ads for Travel, which has big implications across the eTravel group. Analyst Guggenheim Securities take: 1) Online travel agencies (OTAs) have been eyeing Facebook and its massive audience, but traditional products fell short, and this new ad unit may well open the door; 2) We see this as good news for the traffic-hungry OTAs and maybe Expedia in particular as its Trivago unit is a launch partner; 3) Facebook’s vertical effort may pose a threat to TripAdvisor via increased competition for OTA and hotel chain ad budgets. Highlights of Facebook’s Dynamic Ads for Travel (DAT): 1) DAT will initially focus on hotels; 2) Advertisers will be able to target based on intent (i.e., user has conducted a travel search, viewed a hotel, or bought a ticket); 3) It will create highly targeted audiences based on a range of variables like length of stay, number of travelers, and star rating. The OTAs are hungry for traffic and Facebook has a massive audience (1.65 billion monthly active users), but the traditional Dynamic Ad product was built more for retail advertisers. DAT looks to be a compelling way for OTAs to tap into that user base in a highly targeted way to drive hotel volume. Commentary from Expedia and Priceline Group in recent earnings calls suggest that both likely worked closely in developing DAT and will be participants. Expedia’s Trivago unit is a launch partner. Source: Barron's Read also "Facebook extends dynamic ads to travel sector"