Travelocity's new strategy of using search queries to trigger targeted display ads has paid off with a 79% drop in its costs-per-transaction, a 230% jump in bookings and a 651% higher click-through rate. "We're providing timely, relevant ads based on what the user is in the market for," said Kyle Sawai, principal at Click Here, Travelocity's main digital shop. "We're taking what's worked so well in search advertising and using the digital medium as intended, which is a one-to-one -- and not a mass -- communications medium."

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