Marriott Rises on Plans to Monetize Customer Data

Hospitality major Marriott International Inc. (NASDAQ: MAR) recently revealed that it has rolled out a media network where advertisers can use its data to target customers. The media network is introduced in collaboration with Yahoo.

Following the news, shares of the company rose 1.2% to close at $164.25 in Wednesday’s extended trading session.

Strategic Impact

According to a study by Insider Intelligence, the net ad revenues for retail media advertising in the U.S. is expected to grow from the current $41 billion to $60 billion in 2024. However, privacy changes by big tech companies have narrowed the prospects for the marketing industry to reach consumers.

In such a scenario, Marriott’s move to build its own media network seems to be prudent. This is because brands are increasingly looking to rely upon primary data based on direct customer interactions to grow their business.

The media network, likely to be rolled out this month with pilot advertisers, will initially be made available in the U.S. and Canada. Notably, anonymized customer data from past searches and bookings made on Marriott’s digital channels will be used to deliver relevant ads on behalf of brands and advertisers.

Further, Yahoo will run the Marriott Media Network and serve as the portal through which advertisers will be able to shop for ad space.

Stock Rating

Recently, Argus Research analyst John Staszak reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $210 to $203, which implies upside potential of 31.8% from current levels.

Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on four Buys and eight Holds. MAR’s average price target of $186.75 implies that the stock has upside potential of 21.3% from current levels. Shares have gained 10.5% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Marriott’s performance this quarter.

According to the tool, the Marriott website recorded a 26.02% monthly rise in global visits in April, compared to the same period last year. Moreover, the footfall on the company’s website has grown 25.13%, compared to the previous year.

Conclusion

Marriott’s own media network is expected to accrue benefits in the form of anonymized data sales to brands and advertisers looking to expand their businesses. This will help the company in monetizing its data and create a new revenue stream.

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