April 27, 2015 · Meisha Bochicchio
Google Hotel Ads: Everything You Need To Know
Hopefully, Google Hotel Ads aren’t completely new to you. This recently launched Google product has been around for a several years now (since 2011 to be exact) but Google did not perfect and start to really push this product until last year (2014).
What are Google Hotel Ads?
Google Hotel Ads is a Google hotel metasearch feature that show real time price information to searchers on various places throughout Google and that allows companies to bid on price placement.
Where will I find Google Hotel Ads?
There are three different places within the Google network that one could find Hotel Ads:
- Local Universal (the most prevalent placement)
- Google Maps
- Google Local Places Page
Below is an example of Google Hotel Ads for the New York Hilton Midtown:
This is just one example of the many, many places that Hotel Ads appear throughout the Google network.
For a more thorough breakdown, see our article on Google Hotel Ads Placements.
How Does The Bidding For Google Hotel Ads Work?
The bidding for Hotel Ads takes place in real time through a dynamic ad auction.
Hoteliers have three different options when it comes to placing bids:
- Percentage of room rate bid (recommended for best return)
- Fixed bid per night (not recommended)
- Budget Optimizer (Partners set a daily budget. Google automatically sets the bids to maximize the amount of traffic for the given daily budget.)
Additionally, hotels have the option of applying any variety of “bid multipliers” to better optimize the bidding process. Bid multipliers include:
- Which Google site a visitor comes from (local universal, places page, or map results)
- User country
- Length of stay
- Device type
Google only takes two things into consideration when placing ads:
- Room rate competitiveness (lower being better)
- Bid competitiveness (higher being better)
For a full breakdown of how this process works, check out our article on Google Hotel Ads Bidding and Ad Placements.
Why Run Google Hotel Ads?
There are several important reasons why hotels should consider placing bids for hotel ads:
- Increase direct bookings
- OTAs are already there
- More SERP space
- More non-brand search visibility
- Metasearch is the new way
- It’s here to stay
Be sure to check out our full post on why your hotel should run Hotel Ads to make sure you make an informed decision.
What Type Of Budget Do I Need & What Return Can I Expect?
The great part about running on Hotel Ads is that you can essentially use any budget, no matter how large or how small. Spend on a per property basis tends to vary greatly from hotel to hotel and seasonally depending on the location’s market, so it’s hard to nail down a direct number.
Fuel provides spend recommendations on a client per client basis based on our internal research and we make ongoing recommendations throughout the campaign to optimize return.
Speaking of return, this number can also vary from a property to property basis. In general, properties can expect an ROAS in-between that of a traditional ppc non-brand campaign and a traditional ppc brand campaign. Again, these numbers will vary greatly based on many factors, but speaking in general terms, this is what we have seen for our clients.
And, if you think about it, it makes sense. We are not bidding on keywords for placement but these ads serve on both brand and non-brand search queries, so the returns match expectations. Hotels enjoy the luxury of exposure on high search volume keywords while maintaining a strong brand presence. It’s truly a win – win situation.
How Does My Hotel Participate in the Google Hotel Ads Program?
Contact Fuel today to get your hotel up and running with Google Hotel Ads or to speak with a specialist that can give you all the information you need.
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