FEATURE ARTICLE
Based on click volume , Google ’ s Hotel Ads matured in 2016 , and today the click volume equals or surpasses TripAdvisor while keeping a very profitable Return on ad spend .
As Google is integrating the ads deeper into its search results , maps , and other products , it is poised to become one of the leading hotel metasearch providers in the market .
Trivago
Trivago has always been one of the main click volume producers on the metasearch market . The cost per click is the lowest of all the metasearch providers , yet the ROI has not been as good as TripAdvisor or Google Hotel Ads , although it is increasing . The steady growth of the platform since the part equity acquisition by Expedia in 2013 and the subsequent large investment in brand visibility through TV ads make this platform a very attractive option for hotels that require a boost in brand awareness .
Our analysis
Google Hotel Ads currently has the most qualified traffic of all metasearch providers . Traffic volume is now at a level that makes it a compelling investment for hotels and hotel groups of all sizes . However , it is quite complicated to manage the bidding system that offers extremely granular possibilities . This is too complex to manage unless one has a full-time e-commerce or advertising manager .
Google Hotel Ads has stopped developing direct connectivity with hotels and is always connected through a third party . With Google ’ s experience and expertise in AdWords , they have developed a management system to optimise bidding and precise geo-targeting . The bids are managed every few minutes if not instantly , making it a reliable metasearch platform for budget control and adjustments . The system is very open and offers full transparency on performance , competitiveness and opportunities .
Our tip
To be effective when advertising on Google Hotel Ads , we recommend for budget hotels to switch to the performance model and for Deluxe and luxury hotels with a higher ADR to use the cost per click model . Hotels must ensure that these multiple campaigns are constantly monitored and managed .
Our analysis
From a budget management perspective , this is a platform that requires careful observation and management . We have seen massive traffic increases each time TV ad campaigns are launched . However , the conversion rate is relatively low . To ensure that budgets are not depleted , we recommend hotels to make sure that their budgets and bids are properly managed for maximum returns . Small changes in bids ( such as a single cent increase ) can have a significant impact on impression share and can result in budget over-spend .
There is no built-in budget capping , though some third parties have created their own . The platform is improving quite frequently , including in its management possibilities . Trivago can be used successfully for international traffic , but it is most efficient with inbound travellers from Europe .
Finally , the business model is the cost per click only . As many of the hotels used for this analysis were located in Europe , the average length of stay was shorter than TripAdvisor ( 2 nights versus 4.5 ). The ranking system is prioritised by the best rate first and the bid second , if there is full rate parity the bid obviously takes priority .
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