Yulian Hrab, Author at UAWC - PPC E-commerce Marketing UAWC – PPC E-commerce Marketing

UAWC - PPC E-commerce Marketing

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How Google AdWords helps hotels to win the direct booking war – a case report about a hotel in Rome

Here is the problem:

Nowadays, a lot of different services allow you to book your stay in almost all hotels: booking.com, trivago.com, hotels.com, etc. Hospitality and tourism is an extremely competitive niche and as a result, has a high cost per click. Therefore, the first thing we were thinking about when our customer (a hotel in Rome) came to us with the problem of a low ROAS metric was how we could increase ROAS without decreasing

Therefore, the first thing we were thinking about when our customer (a hotel in Rome) came to us with the problem of a low ROAS metric was how we could increase ROAS without decreasing the amount of transactions. ROAS is a very delicate metric – it can be increased by simply decreasing bids; however, it is more important to increase both revenue and ROAS at the same time. Booking.com and others are very useful for people who are unsure

Booking.com and others are very useful for people who are unsure with their choice and want to compare different offers, which is why using general keywords such as “Rome hotel” is a very poor option in this crowded marketplace. The best way to go is to induce loyal customers, that are already familiar with your hotel and want to choose it again for their stay, booking through the official website.

Before:

Before we started working for the Hotel, their ROAS was around 260%.

Our implementation:

1.First of all, we reallocated most of the budget to the brand campaign to ensure that we are getting 100% of impression shares. We made campaigns with:

– Broad Modifier keywords

– Exact Modifier keywords

What was the result?

  • Clear traffic without irrelevant search terms
  • 1st position
  • High-quality score

2. Low bids lead to unique offer ads and drive action.From the first time a customer sees your ad, he or she wants to quickly understand the benefits you are prepared to hand out. We know that the best driving force to make a purchase is a better price for the same value. In our case this is:

3.The IF function.

We recognized that most of our customer’s search originated from mobile devices, while most of the purchases came from desktop devices. Therefore, we immediately drove them to book the better price.

 

4. CPC strategy.
We have used low CPC for broad keywords and higher CPC for exact keywords, implementing a cross negatives script. This provided us with a great Search Impression Share metric for traffic, which is the top priority for us.

5. RLSA.
The purpose of RLSA implementation was to return users, which did not convert, but who were on the way to do so. This is why we set up a campaign bidding on general terms like “hotel” with a “target and bid strategy” that targets cart abandoners (these are visitors on a Web page who leave that page before completing the desired action). In any
reason these people did not complete booking, which could be due to a high price or anything else. Due to this, we made a special ad for this audience, using a promo code that offers a 10% discount.

Afterwards (the next month)

 

As you can see, we achieved fine revenue results without wasting the budget on unprofitable terms and forwarded customers to book direct, thus further increasing the loyalty of customers.