Google hotel ads’ sunsets commission-based bidding, now what?

On February 20th, Google officially sunset its commission-based bidding strategy for Google Hotel Ads, leaving properties across the globe faced with the difficult decision of whether or not to fund their own Google Hotel Ads program or go dark and let the OTAs gobble up revenue share. What if there were a better option?

Our team dives into what hoteliers can do now that this bidding model is no longer available. Learn what this means for your property below. 

Shift from commission-based to PPC models

Previously, Google Hotel Ads operated on a commission-based framework, allowing hotels to pay a percentage of bookings generated through the platform. This model was advantageous for independent hotels with limited marketing budgets, as costs were directly tied to actual bookings.

However, Google's move to a PPC model means hotels running these campaigns via Google now incur costs based on ad clicks, regardless of whether these clicks convert into bookings. This shift necessitates a more strategic approach to bidding and budget management, as ineffective campaigns can lead to increased expenses without guaranteed returns.

What to do if your property lost its commission-based hotel ads model

If your hotel recently lost the ability to utilize a pay-per-stay commission-based hotel ads campaign model, there are still options you can consider. 

Option 1. Shift to budget and CPC based hotel ad campaign management

One option is shifting towards a media spend and cost-per-click campaign strategy. With this option, hoteliers are now left to fund and their campaign media budgets and shift to a cost-per-click bid strategy. This shift demands a more sophisticated and data-driven approach to ensure marketing spend translates into actual bookings. Compared to commission-based hotel ads campaign models, this option translates into more risk of spending on clicks that don’t convert if not managed properly.

Option 2: Continue to run a pay-per-stay commission model

Despite Google’s policy change, there is still an option for independent hotels looking for a hotel ads commission-based model approach. Metadesk still offers a pay-per-stay commission model, which means hotels can avoid the risks associated with PPC spending. Metadesk takes care of all the startup costs, media spend, and campaign management, ensuring that hoteliers only pay a variable commission based on actualized revenue.

For those looking for a more cost-effective solution, Metadesk’s pay-per-stay model – Metadesk Pro – offers a smart alternative that aligns marketing expenses directly with bookings.

Google's shift to a PPC model in hotel advertising presents both challenges and opportunities. Independent hotels must proactively adjust their marketing strategies to effectively navigate this new landscape. 

Hoteliers can mitigate risks by adopting targeted bidding strategies, diversifying distribution channels, and enhancing direct booking capabilities and continue to thrive in an increasingly competitive environment. Solutions like Metadesk Pro provide a viable alternative for those seeking a commission-based approach, keeping marketing costs aligned with revenue.

The good news – A CPA model is still available

Regardless of which option you choose moving forward, Metadesk can help. Ready to take action on a commission-based or pay-per-stay model? Contact the hotel metasearch management experts.

How to respond to Google reviews

Responding to Google reviews is a critical part of any effective strategy for Local Search Engine Optimization (Local SEO). The way you respond to reviews can impact your hotel’s visibility, affect your credibility among potential guests, and even influence bookings. Here are a few tips for responding to Google reviews to ensure that your Local SEO is as effective as possible.

Respond to all reviews, both positive and negative

This shows that your hotel is engaged with your guests and takes feedback seriously. This can also improve brand loyalty, as it allows guests to form a more personal connection with your hotel.

On Google Business Profile, hotel listings with a high percentage of review responses are also more likely to be shown in search results.

If your hotel does not have the time to reply to reviews, companies such as our partner Widewail can assist with the workload by responding on your hotel’s behalf.

Respond within 2 weeks of the review being posted

1 week is even better, and within a few days is best. If your hotel can keep this pace consistently, it shows potential guests that you put effort and thought into every aspect of the guest experience.

Timely replies to reviews can also have a positive effect on Google Business Profile visibility.

For negative reviews, make sure to include a potential solution

Even if you contact a guest privately about a negative review, it is a good idea to mention this in your public reply as well. For example, you can respond with “Hello Guest Name, we will be reaching out about your experience.” This shows potential future guests that you care about the guest experience, and reduces the perceived risk of staying at your hotel for the first time.

Do not try to remove negative reviews

If a review counts as spam or otherwise breaks platform guidelines, it’s a good idea to remove it. However, leaving genuine negative reviews on your Google Business Profile provides a more accurate representation of your hotel, and creates trust with potential guests who may be suspicious of an overly positive response.

Leaving negative reviews visible also gives your hotel a chance to flex your problem-solving and customer service skills, with thoughtfully crafted replies.

Remove illegitimate positive reviews

If a positive review counts as spam or otherwise breaks platform guidelines, you should try to remove it. This creates a more accurate representation of your hotel, and creates trust with potential guests who may be suspicious of spammy positive reviews.

Listen to your guests

If a particular theme continues to reappear in negative reviews, take this feedback seriously and consider addressing the root of the problem. This will improve the guest experience, leading to more repeat guests and fewer negative reviews in the future. 

In summary

Responding to Google reviews can improve both your hotel’s visibility and your relationship with guests. If you respond to reviews with honesty and maintain an authentic presence on your Google Business Profile, this will positively impact your hotel in both the present and future. 

If you want to learn more about responding to Google reviews or improving your Local SEO strategy, don’t hesitate to reach out.

Leverage First, Second & Third Party Data for Your Property's Success

Data is a pivotal point in digital marketing. It's the driving force behind tailoring campaigns, honing targeting precision, and ultimately achieving results. For a digital marketing agency like ours specializing in luxury hotels and resorts, data holds the key to success.

Among the various data types, three stand out: first, second, and third-party data. In this blog post, we'll explore these data categories and their significance in your property's marketing strategy.

What is first-party data?

At the core of your digital marketing strategy lies first-party data. It comprises information collected directly from your customers or website visitors. As a digital marketing agency serving luxury hotels and resorts, your first-party data may encompass guest details, booking history, and website interactions.

Key attributes of first-party data

1. Ownership: As the owner of this data, you have complete control over how it is collected, stored, and used. This autonomy makes first-party data an invaluable resource for creating highly personalized marketing strategies.
2. Accuracy: First-party data is collected directly from your customers and website visitors, ensuring its reliability and accuracy. This dependable information helps you make informed decisions and refine your marketing efforts.
3. Customization: With detailed insights into individual customer behaviors and preferences, you can create tailored marketing campaigns that resonate with your audience. This level of customization enhances customer engagement and drives better results.

Ways to capture first-party data 

1. Website analytics: Owning and accessing your hotel website is crucial for capturing first-party data. It allows you to gather insights directly from user interactions, such as page views, click-through rates, conversion rates, and more. Understanding visitor behavior and preferences helps in refining marketing strategies and improving user experience.
2. Metasearch channels: Optimizing metasearch channels not only boost direct bookings but also provides an opportunity to capture valuable first-party data. By encouraging users to book directly through your website or a branded booking engine, you can collect data such as booking preferences, stay durations, and guest demographics. This data is essential for personalized marketing campaigns and enhancing guest satisfaction. Learn more about this and our metasearch management tool, here. 

What is second-party data?

Second-party data, on the other hand, is essentially someone else's first-party data that you access through partnerships or data exchanges. In your line of work, this could mean collaborating with businesses that complement your services and sharing data for mutual gain, such as partnering with airlines to target travelers seeking luxury accommodations.

Key characteristics of second-party data

1. Relevance: Second-party data helps you reach a broader yet still relevant audience, extending your marketing efforts beyond your existing customer base.
2. Trust: Second-party data acquired through trusted partnerships ensures a higher level of confidence in its quality and reliability.
3. Extended reach: This data allows you to connect with potential guests who may not have previously engaged with your brand, expanding your market reach and potential customer base.

Ways to capture second-party data 

1. Partnerships with complementary brands: Collaborate with brands that offer complementary products or services. For instance, a hotel might partner with a travel agency, tour operator, or local attraction. Through these partnerships, you can exchange data about customers who have shown interest in travel or related activities, providing valuable insights to both parties.
2. Data-sharing agreements: Establish data-sharing agreements with trusted partners within the hospitality industry. For example, collaborating with other hotels within a chain or group allows for the exchange of guest data. This can include information about guest preferences, booking behaviors, and stay patterns, helping you better understand and target your ideal customer profile.

What is third-party data?

Then there's 3rd-party data, collected and aggregated by data providers unrelated to your business. This data can be acquired to enhance your understanding of your audience. For your luxury hotel and resort clients, it might include broader demographic information, interests, and online behaviors.

Key features of third-party data

1. Scale: Third-party data offers access to an extensive pool of information, enabling you to target a much larger audience than first- or second-party data alone.
2. Efficiency: Leveraging third-party data saves significant time and effort in data collection, allowing you to focus on campaign execution. However, it’s crucial to carefully scrutinize this data for accuracy and relevance.
3. Segmentation: This data allows for the creation of highly targeted campaigns by providing insights into general interests and behaviors of potential guests. With effective segmentation, you can tailor your marketing efforts to resonate with specific audience segments.

Ways to capture third-party data 

1. Data providers and marketplaces: Partner with reputable data providers or purchase data from online marketplaces that specialize in third-party data. These sources offer comprehensive datasets that include demographic information, online behaviors, and purchasing patterns. Ensure you choose providers with a proven track record of accuracy and compliance with data privacy regulations.
2. Advertising platforms and analytics tools: Utilize advertising platforms like Google Ads, Facebook Ads, or other digital advertising networks that offer third-party data integration. These platforms often provide detailed audience insights and segmentation options based on third-party data, helping you target potential guests more effectively. Additionally, analytics tools can aggregate third-party data to enhance your understanding of market trends and consumer behaviors.

In summary, first, second, and third-party data each play a distinct role in your hotel’s digital marketing strategy. 

• First-party data offers profound insights into your existing customers, paving the way for personalized marketing.

• Second-party data widens your horizons through strategic partnerships with complementary businesses.

• Third-party data broadens your audience but may require extra scrutiny for precision and relevance.

To thrive in promoting luxury hotels and resorts, you should harness all three data types. However, always place first-party data at the forefront of your strategy for personalized and highly effective marketing campaigns. Furthermore, consider partnerships and thoughtfully curated third-party data to extend your reach and deepen your understanding of potential guests. Striking the right balance between these data categories will keep you ahead in the digital marketing game within the luxury hospitality sector.

Want to make the most of gathering your first-party data? Let the experts at GCommerce Solutions enhance your data strategy.

Performance Max Best Practices

Performance Max (PMax) is a unique offering that takes full advantage of multiple marketing channels, promoting your hotel across Google’s ad inventory. We’ve already looked at the basics of this campaign type in “What Is Google’s Performance Max?” and assessed its efficacy and use cases in our Performance Max Performance Analysis, so the only thing left is to get this campaign live!

Performance Max is a more recent addition to the marketing world, only introduced in 2021, but we've got you covered. Check out the list of our best practices and campaign recommendations to get the most out of this campaign type.

PMax budget recommendations

Through our testing, we’ve determined that PMax campaigns require a minimum spend of $45 per day in order to run effectively and generate positive results.

While we have yet to determine a maximum spend, we recommend starting close to this minimum and ramping up over time. While PMax campaigns tend to generate positive results, certain hotels can see negative effects from this campaign type, so it’s important to start slow with a lower-spend testing phase. 

We highly recommend adding additional budget to support the launch of a PMax campaign. However, if budget redistribution is necessary, we recommend pulling from non-branded campaigns such as Market Terms. See our Performance Max Performance Analysis for more details.

When to launch a PMax campaign

Because Performance Max relies heavily on automation, Google requires a fair amount of data before PMax campaigns can run effectively. 

We recommend a minimum of 3 months of Google Ads data before launching a PMax campaign, with a minimum of 30 conversions. This ensures the account has enough history for your PMax campaign to identify your hotel’s converting audiences.

How to prioritize a PMax campaign

Because PMax campaigns utilize account-wide data to run more effectively, we highly recommend running PMax alongside other Google Ads campaigns. 

Based on our Performance Max Performance Analysis, we recommend prioritizing Brand Terms over PMax campaigns, and PMax campaigns over non-branded campaign types. However, the ultimate priorities and focus areas within your hotel’s advertising strategy will depend on your individual marketing goals and performance history.

First-party data & PMax campaigns

Along with historical campaign data, Google Ads uses “audience signals” to serve ads effectively. Audience signals can include affinity and in-market audiences, such as “Luxury Travelers,” as well as search terms, such as “Hotels In Park City.” However, the addition of first-party data makes PMax campaigns far more effective.

Signals such as customer match lists and Run of Site audiences are highly individualized for your specific hotel, making them an incredible resource for Google when trying to identify converting audiences and serve ads effectively.

Asset quality in PMax campaigns

High-quality assets are always important in advertising, but even more so when it comes to PMax campaigns. Due to the mix-and-match nature of this campaign type, it’s vital to have a wide variety of appealing, up-to-date image and text assets. High-quality video assets from YouTube, while not strictly required, are also a major benefit to a PMax campaign.

Google does provide the option to automatically generate certain PMax campaign assets, but we highly recommend against this. Automated assets are often low quality, offer very little control over brand voice, and tend to perform poorly.

Performance Max campaigns have an incredible amount of potential, but they aren’t magic. For your PMax campaigns to run effectively, they require proper input, including high-quality assets, comprehensive data on converting audiences, and a dedicated budget.

If you’re looking for more information on Performance Max, or want to get your hotel set up with this campaign type, don’t hesitate to reach out.