With recent changes and updates by the metasearch providers (namely Google and TripAdvisor) the metasearch channel has become even more complicated. The CPCs tend to be higher than expected and the ROAS can be hit or miss according to the marketplace. A recent update to the HeBS Digital metasearch gateway has enabled us to expose some tricks of the trade that enable hotels to improve ROAS and lower CPC by the introduction of ROAS focused campaigning and not ad position campaigning. A key trick is the new bid optimizer tool in the gateway that enables us to manage ad budgets more effectively.
With the Bid Optimizer performance tool we can now use "ROAS" not "average position" as the lead
driver to determine how best to maximize
revenues. With the Bid Optimizer tool we can place hotels on positions 4, 5, or
6, which still have visibility above the fold (the see more button) but far
lower CPC than the top 3 slots and still maintain a high return. It is a level
of sophistication and control that makes all the difference in performance and outcome.
We launched the tool in response to the high CPC and the
impossible task of trying to maintain top position. It so happens that on
TripAdvisor, the top position is owned by TripAdvisor powered by Tingo. Any hotel
enrolled in the Instant Booking program now participates in this program. In turn
this has pushed all other advertisers down one slot and pushing up bids for
slots 2 and 3. We advise clients to aim for the top 6 visible slots and even
settle for the bottom 4 slots still above the fold to remain visible but pay a far lower CPC. Such a
strategy has helped us push the CPC down and the ROAS up.
For the month of January:
For HPA the avg CPC is $7.22
ROAS is 700%, nearly a 300 percentage point
increase from previous months
For TA the avg CPC is $4.20
The ROAS is 600%
