How do you determine the proper ad budget for Google Hotel Finder?
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Jason Price
Dec 16, 2013, 7:47:01 PM12/16/13
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Hello Everyone,
A common question we are often asked by hotels regarding Google Hotel Finder is what should be the recommended monthly ad budget to participate.
Our recommendations follow this methodology:
We have seen at HeBS Digital that to make this all work we recommend a minimum monthly spend and a minimum time frame to run the advertising. What influences the budgets will depend on the responses to the questions listed above. The appropriate budget is part of the research that needs to be conducted to provide a meaningful recommendation and return. How many OTAs advertise your hotel, the profile of the property, ADR level, and competitive landscape all matter. A low monthly spend of $100 a month will not produce any meaningful return if you are a high ADR property, in a popular destination, or working with several OTAs. Meanwhile a $1000 ad spend may be overkill if you are not working with any OTAs, located in a remote or seasonal destination, or rank low in customer reviews. It is best to discuss the appropriate monthly minimums with one of our account reps who will conduct a detailed analysis. This person will conduct the research in order to determine the right budget level. Of course, everyone likes a standard to work from and we recommend a starting point for most hotels on Google HF to start with a $500 spend. Keep in mind as traffic increases to Google HF the opportunity increases. Last year we recommended $300 minimum spend. In 2014 we anticipate this spend to increase as more traffic finds value in what Google Hotel Finder has to offer.
Best,
Jason Price
A common question we are often asked by hotels regarding Google Hotel Finder is what should be the recommended monthly ad budget to participate.
Our recommendations follow this methodology:
- Are you currently participating in paid search? If so what is your monthly spend, what has been the ROI on brand and unbranded terms?
- How many online travel agencies (OTAs) are you working with? How many appear in Google Hotel Finder currently?
- How competitive is your destination? Is your comp set selling on Google HF? How about TripAdvisor Show Prices, Trivago, Wego, and others?
- What can you afford on a daily, monthly basis? If it is $10 a month then this is a $300 monthly spend, and so on.
- What is the anticipated ROAS do you expect? Is it 4 to 1, 5 to 1, and so.
- What is the length of time that you wish to participate?
- Are you a seasonal destination or year round?
- Are you a full service hotel or limited?
- Are your ADRs considered high or low?
We have seen at HeBS Digital that to make this all work we recommend a minimum monthly spend and a minimum time frame to run the advertising. What influences the budgets will depend on the responses to the questions listed above. The appropriate budget is part of the research that needs to be conducted to provide a meaningful recommendation and return. How many OTAs advertise your hotel, the profile of the property, ADR level, and competitive landscape all matter. A low monthly spend of $100 a month will not produce any meaningful return if you are a high ADR property, in a popular destination, or working with several OTAs. Meanwhile a $1000 ad spend may be overkill if you are not working with any OTAs, located in a remote or seasonal destination, or rank low in customer reviews. It is best to discuss the appropriate monthly minimums with one of our account reps who will conduct a detailed analysis. This person will conduct the research in order to determine the right budget level. Of course, everyone likes a standard to work from and we recommend a starting point for most hotels on Google HF to start with a $500 spend. Keep in mind as traffic increases to Google HF the opportunity increases. Last year we recommended $300 minimum spend. In 2014 we anticipate this spend to increase as more traffic finds value in what Google Hotel Finder has to offer.
Best,
Jason Price
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