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6
February
2017

Understanding Google Hotel Ads- How Does Bidding work?

By Lisa Shields

14 : 42h
1 Comment


Google Hotels Ads is one of the channels driving serious traffic to our client's hotel websites.  It’s a great opportunity to drive website traffic, and it’s sure to send interested customers your way.  One question our customers often ask is how the bidding works and how it differs from Google Adwords? We attended a Google Hotel Ads bidding webinar last week on this subject  and just wanted to share some of the insights. Read on to learn about bidding on Google Hotel Ads and driving more direct bookings for your hotel

  


Bids are Set per Night, Not per Stay

The first and most important element to understand is that bids are set per night, not per stay. So, if your bid is set to €1, you will pay €1 for a click if the user is searching for a 1 night stay, €2 for a 2 night stay, €3 for 3 nights and so on…….and you also set your bids to a % of your room rate, but the same rule apply. If its 1% and you're charging €100 per night, then you'll pay €1 for a 1 night search, €2 for 2 nights and so on.....

 

Bidding: There are 5 Options but which is Best?

There are 5 ways that you can bid. This first is manual bidding and its pretty straightforward, the other 4 are automated.  Our recommendation is to go manual, at least to start with. It’s the best way to gather data and see what’s working for your hotel, it also gives you more control on your spend, when you dont' have any historical data to rely on yet. 

  1. Manual Bidding: you set your bids manually, per night and a decide on a max. daily spend. Bids can be set at a fixed value eg: €1 or as % of the price you are charging for that night- eg: 3%

  2. Automated Bidding: % commission- This is also a good option, particularly for hotel groups and it’s something you will be hearing more about from us over the coming weeks.

  3. Automated Bidding:  Budget Optimiser- this is automated bidding based on a set daily budget

  4. Automated Bidding based on Target ROAS (Return on Ad Spend)

  1. Automated Bidding: Autobid Multiplier

 

Ranking of Ads- Its Important to Get a Top Slot

There are usually 3 or 4 “A” slots. These are the ads that users will see on 1st view. There are 3 more “M” slots, which will only be seen if the user clicks on “More”.  So, to be in a chance of some decent volume traffic, you need to be in the Top 3/4.

Google-Hotel-Ads-Screenshot-Hotel-In-Madrid-Search.png

How Does the Auction work – The Highest Bid isn't Always No. 1!

The bid auction will put the highest scoring ads up to the top of the list.  Your ad score is based on three key factors:

  • Price competitiveness- are you offering the lowest price for your hotel?
  • CPC bid- how high are you bidding?
  • Quality score- how excellent is your price accuracy!

So, while offering the best value rate is very important, its also essential that your pricing is accurate, so that the price the user sees on Google Hotel Ads, is in fact the same price they get when they click through.  Variances either way, cheaper or more expensive, will lead to pricing issues and your ad ranking will drop.

Need some help with your Google Hotel Ads Set up?

So, as you can see, when you're Optimising your Hotel Ads Bid strategy, there are few factors to consider. If you would like to learn more about driving direct bookings to your website using Google Hotels Ads,  get in touch with us. We are an Authorised Google Hotel Ads Integrator and are already driving bookings for our international hotel group clients, using this fast growing channel.

Book a FREE Live Demo About Google Hotel Ads

  

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