What Pay-Per-Click Advertising Means For Hotels

As a hotelier, it's difficult to know where to place your digital marketing budget for the best ROI. There are plenty of options, but none have the instant results quite like pay-per-click advertising (PPC).  Maybe you have heard that your hotel brand particpates in pay-per-click advertising, but you may not be certain of what PPC advertising means for your specific hotel. Here's a crash course on PPC advertising for hotels, why it is different than organic SEO efforts, and why your property should be investing in this channel.

Pretend for a moment that you are grocery shopping. You walk up and down the aisles, trying to find the perfect product for your dinner/meal/snack/weird late-night food cravings, "searching" through all the products, picking up packages and reading their descriptions, until you find the one that you feel is best for you. Purchase made.

Let's identify the steps here:

  1. You have a need.
  2. You, the shopper, the guest, the user, "search" for something to fill that need.
  3. The store lines its shelves with things that might possibly fulfill your need, and...
  4. You pick the most relevant "answer" to best fulfill this need. If you picked one brand, for example Special K cereal, from 100 choices on the shelves, this would represent an organic search.

Now let's say the Kellogg's brand paid for better placement of their Special K cereal in order to make their product stand out from their competitors. Maybe instead of the cereal appearing on the bottom shelf, Kellogg's pays to have their Special K cereal placed at eye-level in the high-traffic half of the cereal aisle. This would represent a paid search effort. Paid search efforts are a way to ensure that you are more visible than your competitors to shoppers.

What is PPC?

  • Pay-per-click advertising is exactly what it sounds like; you only pay for the clicks your ads receive. No clicks = No spend.
  • Cost-Per-Click (CPC): this is the cost incurred per click. CPC is a basic metric that is often used to set budgets and expectations for a particular account. 
    For Example: If your average CPC is $2, and you budget $1,000 a month, you can expect (roughly) 500 clicks a month from the ads.
  • PPC ads show up on the top and the right side of a search engine results page (in green in photo below) after a user has entered the query into the search engine. The ad will enter an auction for the position, and the winning ad will be shown.

SERP Example

As this photo shows, the sponsored placements (green) will always be visible on the results page, while the organic placements (blue) and the local placements (red) depend on ranking factors. This is where SEO comes in. 

Why Do Advertisers Need PPC?

  • The purpose of paid search is to capture traffic that might have otherwise been directed to the highest ranking site on the organic results page. It is one of the quickest and easiest ways to put your business on the top of the search engine results page, which can be especially beneficial for a site that does not rank well organically for certain keywords or search queries.
  • PPC enhances all other marketing tactics: social media, email marketing, SEO, local results.
  • PPC is easily customized to very specific products, promotions, or offerings.
  • PPC can send traffic to the most relevant page on the site, eliminating the user’s need for navigation (and eliminating chances to drop-off!). 
    For Example: if you want to drive more traffic for summer weddings in Sacramento, your ads can send the user directly to your weddings page that showcases pictures, floor plans, catering, etc.
  • Out of budget? **Click** Now your PPC advertising and spending is turned off until you turn it back on. Instantaneous.

Why Do Hotels Need PPC?

Nearly every business can benefit from PPC Advertising, whether in building brand awareness, selling a specific product, or even getting folks into a brick-and-mortar location. Every business should be utilizing this channel in their online marketing strategy, and hotels specifically can greatly benefit from PPC in a number of ways:

  • Hotels are constantly battling dependency on OTAs, like Expedia and Travelocity, which collect a hefty margin for each booking. PPC efforts allow hotels to capture some of the market that would have gone straight to an OTA, and encourages guests to book accommodations on their most profitable channel: their website.
  • Hotels can direct traffic to their specific property. This ensures that the conversion (and revenue!) stays with your property, not on a different property in the same area.
    For Example: if a search is done for "hotels in Oakland", there will be landing pages devoted to all of a brand's properties in Oakland. A hotel will face competition from its own sister properties. The goal of these pages is to elevate the brand as a whole, not the specific hotel.
  • SEO + PPC = page dominance. Hopefully, your SEO tactics have put you at the top for both organic and local results. Pair those efforts with PPC’s ability to show your ad at the top or right of the page, and you have now given your audience THREE different opportunities to come to your site and not your competitors’.
  • Special offers, events, wedding or restaurant pages: Brand.com will run ads for “Hotels in [insert big city here]”. While this does drive traffic to your property's home page, broad searches such as these indicate the user is likely just beginning their search and not ready to book. By running property-specific PPC, you can now send those seeking wedding venues, on-site restaurants, business meeting space, and anything else your property offers to a specific landing page.

What's The Catch?

A/B Testing to always be optimizing! While few and far between, there are some 'cons' of PPC advertising. With all the dynamic ads and automatic bidding that Google and Bing offer, it’s fairly easy to pick your keywords, set your budgets, and launch your PPC campaign. Here’s the part that’s not so easy: optimizing. Optimizing PPC campaigns, strategies, and budgets is literally a full-time job (thank goodness!). Optimizing and testing is not critical to running PPC ads, but it is absolutely critical to the success of these efforts. The most rewarding (and fun, if you’re as big of online marketing nerds as we are at Blue Magnet) aspect of PPC advertising is its ability to always be one-upping itself.

For Example: run ads A and B at the same time. If ad B gets more clicks/conversions/whatever-your-goal-metric-is than ad A, stop running A, and now try to beat B.

Finding the sweet spot for your bids and ad rank takes a lot of knowledge, skills, and many, many tests.

Catch #2: Without proper access to the HTML code that makes up your site, Conversion Tracking is pretty much impossible. Hotels that have standalone sites in addition to their brand site can track the shopper’s journey from PPC ad to hotel site to reservation page. Without a standalone site, you can only track the shopper coming to the hotel's site. Without this valuable data, it can be difficult to see the exact ROI of your PPC efforts.

With thant in mind, you may be thinking: “So, if I don’t have an independent site, I shouldn’t do PPC advertising?”  Wrong.

A traveler would not be searching for "hotels in ______" unless they were looking to book a hotel in the area they have designated. By simply showing up to the Search Engine Results Page party for your keywords, your specific property will be capturing valuable, relevant traffic that might have gone elsewhere. Miss out on this party/opportunity, and your competitors (or OTAs) may capture what you didn't. It’s not ideal from a tracking (and optimizing!) perspective, but it is still valuable traffic that you have taken away from your competitors.

In short, PPC is a valuable, extremely customizable marketing channel that allows hoteliers to compete with OTAs and their local competitors, even those under the same brand. You can run ads on any budget, on any schedule, and as often as you like.

PPC is a beautiful thing. 

Pay-Per-Click By Dustin Caromano October 06, 2011 Tags: ,

Improve Your PPC Quality Score: Tips For Saving You Money

What is Quality Score?

If there is one segment of pay-per-click that keeps me tossing and turning at night – it’s Quality Score. For those of you familiar with Quality Score, you understand its importance in saving you money and displaying your ad at a higher position. Quality Score is a numeric value between 1 through 10, 1 being the lowest and 10 being the highest that is given to each keyword within your PPC campaign. This number is determined by a very complex algorithm that Google has created in order to help rank how relevant your keyword is to your ad text and user’s search query.

Why Use Quality Score?

Just imagine if every business using PPC was able to control their ad solely by how much they were willing to bid on each keyword - that's a pretty scary thought! This methodology would mean that the company with the highest PPC budget would win, even for keywords that they weren't relative to. This scoring system is in place to ensure that there is an even playing field amongst businesses and helps users find the most relevant information.

Tips to Improve Your Quality Score:

  1. Create Very Targeted AdGroups
    One of the biggest mistakes PPC marketers make is that they try to clump all of their keywords into the same AdGroup. If you want to improve your Quality Score, separate them as much as possible. For example – accommodation keywords, lodging keywords and hotel keywords should all have separate adgroup. I would bet you could break down the your hotel keywords to be ever more specific!
  2. Use Your Keywords in Your Ad Title and Copy
    You don’t have many characters to play around with when writing your ad, so make sure to use keywords contained in the AdGroup you’re writing for. This will make your ad more relevant to what search terms are triggering your ad and make it more likely to be clicked.  
  3. Optimize Your Display URL
    Something as simple as adding a keyword to the end of your display URL can help your ad stand out. For example if you’re targeting boutique hotel keywords make your display URL www.example.com/boutiquehotel. Remember keywords are bolded when they match the users search query.
  4. Send Them to a Relevant Landing Page
    Get out of the habit of sending every ad to your home page. If your ad is targeting "suites", send them to a landing page that has ample information about your suite rooms. Also, let’s not forget what the main goal of your campaign is – to convert to a sale. Quality Score aside, you want users to find exactly what they are looking for when they click on an ad directing them to your site and you want to provide them with relevant information when they get arrive without having to look around.
  5. Create More Than One Ad
    Don't put all your eggs in one basket! Create numerous ads per AdGroup and test them to see which one has the best click through rate and then use that copy moving forward.

If you really want to work on improving your Quality Score, get in the minds of your consumers and write copy that is compelling, interesting, informative, targeted and most importantly, makes them want to click. The goal is to get your click through rate as high as possible as this has a direct influence on your Quality Score. The more often your ad shows and is clicked on you are positively effecting your score.

If you make changes and start noticing that your click through rate is improving but your quality score doesn’t change don’t get discouraged! Your campaigns historical click through rate factors into your Quality Score so give it time to improve your average - think big picture!

Pay-Per-Click By Dustin Caromano September 06, 2011 Tags: , ,

Google Creates AdWords Express For User-Friendly PPC

For those of you that have attempted to venture into the world of pay-per-click advertising, you quickly learned how overwhelming of an experience this is, especially for someone who has zero or minimal knowledge of search engine marketing. I bet you felt like you weren’t in Kansas anymore: keyword research, CPC, and quality score – OH MY!

Luckily for you, Google has unleashed a new product that makes playing the PPC game much less daunting! AdWords Express is the easiest way to advertise on Google, takes minutes to set-up and requires very little management. Simply choose a category that is most relevant for your ad, write a short headline and description, choose a budget you feel comfortable spending monthly and VOILA! You’ve just created an advertisement for your business. From there, AdWords Express will automatically estimate the number of clicks you will get for your designated budget – remember you’re only paying for clicks!

How can hotels utilize AdWords Express?

AdWords Express will capture customers by using a technique called radius targeting. For instance, if you’re a hotel in Chicago wanting to utilize PPC to target travelers within the city, this product will be perfect for you! Customers who enter "hotel" as their search query, and are within 25km, will be shown your ad. Adwords Express will also target customers who are outside of this 25km. If a customer in Atlanta is searching for a hotel in Chicago and enters "Chicago Hotel" within Google, they will also be shown your advertisement because they used your city identifier!

How to creatively use AdWords Express:

  • Advertise your hotel – people in your area are searching for you! 
    • The family down the street has family in town and needs to research places for accommodating them
    • The local business needs meeting space to discuss their latest figures
    • The local soccer club looks to host a holiday party
    • A wedding planner or bride is planning an area wedding
  • Advertise your hotel restaurant or spa – don’t just think about room nights!
    • What if the competing hotel around the corner doesn’t have a restaurant or spa? Just because you may not get the revenue from a guest staying at your hotel, doesn’t mean you can’t capitalize on them using other services you offer.
    • Capture local business employees who are looking for a great place to grab lunch or have an after work beverage.

Because AdWords Express also displays your ads on mobile devices, this is a great way to capture people at the most critical time within the purchasing process – when consumers are looking to act! By using services like AdWords, you are able to streamline your business directly to the consumer searching for you – possibly for keywords you were not able to rank for organically! Sometimes you have to pay to play.

Pay-Per-Click By Brittany Busch May 09, 2011 Tags: , ,

Apples to Apples: How To Build an Effective PPC Campaign Structure

Cow. Sheep. Barn
Apple. Orange. Carrot.

Can you find the item that doesn’t belong here?

From the earliest stages of learning we are taught how to group objects and words by meaning and similarity. However, some advertisers lose this fundamental logic when building their PPC campaigns. Building your PPC campaigns in the correct structure is essential to the success of your advertising. The cost of improper keyword structure can be detrimental to your campaign and hard to recover from.

Some of the pitfalls of poor campaign grouping are:

  • Low quality scores
  • Higher keyword CPC
  • Lower ranking on search engine results pages

Unfortunately, these pitfalls totally defeat the way a successful campaign should operate.

Often, advertisers think it's extremely difficult to structure a PPC campaign correctly. It's not! If you employ the grouping tactics you learned back in grade school, you'll see that grouping keywords in a PPC campaign is just as easy as grouping shapes, animals, and foods. Think topically when deciding how to build your campaigns and ad groups.

Here’s an example of effective grouping:

  • Campaign > Seattle Attractions
  • Ad Group > Seattle Space Needle
  • Keywords > Hotels near Seattle Space Needle, Seattle Space Needle Hotels, Space Needle Hotels Seattle

As you can see, this grouping of keywords is structured so that the overlying theme of the campaign is attractions in the Seattle area. Since you're building campaigns for a hotel, you will want to be careful about bidding on keywords not containing the word "hotel." For instance, you could bid on "Seattle Space Needle" and gain plenty of impressions; however, it is likely that you won't receive a large volume of clicks, thus resulting in a low click-through rate and even lower quality score. Even if you received a high number of clicks, the traffic you'd get would be low quality and result in low conversion rates. You can also see that the ad group theme is Seattle Space Needle and the keywords stick closely to this theme.

Here is an example of bad keyword structure for the same campaign and ad group:

  • Ad Group > Seattle Space Needle
  • Keywords > Hotels near Seattle Space Needle, Hotel near downtown Seattle Center, Seattle restaurants near space needle

The keywords in this ad group focus on the Seattle Space Needle, but really aren't relevant to each other. One keyword references restaurants, while the other two reference hotels.  Google will read this grouping as poor relevancy, and thus will reward you with one of the pitfalls of poor ad group structure--definitely not the type of reward you'd like to see.

We'll discuss keyword selection and more in future posts. If you still aren't sure that you will master the art of building a PPC campaign, visit Google's AdWords Help Center to learn more. Once you've learned how to set up your PPC campaign, you're on the road to pay-per-click success!

Pay-Per-Click By Brittany Busch March 30, 2011 Tags: , , , ,

Not Ready to Try AdWords? Google Has a Solution for You in Google Boost.

Google is making big changes to its traditional search engine results by integrating Google Places, and more recently, Google AdWords.  Previously, each component of Google was separate from the others, living in different sections of search results and functioning independently. Today, a heavy emphasis has been placed on location-based search results and location targeting. Thus, companies that are not ranking well in Google Places or using geographic targeting in Google AdWords could be missing out on customers.

How does a business that isn’t ranking well in Google Places nor has a presence in AdWords have a chance at succeeding in the local search market?

Google Boost is the answer. This new pay-per-click product marries Google Places and AdWords to provide a low-cost, simple, local search solution for small businesses and advertisers who want to capture a local market.

Google Boost ads appear at the top of the search engine results page among sponsored search ads. Boost ads look relatively similar to standard Google Places listings with the exception of a blue pin marker rather than red.

Google Boost Ads are only offered to advertisers with a physical address. Signup is easy as Boost Ads are a part of Google Places. An advertiser only has to sign in to their current Google Places account and add Boost Ads to their marketing mix. Even better, like standard Google Adwords pay-per-click ads, a business is only charged when someone clicks on their ad.

Here are a few specific reasons why Boost Ads are a viable local search advertising option for small businesses and businesses focused on gaining interest from consumers located near their physical address.

Location is key!

Recent studies show that customers tend to include their intended location in their search queries. Studies also show that with the rapid growth of mobile search, customers will search for businesses while on the go and expect to see local results based on their mobile signals or GPS location. This makes it important for advertisers to have positioning in the top of the search results. Google Boost offers top positioning both of PC and mobile browsers.

Ease of use

For inexperienced advertisers and small businesses, Google AdWords may seem overwhelming and unmanageable. Google Boost offers a simple, almost hands-off approach to pay-per-click advertising. As stated above, signup is easy. Once set up is complete, the Google algorithm does all of the work for you by choosing keywords, bids, and running automatically.

Important company info presented up front

There are a few simple pieces of information most users seek when looking for a company: Location, quality, and contact information for the company are typically the most important. With Boost Ads, users get this info immediately. Since the ads are actually Google Place page results, customers are able to see the website, user reviews, location and company description all from the search results. For an extra fee, the company phone number can be added to the listing. This is very important for mobile users as the Google click-to-call feature is activated allowing customers to call a business directly from the search results on their mobile phone.

In short, Google is concentrating on local search and geographic targeting, and you should too. You may not be ready for the world of AdWords and this is fine (although we highly recommend that you consider PPC), but Google Boost gives you an opportunity to focus on what matters to Google while getting your feet wet in the great world of pay-per-click advertising. Undoubtedly, Google will continue to integrate the various components of its search marketing program. Therefore, staying ahead of your competition (as well as Google's frequent additions and updates) should be a primary goal for your search engine marketing efforts.

Pay-Per-Click By Brittany Busch March 09, 2011 Tags: , ,

Three Reasons You Should Consider PPC

Pay-per-click is an ever-elusive topic that many companies fear because they don’t quite understand the benefits of running PPC ads. It’s often seen as a side expense or an item to add to the marketing plan if there is leftover budget. However, there are many reasons why your company—no matter the company’s field of expertise—should consider adding pay-per-click to your arsenal of online marketing tools. If your company needs more convincing, review the top three reasons the internet marketing experts at Blue Magnet Interactive strongly recommend running a PPC campaign for your business.

1. Faster Results than SEO

Search engine optimization is arguably the most effective way to increase your online marketing presence and one of the more cost efficient ways because it gives your website exposure in search engine results, ideally leading to conversions. However, search engine optimization has one very important downfall: playing the waiting game. It typically takes four months or more to truly see accurate results from your SEO efforts. For the impatient marketer or client, waiting months is not an option. Wouldn’t it be nice to see more immediate results from the hours you’ve spent trying to build your search engine marketing efforts?  With pay-per-click advertising, results are instant and marketers are able to monitor the success of a campaign as soon as the campaign goes live. As with any marketing campaign, it does take time for a PPC campaign to ramp up and for your efforts to result in conversions, but note that with PPC the decision to start a PPC campaign before (or in tandem with) an SEO campaign depends on the time your company has to wait for results and the amount of money you have budgeted to online marketing.

2. You Control Your Spend

Many companies are under the impression that a PPC campaign is unattainable unless they have a large budget to spend. This is one of the biggest misconceptions of pay-per-click advertising. Your PPC budget is completely in your control, even down to how much you spend per day, the geographic area in which your money is spent, and the keywords you choose to target. Of course, the larger your campaign budget the more exposure your company will receive and the better your chances of making a great return on your campaign. However, you can spend as little money as you have budgeted, target your campaign and make the most out of every dollar you have available

You’re probably wondering, "Why wouldn’t I just skip PPC and focus on SEO since it’s free?"  Often, companies equate SEO with free marketing, but this too is a misconception. Although a marketer isn’t paying for each click on their organic search listing, there is still cost associated with natural search listings. Just a few of the common costs associated with SEO are the hiring of an internal team or 3rd party marketing agency to create the optimization strategy, redesigning a website to be more user-friendly, and paying for listings on outside websites to enhance your link building strategy.  Consider those three costs for SEO and you’ll realize pay-per-click is even more of a cost efficient option when compared to organic search marketing.

3. Increased Exposure To Your Company’s Website

What company doesn’t love having multiple opportunities to generate revenue and increase exposure? By ensuring you have space in the PPC advertising space of a relevelent Google search, you’re securing your seat in the competitive realm of search engine results and making your company known to any potential new clients. Coupled with stellar natural search rankings, your company’s website will be reaching twice the audience it would have with only search engine optimization efforts.  Your ads begin showing almost immediately, thus complimenting your natural search listings. You control your spend. You control the number of people you reach and where your ads show. No matter how much money you choose to contribute, there’s no doubt that by running PPC ads, your company has the opportunity to capture additional chances for customers to find you, thus increasing the chances of conversion throughout your site.

Overall, Blue Magnet Interactive stands firmly behind the concept of a strong pay-per-click advertising strategy. The setup process may be cumbersome and time intrusive for the less experienced marketer, but this shouldn't be a deterrent from participating the advertising. This is when a company should decide to invest in a company that has the tools, ability, and time to dedicate to completing keyword research, managing your spend, and ensuring your company sees the best ROI possible for your campaign.

Now that you’ve learned the three main reasons you need to consider implementing a pay-per-click campaign, ask yourself if there is anyone at your hotel that’s able to manage the process for you. If not, that’s where Blue Magnet Interactive comes in! We can help you begin the process of pay-per-click management today!

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