Decoding Google Ads conversions for hotels: Assisted conversions!

Inner Page Decoding Google Ad conversions for hotels

Have you ever faced a situation where your hotel has received different metrics on conversions for the same period? For instance, your ad agency claims they have generated 200 room nights for you and your internal team working on SEO says you have done 150 room nights. However, your business has done 300 room nights in total. So which of these entities is telling the truth?

Consider this scenario: Your hotel is based out of New York City. You advertise your hotel on a billboard outside John F. Kennedy International Airport. Your potential guests might see that billboard and immediately book a room at your hotel or they might do nothing at that moment and make a reservation a couple of days later. The intriguing question here is: Did the billboard help in converting those customers? The answer is yes!

Hotel e-commerce works in a similar way. A potential guest may visit your website directly. The same guest may also use other channels to visit your website before actually making a booking. For instance, your customer might visit your website through a Google Ad. A couple of days later he/she might do an organic search (type in your hotel’s name in Google) on your hotel and reach your website. They would further browse reviews on social media and finally make a booking. You may realize that all three channels were important in converting your visitor into a customer.

The concern that arises here is that of attribution. Should hotels choose a last-click attribution model or should they go for a multi-touch attribution model?

Last-click attribution gauges the point of contact at which a customer last clicked or engaged to make a booking and gives that touchpoint 100% credit for the conversion. In the example above, if social media is indeed credited for the conversion, then it would not provide an accurate picture of what motivated the customer to visit the hotel’s social media handle in the first place. This would give a limited understanding of consumer behaviour. A standard marketing funnel consists of the following stages: Awareness, Interest, Desire and Action. By only measuring the last clicks, we focus only on Action and ignore the remaining stages.

Now, if your hotel has a Google Ads account and runs paid campaigns, Google Ads helps you analyze customer behaviour better by providing you with an attribution duration (time decay). It provides more attribution to ad interactions that happened closer in time to the conversion. Attribution is distributed using a 7-day half-life, which can be customized further according to a fortnight, a month etc., depending on your goals. What this means is that an ad interaction 8 days prior to a conversion gets half as much credit as an ad interaction 1 day before a conversion. All these dashboards are represented in a multi-channel conversion visualizer which ultimately helps you understand your customer behaviour better.

The Simplotel Advantage:

At Simplotel, we help hotels optimize their Google Ads. We also run effective Google Ad campaigns and ensure optimal spending to maximize your conversions and ROI. Get in touch with us to learn more!