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Hilton Uses Google Hotel Ads to Entice New Customers
Hilton Hotels is seeing significant bumps in conversion rates and return on investment (ROI) byintegrating Google Hotel Ads into its advertising budget.
Unlike other Google advertising products, Hotel Ads focus entirely on reaching travelers as theyplan their trips. Hotel ads appear across devices wherever travelers might search on Googleproperties, including maps, search, and Google+. Hotel ads also link directly to checkout, so thatwhen travelers are offered, for example, $182 a night for a room in Miami, they can select that rateand book through the ad. Like AdWords, Hotel Ads use a limited number of words to list amenitiesand specific offers.
Hilton's marketing team worked very closely with its revenue teams to use Hotel Ads to fill specificvacancies within the hotel chain, according to Dustin Bomar, vice president of digital acquisition atHilton Worldwide. Targeting individual hotels paid off for the company. It's seen a 45 percentincrease in conversions and a 12 percent increase in ROI since adopting Hotel Ads.
"We integrated very closely with our revenue management colleagues who could tell us where theneed was," Bomar says. "For example, if the entire market is down in Atlanta or there are occupancygaps in Chicago for the next 60 days, aligning with revenue management allows us to pull thestrings for hotels that really need business versus just kind of blanketing the market and havingeverything be the same."
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Bomar also says that Hotel Ads brought the chain new business, which was more important to thecompany than simply increasing overall ROI. "The thing that we care about is incremental businessto our hotel," says Bomar. "It's very easy to go out and do campaigns that show a good ROI, but it'smuch more challenging to deliver new business to our hotel. If I'm looking at performance of acampaign and I see that 90 percent of the reservations that are being booked from Hotel Ads werefrom our Elite Tier Honors members, I would question whether or not I was paying for businesses Iwould have gotten anyway. We look at everything with the lens of incrementality and making surethat we are driving new business to the hotel and not just demonstrating a very good ROI."
Bomar looks forward to future stages of Hotel Ads that could deliver Hilton's message to an evenbroader audience. "I think Google obviously has access to a huge audience and if they choose to doso they could very quickly flip the switch and we would have a lot of volume coming through there,"Bomar says. "I'm hopeful that they'll continue carefully ramping it up and that performance willmaintain."
http://searchenginewatch.com/sew/news/2401430/hilton-uses-google-hotel-ads-to-entice-new-customers