Formic Media recently ran a campaign to test out Google's new offering, AdWords Express.
It was for Heathman Lodge, a resort in Vancouver, Wash, Information Week reports. Formic was interested in seeing whether the automated platform could earn a return on the ad buy, (the answer is yes), but the hospitality industry took note as well. It is likely no accident that a hotel was willing to be the test case - in general, hospitality is aggressive in its use of online ad techniques.
For the most part, that emphasis has been on the recommendation and customer view sites. Increasingly, though, they are redoubling efforts in other areas.
Paid Search Attracts Interest
Paid search advertising is becoming more commonplace for the hospitality industry, writes HoteNewsNow. "We have experienced a 20% increase in PPC year over year," said Agnelo Fernandes, VP sales & marketing, Terranea Resort, told the publication they have experienced a 20% increase in PPC year over year. One of Hyperdisk Marketing's hotel clients has achieved a 50% year over year increase in overall website revenue, says Steven V. Seghers, president.
"(Return on investment) for paid search alone is 6-1 and 8-1, and when you add in the total spend generated from paid search it is up to 15-1.”
Expedia's Billboard Effect
Expedia reps point to findings from a Cornell Hospitality Report, "Search, OTAs and Online Booking: An Expanded Analysis of the Billboard Effect" citing its "Billboard Effect" as a reason to advertise on Expedia, Hospitality Net writes. The report determined that when a property was listed on the first results page of Expedia, it led to an increase of between 7.5% and 14.1% in bookings for the same property on its own brand website.
Growing Numbers Flock to Online Sites
None of this is surprising considering that online is where consumers go for their travel information and services. An all-time high of 116 million US consumers visited the online travel category in June 2011, with half of the month’s top-gaining categories falling under this umbrella, according to comScore Media Metrix data.
Hotel and resort sites saw a boost during the month with 34.8 million people visiting the category, up 13% from May. Hilton Hotels took the top spot with 5.4 million visitors (up 24%), followed closely by Marriott with 5.4 million (up 18%). Choice Hotels International attracted 4 million visitors in June (up 40%), followed by InterContinental Hotels Group with 3.9 million and Wyndham Worldwide with 3.5 million, up 25 and 23%, respectively.
