Changes to Google Hotel Ads Bidding Strategies
February 7, 2024
Yesterday, Google announced changes to Google Hotel Ads campaigns, affecting only those strategies based on commission bid models (pay-per-guest stay and pay-per-conversion biddings). We want to ensure you have the necessary information to understand what it means and how we can manage them together.
Commission-based bid strategies (pay per Stay and pay per Conversion) will no longer be available: Starting April 30, 2024, Google will no longer allow the creation of new campaigns using these bid models, both for pay-per-consumed booking and pay-per-generated booking.
However, active campaigns before this date can continue until October 31, 2024, when this bid model will be completely deactivated.
Why the change?
The Google Hotel Ads specialist team has informed us that this change responds to the evolution of the digital landscape, particularly regarding third-party cookies.
Google explains in its statement, "With upcoming industry-wide changes this year, such as third-party cookies phasing out, we are transitioning to more durable strategies that will help drive the performance needed to grow your business while meeting people’s expectations for privacy. Our travel commission-based bid strategies require third-party cookies to determine when a particular customer has stayed at a hotel to properly measure commissions."
How will It affect your hotel's marketing?
This news probably leads you to questions about what this means for your hotel's digital marketing strategy. Here are some of the most important questions:
- Continued service for active campaigns: Your current campaigns with commission-based bid strategies will not be immediately affected. They will continue to operate as usual until October 31, 2024.
- Support during the transition: We will work alongside the Google team over the coming months to manage the transition and periodically inform you of the entire process.
- Access to historical data: You will continue to have access to historical campaign reports, which will allow us to continue analyzing performance and making data-based decisions.
How are we working to ensure the success of your campaigns?
Although you don't need to change anything until October 31, our team is already working hard to fully understand the implications of these changes and develop strategies to ensure your campaigns continue to be successful.
We will provide ongoing updates, resources, and support as we manage this transition together.
Currently, there are two complementary campaign options to maximize your investment:
- Target Return on Ad Spend (ROAS) or Enhanced Cost Per Click (CPC): These strategies are designed to maximize advertising performance in this new scenario.
- Performance Max for travel goals: This campaign type uses Google's advanced artificial intelligence to optimize your presence across all Google platforms, ensuring maximum visibility and booking potential.
As you know, change is an inherent part of the digital world, and while it can be challenging, it also presents opportunities for growth and innovation.
Our team is committed to ensuring your digital marketing investments remain effective, compliant, and at the forefront of industry best practices.
We understand you will have many questions, and we are here to offer you the answers.
You can find more information in the Official Google Announcement