Action item: What to Do as Google Ends Commission-Based Bidding for Hotel Ads
Google recently announced that they’ll be making some important changes to Hotel Ads. In this article, we’ll tell you everything you need to know about upcoming changes and offer guidance on how you can drive more direct bookings.
Starting April 30, 2024, Google’s existing commission-based bid strategies (Commissions per Stay and Commissions per Conversion) will no longer be available for new Hotel Ads campaigns. Existing campaigns using these bid strategies will continue to work until October 31, 2024.
In keeping with other industry-wide changes this year, such as the phasing out of third-party cookies, Google is transitioning to more durable strategies to drive performance while meeting privacy expectations. The commission-based bid strategies require third-party cookies to determine when a customer has stayed at a hotel, which will no longer be viable.
To ensure your metasearch campaigns continue running smoothly, we recommend shifting your bid strategies ahead of the April 30 deadline. Here are our recommended options:
- Target ROAS (Target Return on Ad Spend): This bid strategy allows you to set a target return on ad spend, and Google Ads will automatically optimize your bids to achieve that goal.
- Enhanced CPC (Enhanced Cost-per-Click): This bid strategy helps increase conversions by automatically adjusting your bids based on each click’s likelihood to convert.
We encourage you to explore these options and make proactive changes to your campaigns before the deprecation date. By doing so, you can ensure a seamless transition and continue to effectively reach potential guests and drive direct bookings.
If you’d like to consult with O’Rourke about how to prepare for this upcoming change, we’d love to hear from you.