For hoteliers worldwide, meta-marketing via Google is an indispensable channel to increase direct bookings. With options such as the flexible cost-per-click (CPC) and the popular cost-per-acquisition (CPA) model, Google provides an effective platform for price comparison.
But a dramatic change is coming: Google recently announced the end of commission-based meta-search campaigns. This announcement has attracted much attention as many hoteliers have relied on this model to increase their online visibility and bookings. But what exactly does this change mean, and how does it affect hoteliers?
What does CPA mean?
The CPA model stands for "cost-per-acquisition", in which hoteliers only pay a percentage commission when a booking is generated via the platform. This allows for a low-risk advertising strategy where hotels only pay for confirmed bookings rather than clicks or impressions, as in the CPC model. This model has proven to be a popular and effective advertising strategy, especially after Covid19 entered our lives. Abolishing this could seriously affect hoteliers, as the model offers them a permanent opportunity to strengthen their presence on the platform.
Why is it stopped?
The reasons for discontinuing this model are manifold.
The main reason, however, is that data protection rules are becoming stricter and that many users are increasingly skeptical about using their data for advertising purposes. As a result, it is becoming increasingly difficult to track bookings via cookies. Furthermore, it has become more challenging for companies like Google to track and measure advertising campaigns' success accurately.
What does this mean for you as a hotelier?
For hoteliers using CPA, the end of commission-based meta-search campaigns means a significant change in their advertising strategy, if you should decide to stop Meta campaigns. Specifically, this change could lead to hotels losing more visibility on the Google Hotel Ads platform and their guests booking via OTAs in the future if you stop the meta-campaigns.
They need to adapt to alternative advertising models and their marketing strategies accordingly. This could mean switching to the cost-per-click (CPC) model, where hoteliers pay for clicks or conversions, regardless of whether a booking is made. This model is more risky but can also be more cost-effective with optimised campaigns and professional monitoring. Myhotelshop will be happy to support you.
Continue to use CPA via myhotelshop
We know how important it is for many hoteliers to use the CPA model. Because of this, we will still offer you the CPA model for your Meta Search campaigns in addition to the CPC. For this purpose, we will determine a suitable percentage with you, e.g., the one already stored with Google. Myhotelshop bears the risk of reaching the percentage, just like Google before. We are convinced that we can achieve excellent and reliable results thanks to the three components on which our myhotelshop campaigns are based. Firstly, the use of data as the basis of our work; secondly, our own optimised software and algorithms, which, among other things, take into account the customer's rate parities, which are crucial for a price comparison; and thirdly, our many years of extensive industry knowledge.
An example illustrates this: Google is the stock exchange, and you, as a hotel, are a bank customer. myhotelshop is taking over the role of the bank. If you want to increase your money, you can put your money in a day money account (in this example, CPC), but you also bear the financial risk. If you want to minimise this risk, your bank (i.e. myhotelshop) can invest the money for you and increase it on the stock exchange. As a customer, you get an excellent return on investment and do not have to act on the stock exchange yourself.
This transparent and risk-taking approach demonstrates our confidence in the performance of our advertising campaigns and our commitment to delivering accurate results for our customers. This model can continue to be an effective way for hotels to increase their online visibility and generate bookings.
If you currently use the CPA model with myhotelshop for your meta-marketing, your account manager will contact you as soon as possible.
We are also happy to advise you if you are not currently running Meta Search ads with us but want to keep the CPA model. Our experts can help you adjust your advertising strategy and stay successful in the future.
Contact us here.