direct booking summit
TRANSCRIPT
Topics for Today
• Keys for Successful Metasearch Campaign• Budgeting for Metasearch• Reputation Matters• What Lies Ahead• Q&A
TripAdvisor
Reviews, ratings, popularity rankings, business listings, and more…..
Do not forget the POS buttons!
What’s Your Motivation?
More Than BookingsWhy else is metasearch important?
1. Branding
2. Volume
3. Owning the guest
4. Cost of Sale
A Little Math….COS
$3/click @ 10% conversion = 10 clicks per booking (x $3 cpc) = $30 $30/nt ADR x 1nt stay = 100% Cost of Sale (COS)$500/nt ADR x 2nt stay ($1,000) = 3% COS
Rate Parity and what it can do for you
1. Perception of Value2. Better Positioning3. Lower CPC4. Better Conversion
How This Affects ROAS
1.Perception2.Conversion3.Low CPCs
Better Positioning = More Visibility = More TrafficConsumer Confidence = Higher Conversion Rates
That Math Thing….
$3/click @ 10% conversion = 10 clicks per booking (x $3 cpc) = $30 $30/nt ADR x 1nt stay = 100% Cost of Sale (COS)$500/nt ADR x 2nt stay ($1,000) = 3% COS
$1.50/click @ 10% conversion = $15$0.75/click @ 10% conversion = $7.50
Understanding Channel CPCs - Google
Bid base is set as % of search results.
1% x $500/nt x 2nts ($1,000) = $10 cpc1% x $30/nt x 2nts ($60) = $0.60 cpc1% x $50/nt x 10nts ($500) = $5 cpc
Each of these examples will have different demographics and conversion rates.
Jan – July 2016 Avg U.S. cpc = $4.16
Understanding Channel CPCs - Google
Local UniversalBranded Search TermsPeople Already LookingMarket Shift
Understanding Channel CPCs - Google
MapsGeneral Search TermsNot PredisposedMore New BusinessHigher CPCs
Understanding Channel CPCs - TripAdvisor
Bid base is a fixed cpc
$2.25* cpc x 10 clicks = $22.50 Cost$22.50 cost / $1,000 revenue = 2.2% COS$22.50 cost / $100 revenue = 22.5% COS
Each of these examples will have different demographics and conversion rates.
*$2.25 is US Avg cpc Jan – July 2016
Understanding Channel CPCs - Kayak
Hybrid Channel – CORE & BOB
$1.60 cpc x 10 clicks = $16.00 Cost$16.00 cost / $1,000 revenue = 1.6% COS$16.00 cost / $100 revenue = 16% COS
Each of these examples will have different demographics and conversion rates.
$1.63 is US Avg cpc Jan – July 2016
Understanding Channel CPCs - Kayak
Large number of click options = low CTRRequires a lot of impressions to get traffic
Understanding Channel CPCs - Trivago
Gaining Traffic Volume!
$0.93* cpc x 10 clicks = $9.30 Cost$9.30 cost / $1,000 revenue = 0.9% COS$9.30 cost / $100 revenue = 9.3% COS
Each of these examples will have different demographics and conversion rates.
*$0.93 is US Avg cpc Jan – July 2016
Understanding Channel CPCs - comparison
1. Google - $4.162. TripAdvisor - $2.253. Kayak - $1.634. Trivago - $0.93
What’s Your Motivation?
More Than BookingsWhy else is metasearch important?
1. Branding
2. Volume
3. Owning the guest
4. Cost of Sale / ROAS
5. Diversified Portfolio
1. Cross-Channel Optimization
How to Resolve?
CPA (aka Commission) ModelsGoogle, TripAdvisor (see Pros & Cons of Assisted Booking webinar at www.bit.ly/webinar2meta )
Advantage = Safe, No Budget Line Item Required
Disadvantage = No Control, Must Install Pixel
CPC Models Advantage = Control Own Objectives, Fewer Pixels Required
Disadvantage = Requires Funding, Results May Vary
I Get it, But I Still Need a Budget
Things to Identify1. What Are My Goals?
2. How Does This Compare With Other Campaigns?
3. What Is My COS?
4. How Is My Rate Parity?
5. What Is My Conversion Rate?
6. What Are My CPCs?
What If I Don’t Have This Data?
1. CPA (commission) models could help gather some data with minimal risk
2. Seek out comparisons with similar hotels & markets
3. Test the waters
Back To Those Goals…
Scenario #1 – The Perfect Story
I want top placement on all major channels, I have excellent rate parity, conversion rates are around 7.5%, cpc’s are low, my COS is around 9%, and this performs better than my paid search ads.
Solution – Bigger is Better! Need to cover as many channels as possible to generate volume. More clicks will of course mean more budget required, however would suggest pulling some from paid search to compensate.
Back To Those Goals…
Scenario #2 – The Reality Show
I want as much exposure as I can get but have to keep within a monthly budget, regardless of performance. I don’t have a lot of historical data, but I need my COS to be under 12%
Solution – Control Is The Key! Need to start generating traffic to analyze historic data. Keep a broad selection of channels in play so as to diversify portfolio. Make campaign adjustments between channels based on these results. Research and understand the cpc’s associated with each channel and apply a cross-channel optimization strategy. Consult with agency handling your paid search campaigns and use this as a reference point for budgets.
Back To Those Goals…
Scenario #3 – The Safety Dance
I want to play, but I can’t fit it into my budget this year and honestly have no idea what to expect in terms of performance.
Solution – Seek Out Commission Models. Google and TripAdvisor are good examples of these, and can help you dip your toe in the water. Use this data to help guide future plans.
Just Give Me A Number (?)
www.bit.ly/metarevcalc
Ok, fine – let’s science the “bleep” out of this….
Real Time Marketing needs Real Time Data!
Urgency Messaging “x rooms left” option
Real Time PricesBased on dates of travel
Promotion Messaging
Property Multi-property option available
Brand Logo
Dynamic Messaging
Stars
Destination Messaging
Dynamic Creative Template for a Real Time Bidding Display Ad
How many elements are static?DerbySoft Confidential