Are Google Hotel Ads the best way to grow your brand? Is this the answer to the ongoing issues with OTAs? This is a complex, multi-faceted question with an equally complex answer. However, for most vacation rental companies, the brief answer to both questions is no.
Why am I qualified to answer this question?
I launched my first AdWords campaign over fifteen years ago in 2003, covered this topic extensively for Search Engine Journal, grew my EdTech startup leveraging AdWords, and managed well over $30 million in annual spend across thousands of campaigns for an ecommerce conglomerate. Heck, in the day of nickel-clicks, I used Google AdWords to sell an airplane in 2004 – at a total campaign cost of $20!
To better understand Google Hotel Ads, let’s take a walk down memory lane together. Here is a visualization of the increasing revenues that Google has experienced every single year.
Those revenue and growth numbers are staggering for a company as mature as Google! We must understand that we are not dealing with a benevolent company that wants us to succeed. We are dealing with a company that charges a staggering $900+ for a simple intent-based click for its top keyword with zero guarantees on performance. In fact, $213.95 is the cheapest click you can find in the top 100 most expensive keywords! Remember those $0.05 clicks for money-terms? Those are now a distant memory…
What is Google’s motivation for rolling out Google Hotel Ads for vacation rentals? Clearly, we are not dealing with an altruistic brand that is looking after our best interests. Ultimately, Google’s goal is to increase the ad spend for one of their revenue machines – Google Travel.
Exclusive Inventory Advantage?
Unfortunately, 99% of property management companies that have exclusive contracts will not have exclusive marketing rights. The company may hold exclusive contracts to manage the properties, but the exclusive marketing rights have likely been forfeited when the property manager listed on Booking.com, HomeAway, and Airbnb. In essence, this will drive down both the ROI and effectiveness of Google Hotel Ads
