Direct booking summit

MetasearchDirect Booking Summit

Topics for Today

• Keys for Successful Metasearch Campaign• Budgeting for Metasearch• Reputation Matters• What Lies Ahead• Q&A

What is MetaSearch and Why Do I Care?

Google – Local Universal

Branded Search Term

PPC Ads

Organic SEO

Google Hotel Ad

Google Maps

Local Universal 3-Pack

Expanded Maps

Google Maps

Google Maps - Point Of Sale (POS)

TripAdvisor

Reviews, ratings, popularity rankings, business listings, and more…..

Do not forget the POS buttons!

And Many More…..

What does it take?

1.Connectivity2.Cache3.Control

Beauty is in the Eye of the Beholder!

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

Keys to Successful Metasearch Campaign

1. Rate Parity

Rate Parity and what it can do for you

1. Perception of Value2. Better Positioning3. Lower CPC4. Better Conversion

From A Consumer’s Point of View….

How Rate Parity Impacts Position

How This Affects ROAS

1.Perception2.Conversion3.Low CPCs

Better Positioning = More Visibility = More TrafficConsumer Confidence = Higher Conversion Rates


1. Rate Parity2. Low CPCs

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


Local UniversalBranded Search TermsPeople Already LookingMarket Shift


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


*$2.25 is US Avg cpc Jan – July 2016


#1 44%

#2 24%

#3 16%#4 7%

#5 4%

#6+ 5%

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


$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


*$0.93 is US Avg cpc Jan – July 2016

Understanding Channel CPCs - Trivago

Gaining Traffic Volume!Featuring “Hotel Website”

Understanding Channel CPCs - comparison

1. Google - $4.162. TripAdvisor - $2.253. Kayak - $1.634. Trivago - $0.93


1. Rate Parity2. Low CPCs3. Conversion

Optimized for Meta

Not Optimized for Meta

Hotel

?

Click-Click-Book (Assisted Booking)

What Is Assisted Booking?


1. Rate Parity2. Low CPCs3. Conversion4. Goals

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

So, What Should I Budget for Metasearch?

You Shouldn’t!

What???

The Budget Volleyball

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

http://www.bit.ly/webinar2meta

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.


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.


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….

http://www.bit.ly/metarevcalc

Know Your Reputation

What Happens Next?

Retargeting vs. Programmatic – What’s the Difference

Retargeting = Reactive

Programmatic = Proactive

Standard Targeting Demographics

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

Case: Facebook Dynamic Product Ad for Travel (DAT)

The Future of Distribution…..

Q&A

Dean Schmit, Sales Operations [email protected]

Direct booking summit

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