Google Ads will phase out the commission (per stay) and commission (per conversion) bidding strategies for hotel ads in October.
Instead, the platform introduces target return on advertising investment (tROAS) for hotel campaigns, along with extended peak yield for travel targets, as alternative bidding strategies.
Why we care Advertisers will need to change bidding strategies before the end date to avoid disruption so campaigns can continue to run as usual.
What are the commissions (per stay)? Fees (per stay) is a bid strategy designed specifically for hotel campaigns. With this approach, members are billed only when a guest’s stay is complete. This strategy allows partners to leverage the efficiency of Google AI to acquire guest stays while mitigating concerns about potential risks associated with cancellations.
What are commissions (per conversion)? Fees (per conversion) is a payment model designed for hotel bookings where you only get paid when a traveler successfully books your hotel. It works like a Smart Bidding strategy, automatically adapting your bid to optimize it for increased conversions. Payment is a predetermined percentage of the booking value that you define, providing a flexible, performance-based approach to advertising costs.
next steps You may continue to use commission bid strategies until the end date. However, Google recommends exploring alternative bid strategies, such as ROAS for hotel campaigns or maximum yield for travel goals, in preparation. After the End Date, there will be a phased transition of commission offering strategies as described below:
From February: Commissions (per stay) will no longer accept new requests for permit lists. Starting April 30: Commissions (per stay) and Commissions (per conversion) will no longer be available bidding strategies in Google Ads. Campaigns with active commission-based bidding strategies will continue to run until the end date. Starting October 31: Commissions (per stay) and Commissions (per conversion) campaigns will no longer be available. You will continue to have access to historical reporting data for the campaigns in question.
What Google says. Michael Trauttmansdorff, director of product management for travel ads, said in a statement:
“An AI-anchored bidding strategy will make it easier for you to market at the speed of consumers. And in an ever-evolving privacy environment, it’ll get you one step closer to meeting people’s expectations and multiplying your bottom line.” “To help set you up for success, we’ll continue to provide guidance along the way.”
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deep dive Read Google’s announcement in full for more information.
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