How GCommerce's Programmatic Bidding Strategies Benefit Our Hotel Clients

If there is one thing that is absolute in the hospitality internet marketing world, it’s that we must constantly be testing, analyzing, implementing changes (or not) based on test data, and testing some more.

GCommerce utilizes programmatic bid optimization for paid search marketing, which is now a must in a world of constant changes and bid management. Programmatic bidding allows bid adjustments throughout the day and uses data based on previous days data. For an individual to be able to delve into the performance and history of a specific keyword would take hours to be able to optimize an account of 100+ keywords, multiply this by 10 or more clients a day and there is now no time for other important client optimizations.

Programmatic bidding is not just a set-and-forget machine learning tool. If you use programmatic bid optimization you must make sure that you are making the most of it and getting the best results possible for clients. How do you do this? Test. Analyze. Implement (or not). Test Again.

Earlier this year, I ran a test on a sample of clients using a different bid strategy model to see if client performance could benefit from it. It wasn’t that the current automated bid strategy wasn’t working, it was based on the idea that we always want to improve our results, therefore we test different theories and strategies.

This particular test yielded some pretty significant results:

Due to the seasonality of our clients, the best data to gather is to compare year over year with a significant amount of time. Using a date range of 6 months of data, here is what we found:

  • Average CPC’s increased 1%
  • Reservations increased 89%
  • Revenue increased 100%

When comparing to GCommerce’s entire hospitality paid search marketing portfolio, here is what we found:

  • Average CPC’s increased at a much lower rate
  • Reservations increased at a much higher rate
  • Revenue also increased at a much higher rate

Programmatic bidding strategies performance

 

Rising CPC’s are a constant battle in the paid search marketing world. At GCommerce Solutions, our hospitality internet marketing teams are constantly optimizing paid search campaigns to help decrease this metric as best as we can. After reviewing performance across GCommerce’s entire portfolio, I found that, on average, GCommerce clients experienced an increase of 4% in average CPC’s during the same time period. This leads to a conclusion that our clients and the hotel industry continue to see ever-increasing rise in CPC’s across the board in order to compete in the SERP. But the fact that we have been able to slow it down while ramping up reservations and revenue is a huge win.

After pulling all of the data and seeing such clear results, it was obvious that it was in our clients’ best interest to switch gears on our overall strategy to best reach our KPI (key performance indicator) goals and maximize their spend. So we did.

 

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