Businesses can do one of many things to optimize their PPC ad campaigns and improve profitability.
However, if you just started a business, these strategies may seem a little daunting initially.
Ad groups either contain a single ad or several ads that target specific keywords. Then, you set a certain price for those ads every time your ad group’s keywords trigger it to appear in front of your audience.
The best part about this strategy is setting your price for individual keywords within an ad group. You can also customize your ad group according to a specific theme.
For example, you can personalize them according to your brand’s persona or the types of products and services you offer.
Before jumping into how you can optimize your ad groups for better reach, it is essential to understand what ad groups are.
Ad groups are sets of keywords that businesses use in their targeted campaigns: every single ad or a group of ads shares similar targets.
You will be required to set a specific price or bid that will be used when the keywords cause an ad to appear to your audience.
These bids are called CPC ( Cost Per Click) bids. The advertising service usually sets these keywords for your PPC marketing campaigns.
When creating an account and setting up details, you will be asked to generate an ad group that will store text ads, landing pages, and keywords.
This will allow you to create an organized structure for your PPC ads. This can be very helpful when you monitor your progress and make specific changes to your PPC Ad campaigns.
For example, if you make a unique ad group for all the products and services your business offers, you might make an ad group for products you offer to your commercial clients and a different one for your residential ones.
Long story short, you can effortlessly structure your promotional materials through tools provided by PPC advertising agencies and services.
Every PPC advertising campaign you create lets you have multiple ad groups. Every ad group must contain at least one ad and one keyword. You can perfectly run a PPC ad with one ad group, one campaign, and one keyword. Moreover, you can also use one campaign and one ad group to market multiple keywords.
The question most business owners ask themselves is, “what is the benefit of running an ad group for PPC ad campaigns?”
To understand these benefits, it is crucial to look at the features shared between several ad groups and the parts that can be set separately for each one.
Let’s use an example to explain the benefits of ad groups better. Think of owning a restaurant that serves different types of cuisines from all over the world.
Having several ad groups for your PPC campaigns allows you to generate ads close to a specific group of keywords.
You can also fragment your keywords into different lists that are much more related. However, each ad group must ideally have one specific keyword and numerous variations.
For example, you can have separate ad groups for “Sushi rolls” or “Pepperoni Pizza.” In addition, you can create an ad campaign for a specific keyword and include several keywords such as “Cheese Pepperoni Pizza” or “Sushi Rice Rolls.”
Targetting long-tailed keywords drives better conversations than using common keywords. However, it would help if you still made sure that the ads are compelling enough so that users can click and improve conversion rates.
You can do this by creating different ad groups for long-tailed keywords. For example, you can create long-tailed keywords like “Which sushi roll flavor should I try.”
This will give you a chance to specifically target a user who wants to try different flavors of sushi rolls. You can also create a landing page and ads that compare different flavors of sushi roll sauces.
It’s not like you can set up a campaign, and it will keep running for life. You will need to tweak your keywords constantly.
For example, delete the old ones you don’t need and add new ones. You can also generate new ad groups for your new keywords without disrupting the old ones.
You can easily optimize your ads by creating new ad groups for the keywords. Moreover, you will also optimize your landing pages without worrying about harming other keywords.
The changes in your ad groups can significantly impact your overall campaign budget. However, you can also preset specific funding for all ad groups without worrying it will exceed.
Then, when there is a peak in queries related to one ad group, it will automatically absorb the price from other ad groups.
This strategy can be beneficial if you own a small business since startup businesses usually work within a limited budget.
Now that you are aware of the importance of ad groups in PPC let’s look at ways you can create better ad groups for your PPC campaigns.
It is essential to get all the tactical elements right to ensure functional structure. This will help you quickly benefit from the most innovative paid search methods that rely on automation and scripts.
For example, when you decide the number of ad groups you need, you must consider what type of searches need to be covered the most.
Your audience plays a crucial role in your ad group structure. You can use bid modifiers to avoid creating separate campaigns.
Moreover, it is vital to identify your audience’s specific needs and preferences. It will help you understand the niche of your business and help you come up with new product ideas according to the requirements of your customers.
In addition, identifying a specific need will help you communicate with your audience effectively while improving engagement rates.
Moreover, you must use any first-party and third-party data that helps you guide your structure. You can also target old customers using RLSA campaigns.
However, you must slice your structure a little bit further, mainly if you sell several products and services.
For example, you can create separate ad campaigns for users who have purchased specific products from you. This will help you support cross-selling business objectives that have specific dedicated goals.
You may want a similar geography footprint for your business, just like it does with any other channel.
However, the demands of your search engine will likely be different from the location of your offline sales.
So, take your time and search where most of your online and offline sales occur—for example, the cities, states, countries, areas, etc.
Once you do this, you can set up individual campaigns for your top markets. Then, if you still have some of the budget remaining, you can create a campaign that covers all the remaining audience in places your consumers usually come from.
When deciding a specific language to target, you need to see where most of your bulk audience is coming from. If you want to target several languages, you can create separate campaigns for each language.
Every device’s performance dramatically varies. Therefore, before optimizing your campaigns in relation to a specific device, you must consider some of the advantages and disadvantages listed below.
The mobile user experience will be vital if the site has a responsive design. Your campaign can have the same goals as those generated on other devices.
Moreover, segmenting your campaign according to the devices will reduce the KPI and traffic available for optimization. This may create campaigns that do not have much volume.
It is recommended that you do not generate campaigns concerning a device if it does not present a solid amount of cost, traffic, and goals.
Instead, you can use device bid modifiers to efficiently tailor the ad message across several devices.
Using keywords is extremely important in any PPC ad campaign. While Google does provide you with good quality keywords according to the relevance of your campaign, it is highly crucial to integrate keywords that have a higher CTR.
Studies have shown that 68% of online searches begin with a Search engine through keywords. So, when you make an ad group, make sure to check the performance of your keywords before integrating them.
And if your audience belongs to a different geographical location, finding keywords relevant to that specific location may be challenging. In such cases, you must use a VPN to discover what keywords rank in that location.
With a VPN, you will acquire an IP address of a particular area. This will help you navigate through the internet just like a local would.
Although several VPN options are available, some of them might not be up to the mark in terms of quality.
Therefore, you need to make a wise decision regarding the VPN you choose to surf through the internet in that particular location. Check online reviews before investing in a VPN service.
Using ad extensions is one of the best ways to unravel information regarding your products and services. Generally, there are two kinds of ad extensions.
Advertisers use manual ad extensions according to the requirements of their business. Therefore, you can easily customize and personalize manual ad extensions.
Moreover, these extensions further segment into several other extensions like location, call out, site link, review, etc.
On the contrary, automatic ad extensions function automatically. Furthermore, automatic ad extensions are also segmented into several other attachments such as previous visits, dynamic site links, customer ratings, etc.
It is common for ads to have a high bounce rate in pay-per-click marketing. For example, you might have specific customers who purchase products from you and then sway away.
Advertisers use remarketing through blogs, articles, and websites to regain those customers. In addition, advertisers can generate custom messages that lure visitors to revisit your website and purchase a product or service through remarketing.
It is essential t keep track of your PPC campaigns to ensure the success of your ad groups. Unfortunately, some marketers don’t realize the importance of keeping track of their PPC campaigns. This is one of the reasons why their PPC campaigns are unsuccessful.
Make sure you constantly monitor the performance of your PPC campaigns, as it will help you gain significant insights into how well your PPC campaign is performing.
Google Analytics is an excellent tool for advertisers who use Google Ads to market their advertisements. Research has shown that Google Ads convert 50% better than organic reach.
Hence, if you use Google Ads to market your campaign, there are high chances your website will rank better if you optimize your ad groups.
You can invest in an automation tool to improve the efficiency of your ad groups. Automation tools offer closed-loop reporting to help you quickly find information regarding your campaigns.
It also allows you to use excellent marketing strategies to improve the performance of your campaigns.
PPC advertising can help you boost engagement and increase your website’s visibility irrespective of the type and size of your business. However, following the steps listed above is essential to ensure your campaign is working well.
Ad copies are a great way to ensure the success of your ad groups. Therefore, it is essential to write an ad copy that is convincing enough to retain old customers and attract newer ones.
In addition, make sure you state your business’s unique selling point so that your customers have a reason to choose you over your competition.
Moreover, make sure your ad copies are relevant. Link all your ads with relevant keywords and landing pages.
Furthermore, make sure you generate eye-catching headlines since these are the first thing a visitor looks at.
Use power words in your headlines to make them even more compelling. For example, you can use words like Free, Today Only, Exclusive, Instant Etc. Finally, end your ad copies with an eye-grabbing call to action.
Every marketer seeks ad groups that are compelling and cost less at the same time. Therefore, consistency in an ad group is critical.
In addition, your landing pages must directly speak to an audience searching for something to reach your website. Therefore, make sure you consistently create ad texts, landing pages, and keyword groups closely related.
When you create well-aligned ad groups, not only do you pay less, and convert more.
For example, suppose a user searches for graphic designing services, and your ad talks about it and sends them to a similar landing page. In that scenario, you will get more conversions than a landing page that does not associate graphic designing services.
So, long story short, you need to be very vigilant in what you include in your ad copies as they play a huge role in determining how successful your ads will be.
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The keyword jockey era is officially over. For years, PPC agencies were basically just click machines. You gave them a budget, they bid on keywords, and you got traffic. But that model is fading out. Platforms like Google Ads now handle bidding automatically, and anyone can buy clicks. What separates winners from losers today isn’t the company that spends more – it’s the ones who turn clicks into paying customers.
PPC ads are still a legitimate way to generate cheap traffic but the end goal is ultimately conversions. Until recently, many PPC agencies have only focused on generating traffic without focusing on customizing strategies to produce profitable outcomes. This requires more than just selecting keywords. It requires testing ad creatives, fine-tuning landing pages, and ruthlessly optimizing funnels.
If you’re working with a PPC agency that only talks about CPC while ignoring conversion rates and lifetime customer value (LTV), it’s time to upgrade to an agency that focuses on results measurable in dollars.
Ad platforms like Google Ads and Meta have made manual bidding almost obsolete. Their algorithms now choose how to get you the best conversion value, not just the cheapest click. That means the old “bid manager” agency model is toast.
Smart Bidding and bundled campaign types (like Performance Max) push optimization toward conversion value rather than just clicks. And that’s not a bad thing. It’s an invitation to apply your marketing budget to the things humans do best: messaging, creative strategy, and conversion rate optimization).
The algorithms do the heavy lifting now. Google’s Performance Max and Smart Bidding automatically find high-converting audiences. The system handles keyword strategy better than humans ever could. And it makes sense that these companies would invest the time and money into perfecting their systems because the better results you get, the more likely you are to keep running ads.
With the backend tech handling bidding, your agency’s edge comes from improving elements outside of the algorithm, like your ads and landing pages. The best PPC agencies no longer promise a lower CPC – they promise results.
That’s the key shift here. Automation didn’t eliminate the need for human marketers, no matter what the fear headlines say. It just readjusted the roles between humans and machines.
The agencies that survive this shift will be the ones who stop fighting automation and start building it into their workflows. Rather than wasting time micromanaging bids, cutting-edge agencies are using those hours to test headlines, improve page experience, and analyze conversion data to find out what’s really working.
Automation can never tell you why people click, bounce, or buy. That’s where humans are and always will be needed. When you understand your customer’s motivation better than the competition, you can write better ad copy and design better landing pages.
At the end of the day, automation leveled the playing field for media buying. What was once a technical advantage is now table stakes. Anyone can run their own ads. The agencies leading this new PPC era are competing on conversions, not the simple ability to run ads.
In the old days, you could buy the right keyword and call it a day. That isn’t how it works anymore. Two ads that target the same keyword can perform completely differently based on how they look, sound, and feel. Your ad creatives drive results when they’re optimized and waste your ad spend when they’re not.
Although all elements are important, the majority of an ad’s performance comes from creative quality, not targeting or bids. The best bidding strategy and perfect keyword targeting won’t get people to click on an ad that isn’t enticing.
The best PPC agencies continually test images, headlines, and even video styles to find out what converts best. That’s where the most notable performance gains come from. At the end of the day, keywords get you visibility but good creatives get you customers.
This shift continues to be confirmed over and over. Reports have confirmed that creative quality accounts for 49%-70% of an ad’s success, which outweighs media placement or targeting. In other words, creative isn’t just part of the equation. It’s the final factor.
The top performing brands run hundreds of ad variants every month. They’re not guessing. They’re structuring creative experiments and the winning ads are often the ones that break traditional marketing rules. These are the ads that use raw, authentic imagery, short unpolished videos, or headlines that sound like something a real customer would say. Regardless of what you think should work, constant testing uncovers what actually triggers action.
When your landing page converts better, every click becomes more valuable. Improving your conversion rate by even a few percentage points can provide better results than just a few months of ad optimization. And where landing page optimization is concerned, it’s not always about optimizing the offer (although that’s crucial). Sometimes small things make a massive, measurable difference.
For example, page load time is critical. Walmart found that for every 1-second improvement in load time, conversions increased by around 2%. And that’s not an anomaly. Plenty of businesses achieve similar increases (and even higher) just by optimizing the time it takes their landing pages to load.
Other small adjustments can have a profound impact, like adding social proof near your CTA, reducing the number of form fields, and clarifying your headlines.
When optimizing a landing page, design and clarity matter just as much as speed. Visitors make up their minds within seconds. If your pages are currently cluttered, switching to clean visuals, a clear CTA, and a simple layout can generate more conversions from existing traffic without spending another dollar on ads.
That’s the secret to all of this. Conversion rate optimization multiplies every dollar you already spend. If your ad campaign is driving 1,000 clicks and your conversion rate doubles from 2% to 4%, you’ve just cut your cost per acquisition in half without spending more money. This improvement comes from the one thing an algorithm can’t fix for you: the user experience after the click.
Good conversion rate optimization requires understanding the psychology behind what makes your audience hesitate and then eliminating that hesitation one element at a time. Landing page testing is similar to ad creative testing where it’s an ongoing process, not a one-time project. When you can create a seamless path from ad to action, that’s when your ad spend will perform better and it gets easier to scale.
Clicks and your CPC stats won’t tell you if you’re actually making money unless you’re also measuring profits from conversions. The best PPC agencies focus on metrics that get results measurable in dollars, like profit per visitor and customer lifetime value. Today, you won’t win the PPC game by getting cheaper clicks. You need to turn customers into repeat buyers.
This is the truth many marketers don’t get. Traffic isn’t a KPI if it doesn’t pay off in measurable dollars somewhere down the line. A campaign can drive thousands of clicks with a great CTR and still lose money if those visitors don’t convert or come back. That’s why the best PPC agencies today don’t brag about being able to get cheap traffic. They’re advertising meaningful results.
But sometimes results can’t be measured by what clicks led to a purchase. For example, a $10 click that becomes a loyal customer who spends $1,000 over time is far better than a $1 click that buys a $25 product. That’s why it’s crucial to account for profit-based metrics like customer lifetime value (LTV), return on ad spend (ROAS), and profit per visitor.
PPC success is ultimately measured by how efficiently you can turn paid traffic into long-term profits. That means understanding the customer journey past the initial click. You need to know what they’ll buy next, how often they’ll come back, and what will keep them loyal. Building strategies that account for this increase the value of every customer acquired.
The most amazing ad in the world that generates a 100% click through rate (CTR) can’t save a weak landing page. This applies to sales pages, squeeze pages, blog posts, home pages, and product pages. Wherever visitors are taken after they click on your ad needs to be just as good as your ad to convert.
On platforms like Amazon and Shopify, your product page is everything. It’s not enough to list your product at a good price. You need high-quality, detailed photos to increase buyer confidence. And it helps to use photos of real products, not mockups. Customers can tell the difference and computer-generated mockups (including AI models) reduce confidence and are a red flag for drop shipping. If you are drop shipping, it’s worth getting professional photos taken of everything you sell.
It costs more today to acquire a new customer than ever before. Even if your CPC drops one month, your overall ad costs will continue to rise long-term. The only way to win here is to make every click more profitable, and that boils down to conversion rate optimization. You can’t outspend your competitors forever. You need to out-convert them.
Digital advertising costs have been rising for years. The average customer acquisition cost (CAC) for online retailers is now between $68-$78, which is double what it was in 2013. Every year, it gets more expensive to get your ads in front of your customers. Algorithms are saturated, CPMs fluctuate unpredictably, and privacy updates (thanks, Apple) make it harder to target audiences efficiently. You can no longer buy your way to visibility.
A strong conversion strategy converts more existing traffic without needing to increase ad spend. This is exactly why the most effective PPC agencies focus on the entire funnel, not just the top.
Agencies that optimize per channel (like one for search, social, display, etc.) miss how those channels work together. Most conversions come from multiple touchpoints, but many teams only credit the final click. That can cause misguided budgets and stifle growth. Brands that use cross-channel attribution or marketing mix models see much better optimization. You need a PPC agency that will optimize for whatever will grow your business, not just what looks good on any given platform.
The agencies that win today are replacing the model that sells traffic with one that sells results. They don’t focus on vanity metrics, but rather, contribution margin, customer lifetime value, etc. They’ll help you with more than just ads. They’ll fix your sales page content, pricing issues, and even your page layouts because they know ads perform best with great landing pages. The new PPC agencies are full funnel growth partners, not just media buyers.
The future of PPC marketing is no longer about who can spend the most or manually tweak their bids the fastest. It’s about whoever can understand the customer journey and turn traffic into profit. The next generation of PPC agencies don’t sell clicks. That’s the old model. Instead, they sell you outcomes. And that’s exactly what every brand needs to thrive.
The age of “set it and forget it” PPC is over. Automation has leveled the playing field and brands chasing cheap clicks will be left behind. Winners understand that profit comes from performance beyond the ad and requires a landing page that builds trust and converts.
If your agency or in-house team is still talking about CPCs rather than profit, it’s time to upgrade your strategy. At PPC.co, we build campaigns engineered for outcomes over clicks. We optimize for conversions, revenue, and long-term customer value, and turn your ad spend into measurable business growth. Reach out today to learn how our team can transform your PPC performance into real profit.
Pay-per-click (PPC) ads can generate a steady stream of guests for anyone in the hospitality industry, whether you run a hotel, motel, hostel, vacation rental, or an Airbnb. In terms of marketing strategies, PPC ads convert 50% better than SEO and it’s easier to measure than results from organic search.
But a successful ad campaign isn’t just a matter of getting ads in front of people who are looking to book right now. You can also use PPC ads to find people who are just starting to think about their getaway and those who are comparing options. An effective strategy will reach a variety of people to get bookings now, fill future pipelines, and get repeat guests.
If you’re in the hospitality industry, here’s how paid advertising can help you drive more revenue.
To run a successful PPC campaign you need to understand the guest journey. Different people are doing different things at different times. For example, some people are researching destinations and others are comparing lodging, all while another group of people are ready to book. If you serve all these people the same ads, you won’t get the best results.
1. Define your funnel stages
There are four main stages to a hospitality funnel: awareness, consideration, conversion, and loyalty. Reaching leads at each stage requires different messaging and targeting. That’s where audience segmentation comes in.
2. Segment your audience by intent
Since each lead needs to be given a different message, it’s crucial to segment them by intent first. For example, the dreamers are people who search for “things to do in X city,” “best beach getaway,” and “romantic weekend destinations.”
The comparers search for “hotel vs. motel in X city,” “4-star stays in X city,” and “Airbnb vs. boutique hotel.”
The bookers search for a specific brand + location + dates.
Each audience segment should be served different ad copy, different offers, and of course – different landing pages.
3. Measure results according to stage
Finally, you need to measure results in several ways, like impressions, click-throughs, content engagement, and email signups. This will give you the bigger picture regarding how your ads are working (or not). For example, to measure the conversion stage, look at bookings, CPA, and revenue per booking. For the loyalty stage, look for repeat stays or referral leads.
Once you know how you’ll segment your audience and track the results, you can allocate your budget smartly. Otherwise, you risk overspending on high-intent leads and ignoring the long-term value of leads in earlier stages of the journey.
If you only bid on keyword phrases like “hotel room booking tonight,” you’ll miss all the people researching and thinking about their vacation. These people can convert, too, even if it doesn’t happen in the moment. They’re worth pursuing. You can capture their email, get them to like your social media pages, and you can also use remarketing to serve them additional ads.
The following are the general types of keywords you want to focus on:
· Broad/discovery keywords. These keywords will reach people in the awareness stage. Phrases like, “Best beaches in [location],” “Top things to do in [location],” and “Travel inspiration [country].” When you use broad modifiers (like “top,” “best,” “where to stay”) you’ll attract people in the research stage.
· Middle-funnel comparative keywords. These are phrases like, “Boutique hotel vs. Airbnb in [location],” “Hotel deals vs. motel,” and “Hotel amenities comparison.” With phrases like these, people are narrowing down their choices. The right PPC campaign can help them pick your business.
· Branded and high-intent booking keywords. These keywords reach people further down the funnel. Phrases like, “[Your hotel name] rooms,” “Hotel in [location] near [landmark],” and “cheap hotel [location][dates].” These phrases typically provide the highest conversion rates but can be competitive, so they may cost more.
· Negative keywords. To prevent wasted ad spend on irrelevant clicks, you can add certain keywords to your negative keyword list. This ensures your ads won’t show up when people search for these terms. Common negative keywords used in the hospitality industry include, “Free stay” and “Jobs at [hotel].”
Since most hotels and motels stick with keywords that target people ready to book, you can expand your reach by running ads for people in other stages. Just make sure you have a system in place to nurture your leads so they don’t go cold.
What you say matters just as much as when you say it. Copy that works for someone researching won’t work for someone ready to book with you. Every part of your ad needs to match intent, including the imagery, tone, copy, and offers. Here’s how to reach each stage:
· Awareness stage ads. At this stage, people will respond to emotional and inspirational copy. Phrases like, “Discover tranquil stays in the mountains,” or “Unwind by the sea.” Use imagery to provoke desire. Beautiful views and relaxing room setups work like a charm.
· Consideration stage ads. These people need more information, so hit ‘em with your amenities (Wi-Fi, breakfast), comparisons, reviews, ratings, and testimonials. Show them visuals of your accommodations and the local area.
· Booking/conversion stage ads. Urgency works best here. Phrases that get people to click to book now, like “Limited rooms available,” and “Book now and save.”
· Loyalty stage ads. Guests who have stayed with you before, even just once, are more cost-effective to convert again compared to chasing down new customers. Create some ads for these people by highlighting perks, upgrades, and exclusive deals they can’t get through other places. For example, you can use lines like:
“Book direct for free late checkout,” “Exclusive returning guest discount,” or “VIP upgrade on your next stay.” It also helps to use personalized copy like, “Welcome back to [your hotel name].” along with imagery of your best amenities.
Loyalty ads drive repeat bookings and increase lifetime value by bringing people back.
· Remarketing and nurturing prospects who got away. In addition to targeting people in all funnel stages, you want to bring people back who clicked but never booked or signed up for your email list. Run retargeting ads to show them what they looked at and offer them incentives or discounts. This is a great time to leverage social proof.
By matching your ad content to meet potential leads where they are in their journey, your ads will be more relevant and you’ll get more conversions.
Having a great ad doesn’t necessarily mean it will drive conversions. If your landing page is confusing or the booking process is clunky, you’ll lose people. That’s why landing page optimization is often where people see the biggest gains.
As a foundation, create a specific landing page for each target audience. You need a dedicated landing page for ads that target each funnel stage. Landing pages should be simple and clear and should be free from all distractions (like links and menus) that invite a user to click away. You want one offer and one call to action.
Social proof is critical in the hospitality industry. Show guest reviews from Tripadvisor, Google, Trustpilot, etc. It also helps to show photos of real guests enjoying their stay (with their permission). Showcasing reviews will reduce anxiety and hesitation, especially for people comparing you with other options.
If your landing pages show pricing, make sure you’re up front about all fees. Be clear about what’s included, like tax, breakfast, and service fees. People hate hidden fees. If a guest’s experience doesn’t match the impression they get from the page where they booked, they’ll probably leave a bad review.
Talk to your website developer and have them trigger a follow-up email that goes out to people who start filling out a booking form but stop. The email should show them what they left behind and you can sweeten the deal by offering a small discount or other incentive.
Having a smooth flow after a person clicks on your ad can help you convert far more prospects. Everything you can do to reduce friction and increase trust compounds.
To get conversions, your bidding strategy and budget need to align with a variety of factors, including funnel stage and seasonality.
· Increase bids for high-intent keywords, use moderate bids for middle-funnel ads, and go lower for awareness and discovery.
· Watch for online travel agents (OTAs) and large hotel chains that bid on your property’s name or similar keywords. If they undercut you in rate or bid too aggressively, you could end up with arbitrarily inflated costs per click. Research data shows this can cost around 47% more per click.
· Adjust your bids and budget during travel seasons, events, and holidays. During off-peak seasons you may want to stick with pushing awareness.
· Allocate your budget proportionately across all funnel stages.
· Use Google’s automated bidding tool for the conversion stage, but use manual methods for the consideration and awareness stage.
The right bidding strategy will ensure you don’t overspend for low-intent clicks or underinvest in more profitable funnel stages.
PPC is more than search. When you use different channels and ad formats you’ll reach people in a variety of places.
· Search ads (Google, Bing). Search ads capture high-intent demand users. They’re great for the conversion and compare phases and can make use of extensions like call, location, and reviews.
· Display and discovery/native ads. Display ads are excellent for the awareness stage. They reach people browsing travel blogs and using apps. With these ads, visuals are everything.
· Social media ads. Platforms like Facebook, Instagram, YouTube, and TikTok are great for the awareness and consideration stages. They’re especially powerful for remarketing.
· Video ads. Short-form videos can stir emotion, show off ambiance, and be used to create a mini virtual tour. These ads are great for top and middle funnel prospects.
· Email ads. If you’re using email marketing, offer loyalty deals and off-peak discounts.
Paid search on social media converts better in hospitality than it does in other industries.
Location matters in hospitality. Geotargeting can significantly improve your conversions and reduce wasted ad spend. You can use radius bids and location extensions to target people looking for accommodations within a certain radius.
It pays to bid higher for people in feeder markets and origin cities during the holidays. You can also target departure cities for Arbnbs if that’s relevant to you.
In your ad copy, include local cues like “Only 30 mins from downtown,” and “15 minutes from airport. If you know your audience well, include the origin city (“Fly in from Seattle & Stay with us just outside Olympia”).
When offered by the ad platform, use local extensions to note your address, phone number, and any other elements offered. This will generate more bookings from mobile users.
Most people who click your ads or visit your website won’t book right away. Retargeting will help convert these “warm but not ready” leads into guests eventually.
When you target people who visited your site without converting, show them ads with refreshed offers like a free breakfast or an upgraded view. Visual reminders will help bring them back.
Show the specific rooms and properties to the prospect so the ad feels personalized. Use tools like Google dynamic remarketing and Facebook Product Ads.
For guests who did convert, show them additional special offers and upgrades. Keeping them in your funnel will make future conversions easier.
It’s crucial to know when to pull back, push forward, test more, or scale.
· Define clear ROI goals. Know your target Cost-Per-Acquisition (CPA), Return on Ad Spend (ROAS), and guest Lifetime Value (LTV). If your ad spend yields bookings but loses money, it’s not working.
· Perform weekly and monthly audits. Refine keywords, ad creatives, and keep testing.
· Scale what works. Once you have a campaign producing consistent returns, increase the budget there while watching for diminishing returns.
· Adjust your offers and pricing. If conversion rates drop or your CPCs rise, start offering special packages like early-bird deals and loyalty perks.
The average travel and hospitality conversion rate for search is 3.55% so if you’re under that, there’s room for improvement. If you’re over that, scale carefully.
If you’re ready to transform your PPC campaign into a reliable machine that fills your rooms and builds a solid pipeline for the future, we can help. At PPC.co, we specialize in creating full funnel PPC strategies for hotels, motels, and Airbnbs that convert into bookings, repeat guests, and long-term loyalty. Contact us today and let’s craft a PPC strategy that drives bookings and turns first-time guests into lifelong customers.
