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Car Dealerships: Why Retargeting Should Be a Key Part of Your PPC Strategy

Timothy Carter
|
August 11, 2025

When you’re running pay-per-click (PPC) ads, it’s easy to assume clicks mean genuine interest, but most car shoppers are just kicking tires online. Seeing your inventory once doesn’t mean they’re ready to buy anytime soon or even at all. If you want to reach the portion of clicks that come from serious buyers, you need to use retargeting. 

The reality is that even prospects who intend to buy a car will bounce before contacting you or visiting your lot in person. And if you don’t have a way to keep them aware of your business, when they’re ready to buy, they’ll buy from a competitor. Running retargeted ads will keep your dealership in their awareness even after they bounce.

According to a 2022 Cox Automotive Car Buyer Journey Study, the average person spends more than 14 hours searching for a new car, which includes visiting around 5 websites before making a purchase decision. The sites they visit include automakers, dealers, third-party sites, and pre-owned car lots with online inventory. Your prospects aren’t going to buy right away, so to get the sale you need to reel them back in. If you’re not using retargeting – also called remarketing – in your PPC campaign, you’re missing out on hot leads.

How retargeting works for car dealerships

Buying a car isn’t a small decision. People compare makes, models, and deals and look for dealerships with great reputations. Getting a single click from a potential car buyer isn’t enough to make the sale. And when they bounce, there’s no guarantee they’ll remember you exist. You’re paying for all those initial clicks, and if potential leads never come back you’ve wasted your ad spend. When you use retargeting, you’ll have another chance to turn their curiosity into a conversation, and that’s why remarketing is an essential component in every PPC ad campaign.

PPC ad retargeting for car dealerships shows your ads to people who have already clicked on an ad or visited your website. When implemented strategically, it keeps your dealership visible across multiple platforms and follows those people across the web. For example, when you run retargeted ads on the Google Display Network, your display ads will show up on the blogs, news sites, and apps your prospects frequent.

You can also run retargeting campaigns on social media sites like Facebook and Instagram. As long as your prospects scroll through their daily feed, your ads will show up for them if they’ve already interacted with you. YouTube also offers retargeting options with video ads that play right before the content. In fact, don’t underestimate the power of YouTube video advertising. According to data from Wyzowl, video ads convince 84% of people to buy a product or service. 

Remarketing allows for tailored messaging

Not everyone searching for a new car will respond to the same bland, boilerplate message. For example, someone browsing luxury SUVs isn’t going to click on an ad that says, “Low APR on all models!” That’s where remarketing shines. It lets you tailor your message to what each user actually wants, which increases response rates.

With retargeting, you can segment your audience based on their interests and behavior. For example, someone comparing financing terms won’t be swayed by flashy sports car imagery. With retargeting, you can show truck shoppers truck ads and sports car shoppers sports car ads. It sounds simple, but it’s one of the most powerful marketing methods of all time. People are far more responsive to messages that feel personal. You may have caught their attention with a general ad at first, but once they start browsing those SUVs on your website, you can retarget them with SUV ads.

When you use retargeting, you can provide different calls to action (CTAs) to users based on how they’ve engaged with your web pages. A visitor who spent a lot of time on your truck inventory pages can be served ads for your latest truck deals. Someone who checked out your lease specials can be hit with ads that talk about financing offers. It’s deceptively simple and brutally effective. Relevance is everything. When your ads reflect what the prospect was already thinking about, it feels personal and resonates.

A next-level tactic is using engagement depth to determine how strong your call to action should be. For instance:

·      Multi-page viewers and long dwell times. These are warm leads and can be retargeted with stronger CTAs like “Book a test drive” and “Get a quote today.” They’re close to converting and just need a little push.

·      Single-page bouncers. These are people who just peeked at your site. They can be re-engaged with lighter touchpoints like a general promotion or model comparison guide to reel them back in.

·      Abandoned lead forms. If someone started filling out a form but didn’t finish, retarget them with a reminder and a stronger offer to sweeten the deal (e.g., “Complete your form for $500 off!”).

This level of nuance turns retargeting into a conversion machine and allows you to show the customer exactly what they want to see.

Retargeting builds trust over time

People don’t buy cars from whatever dealer they find first. That’s too risky. They buy from dealerships they trust and that feel familiar. You can build that sense of familiarity and trust through retargeting. For example:

·      Consistent branding across ads. Using consistent branding, design, and messaging throughout your ads reinforces your dealership’s identity.

·      Frequency builds familiarity. People need to see a brand between 5-7 times before they’ll remember it. Retargeting puts your dealership in front of people over and over again. Even if they don’t click right away, it’s helping to establish your credibility.

·      Social proof works. When you use social proof like customer testimonials or awards in your ads it builds trust with your prospects.

Trust is earned over time, and retargeting will help you get it.

Retargeting helps you stay competitive

If you’re not using retargeting, your competitors definitely are. Car dealerships operate in one of the most brutally competitive markets out there, with national chains and franchise giants dominating search results and flooding ad channels with endless budgets. If you’re not showing up again and again, your competitors will, and they’ll scoop up all your leads. 

The good news is you don’t need a massive marketing budget to get results. Retargeting allows smaller, local dealerships to play smart rather than trying to play big. When you focus on local PPC with hyper-targeted remarketing, you can reach a smaller, more qualified audience – people who are actually in your area, browsing your inventory, and likely to buy soon. 

And unlike those cookie-cutter campaigns from national dealers, you can make your messaging feel personal and specific to your local community. That’s an edge big budgets don’t have. 

Every visitor who leaves your website without converting is a potential sale but not necessarily lost. With smart retargeting, you can bring them back into your funnel and stay top-of-mind while your competitors waste money shouting into the void. Persistence wins the sale and retargeting is how you stay on the map.

Remarketing is cost-effective

To be blunt, search ads can get expensive fast, especially when clicks can cost a couple dollars per click. Pouring money into cold traffic is gambling on people who may not be ready to engage. Retargeting changes everything.

Display retargeting clicks typically cost a fraction of what you’d pay for search ads using competitive keywords. You’re no longer paying top dollar to get someone’s attention from scratch – you’re nudging people who already know who you are, and those people are more likely to respond. This makes retargeting one of the most cost-effective ways to use your advertising budget.

·      Lower CPC, higher intent. Retargeting costs less per click, but you’re targeting people who already visited your site and showed interest.

·      Better conversion rates. Familiarity breeds trust. Retargeted visitors are statistically more likely to convert than new users who just clicked an ad out of curiosity.

·      Higher ROI. Since retargeting reaches warm leads, the cost of acquiring a lead is usually lower, which means your overall cost per lead is lower and you get better ROI.

If you’re skipping remarketing because you think it’s just something “extra” that doesn’t make a difference, you’re not saving money – you’re losing easy wins. Instead of perpetually chasing new, cold traffic, invest in converting the traffic you’re already getting. That’s exactly what remarketing does.

Promote real-time inventory with dynamic retargeting

Generic ads are fine for first impressions, but once someone has browsed your inventory it’s time to get specific with dynamic retargeting. Here’s how it works:

When a prospect views a specific vehicle on your site, you can use retargeting ads to show them the exact vehicles they viewed and others like it down to the year, color, trim, and mileage. For example, if they looked at a black 2005 BMW 535i, that’s exactly what they’ll see in the ad – the same photos, same specs, all across sites like YouTube, Facebook, news platforms, and more. This reminds your prospects of exactly what they want.

Dynamic retargeting works by integrating your live inventory feed with your ad platform, like Google Ads or Meta. This means the vehicles displayed in your ads will always be up to date and won’t feature cars you sold last week. 

Beyond personalization, dynamic ads are an incredible tool for creating a sense of urgency:

·      Leverage scarcity. With these ads, you can leverage the power of scarcity by stating that your inventory won’t last. Using messages like “Only 1 left” or “Recently reduced” signals that the opportunity won’t last.

·      Show what’s popular. If a particular model is getting a lot of views, let your prosects know. People don’t want to miss out on a good deal.

·      Trigger action with FOMO. Fear of missing out is real, and when people see the car they want again – with a reminder that it might sell soon – they’re more likely to come in for a test drive.

By using retargeted ads, you can increase conversion rates by up to 200% compared to standard display ads. These ads feel more like a helpful reminder than an outright advertisement.

Retargeting can be done strategically

If you’ve never run paid ads before, it’s easy to assume your only options are basic keyword targeting and generic follow-up ads. But today’s ad platforms give you a buffet of hyper-specific targeting capabilities to fine-tune exactly who sees your ads, where, when, and how. 

One of the most effective PPC retargeting tactics for car dealerships is location-based targeting. With radius targeting, you can serve ads to people within a specified distance from your dealership, like within 10-15 miles. These will be prospects who are not only likely to visit your site but could realistically walk into your showroom today. Don’t waste ad spend on clicks from people three states away.

Then there are device-specific campaigns. If your analytics show that 75% or your traffic comes from mobile (this is common), you can launch a mobile-only retargeting campaign with click-to-call buttons, mobile-optimized landing pages, and a map and directions built right into your ads. This will improve the user experience and increase conversion rates.

Timing also matters. When you schedule your ads you can control when they appear. Run them during lunch breaks, in the evenings, or on weekends when people have more time to browse car listings and are more likely to make big purchase decisions.

Other strategic targeting elements include:

·      Demographic targeting. You can tailor your messages based on age, income level, and household status. A 25-year-old college grad and a 45-year-old parent are not shopping for the same reasons even though they might buy the same car.

·      Behavioral triggers. You can create audiences for your retargeted ads based on repeat visits, clicks, video views, or interaction with a specific feature like a trade-in calculator.

·      Lookalike audiences. Build new audiences that resemble your best customers. Platforms like Meta and Google are really good at identifying similar users based on their behavior online.

The bottom line is that retargeting doesn’t have to be broad. With the right strategy, it becomes a smart, cost-effective system for reaching the right prospects at the right time.

Remarketing supports seasonal and promotional campaigns

Have a sale, lease offer, or year-end clearance? Retargeting can amplify the urgency to act now. By offering short-term discounts and financing deals, you can tap into the urgency people feel when presented with time-sensitive offers. Emphasize the end date using a countdown timer or final deadline to create FOMO (fear of missing out). 

With this type of retargeting, you can align your ads with your email messaging to increase conversions even more. For example, if you sent out a promotion to your email list, they’re likely to see your retargeted ads and be reminded of the deal you’re offering. 

Stop letting leads slip away – convert clicks into sales with PPC.co

Retargeting is the PPC secret weapon most car dealerships don’t take advantage of. Using this strategy can make the difference between a one-time curious visitor and a buyer ready to schedule a test drive. If you’re spending money on clicks without retargeting your visitors, you’re wasting your ad spend. 

At PPC.co, we specialize in high-performance white label PPC campaigns that include smart retargeting from day one. Whether you’re launching your first campaign or looking to tighten up your existing ad strategy, we can help you capture more leads, drive more traffic, and move cars off your lot. Let’s turn those clicks into closed deals – contact us now to get started.

Author
Recent Posts

Timothy Carter

Chief Revenue Officer

Timothy Carter is a digital marketing industry veteran and the Chief Revenue Officer at Marketer. With an illustrious career spanning over two decades in the dynamic realms of SEO and digital marketing, Tim is a driving force behind Marketer's revenue strategies. With a flair for the written word, Tim has graced the pages of renowned publications such as Forbes, Entrepreneur, Marketing Land, Search Engine Journal, and ReadWrite, among others. His insightful contributions to the digital marketing landscape have earned him a reputation as a trusted authority in the field. Beyond his professional pursuits, Tim finds solace in the simple pleasures of life, whether it's mastering the art of disc golf, pounding the pavement on his morning run, or basking in the sun-kissed shores of Hawaii with his beloved wife and family.

Latest posts by

Timothy Carter

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Author

Timothy Carter

Chief Revenue Officer

Timothy Carter is a digital marketing industry veteran and the Chief Revenue Officer at Marketer. With an illustrious career spanning over two decades in the dynamic realms of SEO and digital marketing, Tim is a driving force behind Marketer's revenue strategies. With a flair for the written word, Tim has graced the pages of renowned publications such as Forbes, Entrepreneur, Marketing Land, Search Engine Journal, and ReadWrite, among others. His insightful contributions to the digital marketing landscape have earned him a reputation as a trusted authority in the field. Beyond his professional pursuits, Tim finds solace in the simple pleasures of life, whether it's mastering the art of disc golf, pounding the pavement on his morning run, or basking in the sun-kissed shores of Hawaii with his beloved wife and family.

Related posts

Samuel Edwards
|
November 7, 2025
Traditional PPC Agencies Are Dead: Stop Buying Clicks and Start Buying Outcomes

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.

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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. 

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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. 

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Automation killed the “bid manager” role

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. 

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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).

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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. 

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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.

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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.

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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. 

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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.

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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.

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Creative is the new keyword

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. 

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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.

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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.

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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. 

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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.

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Conversion rate optimization is an ad spend multiplier

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. 

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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.

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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.

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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.

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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.

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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.

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Stop measuring success in clicks – start measuring in profits

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.

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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.

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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. 

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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.

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Each ad is only as good as the page it leads to when clicked

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.

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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.

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Rising ad costs make conversion strategy essential

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.

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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.

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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. 

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Siloed metrics kill performance

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.

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What the “new” PPC agency model looks like

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.

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The New PPC Agency Model

The “New” PPC Agency Model

How modern PPC agencies differ from traditional “click-buyers” — focusing on conversions, customer value, and full-funnel growth.

Aspect Old Model (Traditional PPC) New Model (Modern PPC)
Core Focus
  • Buys and manages clicks.
  • Measures success by CPC or CTR.
  • Optimizes primarily for traffic volume.
  • Focuses on conversions, revenue, and ROI.
  • Optimizes campaigns for business outcomes.
  • Builds long-term profit, not vanity metrics.
Human Role
  • Manual bid management.
  • Relies on keyword adjustments.
  • Little involvement in strategy or creative.
  • Uses automation for bidding and targeting.
  • Humans focus on strategy, creative, and CRO.
  • Analyzes data to understand user behavior.
Performance Measurement
  • Reports clicks, impressions, and cost per click.
  • Short-term reporting cycles.
  • Tracks LTV, ROAS, and profit per visitor.
  • Measures full-funnel performance and growth.
Creative & Strategy
  • Limited testing or optimization of ad creatives.
  • Focuses mostly on keywords and bids.
  • Runs structured creative testing across formats.
  • Refines messaging, visuals, and video ads for results.
Landing Page & Funnel Work
  • Stops optimization at the ad click.
  • Does not assist with landing pages or funnels.
  • Optimizes post-click experience for conversion lift.
  • Improves page design, CTAs, and UX to increase ROI.
Agency Role
  • Acts as a media buyer.
  • Reports on ad metrics only.
  • Acts as a full-funnel growth partner.
  • Advises on pricing, content, and user journey.
  • Aligns marketing with profit-based KPIs.
Outcome
  • High ad spend, low conversion insight.
  • Focus on quantity over quality.
  • Profitable ad spend through conversion optimization.
  • Scalable growth grounded in customer value.

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Conversions, not clicks, build businesses

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.

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Ready for a full funnel PPC ad strategy? We’d love to help

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. 

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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.

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Samuel Edwards
|
September 17, 2025
Hospitality PPC Strategies That Actually Convert

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.

Funnel Stage Keyword Focus Ad Copy & Creatives Key Metrics
Awareness Broad discovery keywords (e.g., “best beaches in Florida”, “top weekend getaways”) Emotional/inspirational messaging: “Unwind by the sea”
Use scenic images and dream-like visuals
Impressions, Click-Through Rate (CTR), Engagement
Consideration Comparative keywords (e.g., “boutique hotel vs Airbnb”, “hotel amenities comparison”) Highlight features, testimonials, reviews: “Free Wi-Fi & Breakfast”
Use photos of amenities and location
CTR, Time on Site, Email Signups
Conversion High-intent branded keywords (e.g., “[hotel name] rooms [dates]”, “book hotel near airport”) Urgent call-to-action: “Book now & save”
Limited-time offers and scarcity language
Bookings, Cost per Acquisition (CPA), ROAS
Loyalty Retargeting & email remarketing keywords (e.g., “return guest discount”, “VIP upgrade”) Personalized offers: “Welcome back!”
Show exclusive perks and upgrades
Repeat Bookings, Lifetime Value (LTV), Referrals
Remarketing Dynamic remarketing keywords
(auto-populated by product/ad platforms)
Show previously viewed rooms/properties
Offer gentle discount nudges or visual reminders
Return Visits, Ad Engagement, Conversion Lift

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First things first – map the guest journey

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.

Use a varied keyword strategy to cover all funnel levels

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. 

Tailor ad copy and creatives to each funnel stage

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.

Optimize your landing pages

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.

Get your bid and budget strategies down

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.

Use multiple channels and ad formats

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.

Leverage local targeting

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.

Go deep with retargeting

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. 

Monitor ROI, adjust, and scale

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.

Ready to unlock powerful PPC performance?

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. 

 

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