Managing PPC campaigns or multiple ad campaigns across different skews can be time-consuming, frustrating, and costly. That’s why paying a PPC management agency is a good idea. Overpaying is not, however.
Determining what you should pay and the type of agency or services you want will require many different considerations about your business, your willingness to spend on PPC advertising, and how much effort you want to have to put in yourself.
Most PPC agencies have different pricing model’s based on different needs and the scale of pricing can vary wildly, it’s only one of the reasons clients have issues with their PPC agency. The upside is that a good agency can get you much more of an ROI than a typical marketer is capable of.
It’s a given that you’ll have to spend money on advertising in order to draw in customers, but much of that money can be wasted with ineffective PPC campaigns. The right PPC management will keep your Google ads fresh, well-targeted, and ever-evolving to consistently engage your market.
The core of figuring out how much to pay will be determined by the type of strategy that works for you and how much you can afford to spend in return for managing your ad campaign.
There are three standard pricing model’s that each work differently and are best suited for different types of businesses as well as additional fees and services that you may want to consider.
We’ll detail each model and then discuss the optimal situation where that pricing model would work to give you an idea of what’s best for your business and campaign strategy.
The way these models of pricing work, is that companies pay an agency a set percentage of whatever their base ad spending is. The company then manages the ad campaigns based on regular ad spend percentages.
In many cases, the more campaigns the agency manages, the lower the percent paid gets. This means by volume the agency makes more money but the business pays less. This is not the case for every agency but is standard practice for many of them.
This is generally the most common pricing model used and does not include additional fees and services provided by the agency. One caveat that comes with these pricing model’s is that they typically require a minimum amount of ad spend to operate regardless of the overall budget.
The percentage is also set by the agency and once locked in, can be difficult to renegotiate, especially mid-campaign. This means that fees are locked for a period of time regardless of return or tracked performance unless otherwise stipulated. Knowing the conditional stipulations that apply to your PPC management contract will help to avoid unnecessary costs.
These types of pricing contracts are best reserved for big businesses with big PPC advertising or ppc ads budgets. This is mainly due to the minimum required spending that accompanies these pricing plans.
Small to medium-sized businesses may not be able to afford the price point of these plans and the required minimums.
Additionally, larger businesses that run more campaigns or that have large ad portfolios will benefit more from the decreased fees associated with higher workloads on these price plans.
Larger businesses also have the ability to absorb the cost over the term of a contract if the ROI is not as high as it may have been forecast. Businesses with minimal budgets or that cannot absorb extra costs would not be well suited to these models due to the lack of control overpricing.
This is a fixed fee model that is determined by the associated costs and scope of managing a client’s static ad campaign. The fees and assessments for managing a business’s ad campaigns are all built into one payment.
This provides a set range of PPC management services for static campaigns and covers all associated monthly fees. This provides businesses with a set cost for a set run of ad campaigns.
The one typical downside to this type of payment model is that it is not easily modified and the scope of services may be less than other pricing models. Performance is also not guaranteed. The PPC management fee’s are paid regardless of how the Google ads campaign perform unless otherwise stipulated in the contract.
This type of setup can be a double-edged sword for businesses as the simplistic structure and flat fees are beneficial, but the range of services and performance may be limited. It’s best to discuss exact details before deciding on this type of payment model to ensure the services are what you need.
Though this type of pricing model is not as common as the percentage of ads spend model, it can be beneficial for businesses that run a set of standard, static ad campaigns on a regular basis and simply need them managed in some capacity.
Smaller businesses that prefer to pay a flat fee may also choose this model over others so that they have more control over the exact price they pay. The simplified pricing and limited PPC management services also serve smaller less complex ad campaigns better.
Larger businesses or businesses that run constantly changing ad campaigns, seasonal Google ads, and other promotions would not benefit from this type of pricing. The fee structure is based on static ad campaign costs and the PPC management and oversight level is less than that of other plans.
This means essentially that complex ad campaigns will not receive the PPC management and attention to detail that they need to capitalize on their potential and will therefore have diminished ROI. Even if the cost is lower, in these cases the loss of potential revenue may cost even more. It’s like buying a cheaper product to save money and then having it break two days later.
These models are much less prevalent than the previous two and are tailored to less traditional campaigns that rely on leads generation to close sales. In general, this model is used for campaigns such as e-mail marketing, cold calling, B2B sales marketing, and other types of direct sell campaigns.
Agencies typically manage these campaigns and collect a fee-based either on overall performance or per lead that closes in a sale. Though the niche for these types of campaigns is smaller, the costs associated are also much more mitigated than other options.
This option works exceedingly well for eCommerce, direct sales, and referral models.
As we’ve discussed, this model is rarer than others due to the niche nature of the campaigns that use it. However, businesses that market directly or use conventional sales tactics can make great use of this as a leads-generation service to drum up sales.
The basic idea is that you only pay when they bring you a client. This makes the cost relative to client acquisition a worthy exchange in most cases. Linkedin campaigns, B2B campaigns, and direct-to-consumer sales would benefit greatly from this model.
Traditional marketing tactics, ad campaigns, and site-driven sales would not benefit from this model as the overall benefit would be lower compared to the cost per customer.
The plans we’ve listed are the top 3 that are most common, agencies may include other plan options as well as PPC management fee.
Typically, PPC management services fees are flat, static, and applied on top of standard pricing plan rates. The benefit of agencies that offer these fees is that the level of service is usually higher. In particular, services offer more control over ad campaigns, including automatically rotating or updating ads, managing dynamic ad campaigns, updating copy and other elements, and monitoring performance.
The fees for these services aren’t cheap, typically ranging from $500 to $5000, but the benefits are great for businesses with large campaigns who can afford the added cost and want more precise control of their PPC campaigns.
Before you decide on a plan, having a full understanding of your needs will help you determine what you need and what you should pay in terms of required services, changes, and other issues. It’s not enough to say “well, I can afford this much, so that’s what I’ll pay.”
First of all, take a look at your business’s PPC advertising or ppc adsstructure. Look at your base performance, decide what you want to improve. If you don’t have a dedicated PPC advertising/ppc ads program or budget, try to get an idea of what you want so that you don’t go into negotiating with an agency blind.
This is why larger businesses can afford to pay large premiums, they already have the ad budget and the return on ad spend usually covers any costs associated with using an agency.
Once you have a budget in mind, you can begin to decide on what plan would work best. This includes considering whether you want to pay for additional PPC management services.
The fees on percent ad spend plans are fairly standard and don’t leave much room for negotiation, but performance-based models and flat fee structures usually leave room for negotiation in terms of service and price. The larger and more complex your ad campaigns, the more you’ll spend overall, but you can also expect a higher ROI in these cases, with a good agency.
Before you sign the contract, make sure you have a PPC audit performed and go over any and all particulars so that you know where you stand. Having stipulations in your contract that cover you in case of downturns in business, poorly performing Google ads, or dynamic ad campaigns will allow you more control over your campaigns and protect you from the unexpected.
To help you figure out how much you’ll be spending, we’ll break down some of the standard industry fee structures.
Estimating is key to success in Google Ads.
Startup Fees are essentially assessment fees that are paid at the start of the contract. These are usually paid regardless of whether you start a long-term contract or are month to month. They can range from a couple of hundred dollars to several thousand depending on the agency and the scope of the PPC management services needed.
You’re paying these fees up-front for the agency to put together a plan for your ad campaigns and the PPC management services requirements. What you get for these fees, however, depends on the agency, so don’t expect a guaranteed level of service just because the startup fees are higher.
Contracts typically come in three types when you sign with an agency. Depending on your situation or budget, choosing one type over another may have more benefits.
Some agencies offer month-to-month contracts that allow you to change or alter services on a monthly base or quit the contract after the next 30 day period if you so desire. If you’re uncertain about your need or want to test out the agency before committing to a long-term contract this is a good option.
Though rare, some agencies offer a no-contract option. This allows you to end service at any time. Fees may be applied, but this may be a good option if you face financial difficulties or find that the service you are using isn’t working out. Those who don’t like commitment may prefer this option as well.
The standard option for most agencies is a term contract. These typically range from 3 to 12 months. These contracts can include performance minimums and expected services as well as all minimums and fees associated with payment. Payment is typically made on a monthly basis and can include the contract fee as well as PPC management fee’s.
There are three components to PPC management agency fees: Monthly click budget minimums, the standard monthly base fee, and the percentage of ad spend fee.
The first component and one that you should be aware of before signing is the monthly click budget minimums. These are the minimum ad spend budgets that an agency will work with. This is especially important if the agency takes a percentage of ad spend as part of their fee. If you don’t meet these minimums, you may need to change agencies or renegotiate the terms of your contract. This can determine a lot of the expense. Smaller businesses with tighter ad budgets may want to shy away from agencies with high minimums.
The second component is the base fee. This can be structured in a number of ways, but the base fee can be considered the minimum you will pay the agency for their work each month. Some agencies charge this as a flat rate or have flat-rate plans that don’t add additional charges.
Some require a base fee, plus hourly expenses based on workload. Others have a base fee based on keyword count, tiered fee structures, or fees associated with each service, as an a la carte service.
The normal practice is to charge a base fee, plus a percentage of either ad spend, or a percentage of the total PPC advertising budget, both of which can become quite hefty and can range from a low of 15% and a high of 50% of ad spend.
You should assess your financial health and your overall marketing budget when deciding on the type of payment structure and agency to choose.
Understanding the benefits and costs of a PPC marketing agency allows you to make more educated decisions on what to pay. What that number is for you will be dependent on a lot of factors.
The best answer we can give you is to do a hard inventory of your business’s finances and marketing budget and determine what you can afford to spend, even if things don’t go your way.
In general, you can expect a great return on your investment, and using a PPC management agency is a fantastic resource, but you shouldn’t over-leverage your advertising budget in case your conversion rate drops or your business suffers a downturn.
The rule is: pay what you can afford for the services you need most. Even a big business needs to be smart about where it puts ad dollars in order to maximize profits. Paying for things you don’t need is never a good idea.
Hopefully, this post has given you everything you need to know about PPC management agencies, how they work, their fees, and what you can expect to spend.
If you’re thinking of hiring a PPC agency or firing your existing PPC agency, get in touch!
Now you’ll have a better idea of what it’ll cost you and what you should and shouldn’t pay the agency you choose.
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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.
