budgeting for metasearch
TRANSCRIPT
MetasearchBudgeting for Metasearch
Previews
Metasearch Webinar Series
1. What it is, What it Does, Why it Matters2. Pros and Cons of Assisted Booking3. The Roles of Rate Parity – Seen and Unseen4. Budgeting for Metasearch
Previews
Today’s Webinar
4. Budgeting for Metasearch• What Should I Budget?• Playing Budget Volleyball• Alignment of Budget with Goals• Recap
So, What Should I Budget for Metasearch?
You Shouldn’t!
What???
Apply the Proper Measuring Stick
1.ROAS2.Cost of Sale
Remember Our Keys to Succesful Metasearch Campaign?
1.Rate Parity2.Conversion3.Low CPCs
COS = Total CPC / Revenue
$2 cpc @ 10% conversion rate = 10 clicks/booking$20 cpc / $500 revenue = 4% COS$20 cpc / $135 revenue = 15% COSHigher conversion + lower cpc = lower COS
The Budget Volleyball
How to Resolve?
CPA (aka Commission) ModelsGoogle, TripAdvisor (see Pros & Cons of Assisted Booking webinar)
Advantage = Safe, No Budget Line Item Required
Disadvantage = No Control, Must Install Pixel
CPC Models Advantage = Control Own Objectives, Fewer Pixels Required
Disadvantage = Requires Funding, Results May Vary
What Are My Goals?
More Than BookingsWhy else is metasearch important?
1. Branding
2. Volume
3. Owning the guest
4. If you don’t, somebody else will
I Get it, But I Still Need a Budget
Things to Identify1. What Are My Goals?
2. How Does This Compare With Other Campaigns?
3. What Is My COS?
4. How Is My Rate Parity?
5. What Is My Conversion Rate?
6. What Are My CPCs?
What If I Don’t Have This Data?
1. CPA (commission) models could help gather some data with minimal risk
2. Seek out comparisons with similar hotels & markets
3. Test the waters
Back To Those Goals…
Scenario #1 – The Perfect Story
I want top placement on all major channels, I have excellent rate parity, conversion rates are around 7.5%, cpc’s are low, my COS is around 9%, and this performs better than my paid search ads.
Solution – Bigger is Better! Need to cover as many channels as possible to generate volume. More clicks will of course mean more budget required, however would suggest pulling some from paid search to compensate.
Back To Those Goals…
Scenario #2 – The Reality Show
I want as much exposure as I can get but have to keep within a monthly budget, regardless of performance. I don’t have a lot of historical data, but I need my COS to be under 12%
Solution – Control Is The Key! Need to start generating traffic to analyze historic data. Keep a broad selection of channels in play so as to diversify portfolio. Make campaign adjustments between channels based on these results. Research and understand the cpc’s associated with each channel and apply a cross-channel optimization strategy. Consult with agency handling your paid search campaigns and use this as a reference point for budgets.
Back To Those Goals…
Scenario #3 – The Safety Dance
I want to play, but I can’t fit it into my budget this year and honestly have no idea what to expect in terms of performance.
Solution – Seek Out Commission Models. Google and TripAdvisor are good examples of these, and can help you dip your toe in the water. Use this data to help guide future plans.
Review
Recap
1. What it is, What it Does, Why it Matters2. Pros and Cons of Assisted Booking3. The Roles of Rate Parity – Seen and Unseen4. Budgeting for Metasearch
Previews
Upcoming Metasearch Webinar Series
1. TripAdvisor2. Google3. Trivago / Kayak
