UKinbound member Blastness offers a range of technologies designed for accommodation providers to enhance online distribution, boost bookings and grow revenue margins. In this guest blog, the Blastness team look at the challenges of cutting through an increasingly crowded online advertising space and how to ensure you’re investing the right amount at the right time to maximise results.
In the current era, the search for information and accommodation bookings predominantly occurs online. Sponsored advertisements significantly dominate Search Engine Results Pages (SERPs), occupying approximately 60% of desktop space and up to 100% on mobile devices. To maintain competitiveness in the contemporary hospitality sector, it is not merely advisable to invest in search and metasearch advertising campaigns; it is essential to do so in a professional, performance-oriented manner, optimising investments and accurately allocating budgets.
According to a study of Blastness hotels, 50% of direct bookings result from online advertising activities – highlighting the significant impact of advertising on consumer behaviour. The findings prompt a crucial question for hoteliers: how much should be invested, and how should the advertising budget be distributed to maximize results?
The traditional approach involves using a predefined budget, which means that investment is tied to spending capacity and campaigns are suspended once the allotted budget is exhausted. This approach doesn’t take into account market fluctuations, and businesses risk over or underinvesting in relation to demand trends.
In contrast, an “always-on” approach (as used by Blastness) relies on a flexible, dynamic budget distribution that can follow market fluctuations. Investment increases during peak demand, and drops back when volumes are low. This strategy eliminates the need to predict budget distribution across the year based on seasonality. An AI-powered bid management system adjusts the level of advertising spend based on market pressures and website and competitor data to target users most likely to make a purchase. This system dynamically adapts the level of investment and introduces new relevant keywords, resulting in increased visibility in search results.
A common concern amongst hoteliers venturing into online advertising is the potential impact on organic results, with the fear that an uptick in bookings from advertising activities might lead to a decline in organic bookings. However, data from our clients show that rises in bookings stemming from search and metasearch advertising campaigns serve as catalysts for organic bookings growth– creating a virtuous cycle. The heightened visibility achieved through advertising positively impacts both organic visibility and direct bookings.
In the fiercely competitive hospitality scenario, the critical decision lies not in the budget size but in the strategic approach. To achieve maximum performance, an always-on, reservation-oriented strategy can be hugely beneficial.
We invite UKinbound members to get in touch to see how our Always-On strategy could help your business maximise its campaign performance. Our Pay Per Reservation contractual formula means that we will handle the entire campaign activation and management process, with compensation depending on the value of tracked reservations – thus minimising risk to your business and ensures guaranteed results. To find out more, please contact Blastness Commercial Director, Luca Plotegher.
