An average conversion rate of 2.70% in “Search” and 0.89% in “Display”
According to the study published on June 30, 2017 by Wordstream the overall conversion rate (all sectors combined) of Adwords ads is 2.7% on the Search Network and 0.89% on the global display network (Display)
As for the hotel and travel industry, the conversion rate is lower: 2.57% on Search and 0.53% on Display.
Interesting additional data: The average cost per acquisition is estimated at 51€ in Search and 38€ in Display.
The following part may be applicable for everyone who has access to their google analytics data (including your booking-engine data) with e-commerce enabled.
Analysis and Recommendations to increase your average conversion rate.
Our analysis will take into account several necessary data:
1° What is the reputation of your establishment?
An establishment with an international reputation (e.g. the Palace) will naturally have more searches on the web, for many reasons… this is partly explained by curiosity:
- Search for photos
- … prices
- … jobs
- … reviews
The sale will very rarely close in 1 day for these customers.
In the same order, a hotel with an innovation or another particularity (Trend, Exhibition, Architecture …) will have more notoriety.
2° What is the particularity of your establishment?
A hotel-restaurant will have a lower conversion rate if the legal-commercial entity has the same name for both parties. A large number of customers wishing to learn about the restaurant may click on your ad. They may have come for lunch, but it will be almost impossible to tell them apart.
The same goes for hotels with spas or pools that are open to the public.
Minimize unnecessary clicks:
To minimize and qualify clicks, you’ll need to analyze your results.
Does your ad correspond to the landing page? Do the keywords typed by the users all correspond to the ads of the campaign? Have you updated your price extensions? Did you remember to reduce your inventory on OTAs in time or to put your ads on standby if your establishment is full for a long period of time?
To increase sales there are not many solutions:
Optimize the landing page (display time, commercial messages, highlighting of offers …)
Set up/optimize the conversion funnel, check the escape of prospects in the booking-engine.
If you don’t respect the price parity: put forward the prices with the % of reduction on the official site in the ads or on the price extensions.
Set up an hourly schedule for optimizing displays according to the conversion rate.
Review and complete marketing methods and techniques.
Optional if +1000 sessions/month:Set up a retargeting campaign.
To increase the share of your direct sales, it is important to ensure to increase its conversion rate, but that’s not all!
Once you have checked the above points and your conversion rate is increasing, do not limit your efforts to these actions, adapt by slightly increasing the daily budget of your campaigns and make sure to check/optimize the following two points:
- The positioning of your ads against competitors.
- The cost per acquisition.
It would be a shame not to take advantage of this new figure!