Building more durable and effective bidding strategies for Hotel Campaigns

Granular analysis and first look

Google announced on February 6, 2024 that it is updating its Hotel Ads bidding strategies to adapt to evolving privacy regulations and technological advancements. The changes include phasing out commissions-based bid strategies and introducing target Return on Ads Spend (tROAS) and expanding its Performance Max for travel goals to enhance bidding accuracy and performance.

Why this matters?

• Transition to durable strategies as third-party cookies are phased out.
• Introduction of tROAS for improved bidding accuracy.
• Expansion of Performance Max for travel goals for broader reach.
• Phased sunset of Commissions bid strategies with critical deadlines.

Next Steps/Action Items

• Transition from Commission-based bid strategies to tROAS or Performance Max.
• Note critical dates: no new allowlist requests for Commissions (per Stay) starting February 2024, and the sunset of Commission strategies by October 31, 2024.
• Leverage Google AI for enhanced budget efficiency and performance.
• Monitor and adjust strategies before the sunset date to maintain campaign continuity.