Optimizing Hotel Marketing Campaigns: Is Performance Max Worth It or Should It Be Paused?
In the competitive world of hotel advertising, achieving optimal return on ad spend is crucial. One of the newer tools in Digital Marketing, Google’s Performance Max (PMAX) campaigns, has garnered significant attention. However, their effectiveness, particularly within the hospitality sector, remains a topic of debate among marketing professionals. This article explores the considerations for hotel marketers evaluating the value of PMAX campaigns.
Understanding the Context
A hotel marketing manager recently shared their experience managing advertising efforts for a property. Initially, their campaigns were disorganized, but through targeted optimization, they achieved impressive results with Search campaigns. Recently, they introduced PMAX into their media mix, initially observing promising performance.
However, a closer analysis raised questions about the actual sources of incoming traffic from PMAX. It was found that almost all of this traffic stemmed from search intent, specifically from branded keywords that were already performing well within dedicated Search campaigns. This overlap led to considerations of excluding brand keywords from PMAX to prevent internal competition.
The Impact of Campaign Changes
After excluding brand keywords from PMAX, the campaign’s performance deteriorated significantly—effectively ceasing to deliver conversions and consuming the daily budget without tangible results. Importantly, all conversions attributed to PMAX appeared to be naturally captured by existing Search campaigns targeting the same brand terms.
This situation raises a fundamental question: Does PMAX provide unique value beyond what well-structured Search and remarketing campaigns already achieve?
The Hospitality Sector and Advertising Strategies
In the hotel industry, branding and local recognition play critical roles. Some experts hypothesize that PMAX could serve as a top-of-funnel or brand awareness tool, keeping the property “top of mind” for potential guests. Yet, if a hotel already possesses a strong regional brand presence, the incremental value of such cross-channel campaigns may be limited.
Additionally, specialized remarketing efforts—such as display and YouTube campaigns targeting users who visited the site but did not convert—are often effective within typical booking windows, especially when optimized for recent visitors.
Expert Opinions and Best Practices
Given these insights, what are the best practices for hotel marketers considering PMAX?
- Evaluate Campaign Overlap: If PMAX predominantly consolidates traffic already captured by targeted Search campaigns, it may be redundant.
- Test Incrementally: Pausing PMAX temporarily to assess its impact on bookings and overall ROI can provide valuable data.
- Align Campaign Objectives:
