Nowadays, online advertising is a significant driver of sales in the travel industry. For this reason, ROAS (return on ad spend) is such an important metric to track.
This is especially the case when it comes to the paid search engine advertising. ROAS is measured to demonstrate the success of a marketing campaign and whether or not advertising is worth the investment. Now, tools like Google Analytics allow marketers to analyze sophisticated metrics including the value of specific content, placements, or timings. Furthermore, ROAS can measure more than just the success of specific ad campaigns - these metrics can also be used to measure the value of specific keywords. By monitoring ROAS, companies can define which areas of their marketing strategy generate the most revenue – especially on pay per click ads. Here, we discuss five ways travel companies can optimize their return on ad spend.
1. Consider the whole customer journey, not just the click
The principal aim of an advertising campaign is to generate conversions. Therefore, it is important to remember that an online marketing campaign encompasses everything from click-throughs to aftercare. Without a carefully planned out customer journey, fewer clicks will result in sales. For instance, once prospects land on a site, they should discover relevant, personalized content that entices them to make a purchase. Moreover, it is crucial that marketers make sure their messaging is consistent across all channels, including call centers, adverts, and email campaigns.
2. Be mobile ready
Research demonstrates that more and more consumers conduct searches for hotels and flights on mobile devices and tablets. Therefore, marketers need to ensure that their adverts and online content are mobile-ready. This may involve A/B testing device-specific content to measure which advertising strategies are the most effective. Once marketers know which content generates the most interactions, they can apply these findings across their entire suite of communications.
3. Budget across devices
Furthermore, monitoring clicks across devices is a good way to identify how marketers should distribute their budget. By monitoring which type of content performs best – whether it is desktop, mobile or tablet – companies can adjust their spend accordingly. For instance, if a certain customer segment is making more purchases on mobile, it is likely that a marketing team will want to spend more on mobile-friendly content.
4. Leverage location data
In addition, a business can budget strategically across time and location metrics, as well as devices. This means that companies can focus their advertising efforts in profitable times and locations. For instance, if marketers find that their pay per click content performs better at weekends, they can ensure they distribute their ad space spend towards Saturdays and Sundays.
5. Know the competition
As with any business strategy, knowing the competition is key. Monitoring the success of a competitor’s marketing campaign is extremely useful, as it can give important indications of how to plan communications. Although there is no way to obtain precise statistics – short of asking competitors for information – studying their content gives marketers the tools to create more innovative campaigns.
Using ROAS to optimize marketing budgets
In the travel industry, there is a new disruptor around every corner. However, monitoring ROAS remains one of the most useful ways to develop an advertising strategy. Once the marketing team has calculated the ROAS for each campaign, they can identify which content, placements, and timings result in the most conversions. Overall, it is clear that ROAS is central to conversion tracking and marketing optimization. With the tips mentioned above, marketing managers can ensure they are gaining detailed insights that enable them to get the most out of their campaigns.