Most of the time, online buyers did a lot of browsing on the internet, looking through websites yet not making any purchase at the end of the day. Retargeting hotel ads aim to bring back these customers to the website they were browsing and ultimately, increase sales by converting these buyers into shoppers. According to HubSpot.com, retargeting hotel ads are a type of targeting advertising that concentrates on customers who have already visited a brand’s website or those in a company’s database (such as customers). After visiting a website and leaving, the customer will then see said website’s ad on a different website that they visit next.
What is the purpose of retargeting hotel ads?
It is an approach that allows marketers to ‘re-attract’ their customers—who might even have put some items in their online shopping cart that they decided to abandon in the end—back to their website and complete the purchase.
How does retargeting hotel ads work?
There are different ways of retargeting, such as, site retargeting, e-mail retargeting and social retargeting. Site retargeting refers to displaying related ads to customers who visited the brand’s website previously. Furthermore, this method is also helpful in taking into consideration if the guest had made a purchase on the website or not, therefore preventing ad overflow. E-mail retargeting helps improve e-mail marketing by displaying ads to customers who have opened e-mails from a brand. It works by using a code in an e-mail, and customers who opened the e-mail will see the brand’s ads on other websites that they go to. Lastly, social retargeting allows marketers to place retargeting ads on social media channels. According to netaffinity.com, approximately 54% of marketers believe that social retargeting is more effective than e-mail or search retargeting.
According to a study by comScore and ValueClick Media, within four weeks of retargeted ad exposure, there was a significant growth in brand searches by 1,046% and in website visits at 726%. Retargeting is also considered as a cost-effective method, reasonably cheaper than other forms of marketing campaigns. It is evident that retargeting is a very capable marketing tool that marketers need to consider.
Examples of best practice retargeting hotel marketing campaigns
Re-attracting customers is becoming an issue for hotels, as most potential guests abandon the booking process before a reservation is successfully made. Potential guests may have chosen dates and were ready to check out, however, the process was left incomplete. By placing retargeting hotel ads, there are chances of bringing them back to the hotel’s website to complete their purchase. According to digitalinformationworld.com, 70% of visitors on a brand’s website who are targeted with retargeting ads will be more likely to be converted. Additionally, a few takeaways from Online Marketing Strategies in Travel event suggests that 92% of visitors of a website does not return and only 27% of hotels send automatic e-mails on the day of arrival and the day the guests leave.
In the present day, people are very attached to their mobile phones, including travelers. According to statisticbrain.com, every year there are 148.3 million travel bookings made on the internet and 65% of same-day hotel reservations are made from a mobile phone. Therefore it is important to consider executing retargeting on mobile devices as well. An example of retargeting practice is the Facebook ad product, which had been used by InterContinental Hotel Groups (IHG). According to skift.com, the product, which is known as Dynamic Ads for Travel, is designed for hospitality brands as well as other travel brands to aid them in retargeting customers that are browsing popular apps (such as Facebook or Instagram) on mobile devices. Dynamic Ads for Travel allows hotel marketers to place retargeting ads on Facebook’s mobile app, focusing on travelers who had viewed a room on a certain hotel website, the ads will display the room that they had viewed, together with other similar hotels in the area with actual availability and rates. Similarly, tour agencies can also display images of famous tourist attractions based on which destination a traveler had been researching (for example, an image of the Great Wall of China, if the traveler had researched a trip to China). IHG is using Dynamic Ads for Travel to increase bookings as well as to emphasize the benefits of membership in the IHG Rewards Club, which is available to both members and non-members. According to IHG there has been an increase in their capability to reach their guests by 50%.
According to netaffinity.com, e-mail retargeting is also effective for hotels. For instance, Le Parc Suite hotels, after discovering 94.5% of their website visitors did not complete booking process once they checked the prices, carried out e-mail retargeting and successfully regained tens of thousands in income, as well as improving their return on ad spend (ROAS) by 1710%. According to netaffinity.com, there are different types of e-mail and the effective period to send them. The first retargeting e-mail should not give the impression that the hotel is pressuring customers to pay, instead, it should be a simple plain reminder along with a direct link to the booking page, along with the hotel name and room name. This ideally should be sent within three hours, as it can have an average click-through rate of 20% and open rate of 40%. The second e-mail, which can be sent the next day, can use the same message as the first e-mail, however, hotels can use other tactics such as, letting the guests know that there are only a few rooms left available. On the second or third day, a third e-mail can be sent including a special offer, such as a discount.
Key takeaways for your hotel business
For the hotel industry, retargeting hotel ads is essential to increase bookings, especially today where customers often abandon the booking process before it was completed. There are several reasons customers might decide to abandon the booking process—perhaps it was technical issues or the price that they find to be too expensive. Retargeting is an effective method to reach out to these guests, re-attracting them. E-mail retargeting and social retargeting is considered the most effective for hotels. Essentially, e-mail retargeting is a basic reminder to potential guests about their incomplete booking. A reminder that only a few rooms are left available, along with an appealing offer would be included on the second and third e-mail in order to gently urge the potential guest to make a purchase. Social retargeting is effective as the majority of people are on social media. Hence when they leave a hotel’s website they are likely to browse social media sites, where retargeting ads are displayed. Facebook’s Dynamic Ads for Travel is very helpful for travel brands to carry out retargeting as Facebook is one of the most used social media and most people accessed Facebook from their mobile phones. This product helps to create retargeting hotel ads on their mobile app. Hence, people who are not on their desktop computer can be reached.