This article will explain how Google Search Engine Advertising (SEA) works and what the components of an ad are.

How it works

Google search ads are text ads that can appear at the top and the bottom of a search engine results page (SERP) when the keywords used match with the keywords that are targeted by the ad. You can recognize an ad by the word ‘Ad’ in bold at the left top corner.

Google Search Ads at the top of result page 1

Google Search Ads at the bottom of result page 2

If there are multiple advertisers for the same keyword, a super quick auction is being held. This auction will decide which ad gets which position on the page.

The bid, ad relevance and quality of the landing page are taken into consideration, to name a few of the many factors. On basis of that, the best ad will get the top spot and the most visibility. The bid is based on the cost per click (CPC). You’ll only have to pay this CPC when a user clicks on the ad.

What it looks like

Although we can put in the desired ad content to a certain extent, Google will ultimately decide which components it will show. The ad will be adjusted to what Google thinks the user needs. Moreover, because there are different devices on which people Google, there sometimes is limited space (think of mobile vs. desktop).

By using dynamic text ads, we can put in different headlines and descriptions, that Google can use to compile the best fitting ad for the right user.

Google Search Ad on desktop

Google Search Ad on desktop

Google Search Ad on mobile

Brandname vs. Non Branded

For SEA we typically use two types of campaigns: brandname campaigns and non branded campaigns.

Brandname campaigns

In a brandname campaign we target branded search terms in which the hotel name is used and the intent is to book. In this case, the user is already familiar with the hotel name and so the chance of booking is high.

In the ad copy, we will emphasize the discount or privileges you’ll receive when booking directly on the official hotel website. Because the official website is the most relevant to the keywords, the cost per click will be low and the ad will be ranked first.

Why advertise on your own brand name?

We will advertise on the hotel’s brand name because of the competition of OTAs such as Booking.com or sometimes even competitor hotels. We want to avoid that the user changes his or her mind and books with a competitor or books via a third party. The latter will mean you will have to pay a commission to the third party (OTAs), which you will not have to pay when a user books directly on your website. This is called brand protection.

In this example, Guest Reservation is advertising on brandname keywords as well. By having the official website ad above theirs, we increase the chance of a direct booking.

Non Branded campaigns

A search for a hotel nowadays starts on Google. When users are not familiar yet with the hotels in the area they want to go to, they will most probably start with a generic search, such as ‘hotel in amsterdam’. Notice that no brand name is used yet and the user is still open for different options.

In this orientation phase, the user can search more and more specific if he/she does not find a fitting hotel right away. He/she can add ‘5 star’ or specify the location (‘jordaan’). The more specific, the smaller the search volume. However, the less the competition is from other advertisers and the cheaper the CPC. Also, the chance that the user will like your hotel will grow the more specific and relevant the keywords are you are targeting.

In these ads, we will emphasize the hotel’s USPs. Although it sometimes happens that the user will book right away, the main purpose of these ads is to generate website visits, leads and brand recognition. When they know your brand, the chances are that they book later through a brandname ad for example.

Example of a specific non branded search

What does OHM do behind the scenes?

After setting up the campaigns and making sure everything is being tracked nicely, we’ll manage & monitor the campaigns.

Keyword management

A big part of the setup and monitoring is making sure the right keywords are targeted. For example, in a brandname campaign, we only want to target the users that have the intention to book. That is why we for example filter out keywords such as ‘[hotel brand name] vacancies’, which will not lead to a hotel booking. For non-branded campaigns we target specific generic keywords that fit your hotel and its services. At the same time, we make sure we avoid search words that do not fit your brand, such as ‘cheap’ and ‘budget’ for a luxury hotel. This way, we will only attract the right users.

Bid management

We will monitor the bids for each keyword. The CPC can change from time to time, because of more competition for a certain keyword. More competition means more advertisers wanting to show their ad for the same keyword, which will drive up the price. We will adjust the bid if we see that there is enough potential for conversion (brandname campaigns) or user engagement (non-branded campaigns).

Content management

We will look at your hotel’s website and keep in touch with you to know about the newest offers, promotions, room prices, etc.. We will add those to the running advertisements to make sure they are always as up-to-date as they can be. Moreover, we will look at ads that are performing well and take those lessons to apply to other ads.

Benchmark reports

We have several daily reports in which we can see how all of the ads are performing on the basis of critical KPIs such as CTR, CPC, and ROI. In addition, we have a benchmark report of different hotels in which we can uncover market trends that we can use to form or adjust a strategy.