Google has announced upcoming changes to its bidding strategies for Hotel Ads, as the travel industry continues rebounding from the impacts of the COVID-19 pandemic.
With travel resurging globally, Google plans to sunset its commission-based bidding options for Hotel Ads by October 2024. These strategies rely on third-party cookies to accurately determine guest stays and calculate commission payouts.
“With upcoming changes, like third-party cookies getting phased out, we need to transition to more durable strategies to help grow your business,” said Google in an announcement.
Introducing tROAS & Expanding Performance Max
Google aims to shift advertisers to target Return on Ad Spend (tROAS) bidding for hotel campaigns. This strategy utilizes Google’s AI to optimize bids based on campaign performance goals.
Additionally, Google is expanding its Performance Max solution – which leverages AI to maximize budget efficiency – to include travel-focused goals.
Transition Timeline
The commission-based “Commissions (per Stay)” and “Commissions (per Conversions)” options will stop accepting new users beginning February 2024.
Google will fully deactivate these strategies on October 31, 2024. Advertisers can continue using these options until then.
Google recommends transitioning to the new tROAS and Performance Max solutions before the fall sunset date.
“A bidding strategy anchored in AI will make it easier for you to market at the speed of consumers,” the announcement stated. “And in an ever-evolving privacy environment, it will bring you one step closer to meeting people’s expectations and multiplying your results.”
Google says it will provide further guidance to ensure a smooth changeover for travel advertisers.
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