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Google Shifts Hotel Ads To AI-Powered Bidding Strategies

Google to phase out cookie-based Hotel Ad strategies, introduces AI-driven tROAS and expands Performance Max for travel.

  • Google is retiring its commission-based bidding for Hotel Ads in October 2024.
  • The company is shifting to AI-powered bidding strategies instead, like tROAS and Performance Max.
  • The changes come as the travel industry rebounds post-pandemic.
Hand using laptop and booking hotel on website for vacation after a long work and payment completed message on mobile, Summer holiday concept.

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.

Featured Image: Tiwaporn Khemwatcharalerd/Shutterstock

Category News PPC
SEJ STAFF Matt G. Southern Senior News Writer at Search Engine Journal

Matt G. Southern, Senior News Writer, has been with Search Engine Journal since 2013. With a bachelor’s degree in communications, ...

Google Shifts Hotel Ads To AI-Powered Bidding Strategies

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