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Why revenue trumps CPC in digital hotel marketing

Online Marketing 3 Minutes
For years, CPC (cost per click) has been a reliable benchmark for various marketing initiatives. Calculating the average cost per click is straightforward and allows for easy comparisons across time periods, platforms, and strategies. Combined with traditional marketing KPIs such as impressions, clicks and reach, CPC has been a reliable metric in the digital hotel marketing landscape.

So, why should hotels shift their focus from clicks, impressions, or CPC in their online marketing efforts to prioritize revenue in their strategy? Traditional marketing strategies need to be re-evaluated, moving away from the traditional KPIs and towards the metric that matters most: revenue. Here's why.

The limitations of traditional KPIs

Reach, impressions and clicks alone do not tell the whole story. While they may seem impressive at first glance, it is the actual impact on your hotel business that matters. Reaches, views and clicks alone are not enough. Reach matters, but the critical question is how many potential guests convert into actual hotel guests and, ultimately, paying guests. The answer lies not in the volume of clicks, but in the quality of results.

Traditional metrics provide limited insight into true success. In today's landscape, it is critical that innovative and modern hotel marketing strategies can be measured based on concrete results and their impact on the hotel's financial success, such as generated bookings, inquiries, booking revenue, value created and return on investment (ROI) in marketing.

The key to success: ROI Alignment

Aligning marketing campaigns with return on investment (ROI) is the key to successful and profitable hotel marketing. Accurate measurement of success not only provides a thorough assessment of the profitability of individual marketing initiatives, but also allows for targeted optimization of all marketing activities. Valuable marketing budget should be invested where it consistently delivers positive results.

With ADDITIVE+ ROI, ADDITIVE goes one step further by extending the traditional ROI with additional metrics that are specifically relevant to online marketing in the hotel industry.

A+ ROI compares the booking revenue generated and the value created by online marketing to the advertising budget and agency costs incurred. The value created includes not only the revenue generated, but also other factors such as the number of (direct) bookings, reservation inquiries, newsletter subscriptions and voucher purchases. This creates a meaningful benchmark for a comprehensive assessment of campaign success in hotel marketing.

The Role of Data Integration and Hotel PMS

To maximize the success of a hotel marketing strategy, the right software solution is critical. It should not only integrate data reliably, but also allow for accurate analysis. A direct connection to the hotel's property management system (PMS) is of particular interest, as this is where all essential information is stored. This integrative approach not only provides transparency, but also enables data-driven decision-making to optimize marketing investments per initiative, channel or target audience.

Maximize profitability with intelligent data integration

With a powerful software solution that is tailored to the needs of the hospitality industry, hotels not only gain a concrete insight into their marketing, but also the basis for making well-informed decisions. The intelligent integration of data not only allows for the analysis of the performance of different marketing campaigns, but also for the identification of the key factors for the success of revenue generation.

As a partner for successful hotel marketing, ADDITIVE supports leading hotel companies with innovative solutions and a clear focus on what really matters: transparent, measurable success that optimizes occupancy and has a clear impact on the hotel's revenue!

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