Since coronavirus first swept through the United States, one of the top talking points for marketers has been paid media costs and performance. Marketers in all industries—though especially in hospitality and travel—cut their budgets in one fell swoop. As advertisers went silent, paid media costs plummeted. Ever since, most marketers have touted historic low media costs.
How long paid media cost lows would last was, and still is, anyone’s guess. Though if we take April and May media trends at face value, it seems like the window of opportunity to capitalize on cheaper media may be closing.
Here’s our round-up of paid media trends by the numbers across April and May.
Metasearch: ROI and Conversion Rate Averages
Trends April to May
- 72% increase MOM in ROI
- 73% increase in revenue per click
- Shift towards a shorter booking window
April
Return on Investment (ROI): $6.20
Conversion Rate (CVR): 1.31%
Revenue per Click: $7.91
Booking Window Breakdown (Days until Arrival)
50% of bookings for 30+ days out9% of bookings for 15 – 29 days out13% of bookings for 7 – 14 days out22% of bookings for 0 – 2 days out
May
ROI: $10.70
CVR: 2.52%
Revenue per Click: $13.69
Booking Window Breakdown
21% of bookings for 30+ days out17% of bookings for 15 – 29 days out16% of bookings for 7 – 14 days out32% of bookings for 0 – 2 days out
Paid Search
Google Ads Trends April to May
- ROI has increased as more people begin booking trips again
- The cost of media has also increased, indicating competition is increasing.
- Now is the time to start spending on advertising.
April
Average ROI: $13
Average CPC: $.60
May:
Average ROI: $19
Average CPC: $.73
Paid Social
Social Trends April to May:
- CPMs are starting to rise in paid social, as CPC is increasing in paid search- again another indicator that competition is returning.
- The increased CTR and ROI is a great indicator that people are also not just browsing social.
- More users are clicking through, checking rates, and, ultimately, booking rooms.
April
ROI: $4
Cost per Thousand Impressions (CPM): $6.27
CTR: 1.92%
May
ROI: $33
CPM: $6.44
CTR: 2.51%
Ready to reassess your own paid media strategy?
https://screenpilot.com/contact-us
Did you enjoy the read?
Get original hospitality industry insights delivered to your inbox. Sign up to receive Screen Pilot’s Weekly COVID-19 Resource Center Update.
