Paid Search and Social Media Advertising each offer unique advantages for the hospitality industry, but understanding their fundamental differences is the key to maximising your marketing ROI and achieving your objectives.
Today, search is incredibly fragmented. Users may search on traditional web search engines, e.g., Google and Microsoft Bing, but many are now starting searches on social platforms like YouTube, Instagram, TikTok or retailer websites like Amazon.
This comprehensive guide will teach Hotel and restaurant professionals how social media and search engine advertising differ.
Contents
- Understanding User Intent
- How People Use Search Engines
- PPC In Numbers
- Buyer Behaviour
- Campaign Types
- Pros & Cons of Search Engine Advertising
- Use Case Examples
- How People Use Social Media
- Social Media Ad Placement
- Social Media Ads in Numbers
- Pros & Cons of Social Media Advertising
- Use Case Examples
- Take-Away
- References
Understanding User Intent
Every potential customer goes through a distinct journey, which may begin with an inspiring social media advertisement or end with a decisive click on a search engine ad that reads “Book Now.”
By understanding the different roles of social media and search engine ads, you can build connections with your audience and get them to convert.
Sarah sees a hotel’s sponsored Instagram post showcasing a beautiful pool and pristine beach adorned with palm trees.
The ad doesn’t sell; it invites. It taps into Sarah’s daydreams of escape, striking a chord with her desire for a pause from her bustling city life. This subtle nudge plants the hotel brand in her mind—a seed that may very well grow into her next holiday plan.
Mark is determined to find the perfect family resort for the annual family holiday. He turns to Google and types “best family-friendly resort near Khobar.” Here, search ads come into play, surfacing options that match his immediate need. The ads here are direct and practical, encouraging action with enticing deals for early bookings. They capitalise on Mark’s explicit intent to book and his ready-to-buy mindset.
Understanding user intent will help you craft the best advertising campaigns. A search ad should use transactional language, meeting the user’s expectation for quick information. Meanwhile, social ads engage users in more inspirational and leisurely decision-making by evoking emotions and showcasing experiences.
How People Use Search Engines
People have busy lives, and when they want to go somewhere, do something, find information, research, or buy a product/service – they usually start with a search. The world has six major search engines: Google, Bing, Yahoo!, and DuckDuckGo, which are international; Baidu is preferred in Chinese-speaking countries, while Yandex is popular in Russian-speaking countries.
At 90% market share, Google Search is the most popular search engine worldwide; its extensive user base and internal advertising network make it the preferred search engine for many advertisers.
How PPC Works
Pay-per-click (PPC) advertisements were the first type of search advertising. In 1998, the founders of Google introduced the auction-based PPC model, where users would place bids on the Cost Per Click for keywords and phrases triggering the ads. PPC ads can drive immediate results, as they sit above the organic results on the search page. Under the original model, the highest bidders would appear at the top of the paid ads.
While the fundamental concept of advertisers bidding for keywords and phrases to trigger their ads remains, there are key differences in how Google PPC operates today. Google now uses the Ad Rank algorithm that considers the bid amount and ad quality regarding copy, media, and landing page experience. This means advertisers with high-quality ads and relevant landing pages may achieve better ad positions despite lower bids.
Before COVID-19, search advertising was experiencing gradual and consistent growth. However, the pandemic accelerated digital adoption, leading to a surge in search advertising.
PPC In Numbers
According to Statista
- Ad spending in the search advertising market is projected to reach US $307 billion in 2024.
- Ad spending is expected to show an annual growth rate of 8.01%, resulting in a projected market volume of US $417 billion by 2028
- 60% of total ad spending will be generated through mobile in 2028.
Buyer Behaviour
You’ve established that the person typing in a search term is interested; now you have to convince them that you are the venue for them and verify that they are the right type of customer for you. This is where the format of the Ad campaign itself comes in.
Campaign Types
You’ve established that the person typing in a search term is interested; now you have to convince them that you are the venue for them and verify that they are the right type of customer for you. This is where the format of the Ad campaign itself comes in.
Pros & Cons of Search Engine PPC Advertising
Pros
- High-intent targeting captures value from consumers ready to take action.
- Pay-per-click models can be cost-effective with a well-researched keyword strategy.
- The higher the quality score, the lower the cost-per-click, and the better the return on investment.
- Increased brand credibility. If you’re hosting native ads on a popular online magazine in your niche, simply having your brand name on the page can improve credibility amongst readers.
- 68% of consumers trust native ads seen in an editorial context compared to just 55% for traditional ads found on social media.
- All the interactions you get through Google Ads are measurable through metrics and an analytics dashboard. For example, you can check the click-through rate of a particular ad or the conversion rate of people who arrive at your landing pages through the advertisement.
Cons
- Less effective for long-term brand building.
- Competitive keywords can be expensive and erode ROI.
- Balancing budgets and objectives
- Traffic from search will never exceed the number of people who search for that topic.
- High competition means reaching a good position with search ads, which can be challenging. You need in-depth knowledge of Google ads, your customers and the best search terms to create great ads.
- Some keyword terms can command high costs per click; see the example below.
Use Case Examples
Keyword Bidding
Keyword: “Luxury hotel in New York City with a view of Central Park”
CPC: $20 or more
This keyword is likely to have a high CPC due to the following factors:
- High competition: Many hotels in New York City compete for this keyword, driving up the cost of advertising.
- High search volume: Many people search for luxury hotels in New York City with a view of Central Park, indicating a high demand for this accommodation type.
- Commercial intent: Users searching for this keyword will likely be in the market to book a hotel room, making it a valuable target for advertisers.
Hotels bidding on this phrase must carefully consider their budget and return on investment to determine if it is a profitable keyword to target. They may also want to explore alternative keywords with lower CPCs or focus on other marketing channels to reach their target audience.
Creating Urgency
Emily has a spur-of-the-moment decision to extend her holiday, which leads her to search for “same-day hotel room availability in Dubai.”
Search engine algorithms fetch time-sensitive results, delivering organic results, while PPC ads offer enticing last-minute booking deals. Combining user urgency and strategic keyword targeting leads Emily to book her stay quickly.
Seasonal Campaigns
The Mountain View Resort noticed a trend in searches for “romantic mountain getaways in scotland” starting three months before their winter season. By analysing these search terms, the resort tailored its PPC keywords and messaging to fulfil this desire, optimising its landing page with those exact phrases.
In the three months before the winter season began, Mountain View implemented its PPC campaign. The result? Increased visibility and a notable boost in bookings.
How People Use Social Media
Unlike search engines, where needs are explicit, social media attracts users with inspiring content.
Social media platforms provide audience targeting options based on demographics, interests, and behaviours, and you can create custom and lookalike audiences by uploading your email database to platforms like Meta. This precise targeting method lets you reach people who aren’t actively looking for your offerings but are likely to be interested based on their online behaviour.
On social media, intent often manifests itself through engagement signals such as likes, shares, and comments. For instance, when a user likes a series of posts about destinations, it’s a soft signal of travel intent.
When that same user saves a post about a specific hotel deal, their intent sharpens into focus, presenting an opportunity for hospitality brands to step in with paid campaigns that engage with the user’s preferences.
Social Media Ad Placement
Campaign Objectives for social media advertising include brand awareness, website traffic, lead generation, and sales. The ads target specific audiences based on demographics, interests, and behaviours. This precise targeting enables businesses to reach qualified customers and build relevant audiences.
Boosting Social Media Posts
Boosting a post on Facebook or Instagram is not the same as creating a campaign. Boosting refers to paying to promote a post that already exists. When a social media manager boosts a post, they can select the target audience, budget, duration, and specific goal.
Pros
- Simple process
- Revive high-performing organic posts
- A cost-effective way to showcase content to new audiences.
Cons:
- Limited customisation.
- Limited audience targeting options.
- The inability to run A/B tests for different audiences.
Social Media Ads in Numbers
- In 2023 social media ad spending stood at approximately 270 billion U.S. dollars, expected to surpass the 300-billion-dollar mark by 2024.
- Advertising revenue generated by TikTok was expected to increase by 55% in 2024.
- As of August 2023, X’s (Twitter’s) ad revenue was expected to shrink by 30%.
Pros & Cons of Social Media Advertising
Pros
- Rich targeting is based on detailed demographics, behaviours, and interests.
- High engagement rates foster brand community and loyalty.
- Potential virality as there is no limit to the number of people who may share the post. Viral events drive vast amounts of attention.
- Social media ads have a higher conversion rate than Google ads because they target users already engaged with the social media platform.
- As social media advertisements are not limited to a particular format, you can be as creative as you want, at least in terms of the image, the music, or the message you communicate.
- Social media platforms are great places to increase brand awareness.
- Social media ads are cheaper than Google ads, making them an excellent option for businesses with a limited marketing budget.
Cons
- Risks of ad fatigue due to the prevalence of content.
- It may require continual investment to maintain visibility.
- Visitors from social are less likely to buy but more likely to share and grow awareness.
- Social media ads have a smaller target audience than search results or ads since only people who are connected to social media and have similar interests will see them.
Use Case Examples
Creating an Emotional Connection with the Community
The Coastal Inn is a small and stylish hotel that maintains a presence on Facebook and Instagram. Their social media posts feature guests’ stories and scenic views to capture the hearts and imaginations of users who may not be actively searching for a hotel but are instead swayed by the power of narrative and imagery.
This approach helps to establish a connection with potential guests, setting the stage for when paid content is presented to them in targeted feeds.
In addition to their paid campaigns, The Coastal Inn also boosts organic posts that have performed well or where they have received user-generated content. This strategy helps speak to the local community and authentically promotes the brand.
Personalised Adventure Campaign
The Mountain View Resort introduced an adventure package through social media ads, targeting users who interacted with content related to hiking, adventure, and outdoor activities. Messages were tailored to older Millenials, using relatable, authentic photos, conversational language and the promise of an unforgettable experience.
The resort’s campaign blended the impulse of adventure with the ease of social media booking, resulting in a significant uptick in enquiries and reservations.
Take-Aways
High-quality results in any form of marketing depend on your depth of customer understanding, branding and messaging. You can’t communicate the same thing to everyone and expect high-quality results. A 25-year-old working single woman and a 60-year-old professional male won’t respond to the same message.
Without an in-depth understanding of your customer base, you’re guessing. And guessing is expensive.
When creating an Ad campaign, ask:
- What is the user intent?
- Which media is best to deliver your message to your ideal customer segment?
- Which platform can deliver that message at an affordable cost?
Choose Google Ads if:
- You want to target users who are actively searching for your product or service.
- You want to reach a wide audience.
- You have a higher marketing budget.
Choose Social Media Ads if:
- You have users already engaged with your social media pages.
- Reach new people whose interests and behaviours are similar to your existing customer base.
- Retarget individuals interacting with your business on social media or website.
- You have outstanding visuals.
If You’re Unsure:
- Diversify your marketing budget and test which works best for you. When you find your winning platform, don’t eliminate the less profitable one; just give it less priority.
- Get in Touch with us to for Market Research, Buyer Persona Development and Customer Experience Journey Mapping.
References
Buckley, D. (2023) Types of Google Ads: Ad Formats, Campaign Types & Best Practices for 2022, Demand Curve. Available at: https://www.demandcurve.com/blog/types-of-google-ads
Council, Y. E. (2020) Council Post: When To Use Social Media And When To Use Search Engine Marketing, Forbes. Forbes Magazine. Available at: https://www.forbes.com/sites/theyec/2020/02/10/when-to-use-social-media-and-when-to-use-search-engine-marketing/?sh=5e01c8a730cd
Dencheva, V. (2023) Social ad revenue growth by platform 2023, Statista. Available at: https://www.statista.com/statistics/1344332/social-media-ad-revenue-growth-platform
Social Media Advertising – Global: Market Forecast (2024) Statista. Available at: https://www.statista.com/outlook/dmo/digital-advertising/social-media-advertising/worldwide
What Is Native Advertising? Types, Benefits, and Examples (2024) Shopify Plus. Available at: https://www.shopify.com/nz/enterprise/native-advertising-ecommerce
What Is SEO – Search Engine Optimization? (2023) Search Engine Land. Available at: https://searchengineland.com/guide/what-is-seo
Yogesh K. Dwivedi, Elvira Ismagilova, D. Laurie Hughes, Jamie Carlson, Raffaele Filieri, Jenna Jacobson, Varsha Jain, Heikki Karjaluoto, Hajer Kefi, Anjala S. Krishen, Vikram Kumar, Mohammad M. Rahman, Ramakrishnan Raman, Philipp A. Rauschnabel, Jennifer Rowley, Jari Salo, Gina A. Tran, Yichuan Wang, Setting the future of digital and social media marketing research: Perspectives and research propositions, International Journal of Information Management, Volume 59, 2021, 102168, ISSN 0268-4012, Available at: https://www.sciencedirect.com/science/article/pii/S0268401220308082
Disclaimer: All characters and other entities appearing in the use cases are fictitious. Any resemblance to actual persons or other real-life entities is purely coincidental.
Last Updated on 1 April 2024 by Dawn Gribble
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