Google will sunset commission bid strategies for hotel ads
Google Ads will phase out commissions (per stay) and commissions (per conversion) bid strategies for hotel ads in October.
Instead, the platform is introducing target Return on Ads Spend (tROAS) for hotel campaigns, along with an expanded Performance Max for travel goals, as alternative bid strategies.
Why we care. Advertisers will need to shift bid strategies before the sunset date to avoid disruptions so that campaigns can continue to serve as usual.
What are commissions (per stay)? Commissions (per stay) is a bidding strategy specifically designed for hotel campaigns. With this approach, partners are billed only when a guest’s stay has been completed. This strategy enables partners to harness the efficiency of Google AI to acquire guest stays while mitigating concerns about the potential risks associated with cancellations.
What are commissions (per conversions)? Commissions (per conversion) is a payment model designed for hotel bookings where you are charged only when a traveler successfully books your hotel. It functions as a Smart Bidding strategy, automatically adapting your bid to optimize for increased conversions. The payment is a predetermined percentage of the booking value that you set, providing a flexible and performance-based approach to advertising costs.
Next steps. You can continue using commission bid strategies until the sunset date. However, Google recommends exploring alternative bid strategies, such as tROAS for hotel campaigns or Performance Max for travel goals, in preparation. After the sunset date, there will be a gradual transition away from commission bid strategies, as outlined below:
- From February: Commissions (per stay) will no longer accept new allowlist requests.
- From April 30: Commissions (per stay) and commissions (per conversion) will no longer be available bid strategies within Google Ads. Campaigns that have active commission-based bid strategies will continue to serve until the sunset date.
- From October 31: Campaigns with commissions (per stay) and commissions (per conversions) will no longer be available. You will continue to have access to historical reporting data for the campaigns in question.
What Google is saying. Michael Trauttmansdorff, Director of Product Management for Travel Ads, said in a statement:
- “A bidding strategy anchored in AI will make it easier for you to market at the speed of consumers. And in an ever-evolving privacy environment, it will bring you one step closer to meeting people’s expectations and multiplying your results.”
- “To help set you up for success, we will continue to provide you with guidance along the way.”
Deep dive. Read Google’s announcement in full for more information.