For the past year, a luxury hotel located in Palm Springs, California, has been advertising on Facebook and Display to promote its beautiful property along scenic vistas, offering anyone visiting a relaxing vacation. This property has a high ADR for its luxury hotel and the amenities it offers, which can make it challenging to get conversions through social advertising. Through various tests and trial and error, we have increased conversions through Facebook and Instagram advertising.Â
Leverage different ad types
One of our first tests utilized dynamic ads, where we used multiple images, videos, and headlines that were optimized by users based on how they would interact with the ads. We saw incredible results with this ad type shown below:
We compared dynamic ads to static ads by click-through rate. As you can see, we got a 7.89% CTR with dynamic ads and a 2.87% CTR with static ads. Both of these click-through rates are incredible and above our general goal of 1%, but we found that when we used dynamic ads, there was a higher response rate and better interaction among the prospecting audience.
We then compared outbound clicks between dynamic ads and static ads. We found that there were a lot more clicks with dynamic ads than there were with static ads, most likely because dynamic ads tend to be more personalized and interactive for the user.
What helped these dynamic ads succeed was not only using multiple images but also multiple videos. Video advertising is becoming increasingly more popular, where the user can see the full experience of the hotel, rather than just a single image.
Reaching the luxury traveler
Getting conversions for luxury hotels can present a challenge when there is a high ADR. How can you target the right audience? How can you get your ad seen by the right people who will convert?
To answer those questions for this property, we used 1st party intent audiences. These audiences are collected through a large number of partners in the airline, hotel, rental car, and travel space and they assist in finding the right kind of potential guest who would stay at this luxury Palm Springs hotel. We use these in prospecting audiences to help us reach those people who are at the top of the funnel and eventually bring them down to convert.
Winning the booking
When it came to generating revenue, this property had two offers that really helped them in generating conversions. The first one was a resort credit offer where if you stay two nights, you receive a $100 resort credit. The second was a linger longer offer where if you stay three nights, you receive the fourth night free. Below, we will share the results of these offers:
This graph compares conversions between two different offers. The resort credit generated 8 conversions and linger longer generated 11 conversions.Â
Although we generated more conversions from the linger longer offer, we generated more revenue from the resort credit offer at over $25,000, indicating that the resort credit brought in a higher value guest.
Having offers that appeal to different people is critical for all marketing efforts and especially in this example on Facebook and Instagram, along with using very specific luxury travel audiences to reach the right potential guest.
If your property is looking to reach the luxury traveler, contact us today for help with advertising on social media channels!
