2020 Budget season tips: Mapping your hotel’s digital marketing budget
November 20, 2019 Administrator Online Marketing 79
Let’s start with multi-channel marketing, which is a hot topic nowadays. Clients often ask me: should we invest in search marketing, display advertising, and/or metasearch advertising? Or are we best allocating more budget for social media advertising?
In truth, there isn’t one standard way to divide your marketing budget up—it really varies from property to property. However, adopting a multi-channel approach is best to expand your reach and target different customers throughout their travel journey.
A skilled digital marketing agency can help you figure out the best way to allocate your budget, taking into account your goals and ROI expectations.
Remember to factor in additional costs when you calculate your budget. This includes management or commission fees from your agency, and additional creative or productions costs, such as display banner creation or copywriting.
Not all ROAS is equal
Your ROAS (return on ad spend) can vary from channel to channel, not just month to month. So, you might want to consider setting multiple ROAS targets that collectively let you hit your end-of-year goal. Remember, applying the same static target to different channels with different attribution models may not give you a true picture of how your direct channels perform.
Plan to be flexible
In a fast-moving industry, you could be left for dust if your marketing budget isn’t flexible. Your competitors might launch an aggressive promotion. Or there could be a sudden increase in searches for your brand name or hotels in your area. If you’re fixed to a budget with no wiggle room, you might miss a golden opportunity to drive bookings.
Instead of evenly distributing your budget across every month, plan ahead. Look at your historical data and aim to spend more of your annual budget during peak periods. Equally, don’t rigidly stick to your allocated monthly budget if market forces take an expected turn for the worse (e.g. an extreme weather event).
If you need help creating a more dynamic budgeting plan, consult with your digital marketing agency or expert.