PPC CASE STUDY: Measuring ROI from Digital Marketing

We set out to increase sales and profitability from digital advertising.

BUSINESS SIZE

Medium

BUSINESS TYPE

Local Travel/Tourism Company

ADVERTISING GOAL

Increase Digital Advertising ROI

DATE RANGE

Q4 2017

The Problem

The client is a traditional Hawaiian oceanfront luau who serves tens of thousands of visitors per year. Although the client was already investing in digital advertising, they were unsure of their ROI because tracking was not fully implemented and adequate attention was not being given to the account with in-house management. Their goal was to increase digital reach and event attendance while improving profitability.

Acquisition costs of obtaining a new customer through referral sources was between 20-30%, compared to 8-12% for booking directly through their website. The existing pay-per-click accounts were not receiving proper maintenance and wasting thousands of dollars annually. The client didn’t have a clear picture of how much return they were getting on their investment, and PPC represented only 12% of total bookings.

The Solution

Our strategy to grow the clients online presence involved establishing coverage on all platforms (Google, Bing, Facebook, and Yahoo) for high-intent keywords. By focusing on compelling and promotional messaging, we increased quality scores and click-through rate, leading to lower average cost-per-click and higher positions in the search engines. Finally, an aggressive mobile and retargeting strategy offered the best chance to convert users while they were on vacation.

The Results

Since assuming management, paid advertising revenues in Q4 2017 saw a 304% increase year-over-year. Reach also improved, with paid impressions increasing 475%. The client had an acquisition cost of 12.5% which is 7.5% – 17.5% less than traditional customer referral sources, leading to significant improvement in bottom-line profitability.

Takeaway

By taking control of your marketing, travel and activity companies are better able to accurately determine the ROI of their digital marketing efforts while also increasing profit by reducing reliance and third-party booking engines.
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