Cendyn increased bookings (+53%) and traffic (+159%) on Paid Search campaigns via Google Performance Max across 28 properties

We wanted to optimize results on some of our paid search campaigns and needed to find a new tactic to drive stronger performance and deliver even more direct bookings for our customers.

After fully optimizing paid search campaigns we still thought there was room left for maximizing the results, so we decided to test Google Performance Max (PMax) campaigns.

PMax combines text creative from search with imagery typically found in display. It is designed to target relevant users across all of Google’s available ad inventory, such as Gmail, YouTube, Google Display Network, Search results pages, Google Discovery, & Google Maps.

This case study centers on the outcomes of PMax campaigns involving 28 properties experiencing a Return on Ad Spend (ROAS) below 10:1 prior to PMax launch. The sample set includes a variety of hotel types, ranging from small boutique hotels to large resorts, and from major cities to international countries.

Implementing Google Performance Max campaigns for properties that are struggling to meet ROAS goals has been a major boost to paid search marketing efforts. With an average 20% increase in spend, these properties received a 159% boost in traffic, which led to a 56% increase in Check Avails, 53% more bookings, and 75% more revenue. This resulted in an overall ROAS increase of 2.72 points.

Not only did PMax campaigns drive additional traffic and bookings, but they also boosted existing brand & nonbrand search campaigns due to the tactic’s effect on the full marketing funnel.

Clicks increased 159% in 30 days after PMax campaigns were launched across all properties in the sample set. The increase in traffic is directly from the PMax campaigns. The decline in brand & nonbrand clicks correlates directly with the decline in spend for these campaigns with the shifted investment in PMax.

The increase in clicks also led to a 56% increase in Check Avails. This indicates the additional traffic driven by PMax is relevant traffic who are interested in booking. The Check Avail Rates (CAR) for both brand & nonbrand were boosted by the implementation of PMax campaigns, further showing the relevancy of the traffic that is being driven.

PMax campaigns will naturally see a lower CAR than search campaigns due to the nature of the traffic from display, discovery & other placements in Google’s inventory. Users of these placements are less engaged at the moment of capture than search placements, so we expect a lower CAR. This traffic is still what eventually fuels higher intent ad traffic, such as paid search campaigns & remarketing efforts.

The implementation of PMax campaigns also drove 53% more bookings post-launch compared to the pre-launch period running only Google Search ads. The PMax campaign contributed the largest portion of these increases, but all campaign types earned more. This shows that not only does PMax drive more traffic at a lower cost, but also generates significant revenue in brand & non-brand campaigns by filling marketing funnels with qualified leads.