Google will sunset commission bid strategies for hotel ads

by | Feb 6, 2024 | Digital Marketing, Google, Google Ads, Paid social, PPC

Google Ads will be phasing out commissions (per stay) and commissions (per conversion) bid strategies for hotel ads from October. In their place, a target Return on Ads Spend (tROAS) for hotel campaigns and an expanded Performance Max for travel goals will be introduced as alternative bid strategies.

Advertisers are advised to shift bid strategies before the sunset date to avoid disruptions and ensure that campaigns can continue to serve as usual. Commissions (per stay) is a bidding strategy specifically designed for hotel campaigns, allowing partners to be billed only when a guest’s stay has been completed. On the other hand, commissions (per conversion) is a payment model designed for hotel bookings where partners are charged only when a traveler successfully books a hotel.

Google recommends that advertisers explore alternative bid strategies, such as tROAS for hotel campaigns or Performance Max for travel goals, in preparation for the sunset date. The timeline for the transition away from commission bid strategies is as follows: from February, Commissions (per stay) will no longer accept new allowlist requests; from April 30, both Commissions (per stay) and Commissions (per conversion) will no longer be available bid strategies within Google Ads, and from October 31, campaigns with these bid strategies will no longer be available.

Michael Trauttmansdorff, Director of Product Management for Travel Ads at Google, stated that the new bidding strategy anchored in AI will make it easier for marketers to market at the speed of consumers and bring them one step closer to meeting people’s expectations and multiplying their results. Google will continue to provide guidance along the way to help ensure success in the transition.

In summary, the article details the phasing out of commission bid strategies for hotel ads on Google Ads, and the introduction of new alternative bid strategies. It provides guidance for advertisers on the transition timeline and the recommended next steps. Finally, it includes quotes from Michael Trauttmansdorff regarding the benefits of the new bidding strategy and Google’s commitment to supporting advertisers through the transition.

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