Strategy and Execution
In 2014, The Broadmoor was faced with a unique opportunity for their digital marketing. With numerous capital improvements in play, there was a shift in focus to maximizing digital ad spend and capturing valuable conversions by driving consumers to booking a room. This was different from previous efforts in that the strategy looked to utilize different types of conversions based on different types of media. In other words, understanding that not all conversions are created equal. After scouring through the data we found that through the path to booking a room, media such as display, paid social and non-brand paid search are more valuable as an assisted interaction, while email and branded paid search play a more direct conversion role. Knowing that a sure sign of intent to purchase lies with the consumer checking for availability, focusing these assisted interactions on garnering availability searches drove more direct room bookings through traditional last-click interactions.
Based on the analytics and VJ’s historical work with the client, we developed a customer journey to help guide our tactics moving forward, and focus the right media on the right conversion. This customer journey is centered on the idea of capturing interest, then using that interest to drive the booking.
By understanding the role various paid media tactics play in driving differing KPIs (specific site actions vs. dollar amounts), these tactics create a more complete and effective conversion path. In fact, VJ paid media in one form or another was directly involved in 36 of the top 100 site conversion paths. This accounted for a third of total online revenue.
As a result of the above strategy, effort from paid media resulted in an increase in online revenue of 18% year over year, with a corresponding 3% increase in average transaction value. In addition, check availability goal completions were up nearly 15% from 2013, with overall site engagement metrics from paid media improving drastically as well.
With the duality focus on soft and hard metrics driving digital strategy through 2014, paid media attributed directly to over $5 million in revenue and experienced a return on ad spend of over 640% across all tactics. This includes paid media revenue tracked online and over the phone. The high point of the strong 2014 ROAS came from paid search campaigns with a return on ad spend of over 3,300% on paid search alone. None of these results include the trickle-down effect that the paid media has had on overall revenue increases from other sources such as organic and direct traffic.
Vladimir Jones and The Broadmoor proved that it’s not always about the size of the media spend, it’s how you use it.