Calculating Your Social Media ROI: What Are You Really Getting Out of It?

By Patrick Ahler Partner & Vice President of Marketing, Lights On Digital | February 25, 2018

77% of marketers are utilizing at least one form of social media, and hotels are no exception. It can be difficult, however, to track how much profit you can return to your property from the effort and expense you put into your social media pages, which is your ROI (return on investment).

According to a survey conducted by Convenience and Convert, 41% of businesses have no clue as to the value of their social media activity. From failure to track the analytics, to not utilizing measurement tools, businesses remain in the dark with respect to their social media ROI accounting.

Is Social Media Advertising Appropriate for My Hotel?

It is important to initially note that social media activity is more impactful on higher star properties with amenities that appeal to those seeking leisurely accommodations in competitive locations. Typically, a budget motel on a remote highway is not likely to benefit much.

Additionally, social media success relies heavily upon a reasonable advertising budget that utilizes quality media content including professionally produced video and images. If you doubt the value of video, consider that it is projected to claim over 80% of all web traffic by next year and adding a video to your landing page can boost click-through rates by over 200%.

Best Tools For Tracking Social Media ROI

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Coming up in June 2018...

Sales & Marketing: Opinions Matter

Hotel Sales and Marketing Directors manage a complex mix of strategies to attract and convert customers into guests. Part of their expertise includes an awareness of customer behavior during the reservation process, so they can make sure their hotel is favorably positioned. One such trend is the growing popularity of travel review sites. According to one recent survey, 61% of prospective customers consult online reviews in order to validate information about the hotel before making a purchasing decision. Another survey found that the average hotel customer reads between 6-12 reviews across 4-10 properties before making a final decision on where to stay. Similarly, other studies have shown that consumer reviews are a more trusted source of information for prospective customers than other kinds of marketing messaging. In fact, reviews are often considered to be as influential as price regarding whether a customer decides to complete a purchase or not. Plus, travel sites with the most reviews - including recent reviews from satisfied customers and thoughtful responses from staff - were also found to be the most appealing. So having positive reviews on a travel website is essential and can help to increase a hotel's conversion rates dramatically. Of course, there are all kinds of additional marketing strategies for sales and marketing directors to consider - the importance of video and the emergence of live streaming; the implementation of voice search; the proliferation of travel bots; and the development of Instagram as an e-commerce platform. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.