With the new year underway, we noticed a user interface update on Google Hotel Ads. What stands out visually is the blue “Book A Room” button that now appears on the top of the Hotel Ads metasearch auction on desktop. This button is identical in form and function to its counterpart on mobile (which launched about six months ago). Clicking the “Book a Room” button leads the user to the same location as clicking “View more rates” twice.

Additionally, clicking on metasearch links from Google now opens the link in a new browser tab (whereas previously, these links opened in the same window). Interestingly, this UI change is present whether a user searches for a specific hotel (“La Quinta Inn & Suites Dallas Love Field”) or for hotels in a generic area (“Hotels in Dallas”).

Implications

While it’s too early to make any definitive claims, we are able to speculate that this may impact accounts in the following ways:

• Increased click share to positions 1 and 2
• Increased impression share for positions 5+
• Decreased click-through rates for positions 3+
• Increased clicks to “non-default” room types

Increased Click Share to Positions 1 and 2

10 to 15% of users currently click on the “View More Rates” link, typically. With the increased prevalence of the “Book a Room” button, we would speculate that a higher percentage of users would click the new button (potentially as high as 25%). Due to the focus on positions 1 and 2 on the “View More Rates” button, we anticipate that the click share will begin to trend towards favoring positions 1 and 2 even further.

Increased Impression Share for Positions 5+

Currently, advertisers in position 5 or greater only receive an impression if the user clicks “View more rates.” As mentioned above, this is typically 10-15% of users, meaning that positions 4+ typically will only receive approximately 15% of their total eligible impressions. With the addition of this new button, we could begin to see positions 4+ receive more impressions (due to more users clicking “Book a Room” vs “View More Rates.”)

Decreased Click Through Rates for Positions 3+

The “Book a Room” page heavily favors position 1 and 2. Due to this, advertisers can anticipate that ads in position 3 or greater will see a decrease in their click-through rate. This will be most apparent on advertisers in position 5 or greater, due to the influx of impressions we anticipate they will receive.

Increased Clicks to “Non-Default” Room Types

With the “Book a Room” landing page, a user is presented with alternative lodging accommodations. These include queen vs king beds and drop downs for additional room rates/types. With higher exposure to these room types, we expect that advertisers will see increased clicks to their “non-default” room types.

Important Takeaways

If you are an advertiser that sits in position 4 or greater, you should keep a close eye on your Google KPIs over the next week. The overall impact of this should be an increase in the total number of clicks that occur on Google and that these clicks will become more concentrated in the first few advertising positions. This could cause an upward pressure on CPCs in the first few weeks as advertisers react to these changes.