Hotels should look beyond ROAS to measure engagement

Maximizing ROAS while ignoring other metrics can lead to a marketing strategy that is overly focused on lower-funnel tactics at the expense of other audiences

Return on Ad Spend (ROAS) is a familiar metric within the digital marketing landscape, often employed to gauge the efficiency of marketing expenditure. However, for some marketers ROAS has become the singular metric that defines whether a campaign was truly a success. While ROAS does provide a valuable snapshot of how efficiently resources are being used, it doesn’t necessarily indicate the effectiveness of a campaign.

Key takeaways

• By consolidating this budget, marketers can inadvertently end up missing out on potential customers who are still in the awareness or consideration phases of the buyer’s journey;
• Additionally, focusing only on those who are most likely to book can limit the overall reach and potential growth of your hotel;
• Moreover, an obsession with achieving a high ROAS can also mean overlooking opportunities for incremental revenue growth. This is due to narrowing the focus predominantly on immediate returns, rather than creating sustainable growth strategies that consider the bigger picture.

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