Just Other Articles - Internet and Businesses Online

The saying goes something like “A fool and his money are soon parted…” and buying pay-per-click advertising without doing your math homework can quickly have hoteliers sharing the same fate.

Pay-per-click advertising (those “Sponsor Results”, “Sponsored Links” or “Sponsored Sites” above and to the right of the organic or

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

natural search results on the major Search Engines) has to be one of the smartest money-making ventures of all time. Advertisers bid against each other in a frenzied auction environment, competing to appear higher up the list of ads that accompany the natural search results.

As of today, to appear at the very top of the p

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ge in the Sponsored Links in the UK for “London Hotel” will cost you over GBP1.30 per click; in the US over $3.00 for “New York hotel”; in Australia more than $2.60 for “Sydney hotel” and in France more than EURO1.40 for the search term “Paris hotel”…that’s per-click…it costs you nothing to show your ad but the moment some

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

one clicks on the ad and is routed to your web site, the meter clicks over one more time and takes another little nibble from your credit card balance.

Developed by the really smart guys at the Search Engines, the pay-per-click auction environment encourages the great majority of inexperienced users to bid up the cost per

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

click somewhere north of Vladivostok…which it was probably designed to do. In the hotel arena, these inexperienced bidders are probably the same people who measure their performance in terms of ARR rather than RevPAR.

Still, it’s only a couple of bucks isn’t it? Well, based on data that indicates that the majority of hote

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

l web sites convert less than 2.0% of clicks that go through to the site, at $2.00 per click, it just cost you more than $100.00 to convert that sale!

Given the prices being bid per click at the moment, it appears that few hotel managers and marketers are doing that math, so we have prepared the “Hotel Marketing Workshop

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ay-Per-Click Calculator”. You will be able to quickly and simply work out in advance, exactly what the maximum cost per click you ought to be paying based on your Average Online Room Rate, Average Online Length of Stay, Percentage Marketing Investment Per Sale and Estimated Conversion Rate.

Using this simple tool (it’s ju

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

st a spreadsheet and some basic formulas), you will be able to choose what level of investment per click will give you a reasonable Return On Investment (ROI). And may prevent you from pouring your scarce marketing dollars down the porcelain through over-expensive clicks through to your web site. You can download it her

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

or visit www.hotelmarketingworkshop.com and follow the links to this article and download it from there.

Now for that math lesson…let’s say you run a mid-scale inner-city hotel and your Average Online Room Rate is $200 and Average Online Length of S

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

tay is 2 nights. You Revenue Per Online Sale is therefore $400. Now, before your eyes glaze over, it’s not much more complex, just keep following the bouncing ball a bit longer.

Most hotels allocate somewhere between 3.0-7.0% of revenues to marketing expenses, so let’s keep it simple and say that you would normally spend

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

.0% of your $400 revenue on marketing costs ie $20.00. Your web site converts 2.0% of visitors to sales (1 in 50 – sad isn’t it but that is the average conversion rate and yours may well be lower) which means that you should only spend a maximum of $0.40 per click on pay-per-click ($20.00 x 2.0% = $0.40)…not much is it? $0

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

40 will get you on about page seven in most markets for high volume keywords. Maybe your bookings for next month are looking a little soft so you are prepared to up your Percentage Marketing Spend to 10.0% of Revenue Per Online Sale or $40.00; that still means a maximum cost per click of $0.80 to give you a modest ROI.

So

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

, why in the name of Conrad Hilton is the price bid today for the key phrase “your destination hotel” up to $3.00 per click on Yahoo Search Marketing and even higher on Google?

If you “reverse engineer” the math, at $3.00 per click with a 2.0% conversion rate and a 5.0% marketing investment and a 2 night stay, your hotel

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ould need to be achieving an Online ARR of…wait for it…$1500.00 per night; perhaps in parts of Saudi Arabia that may be achievable but seldom in downtown anywhere else.

And the Search Engines are smiling all the way to the bank…even at a 5.0% conversion rate and 10.0% marketing investment that’s $300.00 per night; a not u

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

nheard of ARR, but 5.0% web site nett conversion rates and a 10.0% marketing investment are rarified numbers indeed for many hoteliers and their web sites.

So, what can you do to make PPC work for you? It’s all there in the formula:

research keywords that aren’t so actively competed for that are still relevant fo

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

your target audience and bid on those – less volume yes, but a much more reasonable cost per click

extend your key phrases that you bid on to three or four words “downtown boutique your destination hotel” as these phrases are again not so actively competed for

select and implement the very best Web Booking

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

Engine you can find to make that final step to conversion as user-friendly as possible

increase your Revenue Per Online Sale by either increasing online rates or encouraging longer stays

find and be prepared to pay a professional to manage your pay-per-click investment with the skills to maximise click thr

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ugh rates and the lowest cost per click

call Hotel Marketing Workshop to help you increase your conversion rate through a better web site experience (oops…that darn commercial keeps sneaking in)

OR you could just keep bidding up the cost per click like everyone else and slowly go broke while the Search Engi

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

nes keep charging your credit card

At Hotel Marketing Workshop we don’t actually manage pay-per-click advertising for clients; there’s nothing wrong with PPC when well-managed but we just prefer to do what we do best…developing and designing great web sites that maximise the conversion of visitors (from whatever

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

source – PPC, Search Engine Optimisation, referrals from inbound links, online and offline ad campaigns) to online revenues.

And we are happy to help you find and select a PPC advisor as part of your overall hotel internet marketing strategy and work with them to maximise your online revenues… and we’re OK at the math too

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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