Priceline jumps on the sponsored listings bandwagon and lets hotels advertise on search results

Priceline's new sponsored listings program for hotels looks pretty darn familiar.  Why?  Competitor OTAs like Expedia, Orbitz, and Travelocity have all featured pretty much the same product on their own search results pages for several years.  Just like display ads, the sponsored listings are also a complementary revenue stream to traditional OTA margins on the materialized bookings.

The sponsored listings are all auction based, pay per click campaigns that shoot hotels all the way up to the highly desired numero uno position in the search results of a particular destination.  In instances when there are pages upon pages of cookie cutter search results, it's easy for hotels buried deep into the dog pile to ascend to the top and gain maximum marketing exposure.  These sponsored hotels will get to sit in the spotlight with more or less free advertising unless someone clicks on their listing.

Since Priceline just launched their sponsored listings program last week, I would advise hotels interested in pay per click advertising to sign up ASAP and target their future lean occupancy dates.  The early adopters will enjoy low cost per click because there will be less competition bidding up the prices in the auction.  But winning isn't everything.  To improve the performance of their campaign, hotels absolutely need to ensure their rates are ultra competitive with the market and their inventory is well stocked to maximize conversion and ultimately the campaign's ROI.



As a consumer you can spot the hotels with sponsored listings because of their faded background color and typically the words "sponsored listing" near the hotel name.  In the example below of Expedia's search results for Bali, the Viceroy Bali is visibly designated as a sponsored listing and commands the #2 ranking after Mantra Nusa Dua (which is part of the Daily Deals merchandizing that trumps even sponsored listings).  Let's face it, getting to #2 in the rankings isn't too shabby when there's a whopping 874 other hotels listed beneath.