Archipelago increases bookings by 440% using Google Ads

Archipelago International is the largest hotel management chain in Indonesia, serving a wide range of properties including budget hotels, luxury villas, and serviced apartments.

Archipelago is no stranger to online marketing — they’ve been utilising Google Ads to grow their business since 2008. Corporate Director of Marketing Erika Anggreini shares that Archipelago finds online marketing more effective and more easily measurable, as compared to traditional marketing strategies such as print ads.

While Archipelago initially managed their online ads in-house, their portfolio has become increasingly complex over the years, and it’s now managed by an external vendor. With this in mind, Archipelago’s goal was to come up with unique online marketing strategies that would resonate with their individual target audiences, and continue increasing their revenue and Return On Investment (ROI).

Archipelago International partnered with a digital marketing agency, iProspect Valuklik Indonesia, to optimise its use of Google Ads.

First and foremost, iPropsect restructured Search Ads campaigns for each of Archipelago International's brand campaigns based on its different customer segments. It also organised Archipelago’s campaigns by region, city, and specific geographical location of each hotel for better clarity.

Next, iProspect implemented Remarketing Lists for Search Ads (RLSA) campaigns for Archipelago based on hotel ROI. For potential customers who visited sites of low ROI hotels, Archipelago would simply remarket to them. For those who visited sites of high ROI hotels, on the other hand, Archipelago would remarket to them and also increase their bids to reach these customers more effectively.

In less than two years, Archipelago International's direct online bookings volume increased by 440% — far exceeding the results that other channels, including online travel agents, brought to the company.

On top of that, Archipelago also managed to push down their Cost per Action (CPA) by an impressive 90%. With the same amount of marketing budget, Archipelago International received almost 3X more bookings with 3X lower CPA compared to online travel agents.

All in all, this led to Archipelago International increasing its ROI by 850% in a single year.

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