Introduction
Koloa Landing Resort, a part of the Marriott Autograph Collection, is a luxury hotel situated on Kauai’s sunny south shore. Despite its wide array of luxurious amenities and high-quality guest services, the resort faced a challenging task of increasing its Return on Ad Spend (ROAS) and lowering its Cost per Acquisition (CPA) within a limited daily ad budget of $12 per campaign [2].
Background
Given the constraints, a data-driven and agile approach was imperative to optimize the ad campaigns. The goal was not only to boost the ROAS and reduce the CPA but also to make the most out of every dollar spent on advertising.
Strategy
With an understanding of the latest industry trends on Meta and Pinterest, the team leveraged the platforms’ algorithms to maximize purchase values. The process involved biweekly ad optimizations and campaign refreshes to maintain a low view frequency, ensuring the ads stayed fresh and appealing to the audience. A/B split testing and keyword mining were additional strategies employed to drive campaign performance and uncover potential areas for growth. The team also provided media budget estimates and recommendations, customizing the approach based on specific campaign outcomes.
Results
The adopted strategies resulted in remarkable improvements. There was an 89% increase in website leads, signifying heightened interest and potential bookings. The strategic ad campaign optimizations led to a 36% reduction in Cost per Lead (CPL), making each lead acquisition more cost-effective. Impressively, the link Click Through Rate (CTR) was an average of 5.35%, substantially higher than the industry average of 0.90%. Also, the Cost per Click (CPC) was maintained at a significantly lower level than the industry average, standing at just $0.12 as opposed to $0.63.
Conclusion
The Koloa Landing Resort’s case exemplifies how a combination of data-driven strategies and understanding of industry trends can lead to remarkable results in digital marketing, even with budget constraints. The successes achieved in this case offer valuable insights for future digital marketing efforts in the hospitality sector.
