How Do I Define My Hotel's Advertising Budget On Social Medias?

Social network advertising campaigns can target your current customers, future customers or can target a potential new audience with optional new methods of conquest.

The biggest advantage of advertising on social networks is its cost.

The cost of advertising makes platforms like Instagram and Facebook perfect ways to test the engagement of the desired target group and to attract new guests to your hotel. A small expenditure on Facebook or Instagram can have a big impact. These highly visual social networks can also convince potential customers very quickly.

The average cost per click is $0.35 (about €0.30). This amount will be impacted by many factors including the size of your audience. This amount should be compared to the $2.32 (about €1.97) cost per click of Google Adwords (Search Engine Searches).

Targeting will strongly impact a campaign's budget.

If you want to restrict your advertising to a narrower audience, the cost per click will be higher. If you want to launch a campaign for a romantic weekend in your hotel near Paris, it will be more expensive for an audience living as a couple and in the Paris region than for the whole of France.
Furthermore, better targeting allows you to optimize your sales, so it is a crucial point to take into account. Monitoring the return on investment of your advertising campaigns is the key to continuously adapt your target and your campaign budget.

Of course, you can set a maximum daily budget for your social network advertising, but you can consider a minimum budget of 1$ (about 0,85€) per day. However, your expectations should be in line with this budget. The algorithms of Facebook (a company that includes Instagram) adapt continuously to maximize your chances of conquest and thus increase the revenues of your hotel. Your budget must also adapt to the relevance of your ad. If you know that your product can please by being known, it will be important to allocate a budget accordingly.

Thus, the budget you allocate to advertising your hotel will first have to be adapted to your target, and will then have to be adjusted according to the returns you will get.