Kempinski has driven forward its digital strategy with a partnership with Google Adwords, resulting in a 14:1 ROI and an increase in website revenues to 7% of total revenues.
The Google Adwords online distribution and marketing tool was used to integrate pay-per-click into Kempinki’s overall marketing strategy and support its other online marketing initiatives.
Following the recorded ROI, Kempinski has tripled the amount of advertising budget spent online and 80% now goes directly to Google AdWords.
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Kempinski manager digital strategy Alexander Noak explained: “Performance of the other forms of marketing is not measurable to the same degree as AdWords. Administering them is much more complicated.
“Also, they are not so flexible; once the message is out it cannot be altered, while AdWords is adaptable at any time.”
Noak added: “AdWords is simply more efficient, more user friendly, more innovative and more customizable. Even with low budgets, a high ROI can be achieved.”
Kempinski’s online distribution efforts have had significant impact in the Middle East and Africa region, overseen by regional director of sales Middle East & Africa, Avsar Koc.
“Kempinski is leading the industry in Middle East and Africa with dedicated e-commerce experts in every business unit, which enables us to stay on top of the rapidly evolving online travel world and better deliver Kempinski's digital strategy,” said Koc.
“Google AdWords has been one of the most effective tools in increasing the impact of our digital strategy,” he continued.
“A decade ago hotels’ online activity budgets were a fraction of the overall marketing spend, while today that number has increased to 40% in some of our hotels.
“Our efforts to increase traffic to Kempinski.com have paid off, as direct bookings on the site have increased by 12% year on year. Engaging customers through our website increases our booking efficiency, decreases our cost of sales, and more importantly seals guest loyalty to our brand,” said Koc.
Globally, Kempinski forecasts that website revenues will contribute 10% of total revenues.
In MEA, almost a third of business is predicted to come from all online channels, with Kempinski.com playing a major role in this.
“The double-digit growth on this platform will boost our efforts to reach a 30% contribution to our business from electronic channels,” asserted Koc.
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