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Hotel Advertisement

Hotel Advertisement v.s. Digital Media?

Hotel advertisement: learn how to leverage hotels to reach an affluent audience

With a revenue of $206 billion so far in 2019, the US hotel industry is massive. It implies that many people in the country are spending time outside their homes either for vacation or for business. As such, the trend suggests that hotel advertising could be a platform for more brand visibility for businesses.

How does hotel advertisement work?

As of October 2019, the occupancy rate of hotels in the US stood at 69.3%. For the past years since 2011, the industry has seen the occupancy rate grow year-on-year. The occupancy rate is a critical indicator of the health of the hotel industry. Notably, it helps businesses to make revenue projections and to decide on how to invest excess capital. However, the occupancy rate means a different thing to advertisers.
Advertisers use hotels as a platform to push for more visibility for businesses. How does this work? Typically, hotels in the US, and across much of the Western world, use key cards. Notably, key cards make room accessibility easy, and hotels can map the movement of clients efficiently. It is crucial for security concerns. For advertisers, the key cards are an opportunity to place an ad in the hands of the target audience.  Advertisers print messages on the key card alongside the logo of the business. Interestingly, the key card becomes like a mini-billboard, held in the hands of the target audience.

Advantages of using key cards to advertise

Key cards as an avenue for advertisement come with many positives. First, key cards lead to a higher message impact compared to digital media. While digital media is growing fast as the advertising platform of choice, issues of inattention could hurt its luster. Notably, many users of digital platforms are either too distracted to notice ads or hate seeing them. As such, there is no guarantee that digital media ads will generate a meaningful impact on the message.
The second advantage of hotel advertising using key cards is that businesses can focus on the exact target audience. Typically, hotels collect client data concerning their jobs, marital status, age, and so on. This information is crucial for businesses in terms of segmenting the audience to achieve higher conversion rates.
Thirdly, hotel key cards guarantee engagement. Typically, digital media has a deluge of information where users try to consume as much as possible. As a result, there is little to no engagement when the users stumble upon ads. Above all, designing and running ad campaigns via key cards is cost-effective. In contrast, a single click costs $0.97 for Facebook ads. If your campaign focuses on impressions, 1,000 impressions will cost you not less than $7.19. It is a lot considering that you need millions of impressions and millions of clicks to attain desirable visibility.
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