Many marketers wonder about the effectiveness of both paid search and display advertising. Is it worth the investment? The answer to this question is a definitive yes. Recently, Katana demonstrated that their media approach helped improve a leading casino’s return on ad spend (ROAS) and saved them money on audience prospecting.
A leading Hotel & Casino on the Vegas Strip engaged Katana to help them build out their digital marketing program. The casino was losing market share to both competitors and third-party booking engines. Their ROAS had turned flat over the previous few years, and they were looking to improve it.
Katana started by analyzing bookings driven by digital marketing efforts. We identified several digital marketing channels that had driven higher quality traffic, better bookings, and higher revenue per booking.
We decided the best approach was to supplement the current efforts that they had with third-party booking engines and to be more selective with their marketing efforts to show more positive returns. We also found that their paid search campaign was being overly aggressive on non-branded keywords that drove a high conversion rate, but low revenue. Their current display efforts, on the other hand, was performing better: display had a lower conversion rate, but much higher revenue or ROAS.
Katana focused on rebalancing the casino’s media mix, implementing programmatic media buying based on attributes associated with high-value conversions, and focusing on revenue rather than simply CPA. Our paid search and display campaigns showed dramatic and immediate improvements in the revenue being generated through their online booking engine within the first 90 days of the re-imagined campaign. These initial results continued for the rest of the year.
- 1% reduction in total annual investment with total revenue generated from digital media efforts improving more than 38%
- Total ROAS improved from 12:1 to 16:1
- 8% reduction in paid search investments with 32% increase in revenue
- 5% increase in display investments with 48% more revenue generated
While this Vegas casino’s efforts did produce results, they weren’t enough to beat their competitors. By focusing in on what was working and improving their digital marketing mix, Katana drastically improved their paid efforts.