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ProfitMAX for Hotels vs Google Smart Bidding: +39% ROAS in a 6-Week A/B Test | Search Machines
Case Study  ·  Google Hotel Ads  ·  OTA

Google's Smart Bidding vs ProfitMAX for Hotels.
Same auctions. +39% higher ROAS.

A six-week controlled A/B test on live Hotel Ads traffic for a leading OTA. Same hotels, same auctions, same conditions. One side bid by Google's ROAS-based Smart Bidding, the other by ProfitMAX for Hotels.

+39.1%
ROAS
+10.3%
Profit
+8.4%
Revenue
−22.1%
Cost
The Test

A six-week head-to-head A/B split.

We split live Hotel Ads traffic evenly between two bidders under identical conditions. One side used Google's ROAS-based Smart Bidding. The other used ProfitMAX for Hotels, bidding CPC% with ATLAS™ calculated bids.

Side A: ProfitMAX for Hotels

CPC% with ATLAS™ calculated bids

  • Models every bid signal Google exposes, plus its measured impact on conversion rate and transaction value, per hotel
  • Uses that data to set one bid per auction context
  • Every bid decision can be explained
VS
Side B: Google Smart Bidding

ROAS-based automated bidding

  • Google's standard revenue-optimising bid strategy for Hotel Ads
  • No visibility into how bids are set or why
  • Paid 37% more per click during the test
Why Hotel Ads Are Different

Hotel Ads expose more bid signals than most bidders use.

Each of these dimensions shifts conversion rate and average transaction value, and the effect is different for every hotel. ProfitMAX measures that impact per property and uses it to set each bid. Google's bidding runs on internal logic you can't see or audit.

Length of stay Time to travel Dates set vs. undecided Price bucket: uniquely lowest Price bucket: tied lowest Price bucket: not lowest Day of week Device Audience + conversion rate & transaction value per hotel
The Results

More revenue and more profit, at 22% lower cost.

Google's bidder paid 37% more per click, chasing higher-value bookings. It got them: revenue per acquisition came in slightly higher. Not enough to cover the extra cost, though. ProfitMAX finished ahead on revenue, profit and ROAS.

Revenue+8.4%
ProfitMAX
$132,067
Google
$121,878
Profit+10.3%
ProfitMAX
$126,314
Google
$114,494
Cost−22.1%
ProfitMAX
$5,753
Google
$7,384
Conversions+11.3%
ProfitMAX
581
Google
522

Six-week A/B experiment on Google Hotel Ads.

Return on Ad Spend

$23 back for every $1 spent.
Google returned $16.50.

Google's Smart Bidding paid more per click for bookings it expected to be bigger. The bigger bookings arrived, but the extra revenue didn't cover the extra spend. ProfitMAX generated more revenue from less spend. That's the 39% ROAS gap.

2296%
ProfitMAX ROAS
1651%
Google ROAS
Full Data

The complete side-by-side.

Transparency is the point of ProfitMAX, so here is every number from the experiment.

BidderClicksConv.Avg CPCCVRRPAROASCostRevenueProfit
ProfitMAX for Hotels9,695581$0.596.0%$2522296%$5,753$132,067$126,314
Google Smart Bidding9,090522$0.815.7%$2611651%$7,384$121,878$114,494
ProfitMAX advantage+6.7%+11.3%−27.0%+4.4%−3.7%+39.1%−22.1%+8.4%+10.3%

Google overpaid for the chance of bigger bookings. ProfitMAX priced each auction on what the data said it was worth. The 27% lower CPC bought more clicks from the same budget, and those clicks converted slightly better. That's where the revenue and profit gaps came from.

Free Bidding Strategy Session

Want to see the same comparison on your account?

We'll run the numbers on your Hotel Ads account and show you where bids look off. If we don't see a clear opportunity, we'll say so.

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