How to Run Facebook and Instagram Ads for Your Short-Term Rental

If you own a short-term rental property, running Facebook and Instagram ads can significantly increase your bookings and revenue.

With millions of travellers searching for accommodation daily, these social media platforms offer a powerful way to target potential guests.

However, simply boosting posts won’t get you the best results—you need a strategic approach to ad creation, targeting, and optimization.

In this guide, we’ll walk you through the entire process of setting up and running high-converting Facebook and Instagram ads for your short-term rental.

Understanding Your Audience

Before launching your ads, you need to define your target audience. Understanding who your ideal guests are will help you craft the right message and choose the best ad placements.

– Identifying Your Ideal Guests

Your target audience may include:

Business Travelers – People looking for comfortable stays with fast Wi-Fi and work-friendly environments.
Tourists & Vacationers – Families, couples, or solo travellers searching for vacation rentals.
Digital Nomads – Remote workers who need a reliable, long-term place to stay.
Event Attendees – People attending weddings, concerts, conferences, or festivals nearby.

– Using Facebook & Instagram Audience Insights

Facebook’s Audience Insights tool helps you analyze your audience based on demographics, location, interests, and behaviours. Use this tool to refine your targeting and ensure you’re reaching people most likely to book your rental.

Read This: The Best Property Types for Short-Term Rentals in Nigeria

Setting Up Your Facebook & Instagram Ad Campaign

To run ads effectively, you need to set up your campaign correctly.

– Create a Facebook Business Manager Account

Go to business.facebook.com and set up a Business Manager account.
Connect your Facebook Page and Instagram account.
Set up your payment method.

– Set Up Facebook Pixel for Tracking

The Facebook Pixel is a piece of code that helps track visitors who engage with your ads. It allows you to retarget people who visited your website but didn’t book.

– Choose the Right Campaign Objective

When setting up a new campaign in Facebook Ads Manager, select an objective that aligns with your goals:

Traffic – If you want people to visit your website or Airbnb listing.
Conversions – If you want bookings and leads.
Engagement – If you want to build awareness and increase interaction.

Crafting High-Converting Ad Creatives

Your ad’s design and message play a crucial role in attracting potential guests.

– Best Types of Ad Formats

Carousel Ads – Showcase multiple images of your rental’s rooms and amenities.
Video Ads – A short 15-30 second walkthrough of your rental’s interior and neighbourhood.
Single Image Ads – High-quality images with compelling captions.

– Writing Compelling Ad Copy

Your ad copy should:

Highlight unique features (e.g., “Luxury 2-Bedroom Apartment with Ocean View”).
Include a call to action (e.g., “Book Now & Get 10% Off!”).
Mention location and nearby attractions.

– Using High-Quality Images & Videos

Your visuals should:

Show clean, well-lit spaces.
Highlight amenities (pool, workspace, kitchen, etc.).
Feature lifestyle shots (e.g., a guest enjoying coffee on the balcony).

Targeting the Right Audience

Proper audience targeting ensures your ads are shown to the right people.

– Geographic Targeting

Target travellers from specific countries who frequently visit your city.
Use local targeting to reach event attendees.

– Interest-Based Targeting

Target users interested in Airbnb, Booking.com, luxury travel, or business travel.
Include people who follow travel influencers and hotel brands.

– Retargeting Website Visitors & Past Guests

Use the Facebook Pixel to retarget people who:

Visited your booking page but didn’t complete a reservation.
Previously stayed at your rental (offer discounts for repeat bookings).

Read This: How Lighting Affects the Mood in a Short-Term Rental

Setting Your Budget & Bidding Strategy

To get the best return on investment (ROI), you need an effective budget strategy.

– Daily vs. Lifetime Budget

Daily Budget – Facebook spends a set amount per day.
Lifetime Budget – Facebook distributes spending over a specific time frame.

Understanding CPC, CPM & ROAS

CPC (Cost-Per-Click) – The cost per person who clicks your ad.
CPM (Cost-Per-Thousand Impressions) – The cost per 1,000 views.
ROAS (Return on Ad Spend) – The revenue generated from your ads.

A/B Testing Different Budget Allocations

Test different audience segments with separate ad sets.
Run multiple creatives to see which performs best.

Measuring and Optimizing Ad Performance

Tracking and improving your ads is key to long-term success.

– Key Metrics to Monitor

Click-Through Rate (CTR) – Measures how many users click on your ad.
Conversion Rate – Tracks how many clicks lead to actual bookings.
Cost-Per-Result – The cost of each booking or lead.

– Optimizing Your Ads

Adjust Targeting – Exclude unengaged audiences.
Improve Creatives – Update images and videos if engagement is low.
Increase Budget for High-Performing Ads – Allocate more to ads generating bookings.

– Scaling Successful Campaigns

Once an ad performs well, increase the budget gradually to scale up results.

Common Mistakes to Avoid

Avoid these pitfalls to get the most from your ad budget.

1. Targeting Too Broad or Too Narrow

A broad audience may waste your budget on uninterested users.
A very narrow audience may limit your reach and increase costs.

2. Using Low-Quality Visuals & Weak Copy

Dark, cluttered, or blurry photos will hurt ad performance.
Boring or generic copy won’t inspire action.

3. Not Testing Different Ad Formats & Placements

Always test multiple ad creatives and placements (Instagram Stories, Facebook Feed, etc.).

Read This: How to Optimize Your Short-Term Rental Listing for More Bookings

Conclusion

Running Facebook and Instagram ads for your short-term rental can be highly profitable if done strategically.

From understanding your audience and crafting high-converting creatives to setting up your budget and optimizing performance, every step plays a vital role in maximizing bookings.

By following this guide, you can attract more guests, increase occupancy rates, and scale your rental business successfully. Ready to get started? Launch your first campaign today and watch your bookings grow!