Performance marketing

Airbnb CFO: We were right to shift spend from performance to brand-building – Marketing Week

Summary

Airbnb has reported its “strongest ever” fourth quarter end outcomes, pushed by greater income and enhanced advertising effectivity.

Internet revenue reached $55m (£40.6m) over the three months to 31 December, in contrast with a net Lack of $3.9bn (£2.9bn) over The identical interval in 2020. Complete income for the quarter was $1.5bn (£1.1bn), exceeding 2019 by 38%.

On The identical time, genperiodl gross sales and advertising funds decreased 44% yr-on-yr to $3…….

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Airbnb has reported its “strongest ever” fourth quarter end outcomes, pushed by greater income and enhanced advertising effectivity.

Internet revenue reached $55m (£40.6m) over the three months to 31 December, in contrast with a net Lack of $3.9bn (£2.9bn) over The identical interval in 2020. Complete income for the quarter was $1.5bn (£1.1bn), exceeding 2019 by 38%.

On The identical time, genperiodl gross sales and advertising funds decreased 44% yr-on-yr to $351m (£259m), reflecting proceedd reductions in efficiency advertising spfinish yr-on-yr.

Excluding the influence of inventory-based mostly compensation and completely different non-money or one-time merchandises, gross sales and advertising expense enhanced by 119% to $324m (£239m), “due primarily to An enhance in mannequin advertising expense”.

The journey lodging enterprise first introduced It Might be making a everlasting reduce to its genperiodl advertising funding in February final yr, having famous that slashing spfinish all by way of Covid hadvert little influence on visitors.The 2022 Agfinisha: Breaking down the wall between mannequin and efficiency

“In 2019, earlier than the pandemic, we shifted our advertising Method to be extra mannequin-pushed and even much less depfinishent on search engine advertising,” Airbnb’s chief monetary officer Dave Stephenson said on a name with buyers final Evening time (15 February).

“We madverte that shift and it has confirmed to have been The biggest shift, not solely in 2019 however in 2020 and 2021.”

Last yr, CEO Brian Chesky said Airbnb now appears at the position Of promoting as Definitely one of “education”, not “To buy clients”. Reaffirming that place this week, Chesky advertded that efficiency advertising Is taken Beneath think aboutation a “laser” to house in on balancing current and demand.

The enterprise launched its first huge-scale mannequin advertising advertising campaign in 5 yrs in early 2021, ‘Madverte Potential by Hosts’. New advertvertisements have been launched over the autumn to “proceed the momentum” of the advertising campaign. Through the fourth quarter, genperiodl visitors to the Airbnb platform enhanced virtually 20% Inside the seven nations wright here the advertising campaign ran, As in contrast with The final quarter of 2019. This was “significantly” aheadvert of non-advertising campaign nations, the enterprise has clpurposeed.

We think about that Airbnb Might be A lot Higher than a market that merely connects visitors and hosts.

Brian Chesky, Airbnb

Neverthemuch less, almost 90% of Airbnb’s visitors reprimarys direct. Based on Chesky, This will be defined by the Higher than half A million press articles revealed about Airbnb final yr alone.

“PR Is certainly in all probability An important channel To assemble the mannequin of Airbnb,” he said. “That’s as a Outcome of Airbnb has an offering that’s actually distinctive, and so People are deeply Enthusiastic about it, they inform Every completely different and Airbnb has Discover your self to be a noun and a verb used Throughout the place Inside the world.”

Marketing in 2022

Wanting aheadvert to The subsequent monetary yr, gross sales and advertising spfinish as …….

Source: https://www.marketingweek.com/airbnb-cfo-performance-brand/