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The home-sharing company made the remarks Tuesday as it reported its most profitable quarter to date, suggesting that demand for travel is strong despite challenges from inflation.
Airbnb has made major changes to its marketing strategy in recent years. The company in 2019 began trying to depend less on search advertising and to lean more on broad marketing campaigns and public relations designed to build its brand.
The company has focused on public relations practices to drive news coverage of its business, along with advertising campaigns running on channels such as television.
It has also made deep cuts to its overall marketing spending. In the first quarter of 2021, sales and marketing expenses fell 28% from the quarter a year earlier to $229 million, citing a decrease in performance marketing expenses—which refers to campaigns that directly generate consumer action—and an intention to use the strength of its brand to attract guests.
In Airbnb’s earnings call Tuesday, Chief Financial Officer Dave Stephenson said the company is happy with the return on investment it is seeing with the different approach to advertising. The company spent $383 million on sales and marketing in the three months ended September 30.
“Our brand marketing results are delivering excellent results overall with a strong rate of return, and it’s been so successful that we’re actually expanding to more countries,” he said.
Asked by analysts whether the company would cut ad spending in a potentially tougher economy or continue investing in such an environment to teach consumers about new offerings, Airbnb executives said…
