Airbnb says it is delighted with brand spending as bookings surpass record highs. Is set to “modestly” increase marketing spend during the second quarter of the year as it plans to expand to new growth areas.
is planning the possibility of a “modest increase” in overall marketing expenditures in the second quarter of the year, and the CFO, Dave Stephenson, claims the business is “pleased” with its distribution of brand advertising.
In a meeting with investors on the morning (2 August) regarding the release of Airbnb’s second-quarter results, Stephenson said the company is currently “investing fully” in marketing and plans to expand its reach to areas where the investment is made.
“Later this year and into early next, you could see us expanding into more countries because we’re seeing such good success with our investment right now,” Stephenson said.
The company’s marketing and sales spending increased during its second-quarter period to $379.8m (PS315m) compared to $345 million (PS283.5m) in the first quarter. The travel giant claimed it worked to ensure “high marketing efficiency” during the period.
More than 100 million bookings were booked from April through June, a record for the time. Revenue for the second quarter was $2.1bn (PS1.7bn), increasing 58% year-on-year and surpassing the same period for 2019 by 73 percent. The company’s net earnings of $379 million (PS315m) make this Airbnb’s “most profitable” second quarter.
In its fourth quarter of 2021 results, it stated that it made the right decision in shifting its marketing approach from having a ” dependent ” strategy on search engine marketing to one that is more focused on the brand.
Stephenson confirmed yesterday that the company is confident about its approach to branding spend and described Airbnb’s ability to reach out to guests and hosts as one of its “big strengths.” Stephenson claims that 90% of traffic is direct or non-paid.
“I believe that this strategy for branding is more of a marketing strategy we employ to sell the features and capabilities offers that are unique about us. It’s been a big benefit for me,” Stephenson added.
expects to earn the most considerable quarterly revenue ever recorded in the third quarter of this year, which is the range of $2.78bn (PS2.28bn) in addition to $2.88bn (PS2.36bn). It is an annual growth between 24% and 29%, as well as between 69% and 75% growth when compared to levels before Covid in the year.