Airbnb’s marketing pivot – new focus on brand and reputation

Airbnb’s marketing pivot – new focus on brand and reputation

Charlotte Stoel

Charlotte Stoel

The pandemic hit some organisations harder than others, and for companies like Airbnb in the hospitality industry, it was a big blow. So, it wasn’t a surprise that Airbnb made the decision to pause all its performance marketing, but what may be a surprise is that the cut is going to be permanent.

Airbnb’s founder, Brian Chesky, explained that despite taking performance marketing down to zero, the company still had 95% of the same traffic from the year before. This lesson has prompted a complete rethink of marketing spend at Airbnb.

Airbnb plan to move spend away from performance marketing and into brand marketing, with a focus on media relations. During the company’s earnings call, Brian Chesky said that this new ‘full funnel’ marketing strategy is “very important to the corporate story”.

Looking at the numbers, it’s not a decision that has been made lightly either – and I should say that they haven’t cut performance marketing altogether, but reduced it significantly.

Now, you may be thinking that it’s alright for them to make such a bold move, they’re already so well known. And you’re right. The Airbnb brand is strong so getting people to the site is not an issue.

The focus now for Airbnb is different – their communications objectives are now centred around broader reputation and helping people to understand the brand better. The company wants potential hosts and guests to understand the benefits and what makes the experience distinctly Airbnb.

This isn’t just a strategy for brands with big reputations, it’s about applying the right marketing mix to support your objectives. What PR allows is more than just eyeballs on your website, it’s a vehicle to educate, inform and shape your company’s reputation.  Those who get it really right create more than just a commercial connection, but an emotional connection to the brand too.

Airbnb really get this.

What’s the takeaway from all this?

Now is the time to reassess your marketing spend. The pandemic has changed everyone’s behaviours, so consider this: Do you have a clear understanding of what these behaviours and beliefs are? How do you adapt your comms with that understanding? The European Journal of Social Psychology states that it can take between 18 and 254 days to form a new habit, and an average of 66 days for that habit to become an automatic behaviour. We can safely say that we have had very long stints with significant government restrictions, meaning our routines have changed. How we all live and work will never go back to the way things were, so your marketing strategy mustn’t either.

And it’s not just about gaining a better understanding of your audiences – it’s about realigning your communications to this ‘next normal’.

But remember that there are always changes around the corner. The beauty of Airbnb’s move is that they’ve allowed for flexibility in their marketing strategy, and have kept a mix of tactics, which can be dialled up and dialled down. 

We’re on the path out of the pandemic – be bold and #reset!

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