Airbnb's Big Bet: Cutting Performance Marketing to Build the Brand

During the pandemic, Airbnb discovered that people kept finding it even when the paid search tap was turned down. So it made a decision most growth teams would find terrifying.

The situation

For years, Airbnb, like most online travel brands, relied heavily on performance marketing: paying search engines and other platforms for each booking click. When travel collapsed in 2020, Airbnb slashed marketing spend and observed that much of its traffic kept arriving directly or through unpaid channels.

The decision

Leadership made the shift permanent. Rather than return to heavy performance spending, Airbnb moved budget toward brand marketing and PR designed to educate people about the product and keep Airbnb top of mind. Trade press reported that the company roughly halved performance marketing spend in the first quarter of 2022, cutting around $100 million.

The execution

Campaigns focused on explaining what makes Airbnb different and on product launches, such as categories and new features, turning product news into marketing moments. Brand strength meant more people typed Airbnb directly rather than searching generically for accommodation.

The results

Airbnb leaders publicly defended the shift as the right call, citing marketing efficiency and the strength of direct and unpaid traffic, while the business continued to grow. Later reporting showed the company increasing brand investment again from a position of strength rather than dependence on paid clicks.

Lessons for brands in Dubai and the GCC

1. Measure what happens when you pause paid channels: you may be paying for customers you would get anyway
2. Brand building lowers future acquisition costs
3. Turn product launches into marketing moments
4. Only cut performance when the brand and product are genuinely strong enough

Sources

• Campaign Asia: Airbnb halves performance marketing spend with $100m cut in Q1
• Marketing Week: Airbnb CFO on shifting spend to brand-building
• Campaign: Airbnb's permanent shift from performance to brand

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