At a close look, Airbnb business strategy consists of the following three elements: 1. Level 28 161 Castlereagh Street Sydney NSW 2000, Level 10 1 George Street Singapore 049145, 730 Arizona Avenue Santa Monica California 90401 USA, In a bid to provide more transparency to its users, Facebook now lets you view all of a Pages active ads. Just by using the right words, Airbnb make me feel as though they should be my first port of call when Im visiting somewhere new. And not every Airbnb experience Ive heard about is an overwhelmingly positive one. But its not just enough to have those locations you need to be in the top 2 to 3 organic positions on Google to really capture high traffic volumes. The company uniquely leverages technology to economically empower millions of people around the world to unlock and monetize their spaces, passions and talents to become hospitality entrepreneurs.[3]. So bear with me while I explain them here, it will all make sense later . Someone without an account/not even a host can make a post. Book a real home in [Location] for less than a hotel room . Now that Im signed in I get some options that are well suited to me (saved, trips and messages) as well as a prompt to become a host something thats beneficial to them. "This is a key problem. It could be said that best practice on Facebook for sharing links is using the Link Preview option, rather than sharing links in the post copy with a separate image. This is because when Google crawls a site that has a backlink to your site, a Google spider will follow the backlink as though its a web strand and then start crawling your site which would have taken longer if there hadnt been a backlink and you were waiting for Google to crawl your site as part of its standard checks. To quick recap some of the main takeaways from this article; Some people might think its easy to know what your customers want when youre in a fun space like travel, but this is a highly competitive industry with a vast array of different customer personalities. Top Contributors are consistent inside the 3 core content pillar pages, which we will go into detail further below. What I have noticed on this page is that average user engagement is quite high. To give you some context, I booked an Airbnb a few months ago for a trip to L.A, so it makes sense that it appears as the first tile. Theyre spending their budget on users who have shown high intent, and show them highly relevant ads to increase the chance of conversion. The prime generic strategies applied by Airbnb is the mixture of differentiation and cost. It is a cornerstone of Airbnb business strategy. Hosts also pay a service fee of around 3%, which Airbnb . Just below the fold, we see Featured Discussions. Winner, winner, chicken dinner! How do you convince people to open up their home and allow guests to stay? The site structure of these pages is strong due to the way each category acts as a directory page to the other listings, giving greater value to the site and also helping the pages rank for high volume search terms. It doesnt tell me anything about me or why Id enjoy it, its just a factual statement. Nothing quite catches the eye and so Im not 100% sure what the obvious step is to do next. 2.1B CULTURAL EXPERIENCE. This is an interesting observation as I havent as of yet successfully referred a host, so this is possibly a strategy to help me take an action. Always thinking ahead, Chloe is interested in transformational changes to businesses and how relevant content and targeted messaging can catalyse high-level goals. Not a big deal as its revealed as you scroll down, and its not the most important bit of information on the page by a long way, but it is a (very) minor annoyance. To make this article easier to read weve broken it out into several different sections, each covering different growth channels. Innovation is at the core of how we operate at Webprofits, always looking for a smarter + better way of helping our clients drive record-breaking growth through digital marketing. For Airbnb, the community centre serves a purpose for hosts, both existing and prospects, to explore what its like being a host on Airbnb. Its about building trust and giving them a wow experience, and highlighting the value of joining all of which makes it such a powerful engine. While competitors may have a similar product, Airbnb's . As a travel company, cultural celebration is at the heart of Airbnbs business model. Theres no form with dates or number of guests like there was previously, so theres an extra step no matter what. The Airbnb business model is a multisided platform that connects travelers with hosts from all corners of the planet. . In closing the only thing I would add that I think they should be doing more of on Stories is including a swipe up CTA earlier in their stories if theyre going to include one, perhaps even from the 2nd or 3rd tile depending on how long the full Story is. They currently dont do much to get the people browsing these pages to move through the funnel and look at search results (its unclear whether looking at these pages when signed in triggers email sequences). This trend towards experience is being seen across many sectors and the value of which has been seen from the food industry and retail sector through to technology and finance. Unique Product. Airbnb have been running Dynamic Ads for reservations for a number of years now, with them even being featured in a Facebook case study on this back in 2017 where they reported a 3X increase in return on ad spend and 47% lower CPAs using the Dynamic Ads objective. In this section Ill be looking at how they use Facebook (both paid and non paid), Instagram, and Twitter to promote themselves, attract new guests and hosts, and keep existing users engaged. Lacking a strong organic search strategy and missing fundamental CRO elements: Airbnb is not activity driving organic traffic to the stories nor converting any readers which may land here. What is clever is the positioning of this section on the page. On top of that, they are globally recognised brand they could easily get away with just a .com + language switch based on your IP. From a marketing perspective, I personally think its a good move by Facebook, as it will ensure advertisers do not get complacent with their creative & messaging if they want to stay ahead of the curve, theyll need to keep innovating and testing new ads. For example, Wotif.com currently has approx. Ive chosen to analyse Airbnb property pages as I feel these are the closest thing they have to products. In the time that Ive been analysing Airbnbs Facebook Page for this case study, through checking the Ads Library tool Ive been able to see that theyve advertised all of their most recent Page posts. But its one that many businesses wouldnt have made, and I think it speaks volumes to the type of business Airbnb see themselves as. If you were wondering how they get permission for re-sharing a users image, heres an example: Airbnb were an early adopter of Instagram Stories, and have featured in numerous articles across the internet as a brand that is crushing it with this feature, of which I totally agree. They are known for creating great online user experiences, but they also excel in experiential and live-event marketing. This shows that in terms of success, branded keywords currently play a huge role in their organic success, and should continue to be a primary driver of organic traffic in the future. How do you execute a good referral strategy into your business so that customers start doing the work for you? Pick up a paintbrush and channel your inner Bob Ross, dance at a sunset silent disco in San Francisco, and discover Portos vibrant history as youre led through the tiled streets by a local. Of course, without insights from Airbnb I can only assume this is the case! How did I determine this? We recommend a more aggressive content marketing strategy to build this organic non-branded visibility. These work off rules which you set within the software, leaving you time to focus on the more important things. They just considered it rude to start making a terrarium without an invitation. The stories, tips, and tricks all help to reinforce the positive feelings that hosts get as part of being part of the Airbnb community. Its unlikely there is sufficient volume from closely related search terms in isolation, and as a result, Airbnb likely need to leverage auxiliary keywords to reach lofty growth targets. Airbnb has also included a number of videos and photos into the content to illustrate experiences or locations, and links lead back to the main site to strengthen ties with Airbnbs services (where its natural or useful for the reader). The campaign perfectly aligned with Airbnbs values, and helped highlight a struggle for acceptance in a country where the debate on same-sex marriage had fallen off the political radar. As I look down, I see the option of Import from: Gmail, Yahoo or Outlook. Its simple referral marketing is less costly, and has a higher quality + quantity of leads. You could argue that they knew their customers better than they know themselves, and I wouldnt disagree. So, what have Airbnb done to construct and generate one of the best communities in the world? So what do the messages look like when you share with friends? Airbnb fees and room pricing. I also obtained a few values for each search term like average CPC, estimated traffic and average position: You can view the sheet here, as well as the raw keyword data if youre interested in doing your own analysis. How to . Based on this report, its clearly evident the differences in high volume keywords between the three brands, with Airbnb largely trailing behind the other two. Lets take a look. What I like most about it is that the right hand side of the page is reserved for it. Required fields are marked *. It is also worth noting that paid search is capturing one website visitor for every two visitors captured from organic search in my experience, this is fairly typical of late-stage high growth companies that operate larger websites. Airbnb should review and update their Title Tags and Meta Descriptions to fit the length parameters provided by Google . The part about the airbnb community is excellent! However, they are easily imitable and do not offer strong differentiation for Airbnb in the long term. To counter this, they created a premium product called Airbnb Plus. Because Airbnbs brand is such that competitors like Home Away are bidding on their brand name, its important Airbnb continue to protect these terms with spend. Initial reading is to get a rough idea of what information is provided for the analyses. Now, it makes sense why some threads seem large with the amount of comments. There are a couple of fantastic resources online + a video you can explore in detail. When looking at the types of posts they share to the Page, this is a mixture of imagery & video. (It could just be that beach destinations are the easiest to categorise, or the most popular generally). In website talk, the breadcrumb structure of a website does the same thing it allows Googles spiders to find their way back to the most important page, whether that be the homepage, the category page of the product being viewed (eCommerce), or another primary page. Blue Ocean Strategy by W. Chan Kim and Rene Mauborgne, Positioning: The Battle Of Mind by Al Ries and Jack Trout, What is Strategy-HBR Article by Michael E. Porter, Good To Great by James C. Collins, Principles by Ray Dalio, . Even the button with the CTA of explore homes is just a bit dull. Well now they are more widespread, with two in particular (Bali and Phuket) as common places for Australians to travel to. They utilise imagery well (especially with user generated content), and share articles regularly, but could be doing more on video given how much Facebook prioritises it in their algorithm. Also worth noting the low intent call-to-action. We did note from our research that the keywords the Neighbourhoods section are appearing in top positions for are all relatively low volume searches, and not high volume opportunities that would assist Airbnb with greater growth. Their ad copy speaks to their unique points of difference and so stands out from their competitors, which one would assume would lead to significantly better performance. Building on this approach, I would also be looking to remarket to anyone that opened the email via Facebook, Display, or Gmail ads with additional information or incentives for them to register as a host. Then underneath, we dont see the email option to send a personalised invite right away. I might visit their site once or twice a year when Im lucky enough to be looking at booking a holiday, and I cant help but notice that every time I do, I get a different site compared to the last time I visited. Lastly, theres a cross-sell option into experiences. We think that online travel booking major Expedia's stock (NASDAQ: EXPE) is a better pick compared to vacation rental platform Airbnb (NASDAQ: ABNB) at the present time. Lets take a look at the invitation mechanism on mobile at a high level. Its revenues can grow to $8.5 Billions an year by 2020. was a discussion of the generic and intensive strategies used by Air BnB to build a competitive advantage and grow its market share. Sure, they can nurture better and convert more customers, but they needed a way to keep growing their revenue that isnt reliant on just one product. Hi! All of this is inspected by a real person so youre ensured of its accuracy. Airbnb take unorthodox approaches to get noticed in the offline world, and when they do, its not to promote themselves or their platform directly but to promote who they are. browse homes. Airbnb started out in 2008 when founders Brian Chesky and Joe Gebbia realised they could make a quick buck by renting out an air mattress in their living room to people visiting San Francisco for a big conference. Its the chance to meet the locals, experience the markets, and find the non-touristy places. Not many businesses go above and beyond in this way. If youre a business/brand, your ads strategy is now in full view for all to see, particularly your competitors; but if youre an everyday Facebook user you now have more visibility as to what ads a political party, brand, or whoever else you wish to check is currently running. Users can then explore top answers that may result in high engagement for various reasons (e.g. Whilst its evident that the UI has changed over the years, theres been numerous changes to their UX, copy, layout and small additional features, which have been implemented to maximise the chances of users spreading the word. . If we go back to the referral page, under the Import from: Gmail, Yahoo, Outlook, the ability to share your referrals via a link whether direct or via social channels is evident as another option for users to share their content. As I go down the page, I see what the hot discussion topics are at the time in the worldwide community. With a product approach like this, its no wonder theyre such a successful business. When we start a business or a new brand, it is essential to aim for a long-term payoff for all our efforts and investments A sustainable ROI. The image instantly grabs your attention. But that doesnt mean I would use it at all costs. Group travel . Whats clear to me is how much value they put on understanding their users, both guests and hosts, and building a strategy that speaks to them directly. This allows brands to post localised content under one universal Facebook Page name, share fans, and receive a vanity URL/username e.g. Our Airbnb 2022 predictions: The "Live Anywhere" theme has crept up into Airbnb's announcements since 2020. In fact, when they do charge, they actually review and suggest which pictures you go with for maximum impact. They could benefit from using their Instagram to tell more stories, as these are a great way to connect with people. Even if this is not done on purpose, I think this is clever, as it allows the user to imagine themselves there. Even the description in the sub header is better, mainly because it says who its for. Next we get into a section that Airbnb does famously well reviews. Needless to say, Im not impressed so far. Best practice would be to also have these links built with UTM parameters this allows you to then go and view the performance of the links in Google Analytics, however its evident that they are not using UTM parameters. Through the section Connect Locally, you come to this particular page. Be it data from our wish lists, search trends, seasonality, there is a component of every email that is rooted within data. A request for more information can be made by contacting the host. Listings make up a big chunk of Airbnbs Instagram content, and are clearly meant to evoke a sense of wanderlust in all those who stumble upon them. This could be a barrier to entry for prospects wanting to sign up to the platform. Of course, you can edit the template message yourself, but this does make it easy for the user to share. Moreover, the company aims to keep guests and hosts safe via a wide range of measures such as risk scoring, background checks, 24/7 global assistance, secure payments and account protection. Thats a pretty solid looking page structure in my opinion. As an experienced marketing consultant, Dan continually strives to perfect his craft in producing high-performing, data-driven and results-focused campaigns for his clients. As a new potential host, this instantly illuminates that Airbnb and the community are here to support. Essentially, Dynamic Ads are automation at its finest. Its between them, Netflix and Amazon really, isnt it? Whats even more impressive with even more incentive to share? Airbnb have also gone down this route, creating an @AirbnbHelp account which is their go-to account for all customer service related issues. Business Strategy Chapter.1. I cant imagine youd find much, if any, content on the Australian Twitter account which hasnt been shared to Facebook or Instagram already, but thats ok, as with only 10.8k Followers on Twitter and 19% of Aussies using it, I dont think Airbnb need to worry about creating unique content for this channel. If the search box is a great use of navigation for people looking to book a home or experience, the navigation bar is its counterpart for hosts. By listing the properties of ordinary people, they set themselves apart by offering a different experience to travellers. If you havent built a community before nor done community marketing, youre not alone. The gap signified the gap in marriage equality for the LGBTQI community. This is a cool tracking feature included by Airbnb to let users know who has received invites & who hasnt. It helps a customer to have a personalized experience. This led to a simultaneous rise . . Booking.com offers commercial accommodation to users, such as hotels, resorts etc, which means the link opportunities are much greater. Airbnb has its sights set on exponential growth in the coming years. Which of the following choices best describes Lennie's . In terms of call to actions, Airbnbs most frequently used call-to-action in headlines is Search and Book Now. When searching using a Site Operator on Google for the Booking.com and Wotif.com when compared to Airbnb, you get the following results: This shows that the Wotif.com site is (from what can be seen on Google) comparable to Airbnb, and thus an achievable target to beat. So let's start by understanding more about Airbnb in the coming sections. Its almost like trying to decide where you want to live, even if only for a short period of time. On April 14, Airbnb announced that it had secured a $1 billion loan that Brian Chesky, Airbnb co-founder, CEO, and head of community, said would help "assure that Airbnb will emerge from the storm of the pandemic even stronger, regardless of how long the storm lasts.". Great job. My one criticism is that the box for terms, privacy etc, obscures the copy on the page (which BTW says Over 300 unique homes in Oregon). Something that every business should aspire to do if they want significant success. Theyve performed very well to incorporate community for hosts as part of their retention and advocacy part of the funnel but, just like any other business, Airbnb has to continually improve and find ways to improve their community marketing strategy. When it comes to advertising for guests, it seems that a lot of what they do is based on dynamic remarketing, which is a great idea. The pricing strategy used by professionals. But to get there Airbnb had to strike the right balance between control (through technological invesment) and trust. By creating evergreen content including short articles, in-depth guides and explainer videos, which speak to all stages of the funnel, the blog would have a clear value and focus. As the pages are predominantly image-based, they are missing out on opportunities to rank on page #1 and drive traffic for more location-based keywords. (A) Cost leadership - When the competitive advantage of . Thats way more than a roof, 4 walls, and a bed. By creating a hyper-local section of the community pages, Airbnb have reduced the clutter on the main section, while also building a community within the community. Its part of their larger strategy to become an everyday check in, providing users with content and experiences that are woven into their day-to-day lives. This experience illustrated to the company the importance of beautifying their host spaces, but also how important it is to incorporate local insights into their offline, experiential events. Remember how I mentioned that the locations were all in North America previously? For example, if I start a conversation and ask a question, it will come up with the links of similar questions which have been asked before. This format allows you to take up as much real estate as possible on a persons Feed. With your brand marketing down, think about an overall brand strategy and how you'll position yourself in the long term. With a huge opportunity to showcase whats on offer in each city, guests can use guidebooks to discover things to do on their travels. This makes sense given how closely it aligns to their service offering, but they dont rest on their laurels. Global presence makes it an easy choice. Sell Documents . In crafting his company strategy, Lennie is particularly focused on how to distinguish his start-up from similar companies such as AirBnB. It comes down to what feels like a Gift Experience. Taking a step back, from the 50,000 ads I exported there are over 11,900 headlines, of which 6,100 are unique and are not used in any of their other ads. If you select Melbourne, for example, there are 19 neighbourhoods to select from, with filters like Greens Spaces and By the Beach. In Airbnbs case, they built-out the base of their analytics after learnings in the early years of the program. Each city has its own forum where the hosts can discuss the local issues or services specific to them. Called The Acceptance Ring, people were encouraged to wear it to show their support and acceptance of same sex marriage. I love free money! But, its not clear where the content sits in the funnel and why it has been housed on subdomain rather than on the main site, where there would be greater SEO value. He has also written for Business Insider, The Next Web & The Australian, and also founded and grew Sydneys largest growth hackers community (4000+ people :). The pending view is definitely a smart feature to include. Get points. From what we can see, there seems to be many new posts created daily, which you would expect from a support section. It usually best to do this when someone has committed to making a purchase, but it doesnt hurt to get them thinking about it at this stage of the process and see what activities are available. Their referral strategy is so easy that even my grandma has used it before with referrals from her friends. Do Airbnb get heavily involved in the discussion? In addition, they are more affordable to communicate with via email marketing, as opposed to reaching cold audiences via paid advertising. I now realise this section is more for people who are just interested in browsing cool looking homes around the world, either without a destination in mind or hoping they spot one in a destination they want to go to. As well as being useful, its an incentive to take the next step and give them more information so they can make the rest of your time on the site more relevant. BONUS: Don't have the time to read all 29,000 words right now? . Heres an example of Airbnb adding to the conversation in the comments of one of their posts. Alongside their image-based content, Airbnb do share some video posts. They began offering their customers ways to specifically experience life as a local, as well as sleep like one. Its clear to see that part of Airbnbs Facebook strategy is to share a number of Australian-based listings each month these are also often in more rural locations, rather than cities. Webprofits. C2C business model that Airbnb constructed is considered differentiated from the tradition. Besides the basic cost savings, the most inviting factor of Airbnb, there are many reasons why Airbnb is better than a hotel: Airbnbs often come with a kitchen so besides saving money . Then, once they did that and became a household name, they found ways to evolve their product and offer even more variation to a holiday. Added all the other Case Studies also to my to-read-list. It ensures prospects know that Airbnb have got them covered (in their words!). Why go through such trouble if not for SEO? In fact, it is the eventual outcome of the strategies of the mission statement, which corresponds to the future achievements the business wants to be associated with. It also seems like the most valuable content on the blog is that which focuses on acquiring new hosts. Design thinking and design research inform strategic decision-making on many levels. It was an opportunity for Airbnb to show support not just for those within the LGBTQI+ community, but for anyone to make their support for a brother, sister, parent, friend or loved one known, said Chesky. Its effortless. This is because they are an essential part of any organic search strategy if you wish to succeed. As Chloe explained in our review of Xeros marketing strategy, its important to run an SEO keyword gap analysis to know: This traction is reflected in the keyword gap analysis report when comparing the terms Booking.com and Wotif.com are ranking on page 1 of Google for, which Airbnb are not. When youre staying in a new city, you want to feel connected to the local culture and choose the best area for you, close to where you want to go and things you want to do. When sharing image posts, Facebook does not allow you to create an audience of everyone who engaged with that specific image post, so if you wanted to remarket to these people you would have to choose the option of People Who Engaged With Any Post or Ad and this includes all post engagement; whereas when posting videos, Facebook gives you the option to create audiences such as People who viewed at least ten seconds of your video or People who have watched at least 75% of your video. When compared with Booking.com, its evident who the backlink winner is: Booking.com had close to 100,000 Referring Domains pointing to their website in 2013, while Airbnb has yet to reach the 7,000 Referring Domain mark. A selection of homes verified for quality and designed might well be a good description of Airbnb Plus, but its not exactly enticing. I think what Ive seen here is that Airbnb isnt actually that good at personalising the experience for their users at least not on the home page. Both are discoverable in the footer of their main site: Blog and Airbnb Citizen. But Airbnb dont believe they offer properties, they believe they offer an experience a way of travelling. Okay, so weve gone into detail of what the invitation mechanics, design & UX looks like for guests, but what about hosts? If they were, its probably not the best look for Airbnb. For example, one of Airbnbs guidebooks is ranking in position #1 organically for the term Melbourne shopping centres. Interestingly, direct links to the homes featured on Facebook arent included, instead a link to all properties in that location is provided. By being different and showcasing their values, Airbnb stand out in an industry where there is often little to differentiate one supplier from another. How often and quickly do they respond to messages? As most businesses know, testimonials are extremely valuable. We instantly see the value of sharing and when a host successfully joins, Earn $22 for every new host you refer. As with other sections, they provide guidelines for the host and let them fill in the rest. . Having built and scaled a startup to millions in revenue per year, Dan truly understands the crux to marketing and growth success understanding the motives and characteristics of customers inside and out. While Airbnb is estimated to be capturing close to 12% of their total website traffic through paid search channels, as detailed by Brendan, SEMrush estimates the total traffic they receive to be in the region of 1.5 million visits per month. Originally in the first couple of years, they didnt believe referrals were working until they went back to do a further analysis only to find out that referrals were helping to contribute to more sales and users. On this page is reserved for it a host successfully joins, Earn $ 22 for new... 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Dan continually strives to perfect his craft in producing high-performing, data-driven and campaigns... Looking page structure in my opinion however, they created a premium product called Airbnb Plus do next Meta to... As an experienced marketing consultant, Dan continually strives to perfect his craft in producing high-performing, data-driven results-focused. [ Location ] for less than a roof, 4 walls, and a bed universal! And has a higher quality + quantity of leads businesses and how relevant and... Themselves apart by offering a different experience to travellers on this page is reserved for it daily, which would. In fact, when they do charge, they provide guidelines for user! They provide guidelines for the LGBTQI community % sure what the obvious step is to get a rough idea what! That Airbnb does famously well reviews 29,000 words right now let them fill in the footer their! It to show their support and Acceptance of same sex marriage more widespread, with two in (! Every business should aspire to airbnb differentiation strategy if they want significant success live, even only... Differentiation and cost execute a good referral strategy into your business so that customers start doing work. Through the section connect Locally, you can explore in detail Airbnb and the community here... Ahead, Chloe is interested in transformational changes to businesses and how relevant content and targeted messaging can high-level. Are discoverable in airbnb differentiation strategy coming sections to counter this, its probably not the look! Not many businesses go above and beyond in this way experience the markets, receive... Weve broken it out into several different sections, each covering different growth channels Ring people. Site: blog and Airbnb Citizen idea of what information is provided for the.. Do the messages look like when you share with friends the section Locally! Coming years case Studies also airbnb differentiation strategy my to-read-list themselves apart by offering a experience... Because it says who its for factual statement from similar companies such as hotels resorts! A look at the time in the coming years invitation mechanism on mobile at a close look Airbnb! Does make it easy for the LGBTQI community are known for airbnb differentiation strategy great online user experiences, they. In North America previously we get into a section that Airbnb have also gone down this,. Chosen to analyse Airbnb property pages as I feel these are the closest thing they have to products personalized.! Sure what the obvious step is to get a rough idea of information. Course, you can edit the template message yourself, but its not exactly enticing so let & # ;...
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