Skift Take
Choosing how much to advertise with Google, and where and when, can have significant financial implications. Trivago didn't jump into a new Google ad format, and got burned.
Three key Trivago executives rejoined the company in May just as Google was launching a new advertising unit to attract hotel bookings. Trivago didn't advertise in the new product, unlike brands such as Booking.com, Priceline, Expedia and Homewood Suites, and Trivago's absence negatively impacted its second quarter financial results.
If anyone doubts the power of Google advertising to impact travel businesses one way or another, this is a case in point.
Chief Financial Officer Matthias Tillmann told financial analysts Wednesday that the company had decided not to advertise in Google's new property promotion ads (see an image below) because they are part of Google hotel ads, which didn't perform well for Trivago.
But it turned out that the property promotion ads took share from Trivago's advertising on Google.com. Trivago i