Trivago’s Decision to Opt Out of Google Ad Product Cost the Company Dearly

Trivago is blaming its decision to opt out of Google's property promotion for its recent drop in revenue and is taking steps to backtrack....
Trivago’s Decision to Opt Out of Google Ad Product Cost the Company Dearly
Written by WebProNews
  • Trivago is blaming its decision to opt out of Google’s property promotion for its recent drop in revenue and is taking steps to backtrack.

    According to Search Engine Land, Trivago decided not to use Google’s property promotion since it is part of Google hotel ads, which has historically not done well for the company. Unfortunately, the decision to pass on Google’s latest offering cost the company, with revenue for the most recent quarter down 14% year-over-year.

    “We did not participate in this ad format prior to this rollout, and when this got more visibility [at the expense of] traditional advert placements, we lost traffic volumes,” said Trivago CFO, Matthias Tillmann.

    As Search Engine Land highlights, Trivago competitor Expedia did opt into Google’s property promotion and saw its revenue jump 6%, marking a record second quarter for the company.

    Trivago took the opportunity to highlight the difficult position it and many others are in, as a result of relying so heavily on search engines that are often competitors.

    “Our reliance on search engines, particularly Google, which promote their own product and services that compete directly with our accommodation search and may negatively impact our business, financial performance and prospects,” a company spokesperson said.

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