Trivago blames profit drop on opting out of new Google Ads product

Aug 16, 2023

Search Engine Land » PPC » Trivago blames profit drop on opting out of new Google Ads product

Trivago’s decision to opt out of Google’s new property promotion ads was apparently a costly mistake.

Revenue was down 14% year-on-year to $137 million in the second quarter of 2023, following a decrease in website traffic, Trivago reported.

Meanwhile, revenue for Expedia, which did advertise with on the search engine’s new ad unit, reported a record second quarter with revenue up 6%.

A regretful data-led decision. Trivago did not to advertise with Google’s new ad product because it is part of Google hotel ads – which historically hasn’t performed well for the company, Skift reported. However, this soon became a decision the team would regret.

Why we care. When new ad products are launched, particularly by industry giants like Google, brands should make sure they are paying close attention and not be so quick to dismiss the possible potential. If financial risk is a concern, perhaps it may make more sense to trial a new product on a smaller scale rather than to disregard it all together. It’s also important that marketers ensure they are constantly monitoring the performance of their websites and campaigns. If you have noticed a drop in traffic, address it sooner rather than later to control financial losses.

Drop in ad spend. In its Q2 results, Trivago also announced that ad spend in the US had decreased by 10% to $32.9 million. The company spent 4% less on advertising in Europe, compared to the same period in 2022, as well. Commenting on the results, a company spokesperson said:

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What has else Trivago said? Trivago addressed its Q2 results in a statement published on its website. A spokesperson said:

Deep dive. Read Trivago's Q2 2023 Earnings Release statement in full for more information.