trivago N.V. (NASDAQ:TRVG) Q3 2023 Earnings Call Transcript

And yes, that’s what we have seen in the third quarter as well Why we see increased competition on performance marketing channels, I think it’s more related to the ad test that we mentioned, because what is happening there is that we see different formats being introduced at the expense of the traditional ad works. And because of that, you see few impressions. And then if you have the same number of advertisers fighting for fewer slots, that’s where you see more competition, not necessarily that people increase their bids because traffic quality change or something. But that is the dynamic there. And I don’t think it’s related to what you’re alluding to, that advertisers leaning out of Net and shifting to Google. I think it’s really the volatility that we see there related to those tests and then optimizing their campaigns on our platform and our other major platforms.

But again, I think what I see makes sense, and it’s actually a healthy auction right now.

Matthias Tillmann : And let me maybe address the sale preferencing. So they — we expect Google to do changes until Q1 next year in Europe. And what, in essence, our understanding is that there will be less entry points to Google Hotel Ads, which means that basically the price comparison on Google is less visible, which in the long-term should adapt the habit of users of comparing price of Google and people more they search a hotel, they look for images and stuff and then they also compare price on Google natively and that is changing. The prices will be much less visible from what our interpretation is. And the short-term is difficult to understand where this is going. And I think it’s hard to speculate. I think we will adapt and try to learn as much in how we can embrace the formats Google had. At the same time, we’ll be curious to see how in the mid-term this might be a tailwind for us.

Lloyd Walmsley: Okay. Thank you

Matthias Tillmann : Thank you.

Operator: [Operator Instructions] There are no additional questions waiting at this time. So I’d like to pass the call back over to the management team for any closing remarks.

Johannes Thomas : Thank you for your continued trust in trivago and joining us today. We are energized by the journey that we ever had and are very focused on executing on our strategic priorities. So stay safe, remember when you think hotel, it’s trivago. Thank you.

Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.