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Roommates Joe Gebbia and Brian Chesky founded Airbnb in 2007. Airbed& Breakfast was founded in 2007 by roommates Brian Chesky& Joe Gebbia from their San Francisco apartment's living area. In 2008, Nathan Blecharczyk joined Airbed&Breakfast and Airbedandbreakfast.com was launched (the website was shortened to Airbnb.com shortly afterwards). Airbnb allows hosts to rent their rooms or properties online. Airbnb offers experiences that allow guests to share unique activities and are led worldwide by an international network (Fischer,et.al 2022). The company opened its first international office in Hamburg, Germany, in 2011. This was the start of its overseas expansion.The company was originally a privately-owned business. It became publicly traded in 2020. Airbnb does not actually own the properties it rents. Instead, Airbnb generates revenue through hosts and guests. In 2019, Airbnb had a value of 35 Billion U.S. Dollars

Airbnb logo

Figure 1 Airbnb logo

(Source: Dibendetto, 2022)

Chip Conley is a hotelier and author of Peak: What Great Companies Do to Get Their Motto from Maslow. Conley was hired by Airbnb early. Conley helped them understand Maslow's hierarchy. Once a person has satisfied all their physical and safety needs, they need love and belonging. Airbnb has launched a new campaign “Made Possible by Hosts”. This campaign aims to inform people about the amazing experiences hosts offer guests (Henama, et.al 2018). The company made a series using photos taken by guests who stayed in Airbnb hosts' homes around the globe. These videos are connected to the nostalgia that guests feel about past trips and the possibility of returning. This study examines digital marketing strategies for advertising an emerging lodging concept. The "made possible by host" campaign of Airbnb aims to distinguish itself from traditional hotels by giving guests a "feeling at-home" to demonstrate belongingness and a "typical place to stay" feeling like uniqueness. 

This research examines the interaction effect between advertising appeal (belongingness and uniqueness) as well as an individual's perception of power (low or high) on a click-through intention of branding and positioning (Wang S, 2019). These findings show that communication strategies work better to connect with customers. However, powerful people respond more positively to unique appeals through CSR practices implemented by the company. The recommendations were also made for digital marketing that will help Airbnb grow in the future.

In-depth evaluation of the effectiveness of digital marketing

Segmentation and Target

Airbnb allows individuals to find and book unique accommodation in a short period. It is based on two components: hosts as well as travelers.The marketing strategy is designed to encourage as many people as possible to be hosts or travelers.Airbnb segmentation and target markets are important to Airbnb's overall strategy (Razli, et.al 2022). However, they are often overlooked by vacation rental owners. Airbnb's target market will influence everything from design and pricing to content and amenities. Consider the market that is closest to one`s property. This will help in choosing an effective market for Airbnb. Airbnb is "made possible by the host" Use both psychographics and demographics to create a picture for the ideal customer.

Demographics answer the question "Who are my customers?" It includes a range of attributes like gender, age and marital status. These demographics are useful for determining how to market the property. While demographics are a great way to identify target markets, it does not provide a complete picture of guest buying habits. This is even more crucial. One should never refuse guests solely based on their demographics. The unintended consequence of using demographics is discrimination. This is against HomeAway's policies. Psychographics can be used to find "why people buy?" These traits are used to identify people with similar values, lives, and personalities. These traits can have a major impact on guest buying patterns. Some guests prefer cooking at home, while others prefer eating out. Make the kitchen the main focus of the listing to market to guests who prefer to eat out. It should be equipped with high-quality equipment and basic ingredients (Kwok, et.al 2019).

Airbnb Made possible by host ad campaign

Figure 2 Airbnb Made possible by a host ad campaign

(Source: Brian, 2021)

The best local restaurants might be highlighted in a small kitchen. Local travellers may find this appealing if they are looking for local cuisine but don't have time. Individuals can use the filters on vacation rental websites to help in choosing a market. Many great filters can be used to create niches in the market, such as those for pets, families, events, and work trips. Filter targeting is a great way to create a niche and keep prices high. Our team has a wealth of experience and can help increase the search ability for vacation rental properties (Sthapit, et.al 2021). The Demographic segmentation which generally divides the people by their age and their income is used by the Airbnb "made possible for the host" ad campaign to target the young people who want to travel with a budget. the people from old age supported the Air BnB business by renting their houses in the most famous places and earning some money without the physical work which benefited every other generation of people (Botsman, et.al 2016). Behavioral segmentation is beneficial for the digital marketing of Airbnb "made possible for the host" which made a data about the price factors that generally attract customers from which the target marketing can be done easily. Airbnb Company generated $2.6 billion in revenue with 12,736 employees. It began its work through several funding rounds, which helped it make millions and allowed it to enter new markets. The Ansoff Matrix is a four-dimensional model for Airbnb.

Airbnb rental places

Figure 3 Airbnb rental places

(Source: Arifeen , 2016)

Market Penetration

Market penetration is the act of entering new markets using existing products. The company has aggressively promoted its products and existence since inception. It also promotes its app and shows users how to use it. All operations are conducted online. The app encourages users to list their properties and allows them to search for properties via the app. Airbnb is the leader in online rental markets and has little competition.

Market Development

Airbnb expands its market through the launch of existing products in new markets. The main driver of market growth for Airbnb is its expansion into new markets. This includes launching the app and expanding its real-estate listings. It promotes its existence through social media, print, as well as electronic media. It hosts events to welcome startups. It works with local real estate companies to allow them to list their products through its app. Airbnb "made it possible for host" ad campaign sponsors events to promote itself(Sanquiz, et.al 2018).

Product Development

Product development is the creation of new products for existing markets. The company has been adding new products to its product portfolio since its inception and expanding its online marketplace. The company started as a provider of short-term accommodation. Now it offers a variety of hospitality services, including adventures, restaurant experiences, home rentals, tourism, and other functions. It continues to grow its services offering new services. Its services also vary depending on the market.


Diversification is the introduction of new products to new markets. Airbnb has diversified its offering by offering luxury properties in various markets, such as villas, mansions, and other luxurious locations to its premium members (Scerri, et.al 2020). This has created a new market segment. Airbnb can vertically diversify its business by forming alliances with hotels to offer hotel rooms for purchase on its website. Vertical diversification can be achieved by the company purchasing its properties and listing them online. This will not only increase Airbnb's earnings but also raise its costs.

It's a great option for guests, hosts, and the planet. It can help reduce energy consumption as well as waste. Airbnb published recently a report that highlighted the positive impact of home sharing on the environment. Their shared economy business is built around the use of existing resources, and they travel in a more friendly, environmentally friendly environment (Gunter, 2018).

Positioning and Branding

Positioning to create a brand within a customer's mind is the first step to building a loyal customer base which is a strategy known as Brand Positioning. This is the perception that a consumer has a brand in comparison to other brands. Airbnb's first international advertising campaign in five years is called "Made possible by Hosts": Airbnb claims people are dreaming of their next vacation and that they have plans to make it happen. Airbnb wants the brand to be remembered so its "Made Possible by Hosts” campaign will reach 300,000,000 people worldwide.

 Airbnb Positioning

Figure 4 Airbnb Positioning

(Souce: Rentalscaleup, 2021)

The COVID-19 crisis was Airbnb's first advertising campaign. It promoted its original positioning. It provides unique experiences, and magical connections to local hosts, as well as a community for guests and hosts. Airbnb's IPO showed its brand's global appeal and value. Airbnb must not lose its brand and be relegated to another OTA that allows short-term rentals (Reinhold, et.al 2018).

The distribution of Push and pull is about driving promotion routes to the market. Customers have the option of pulling the product through the chain towards them or pushing it to them. This is critical for brands, manufacturers, and online retailers to manage their supply chains. as well as those who plan promotional digital marketing strategies. New York Times bestseller and keynote speaker Joseph Michell stated that it is crucial to look after the best interests of customers to ensure a great customer experience. Don't assume that every customer will "do me wrong" and create an experience with only the best customers in mind. Instead, treat them as exceptions. Brands are not well-positioned for their customers' needs. To gain trust and improve branding and positioning, the company must establish trust (Guttentag, et.al 2018). Airbnb is made possible by hosts using the Pull Strategy. This strategy will allow us to reap the rewards of strengths such as:

  • Airbnb can contact customers directly.
  • Customers without credit cards may pay online instantly or in-store at checkout.
  • Greater margins as no discount needed.
  • Customers can come up with innovative ideas for product development.
  • Ideal for products at premium prices

Google Display Network Partnership creates a strong branding strategy for Airbnb. They partnered with Google to invest in Google Search. Airbnb was able to increase its listings from 10,000 to 80,000. The banner ads featured real rooms and apartments. This helped Airbnb reach an international audience, something that was impossible otherwise. Airbnb made it stand out from other competitors in a competitive marketplace and established itself as a brand. A strong brand is key to effective marketing for Airbnb. This helps build trust and loyalty over the long term (de Janasz, 2022).

It is easy for guests to remember the property by having a brand for the vacation rental company. This is a great way to position on Airbnb. Customers get faster results when they book with Airbnb. Airbnb created a logo for the business to establish its attractive brand. To streamline Airbnb's digital marketing strategy, the company uses the "made possible by Host" ad campaign that includes the brand and logo across all social media channels (Veleva, et.al 2020).

Communication Strategy

Brian Chesky, CEO of Airbnb, announced the latest TV and digital commercial campaign called Made Possible by Hosts. According to their website, "Our goal is to share the amazing experiences that hosts offer guests." To achieve this goal, Airbnb has been sharing footage of customers enjoying Airbnb's stunning homestays with their hosts around the globe. Their videos have a tranquil, nostalgic appeal and a slow pace. The warm feeling is heightened by the smiles of customers and the overall yellowish-orange tone in cinematography (Lalicic, et.al 2018). This reminds people to feel joy, friendliness, and youth. Music plays an important part in expressing all emotions. Songs like "Landslides", by Fleetwood Mac, "Sweet Children 'O Mine" from Guns & Roses, and "I Will Always Love You" by Whitney Houston are all soundtrack ads. These songs are classics performed by young artists (Piñeiro, et.al 2016). 

Figure 5 Airbnb effective planning

(Source: Innovative Tactics, 2020)

Airbnb has a great acquisition strategy. Remarketing to guests Guests who enjoyed their stay. Customers who have enjoyed their stay might receive an email encouraging them to list their property. Airbnb's account-based platform doubles up as a customer data platform that can be used to segment and target customers. These emails highlight the many benefits of hosting and highlight important features within the app. Airbnb mentions that their insurance policy covers guest damage. This reduces the risk of listing one`s home. Airbnb's marketing strategy is simple for property listings. Airbnb's marketing strategy for property listings is straightforward. This makes it easy to book accommodation (Coyle, et.al 2016). 

To help guests find the perfect accommodation, many factors need to be optimized (Hanlon A, 2021). Airbnb has achieved this goal and is now a leading player in the industry. It is a competitor to the traditional hotel industry. Mobile businesses need to realize that great ideas cannot be realized if they don't invest in digital marketing. The company is looking for an advertising solution that includes user acquisition, customer targeting and e-commerce support. MOLOCO Cloud can help in achieving the ROAS goals. Airbnb developed an interactive communication strategy for its website that shows how active it is at any moment. Animations are rendered in real-time on the site.

These animations include planes that represent trips, pulse dots to indicate the density and scale of guest stays, and animated characters that represent new Airbnb stays. A reactive sound engine was also developed by the company so that users could hear different sounds as they move around the world (Jhaver, et.al 2016). It was also translated from a browser experience into mobile to increase the reach of this campaign. It is vital to keep up to date with the latest news from Airbnb and any updates to the support section to ensure that guests have the information they require. The company will answer any questions that guests might have in the Airbnb Support section on the Airbnb website. Not only is prompt Airbnb guest communication important for customer service but it also affects host ad campaign ranking. The company wants to ensure that all guests have their questions answered within one hour.

Hosts who respond quickly land more bookings. A HomeAway study showed that guests are more likely to abandon booking a listing when the host does not respond within 24 hours after making an initial inquiry about availability. 57% of guests stated that they would rather book with a competitor if the host doesn't respond within 24 hours. It helps to diffuse situations before they escalate to the point of a disagreement. This also allows Airbnb to intervene quickly. Airbnb does not leave its guests to resolve their problems. For effective communication, it is incumbent upon the company that they are the first point of contact for customer service issues (Wessel, et.al 2017).

 Airbnb effective planning

Figure 5 Airbnb effective planning

(Source: Innovative Tactics, 2020)

CSR and Ethical Issues

Ethical Issues

Worldwide: Airbnb announced the launch of its “Made Possible By Hosts” global advertising campaign. This campaign was designed to grow its community and bring back hosts to its platform. It also aims to increase its reach by attracting more hosts to the site. However, there may be restrictions to prevent new infections. The CEO Brian Chesky stated that the digital campaign will be available in almost every country on YouTube (owned by Google) and social media. It will also appear on television channels in the USA and Canada. Advertisements will feature guest photographers who are staying in short-term rentals all over the globe. They will also include music from modern-day singers like "Landslide" (Fleetwood Mac) and "Sweet Children O' Mine" (Guns 'N' Roses).

 It is widely believed that this move was Airbnb's attempt at regaining its position with its four-million-strong host community (Gibbs, et.al 2018). This move came after Airbnb refunded guests who couldn’t travel because of Covid-19-enforced lockdowns. It also left hosts financially insecure. Beyond the legal issues, the host must ensure their safety when welcoming strangers into their home. This is a legitimate concern as Airbnb has been implicated in several cases of theft and robbery. The possibility that the traveller may cause damage to the home while they are there is also a legal risk. Airbnb's Host Protection program addresses these concerns. Hosts are protected up to $1,000,000 in the event of injury or damage. But Host Protection has its limitations. Airbnb does not offer traveller insurance protections, but it does have certain provisions to help ensure guests' safety and satisfaction. Guest is advised to only book with highly recommended hosts as reviews will determine the quality of hosts (Royakkers, et.al 2018)

The PESTEL analyses based on technology show Airbnb uses technology to connect people. The app can be downloaded and used to book via the website. Ratings and reviews are the basis of this business model (Xie, et.al 2019). Hosts can be tarnished by bad reviews. A bad review could cost the business. Airbnb works completely automatically and allows hosts and tenants to communicate in a positive manner. It uses a messaging platform for guests and hosts to verify their personal profiles (Hati, et.al 2021).

Airbnb working

Figure 7 

(Source: Bansal, 2018)

In the last few years, the company has seen incredible growth. Various research estimates that the company will generate revenue of 3.5 billion annually by 2020. The "made possible by Hosts" campaign of Airbnb has seen tremendous growth. However, there are many legal and political issues. They have a positive effect and host earn, providing cheap space, and the environment. This Pestle Analysis of Airbnb is from the point of legal and political issues. The tax rates in different countries and states vary, so the company must deal with this issue. They do not have any protection for customers who are in conflict or war zones. Airbnb has been in court in Florida, Barcelona, and New York. They also faced legal proceedings in Toronto, San Francisco, San Francisco, and New York. Each country, province, and state has its own set of Housing Regulations and Taxation Laws. It is very difficult for Airbnbs to comply with all regulations(Christensen, et.al 2022).

Corporate Social Responsibility

Airbnb is an example of collaborative consumption and shared economy. This means that people can share their resources with others who are in need for a brief time. There are two things to note. It is a source of income for people who rent space. It has also proven itself to be a competitor to the hotel industry. Its competitors, "hotels" and "motels", have lower prices. It has loyal customers all around the globe and its net income for 2017 was $93 million. More than 10 million people use the mobile app. It has more than 3100 employees. Hosts who rent their space to guests also have jobs through Airbnb. Because of its low prices, Airbnb is a more affordable option for hotels and motels (Reinhold, et.al 2018)

Since 2008, more than 300 million people have visited the Airbnb listings. Nearly 5 million homes have been shared on this platform. From the beginning, home-sharing has been a viable alternative to travelling. Around 88 per cent use green hosting practices. These include using recycled or composted products, recycling or composting and encouraging guests to use bicycles or public transport. This includes over 88 per cent European hosts (over 94% in the UK) and nearly 90 per cent North American hosts. In 2017, 66% of Airbnb guests surveyed said that the benefits of home sharing are important to them when they decide to stay at Airbnb (Nabbosa, et.al 2020). 

Airbnb listings are more sustainable and less energy-intensive than traditional hotels, and travel and tourism account for 10% of the world's economy (Chung, et.al 2021). Airbnb promotes sustainable travel by providing eco-conscious guests with a wider variety of places to stay and things to do. Airbnb Experiences are authentic, local activities. Many Experiences are often in partnership with non-profit organizations and focus on sustainability. One can spend an afternoon in a Kuala Lumpur jungle nurse, kayak with penguins and visit an urban farm. Also, individuals can search for wild dolphins off Maui's coastline. One can also contribute to the restoration of coral reefs in Bali. One can also support the London Wildlife Trust through intimate concerts in London. Airbnb was founded 10 years ago. Many travellers have discovered new homes and places that aren't on the tourist path since then. This has led to a new era of sustainable and eco-friendly travel. Through partnerships, programs and events, Airbnb has expanded its efforts to build on this momentum and further support environmentally-friendly travel with the Office of Healthy Tourism(Panda, et.al 2015).

A campaign "made possible by hosts" aims to make Airbnb a place where all people can thrive and succeed. Although Airbnb has taken many steps to diversify the company and its community, Airbnb still needs to reach the high standards to set. The company has set a goal to have 20% of its employees in the US identify as underrepresented minorities by 2025 and that half of its global employees identify in the gender binary by 2025. Here is a snapshot of the diversity of the Airbnb workforce. These include: * Developing a Diversity & Belonging Plan (for each company) that outlines specific goals and timelines, as well as company-wide 2025 goals. For example, the Tech group at Airbnb established a Diversity Council, which consists of senior leaders who help to embed their plans in their companies. 

Providing training to hiring managers and training to all Airbnb employees on allyship and unconscious bias. This will help them to incorporate diversity into their recruitment practices. From 2017, women and underrepresented minorities from the US must be included on all candidate lists when they hire for open positions. Continued investment in Connect allows for non-traditional career paths. This program supports people with technical backgrounds and provides them an entry point to an Airbnb engineering career (Veverková M, 2021). In 2020, 100% were full-time employees of Airbnb. One can view this information using U.S. government reporting formats. Supporting 19 employee resource groups (ERGs), also known under the "Airfinity". Each group is sponsored by Airbnb and helps to foster an Airbnb culture. CSR practices that support Airbnb's growth include paying equity and leading in this area.


The above report concludes the overall strategies used by Airbnb's “made possible by Host” ad campaign for the digital marketing by discussing the key factors such as Segmentation, positioning, communication, and ethical issues with the best corporate social responsibility to positively influence the customers. Airbnb has expanded its offerings to premium members by offering villas, mansions, and other luxurious locations in different markets. This has created a new market segment. Airbnb can vertically diversify its business by forming alliances with hotels to offer hotel rooms for purchase on its website. The company can also vertically diversify by purchasing its properties and listing them on the internet. This will increase Airbnb's earnings, but also increase its costs. This campaign is "made possible by hosts". It aims to make Airbnb a place where everyone can succeed and thrive. Airbnb has made many efforts to diversify its company and its community. However, it still needs to meet high standards. Airbnb has set goals to make 20% of its US employees underrepresented minorities by 2025, and half of its global workforce identify as gender binary by 2025. Airbnb has made a significant impact on the hotel industry. They are based on the sharing economy and offer jobs to people who host visitors.

Airbnb must comply with all taxation and housing laws in each country. They are now facing lawsuits. They can help hosts understand local laws and regulations by using webinars or social media platforms. Customers and hosts must comply with all regulations once they have accepted the Airbnb terms and conditions. Airbnb has a great acquisition strategy: Remarketing to guests who have enjoyed their stay. Customers who have stayed at Airbnb before may be encouraged to email their property to sell. Airbnb's account-based platform doubles up as a customer data platform that can be used to segment and target customers. These emails promote the many benefits of hosting and highlight useful features within the app. In the last few years, the company has seen incredible growth. The company is predicted to earn revenue of 3.5 Billion per year by 2020, according to diverse research. Airbnb's "made possible by Hosts" campaign has seen tremendous growth. 

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