Secret to Kayak’s 2012 profits: $75 million advertising spend
Kayak increased its advertising spend 30% to $75 million in 2012 as it saw ncreased travel queries on its websites and mobile apps — and posted its largest profit.
Kayak’s 2012 net income came in at $18.8 million, its highest ever, a 93.8% jump over 2011.
The travel metasearch company likewise saw its 2012 revenue increase 30.4% to $292.7 million, which was built largely on a 32.6% increase in travel queries on its websites and mobile apps.
The $75 milliion Kayak spent on brand advertising went to TV, outdoor signage, and online banner ads, the company said, and this was key because the company believes it will grow as its brand becomes better-known.