TripAdvisor painted a muddled picture during its Q2 2014 earnings call. The travel booking site’s overall profits came in far below estimates. But ad revenue was a bright spot for TripAdvisor, which saw an increase in both click-based and display ad revenue this quarter.
Click-based ad revenue increased year-over-year to $235 million, up 28%, while display revenue grew 19% to $37 million.
The company’s CFO Julie Bradley attributed the uptick in click-based revenue to “strong CPC pricing for meta search leads.” (In February of last year, TripAdvisor had rolled out what it refers to as “meta-search,” a Google-inspired feature that eschews the “pop under” ad format in favor of serving search and display results with the hope of raising both the quality and prices of its display ad offerings.)
Total revenue for Q2 2014 was $323 million, a year-over-year increase of 31%, meaning click-based revenue accounted for 73% of its total second quarter revenue. Interestingly, that percentage was down just a smidgen from Q2 last year, when click-based revenue represented 74% of total revenue. The same was true on the display side. Display-based ad revenue comprised 11% of total revenue this year versus 19% last year.