Expedia Chairman Says Company to Cut Ad Spending by at Least 80%
Expedia Group (NASDAQ: EXPE) is taking an axe to one of its major expenses. On Thursday, the company's high-profile chairman Barry Diller said in an interview with CNBC Thursday that the online travel agency (OTA) would likely cut its advertising budget by a minimum of 80% in 2020.
"[W]e spend $5 billion a year on advertising," Diller said. "We won't spend $1 billion on advertising probably this year."
Despite its considerable size, Expedia is in constant competition with rival large and small OTAs. As a result, it devotes much capital to advertising. The general selling and marketing category is by far the largest line item in the "costs and expenses" section of its profit and loss statement.
Source Fool.com
