A Comprehensive Evaluation of Airbnb’s Digital Marketing Strategy: Platform Economics, User-Generated Content, and Multi-Sided Market Dynamics in the Sharing Economy Era
Martin Munyao Muinde
Email: ephantusmartin@gmail.com
Abstract
This comprehensive evaluation examines Airbnb’s sophisticated digital marketing strategy within the context of platform economics and sharing economy dynamics. Through critical analysis of the company’s multi-faceted approach encompassing user-generated content, social media engagement, search engine optimization, and data-driven personalization, this study reveals how Airbnb has successfully disrupted traditional hospitality marketing paradigms. The evaluation demonstrates that Airbnb’s digital marketing success stems from its innovative integration of community-building initiatives, authentic storytelling, and technology-driven optimization strategies that leverage network effects inherent in two-sided marketplace models. This analysis contributes to understanding how digital platform companies can effectively navigate complex stakeholder relationships while building sustainable competitive advantages through strategic marketing innovation.
Introduction
The emergence of Airbnb as a dominant force in the global accommodation sector represents a paradigmatic shift in both hospitality industry dynamics and digital marketing strategy implementation. Since its inception in 2008, Airbnb has transformed from a simple home-sharing platform into a comprehensive travel ecosystem, fundamentally altering consumer expectations and industry competitive landscapes through innovative digital marketing approaches (Guttentag, 2015). The company’s marketing strategy exemplifies the sophisticated integration of platform economics principles, community engagement methodologies, and data-driven optimization techniques that characterize successful digital-native enterprises.
Evaluating Airbnb’s digital marketing strategy provides crucial insights into how platform-based businesses navigate the complex challenges inherent in multi-sided markets, where success depends upon simultaneously attracting and retaining both supply-side participants (hosts) and demand-side consumers (guests). The company’s approach demonstrates how digital marketing can transcend traditional promotional activities to become a fundamental driver of platform network effects, community development, and sustainable competitive advantage creation (Parker et al., 2016). This comprehensive analysis examines the strategic components, implementation methodologies, and performance outcomes of Airbnb’s digital marketing initiatives within broader theoretical frameworks of platform economics and digital transformation.
The significance of this evaluation extends beyond academic interest, as Airbnb’s marketing innovations have influenced entire industries and established new benchmarks for digital platform engagement strategies. Understanding the mechanisms through which Airbnb has achieved remarkable growth and market penetration provides valuable insights for researchers, practitioners, and policymakers seeking to comprehend the dynamics of digital platform success in contemporary economic environments characterized by rapid technological change and evolving consumer behaviors.
Theoretical Framework: Platform Economics and Digital Marketing Strategy
The evaluation of Airbnb’s digital marketing strategy requires grounding in contemporary theoretical frameworks that address the unique characteristics of platform-based business models and their marketing implications. Platform economics theory emphasizes the importance of network effects, where the value of platform participation increases with the number of other participants, creating virtuous cycles of growth and engagement (Rochet & Tirole, 2003). This theoretical foundation is essential for understanding how Airbnb’s marketing initiatives simultaneously address the needs of multiple stakeholder groups while fostering platform ecosystem development.
Digital marketing strategy theory has evolved significantly to encompass the complexities of multi-channel, data-driven approaches that characterize contemporary marketing practice. Unlike traditional marketing paradigms focused on linear communication models, digital marketing strategy emphasizes interactive engagement, personalized content delivery, and continuous optimization based on real-time performance data (Chaffey & Ellis-Chadwick, 2019). This theoretical evolution is particularly relevant for understanding Airbnb’s approach, which integrates multiple digital channels and leverages sophisticated data analytics to optimize marketing effectiveness across diverse audience segments and geographic markets.
The intersection of platform economics and digital marketing theory creates unique strategic imperatives that distinguish platform marketing from traditional product or service marketing. Platform companies like Airbnb must simultaneously build trust between strangers, manage supply and demand balance, and create compelling value propositions for multiple stakeholder groups with potentially conflicting interests (Hagiu & Wright, 2015). These challenges require marketing strategies that transcend traditional promotional activities to encompass community building, trust facilitation, and ecosystem governance functions that are integral to platform success.
Contemporary sharing economy theory further contextualizes Airbnb’s marketing approach within broader socioeconomic trends emphasizing access over ownership, collaborative consumption, and peer-to-peer exchange mechanisms. The sharing economy’s emphasis on authentic experiences, community connections, and sustainable consumption patterns requires marketing strategies that align with these values while effectively communicating platform benefits to diverse global audiences (Botsman & Rogers, 2010). This theoretical framework helps explain why Airbnb’s marketing strategy emphasizes storytelling, community engagement, and authentic user experiences rather than traditional promotional messaging.
User-Generated Content Strategy: Authenticity and Community Building
Airbnb’s strategic utilization of user-generated content represents one of its most distinctive and effective digital marketing innovations, fundamentally transforming how accommodation services are marketed and consumed. The company’s approach leverages authentic content created by hosts and guests to build trust, demonstrate value, and create emotional connections that traditional hospitality marketing struggled to achieve (Tussyadiah & Pesonen, 2016). This strategy recognizes that in peer-to-peer marketplaces, credibility and trust are paramount concerns that cannot be effectively addressed through traditional advertising approaches alone.
The sophisticated implementation of user-generated content strategy encompasses multiple dimensions that collectively create comprehensive marketing ecosystems. High-quality photography programs, such as Airbnb’s professional photography service, ensure that property listings meet visual standards while maintaining authentic representation of available accommodations. Guest reviews and ratings provide social proof mechanisms that reduce uncertainty and build confidence in booking decisions, while host stories and experiences create emotional narratives that differentiate Airbnb from traditional hospitality providers (Zervas et al., 2017).
The strategic integration of user-generated content with broader marketing campaigns demonstrates Airbnb’s sophisticated understanding of authentic storytelling’s power in digital marketing contexts. Campaigns such as “Belong Anywhere” and “Live There” utilize real host and guest experiences to communicate platform values and benefits through compelling narratives that resonate with target audiences. This approach leverages the inherent authenticity of user-generated content to create marketing messages that feel genuine and trustworthy rather than promotional, addressing consumer skepticism toward traditional advertising in digital environments (Gretzel & Yoo, 2008).
The scalability and cost-effectiveness of user-generated content strategies provide significant competitive advantages for platform-based businesses operating in global markets with diverse cultural contexts. By empowering users to create content that reflects local experiences and cultural nuances, Airbnb achieves marketing localization at scale without requiring extensive local marketing teams or culturally specific campaign development. This approach enables the company to maintain consistent brand messaging while adapting to local market preferences and cultural expectations, creating a sustainable competitive advantage that traditional hospitality companies struggle to replicate.
Social Media Engagement Strategy: Community Development and Brand Amplification
Airbnb’s social media engagement strategy exemplifies sophisticated community development approaches that transcend traditional social media marketing to create genuine online communities centered around travel experiences and cultural exchange. The company’s multi-platform social media presence utilizes platform-specific content strategies that leverage each channel’s unique characteristics while maintaining consistent brand messaging and community values (Kietzmann et al., 2011). This strategic approach recognizes that effective social media marketing requires deep understanding of platform dynamics and user behavior patterns rather than simple content distribution across multiple channels.
The content strategy across Airbnb’s social media platforms demonstrates careful curation and community management approaches that foster engagement while promoting platform values and user experiences. Instagram campaigns featuring stunning property photography and authentic travel experiences create aspirational content that inspires travel planning while showcasing platform offerings. Facebook community building initiatives facilitate host networking and knowledge sharing, creating valuable resources that enhance host experience and improve service quality. Twitter engagement strategies focus on customer service and real-time communication, addressing user concerns while demonstrating responsive customer support capabilities (Mangold & Faulds, 2009).
The integration of social media engagement with broader marketing objectives demonstrates Airbnb’s sophisticated understanding of social media’s role in contemporary customer journey mapping and conversion optimization. Social media content serves multiple functions including brand awareness building, consideration phase engagement, booking conversion support, and post-experience community building that encourages repeat usage and referral generation. This comprehensive approach treats social media as an integral component of customer relationship management rather than a separate marketing channel, creating cohesive user experiences that support long-term customer value development.
The measurement and optimization of social media engagement metrics reveal Airbnb’s data-driven approach to community development and brand amplification. The company utilizes sophisticated analytics to track engagement quality, sentiment analysis, and conversion attribution across social media channels, enabling continuous optimization of content strategies and community management approaches. This analytical rigor ensures that social media investments generate measurable business value while supporting broader strategic objectives related to community building and brand development (Peters et al., 2013).
Search Engine Optimization and Content Marketing Excellence
Airbnb’s search engine optimization strategy represents a masterful integration of technical SEO excellence and content marketing innovation that has established the company as a dominant force in travel-related search results across global markets. The company’s approach demonstrates sophisticated understanding of search engine algorithms, user intent analysis, and content optimization strategies that collectively create sustainable organic visibility advantages (Fishkin, 2018). This comprehensive SEO strategy encompasses both technical optimization and strategic content development that addresses diverse user needs throughout the travel planning and booking process.
The technical infrastructure supporting Airbnb’s SEO success includes sophisticated website architecture, page load optimization, mobile-responsive design, and structured data implementation that ensures optimal search engine crawling and indexing performance. The company’s international SEO strategy demonstrates particular sophistication in managing multilingual content, local search optimization, and cultural adaptation while maintaining technical consistency across global markets. This technical foundation enables the content marketing strategy to achieve maximum effectiveness by ensuring that high-quality content reaches intended audiences through optimal search engine visibility (Ledford, 2015).
The content marketing strategy integrated with SEO objectives creates comprehensive resource libraries that serve multiple marketing functions while establishing Airbnb as an authoritative source of travel information and guidance. Destination guides, host resources, travel tips, and cultural insights provide valuable information that attracts organic search traffic while supporting user decision-making processes throughout the customer journey. This approach recognizes that effective SEO requires providing genuine value to users rather than simply optimizing for search engine algorithms, creating sustainable competitive advantages through helpful content creation (Pulizzi, 2014).
The performance measurement and continuous optimization of SEO and content marketing initiatives demonstrate Airbnb’s sophisticated approach to digital marketing analytics and strategy refinement. The company utilizes advanced tracking methodologies to measure organic search performance, content engagement metrics, and conversion attribution across different content types and user segments. This analytical approach enables continuous improvement of both technical SEO performance and content marketing effectiveness, ensuring that investments in organic search visibility generate measurable business value while supporting broader strategic marketing objectives.
Data-Driven Personalization and Customer Experience Optimization
Airbnb’s implementation of data-driven personalization strategies represents a sophisticated application of big data analytics and machine learning technologies to create individualized user experiences that enhance engagement, conversion rates, and customer lifetime value. The company’s personalization approach encompasses multiple touchpoints including search results customization, recommendation engines, dynamic pricing optimization, and targeted communication strategies that collectively create highly relevant user experiences (Chen et al., 2012). This comprehensive personalization strategy demonstrates how platform companies can leverage their unique access to user behavior data to create competitive advantages through enhanced customer experience delivery.
The technical infrastructure supporting personalization initiatives includes sophisticated data collection mechanisms, real-time processing capabilities, and machine learning algorithms that analyze user behavior patterns to predict preferences and optimize experience delivery. The company’s ability to process vast amounts of user interaction data, booking patterns, search behaviors, and preference indicators enables the creation of detailed user profiles that inform personalization decisions across all digital touchpoints. This technological capability allows Airbnb to deliver increasingly relevant recommendations and experiences as users engage more extensively with the platform (Adomavicius & Tuzhilin, 2005).
The strategic implementation of personalization extends beyond simple recommendation systems to encompass comprehensive customer journey optimization that addresses specific user needs and preferences at each interaction stage. Dynamic search result ordering considers user location, previous booking patterns, preference indicators, and contextual factors to present most relevant options prominently. Personalized email marketing campaigns utilize behavioral triggers and preference data to deliver timely, relevant communications that support booking decisions and encourage repeat engagement. Mobile app personalization creates customized interfaces that prioritize features and content most relevant to individual user patterns and preferences (Vesanen, 2007).
The measurement and optimization of personalization effectiveness reveal Airbnb’s sophisticated approach to customer experience analytics and continuous improvement. The company utilizes advanced A/B testing methodologies, conversion funnel analysis, and customer lifetime value modeling to assess personalization impact and identify optimization opportunities. This analytical rigor ensures that personalization investments generate measurable improvements in user engagement, conversion rates, and long-term customer value while avoiding the potential negative effects of over-personalization or privacy concerns that can undermine user trust and engagement.
Global Market Expansion and Localization Strategies
Airbnb’s global market expansion strategy demonstrates sophisticated understanding of cultural adaptation requirements and local market dynamics that characterize successful international digital marketing initiatives. The company’s approach to entering new markets encompasses comprehensive localization of digital marketing materials, cultural adaptation of messaging strategies, and development of region-specific community building initiatives that resonate with local consumer preferences and cultural norms (Kotler et al., 2016). This strategic approach recognizes that global platform success requires more than simple translation of existing marketing materials, instead demanding deep cultural understanding and strategic adaptation to local market characteristics.
The localization strategy encompasses multiple dimensions including language translation, cultural adaptation of visual content, local payment method integration, and development of region-specific host and guest acquisition strategies. Airbnb’s approach to cultural adaptation goes beyond surface-level translation to encompass deeper understanding of local travel behaviors, accommodation preferences, and cultural values that influence platform adoption and usage patterns. This comprehensive localization strategy enables the company to compete effectively with local competitors while maintaining global brand consistency and operational efficiency (Usunier & Roulin, 2010).
The strategic partnerships and local market development initiatives demonstrate Airbnb’s recognition that successful global expansion requires building relationships with local stakeholders, government entities, and community organizations. The company’s approach to regulatory compliance, tax collection, and local government relations creates foundations for sustainable market development while addressing legitimate concerns about platform impacts on local housing markets and tourism patterns. These relationship-building initiatives support broader marketing objectives by creating positive local perceptions and reducing regulatory resistance that could impede marketing effectiveness (Guttentag & Smith, 2017).
The performance measurement and optimization of global marketing initiatives reveal Airbnb’s sophisticated approach to international marketing analytics and strategy refinement. The company utilizes region-specific performance metrics, cultural adaptation effectiveness measures, and local competitive analysis to continuously improve global marketing strategy implementation. This analytical approach enables identification of successful localization strategies that can be adapted to additional markets while avoiding costly mistakes that could undermine market entry success or damage brand reputation in important regional markets.
Crisis Management and Reputation Marketing in Digital Environments
Airbnb’s approach to crisis management and reputation marketing demonstrates sophisticated understanding of how digital platforms must proactively address trust and safety concerns that are inherent in peer-to-peer marketplaces. The company’s strategy encompasses proactive reputation building, rapid crisis response protocols, and comprehensive stakeholder communication approaches that address the unique challenges faced by platform companies operating in regulated industries (Coombs, 2014). This strategic approach recognizes that platform companies face amplified reputation risks due to their dependence on user-generated content and peer-to-peer interactions that can create negative experiences beyond direct company control.
The proactive reputation building initiatives include comprehensive trust and safety program communication, transparent policy development and enforcement, and strategic thought leadership that positions Airbnb as a responsible platform operator committed to positive stakeholder outcomes. The company’s approach to communicating safety measures, insurance coverage, and dispute resolution procedures creates confidence among potential users while demonstrating commitment to responsible platform governance. These initiatives support broader marketing objectives by addressing primary barriers to platform adoption while building long-term trust that supports sustainable business development (Benoit, 1997).
The crisis response protocols demonstrate Airbnb’s recognition that rapid, transparent communication is essential for maintaining stakeholder trust during negative incidents or regulatory challenges. The company’s approach to addressing individual incidents, policy disputes, and regulatory conflicts emphasizes acknowledgment of legitimate concerns, clear communication of corrective actions, and commitment to preventing similar issues in the future. This strategic approach recognizes that effective crisis communication can actually strengthen stakeholder relationships by demonstrating corporate responsibility and commitment to continuous improvement (Seeger et al., 2003).
The integration of reputation management with broader marketing strategy demonstrates Airbnb’s understanding that trust building is fundamental to platform marketing success and requires consistent attention across all marketing initiatives. Reputation considerations influence content strategy development, community management approaches, and stakeholder communication protocols that collectively create comprehensive trust-building ecosystems. This integrated approach ensures that reputation management supports rather than conflicts with growth-oriented marketing objectives while building sustainable competitive advantages through enhanced stakeholder trust and confidence.
Performance Metrics and Strategic Evaluation Framework
The evaluation of Airbnb’s digital marketing strategy requires sophisticated performance measurement frameworks that address the unique challenges of assessing platform marketing effectiveness across multiple stakeholder groups and geographic markets. The company’s approach to marketing analytics encompasses traditional metrics such as customer acquisition costs, lifetime value, and conversion rates, while also incorporating platform-specific measures including network effects strength, community engagement quality, and multi-sided market balance indicators (Kumar & Reinartz, 2016). This comprehensive measurement approach enables holistic assessment of marketing strategy effectiveness while identifying optimization opportunities across different strategic dimensions.
The integration of financial performance metrics with operational and strategic indicators demonstrates Airbnb’s sophisticated understanding of how marketing investments contribute to overall business success through multiple pathways. Revenue attribution modeling accounts for the complex customer journeys characteristic of platform businesses, where initial marketing touchpoints may influence booking decisions through extended consideration periods involving multiple stakeholder interactions. Customer lifetime value calculations incorporate both direct booking revenue and platform ecosystem contributions including referral generation, content creation, and community building activities that support broader platform development objectives (Gupta et al., 2006).
The competitive benchmarking and market share analysis components of performance evaluation reveal Airbnb’s strategic focus on maintaining competitive advantages while adapting to evolving market conditions and competitive responses. The company’s approach to competitive analysis encompasses both direct hospitality competitors and broader travel industry players, recognizing that platform businesses compete across traditional industry boundaries through comprehensive travel experience offerings. This analytical approach supports strategic decision-making about marketing investment allocation, competitive positioning, and market expansion priorities that collectively determine long-term competitive success (Day & Wensley, 1988).
The continuous optimization and strategic refinement processes demonstrate Airbnb’s commitment to data-driven marketing strategy evolution that responds to changing market conditions, user preferences, and competitive dynamics. The company’s approach to marketing experimentation, performance analysis, and strategy adaptation creates organizational capabilities for continuous improvement while maintaining strategic consistency across global operations. This systematic approach to marketing optimization ensures that Airbnb’s digital marketing strategy remains effective and relevant despite rapid changes in digital marketing technologies, consumer behaviors, and competitive landscapes.
Strategic Implications and Future Directions
This comprehensive evaluation of Airbnb’s digital marketing strategy reveals several strategic implications for platform companies, digital marketers, and academic researchers seeking to understand effective marketing approaches in contemporary digital environments. The company’s success demonstrates that platform marketing requires fundamentally different approaches than traditional product or service marketing, emphasizing community building, trust facilitation, and ecosystem development over traditional promotional activities (Eisenmann et al., 2006). These insights have broad implications for understanding how digital transformation is reshaping marketing strategy requirements across multiple industries and business models.
The integration of technology, community engagement, and authentic storytelling in Airbnb’s approach provides a framework for understanding how successful digital marketing strategies balance efficiency-driven optimization with relationship-building initiatives that create sustainable competitive advantages. The company’s ability to scale personalized experiences while maintaining authentic community connections demonstrates how technology can enhance rather than replace human-centered marketing approaches when implemented strategically and thoughtfully (Rust & Huang, 2014).
Future research directions emerging from this evaluation include investigation of long-term sustainability of user-generated content strategies, analysis of privacy and personalization balance points, and examination of regulatory impact on platform marketing effectiveness. Additionally, the evolution of Airbnb’s marketing strategy in response to emerging technologies such as artificial intelligence, virtual reality, and blockchain presents opportunities for understanding how platform companies adapt marketing approaches to leverage new technological capabilities while maintaining strategic consistency and stakeholder trust.
The broader implications for marketing theory and practice suggest that successful digital marketing strategy increasingly requires integration of multiple disciplines including technology, psychology, sociology, and economics to address the complex challenges characteristic of contemporary digital business environments. Airbnb’s approach demonstrates how this integration can create sustainable competitive advantages while providing valuable insights for developing effective marketing strategies in an increasingly digital and interconnected global economy.
Conclusion
This comprehensive evaluation of Airbnb’s digital marketing strategy demonstrates the sophisticated integration of platform economics principles, community engagement methodologies, and data-driven optimization techniques that have enabled the company’s remarkable growth and global market penetration. The analysis reveals that Airbnb’s success stems not from any single marketing innovation but from the strategic integration of multiple complementary approaches that collectively address the unique challenges and opportunities inherent in platform-based business models operating in global digital environments.
The company’s emphasis on user-generated content, authentic storytelling, and community building reflects deep understanding of how trust and authenticity function in peer-to-peer marketplaces where traditional marketing approaches often fail to address fundamental consumer concerns about safety, quality, and reliability. The strategic implementation of these approaches through sophisticated technical infrastructure and data-driven optimization demonstrates how technology can enhance authentic human connections rather than replace them, creating sustainable competitive advantages that are difficult for competitors to replicate.
The global market expansion and localization strategies reveal sophisticated understanding of cultural adaptation requirements while maintaining operational efficiency and brand consistency across diverse markets. This capability represents a significant competitive advantage in an increasingly globalized economy where successful platform companies must balance global scale benefits with local market responsiveness and cultural sensitivity.
The integration of crisis management and reputation building initiatives with broader marketing strategy demonstrates recognition that platform companies face unique reputation risks that require proactive management and strategic communication approaches. This integrated approach to reputation marketing provides valuable insights for understanding how digital platforms can build and maintain stakeholder trust in complex regulatory and competitive environments.
The performance measurement and continuous optimization frameworks employed by Airbnb demonstrate sophisticated understanding of how platform marketing success requires comprehensive analytics approaches that address multiple stakeholder groups, complex customer journeys, and network effects dynamics. These measurement capabilities enable continuous strategy refinement while providing insights into the mechanisms through which marketing investments generate business value in platform contexts.
The strategic implications of this evaluation extend beyond Airbnb to provide insights for understanding effective digital marketing approaches across platform-based businesses and sharing economy enterprises. The company’s success demonstrates how marketing strategy must evolve to address the unique characteristics of digital platform business models while leveraging technological capabilities to create personalized, community-centered experiences that generate sustainable competitive advantages.
Future research and practice development should focus on understanding how the strategic approaches demonstrated by Airbnb can be adapted to other industry contexts while addressing emerging challenges related to privacy, regulation, and technological change. The continued evolution of digital marketing strategy in response to changing consumer behaviors, technological capabilities, and competitive dynamics presents ongoing opportunities for research and strategic innovation that builds upon the foundational insights revealed through this comprehensive evaluation of Airbnb’s remarkable digital marketing success.
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