CubeSmart Leverages Search Engines & AI for Customer Acquisition in Q2 2025

CubeSmart’s discussion of "search engine" in the Q2 2025 earnings transcript centers on its role in new customer acquisition and marketing strategy, particularly in the context of evolving digital search technologies.

Context and Key Points

• Marketing and Customer Acquisition Focus:
  The company highlights that search engine optimization (SEO) and Google searches have been a priority over the past few years as a key channel for attracting prospective customers. This indicates that CubeSmart views traditional search engines as a critical component of its marketing mix.

• Impact of AI and Large Language Models (LLMs):
  CubeSmart acknowledges the emergence of AI tools such as GPT and their potential influence on how customers find storage units. However, management notes that, as of now, most traffic still comes from traditional internet searches rather than AI-driven queries.

• Nature of Search Queries:
  The company contrasts the complexity of AI-assisted queries in other domains (e.g., choosing a college) with the relatively straightforward nature of self-storage searches like “self-storage near me.” This suggests that the current customer journey for CubeSmart is still well served by conventional search engine results and map-based listings.

• Proactive Approach to Innovation:
  CubeSmart’s marketing team is actively engaging with partners, including Google, to understand and leverage new AI capabilities such as Google’s Gemini. This shows a forward-looking stance to stay ahead in digital marketing and adapt to fast-moving changes in search technology.

Relevant Transcript Excerpts

“Obviously, kind of Google searches and search engine optimization has been a priority over the past couple of years. But as we get this emergence of AI or GPT and usage there, do you have a sense of how many prospective customers are starting to use these AI tools to find storage units? Or is most of the traffic still coming in from traditional Internet searches.”
— Michael A. Griffin (Analyst)

“Yes. Most of the traffic is still coming in through traditional Internet searches. The LLMs are evolving... Compare that to self-storage near me, there's just not that same level [of complexity]. And so I think we were with our partners, our agency and our friends at Google last week digging into all this and the use of Gemini and how one can get ahead of the curve here, and it's moving fast. Our marketing team is all over it.”
— Christopher P. Marr (Management)

Business Implications

• Current Reliance on Traditional Search Engines:
  CubeSmart’s customer acquisition remains heavily dependent on traditional search engine traffic, underscoring the importance of SEO and Google Maps visibility in driving occupancy and revenue growth.

• Monitoring and Adapting to AI Trends:
  While AI-driven search is not yet a major source of traffic, CubeSmart is actively monitoring developments and collaborating with key partners to position itself advantageously as AI tools become more integrated into consumer search behavior.

• Marketing Spend Flexibility:
  The company’s marketing spend is described as opportunistic and responsive to returns, suggesting that CubeSmart may increase investment in digital channels, including emerging AI-powered search tools, if they prove effective.

Summary

CubeSmart views search engines as a foundational marketing channel for new customer acquisition, with traditional Google searches currently dominating traffic. The company is aware of the evolving AI landscape and is proactively engaging with partners to leverage new technologies like Google Gemini. This balanced approach reflects a strategy of maintaining strong performance in proven channels while preparing for future shifts in how customers discover self-storage solutions.