Air France Digital Marketing Case Study

Air France Case

Publisher Name | Average Cost Per Click | Click Through Rate | Transaction Conversion Rate | Net Revenue | ROA | Av. Revenue Per Booking | Probability of Booking |

Google - Global | $1.66 | 0.040 | 0.011 | $808,603.09 | 669% | $1,166.31 | 0.044% |

Google - US | $1.84 | 0.050 | 0.008 | $1,391,841.20 | 394% | $1,126.12 | 0.040% |

MSN - Global | $1.08 | 0.080 | 0.012 | $133,363.89 | 1097% | $1,128.09 | 0.092% |

MSN - US | $1.49 | 0.064 | 0.013 | $165,451.31 | 1028% | $1,296.78 | 0.082% |

Overture - Global | $1.06 | 0.003 | 0.006 | $365,788.84 | 569% | $1,156.14 | 0.002% |

Overture - US | $1.19 | 0.007 | 0.002 | $205,457.18 | 145% | $1,202.19 | 0.002% |

Yahoo - US | $1.01 | 0.049 | 0.015 | $836,091.13 | 1810% | $1,332.76 | 0.071% |

1) In looking at the aggregate numbers across search engine publishers, it appears that Media Contacts should not recommend a uniform SEM strategy to Air France. While the average cost per click is fairly negligible between publishers, there are sizable differences across each publisher’s respective conversion rates and probability of booking. In concert with the variations between net revenue and ROA metrics, these differences suggest Air France could benefit from a more tailored publisher’s strategy (Exhibit I).

2) One way keywords can be changed to optimize the overall value Air France derives from the publishers is to begin allocating more dollars into more profitable keywords. When the data is broken down by geo-targeting and the type of campaign several things become clear (Exhibit II). Primarily, the campaigns and keywords tied to Air France itself have a higher probability of booking. This finding makes sense since those actively searching flight information for Air France are presumably more likely to book with them than a competitor. More importantly, ROA tends to be high mainly in the nation’s core commercial and cultural hubs, regions such as New York, Chicago, Washington D.C. and others. It...