Air France Internet Marketing Case Assignment
Air France Internet Marketing Case Assignment
FORMULA’S APPLIED IN THIS EXERCISE CTR = % of customers who click thru a link = No. Of clicks No. Of impressions TCR = Sum of total volume of bookings / No. Of clicks Take rate = probability Of booking = TCR * CTR ROA = Return on ad dollars spent = Net revenue/cost
Q1. Which search engines produce the best marketing campaign results?
In order to find which search engine produces the best marketing campaign result for Air-France, we have to calculate ROA(return on advertising) corresponding to every publisher.
Publisher Name | Sum of Amount | Sum of Total CAost | Sum of Net Revenue | ROA | Google - Global | 929549.8 | 120946.712 | 808603.088 | 669% | Google - US | 1745481.8 | 353640.5989 | 1391841.201 | 394% | MSN - Global | 145524.25 | 12160.36244 | 133363.8876 | 1097% | MSN - US | 181549.8 | 16098.48741 | 165451.3126 | 1028% | Overture - Global | 430084.7 | 64295.86214 | 365788.8379 | 569% | Overture - US | 347433.25 | 141976.0745 | 205457.1755 | 145% | Yahoo - US | 882288.95 | 46197.82462 | 836091.1254 | 1810% | | | | | | Grand Total | 4661912.55 | 755315.922 | 3906596.628 | 517% |
According to ROA analysis, Yahoo-US has got the highest ROA. Therefore, Yahoo-US produces the best marketing campaign results(as shown in chart on next page). But these ROA’s are being calculated in absence of market share knowledge of these publishers.
Q2. Which search engines should receive more marketing dollars? Which less? Should any be killed?
The search engine which is giving biggest bang for the marketing buck in SEM, should receive more marketing dollars. But to find this, we need to plot 2 X 2 matrix between Average cost per click and probability of booking (take rate) among different publishers.
Detailed analysis of comparison between different publishers is summarized in table below:
FORMULA’S APPLIED IN THIS EXERCISE CTR = % of customers who click thru a link = No. Of clicks No. Of impressions TCR = Sum of total volume of bookings / No. Of clicks Take rate = probability Of booking = TCR * CTR ROA = Return on ad dollars spent = Net revenue/cost
Q1. Which search engines produce the best marketing campaign results?
In order to find which search engine produces the best marketing campaign result for Air-France, we have to calculate ROA(return on advertising) corresponding to every publisher.
Publisher Name | Sum of Amount | Sum of Total CAost | Sum of Net Revenue | ROA | Google - Global | 929549.8 | 120946.712 | 808603.088 | 669% | Google - US | 1745481.8 | 353640.5989 | 1391841.201 | 394% | MSN - Global | 145524.25 | 12160.36244 | 133363.8876 | 1097% | MSN - US | 181549.8 | 16098.48741 | 165451.3126 | 1028% | Overture - Global | 430084.7 | 64295.86214 | 365788.8379 | 569% | Overture - US | 347433.25 | 141976.0745 | 205457.1755 | 145% | Yahoo - US | 882288.95 | 46197.82462 | 836091.1254 | 1810% | | | | | | Grand Total | 4661912.55 | 755315.922 | 3906596.628 | 517% |
According to ROA analysis, Yahoo-US has got the highest ROA. Therefore, Yahoo-US produces the best marketing campaign results(as shown in chart on next page). But these ROA’s are being calculated in absence of market share knowledge of these publishers.
Q2. Which search engines should receive more marketing dollars? Which less? Should any be killed?
The search engine which is giving biggest bang for the marketing buck in SEM, should receive more marketing dollars. But to find this, we need to plot 2 X 2 matrix between Average cost per click and probability of booking (take rate) among different publishers.
Detailed analysis of comparison between different publishers is summarized in table below: