Air France Internet Marketing

Topics: Revenue, Air France, Paris-Charles de Gaulle Airport Pages: 5 (1810 words) Published: November 12, 2012
Air France‘s Case
You have just been hired by Rob Griffin to help him better understand the effectiveness of Air France’s online sponsored search efforts. He has requested answers to the following questions: 1. Please calculate the effectiveness of each of Air France’s marketing campaigns across the 7 different publishers categories (3 points). Publishers| Avg. Cost per clicks| Tot. Clicks| Media Costs| Tot. Bookings| Tot. Revenue| Net Revenue| Net Rev per Cost | Avg. of Sales per Click %| Avg. of Trans. Conv. %| Yahoo-US| 2| 45,598 | $46,198| 662 | $882,289| $836,091| 18| 1.45%| 183%| MSN-Global| 2.15| 11,217 | $12,160| 129 | $145,524| $133,364| 11| 1.15%| 113%| MSN-US| 2.87| 10,808 | $16,098| 140 | $181,550| $165,451| 10| 1.30%| 73%| Google-Global| 2.22| 72,895 | $120,947| 797 | $929,550| $808,603| 7| 1.09%| 43%| Google-US| 2.38| 192,109 | $353,641| 1,550 | $1,745,482| $1,391,841| 4| 0.81%| 41%| Overture-Global| 0.8| 60,899 | $64,296| 372 | $430,085| $365,789| 6| 0.61%| 24%| Overture-US| 0.76| 119,323 | $141,976| 289 | $347,433| $205,457| 1| 0.24%| 9%| Grand Total| 1.89| 512,849 | $755,316| 3,939 | $4,661,913| $3,906,597| 5| 0.77%| 57%|

Based on the data above, we can see that:
a. Yahoo-US leads for the most effective marketing campaign among 7 publishers based on the total net revenue per cost, Yahoo-US got the biggest value, 18, it means that every $1 that Air France spent they will receive $18 from their investment. The average of transaction conversion and average of sales per click of Yahoo-US also leads amongst the other publishers. b. Google-US got the biggest of total net revenue from the marketing campaign, almost US$1.4 million, and also had the biggest total booking number. But our opinion is, Google US did not do the marketing very effective, the money for the media costs that they spent are the biggest amongst the other publishers, and the total net revenue per cost ratio is only 4. c. Overture-US is the most ineffective in doing Air France marketing campaign, even though the average costs per click of Overture-US is the lowest, but the total clicks is the highest, it ranked the second highest amongst the other publishers, so it makes media cost of Overture-US high and the total booking from the clicks is not in a good value, so we think that Overture-US have to improve their its campaign of Air France.

2. Should Media Contacts recommend the same exact strategy for Air France across all search engine publishers? Or would it be more effective to tailor each publisher strategy to maximize ROI (Please provide support for your answer) (3 points) .

From our analysis with the data provided by DoubleClick.Inc., publishers have their own strong point to focus on in order to maximize their net revenue and tailor strategy for each publisher will be the best option. Below, we will explain publisher’s performance in term of the following points: * Campaign

All of the publishers earn lot of revenues from their “Air France Branded” campaign with modest click charges on average of $1.82 and maximum clicks of 106,153 from Google-US, while “Business Class” campaign is not really productive to gain revenue as publishers lose money on this campaign. Click charges for “Business Class” campaign is ranged between $3.76 (Yahoo-US) and $5.39 (MSN-US) per click.

Geo Targeted local search campaign has potential in using Google-US service. For example, In New York City, Google-US can get total of 3,167 clicks with 1.39% transaction conversion rate. Compare with “Paris & France Term” campaign, it only gets 0.35% transaction conversion rate with 29,039 clicks. In Contrast, Yahoo revenue for its Geo Target campaign is very low and loses money in 10 out of 13 cities in US. * Keyword

Keywords that consist of “Air France” word are convincingly gaining more revenues than other...
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