AIR FRANCE: INTERNET

MARKETING

Group 2
V. SHARADA (058) | MANASH (091) | POOJA (102) | SONIA (114) | RAMZI (IE/17/034)
1. STRATEGY TO BE ADOPTED BY AIR FRANCE
Uniform strategy should not be followed by AIR France for different search
engine publishers; tailor made plans for each

Reasons:
Wide variation in the following parameters across the SE players
Avg. Cost per Click ($213 for MSN Global to $4937 for Google US)
Engine Click Thru % (Only 3% for Overture USA while 16% for Yahoo USA)
Total Cost/ Transaction ($5 for MSN USA to $71 for Google Global)

Similar variations in values across different campaigns run by the same SE

For example, under Google USA, Geo Targeted New York has an Avg. Cost per Click of $599 while Geo
Targeted Seattles cost is $78

Even the same campaign shows variations across different SE

It is evident that different Search Engines are yielding unique purchase
patterns thus necessitating need for customized strategies.
 2. SUGGESTIONS TO INCREASE OVERALL VALUE FROM SEM

Publisher Sum of Total Sum of Total

Name Sum of Clicks Sum of Impressions Bookings Sum of Revenue Cost
Google - Global 72895 1808326 797 929550 120947
Google - US 192109 3855689 1550 1745482 353641
MSN - Global 11217 139979 129 145524 12160
MSN - US 10808 170120 140 181550 16098
Overture - Global 60899 17898727 372 430085 64296
Overture - US 119323 17062488 289 347433 141976
Yahoo - US 45598 933345 662 882289 46198

Above data is from the Pivot Table

For each of the publishers the following parameters were calculated.

Cost Per Click (CPC) = Total Cost/ No. of Clicks

Click Through Rate (CTR) = Number of Clicks/ Number of Impressions
Transaction Conversion Rate (TCR) = Number of Bookings/ Number of Clicks
Probability of Booking = CTR* TCR
Net Revenue = Total Revenue Total Cost
Cost/ Booking = Total Cost/ Number of Bookings
 2. SUGGESTIONS TO INCREASE OVERALL VALUE FROM SEM
Data as calculated

Publisher Cost Per Click Through Transaction Probability of

Name Click Rate Conversion Rate Booking (%) Net Revenue Cost/ Booking

Google - Global 1.66 0.040 0.011 0.044 808603 152

Google - US 1.84 0.050 0.008 0.040 1391841 228
MSN - Global 1.08 0.080 0.012 0.092 133364 94
MSN - US 1.49 0.064 0.013 0.082 165451 115
Overture - Global 1.06 0.003 0.006 0.002 365789 173
Overture - US 1.19 0.007 0.002 0.002 205457 491
Yahoo - US 1.01 0.049 0.015 0.071 836091 70

Lowest costs and highest rates have been highlighted in red

Yahoo U.S. and MSN Global have a high probability to book and low CPC :
Higher funds can be allocated to these search engines
Google Global, U.S., MSN- U.S. have high prob. of booking but also high CPC
Company should focus on decreasing CPC by adjusting bid strategy, match type, keyword selection
Overture U.S. Global have a low probability of booking but also fairly low CPC.
Strategy to increase CTR and TCR by improving the copy
CTR vs. TCR numbers to determine whether search side or website copy should be targeted
Broad Keywords result in lower conversion rates; Broad Keyword strategy more suited for Google, Focused
Keyword strategy more suited for MSN
2. SUGGESTIONS TO INCREASE OVERALL VALUE FROM SEM

Other recommendations:
Identify keywords generating maximum conversion into sale and minimum
cost/click for every search engine
Keywords having very low frequency can be removed from the campaign
Tagging keyword groups which have highest frequency and conversion rate
should be done by SEOs to improve the sites relevancy ranking
Identifying characteristics of campaigns with high ROA within each
publisher and duplicate strategy for future campaigns
3. SUGGESTIONS TO INCREASE ROI FROM SEM

Multi-variable regression analysis was carried out for each campaign

Dependent Variable:
Total Volume of Bookings
Independent Variables:
Number of clicks, Click Charges & Avg. Cost per Click
Engine Click Thru %,Trans. Conv. %
Total Cost/ Trans., Avg. Pos., Impressions
Factors exhibiting maximum correlation to volume of bookings
Trans. Conv. %
Total Cost/ Trans.
Avg. Cost per Click
Therefore, these factors can be selected as the KPIs
4. FUTURE SEM CAMPAIGNS
Key Indicators for each of the main Search engines is calculated and compared with
Kayak
Cost/ Click Total Bookings Revenue Generated
($)
Google - Global 1.66 797 929550
MSN - Global 1.08 129 145524
Overture - Global 1.06 372 430085
Yahoo - US 1.01 662 882289
Kayak 1.26 208 233694

Kayak has the following advantages

Radically new targeting software
Lowest Cost per Booking and click
Highest RoA
Further optimization is
Best in Industry Probability of Conversion
Revenue/booking at par with Google, MSN and Yahoo!
required with Kayak
Limitations Other SEs have better results
Historic performance not positive
Coverage of Audience is lower
Data Analytics needs to be started from scratch
THANKYOU