AIR FRANCE CASE SUBMISSION
Q1) Should Media Contacts recommend a uniform strategy for Air France across search engine
publishers? Or would it be more effective to tailor each publisher strategy to maximize return on
investment?
No, Media Contacts should not recommend a uniform strategy across search engine publishers.
Instead, a tailored strategy for each publisher is essential because the target audience, user
engagement, and performance metrics vary significantly across platforms.
Google-US, Geo-Targeted DC Campaign vs. Yahoo-US, Geo-Targeted DC Campaign shows distinct
differences:
• Total Impressions: Google (6,306) vs. Yahoo (13,571)
• Total Clicks: Google (315) vs. Yahoo (197)
• Cost per Click (CPC): Google ($2.54) vs. Yahoo ($1.87)
• Total Bookings: Google (4) vs. Yahoo (5)
• Average Booking Amount: Google ($825.14) vs. Yahoo ($378.25)
• Average Cost per Booking: Google ($200.99) vs. Yahoo ($93.48)
• Return on Ad Spend (ROAS): Google (410.54%) vs. Yahoo (404.63%)
Analysis: The data indicates that business-class customers are more likely to use Google, as reflected
in the higher average booking amount. Meanwhile, Yahoo appears to attract more economy-class
buyers, shown by the lower average booking amount and lower cost per booking.
With the growing number of economy travellers (which increased by more than 50% according to the
case), Yahoo should focus on a market growth strategy to capitalize on this trend. Meanwhile,
Google can be used for a customer retention and growth strategy, focusing on higher-value
bookings, such as business-class travellers.
Tailoring the strategy based on the search engine and its audience will allow Air France to maximize
returns and effectively target different customer segments.
Q2) How can campaigns be improved to increase overall value gained from investment with a
search engine publisher? Should keywords be added or dropped from the campaign? Should
campaign tactics or copy be adjusted to improve campaign performance?
To maximize the value of Air France’s investment, campaigns need to be optimized according to the
specific strengths of each publisher, as discussed in Q1. Campaign improvements can focus on:
• Increasing Click-through Rates (CTR) by refining ad copy, targeting more relevant audiences,
and improving bidding strategies.
Keyword Optimization:
• Keywords should be continuously evaluated.
o Keywords to drop: Any keyword group where the cost exceeds revenue by more
than $50 should be removed, as they are not contributing positively to the
campaign's performance.
o Keywords to add: Groups where revenue exceeds cost by more than $500 should be
examined for further expansion, as they have a high return potential.
Campaign Tactics:
• Campaign tactics and ad copy should be adjusted to match the different audience
demographics on each search engine. For instance, Google can be used to focus on higher-
value business travelers, while Yahoo can target economy-class travelers.
• Additionally, personalized ad content based on geographic targeting, such as highlighting
discounts or special deals, can increase engagement and conversions.
By aligning the campaign strategy with the unique audience of each search engine, the overall value
from the investment will improve, leading to higher returns on ad spend.
Q3) What are the most important KPIs, and what impact will campaign changes have on these
KPIs?
Ans: The most important Key Performance Indicators (KPIs) for evaluating the effectiveness of Air
France’s search engine marketing campaigns include:
• Impression-to-Click Ratio: This KPI measures how effectively the ads attract attention
relative to the number of times they are displayed (impressions). A higher ratio indicates that
more users are finding the ad relevant and are engaging with it.
• Cost per Click (CPC): This is a direct measure of how much each click costs. Lowering CPC
while maintaining or increasing click volume can significantly improve the overall return on
investment.
• Click-through Rate (CTR): CTR measures the percentage of impressions that result in clicks.
An improvement in CTR suggests that the ads are becoming more compelling to users.
• Transaction Conversion Rate: This measures how many clicks lead to actual bookings.
Increasing this rate will directly reduce the cost per booking and increase overall revenue.
Impact of Campaign Changes:
• If campaigns are optimized to improve these KPIs, the Cost per Booking will decrease, while
the total number of bookings will increase. For instance, improving the CTR will lead to more
clicks without necessarily increasing the budget, while a higher transaction conversion rate
will lead to more bookings from those clicks, enhancing overall performance.
Q4) How should future SEM campaigns be structured? In the past, Media Contacts had
concentrated on Google, Microsoft, and Yahoo; was there now an opportunity to optimize search
advertising with metasearch companies such as Kayak?
Ans: Yes, there is a significant opportunity to expand and optimize SEM campaigns with metasearch
engines such as Kayak. Here’s why:
• Exponential Growth: The metasearch segment, including platforms like Kayak, is
experiencing rapid growth, which presents a high-growth opportunity for Air France to tap
into a different pool of users.
• Cost per Booking: On Kayak, the cost per booking is significantly lower at $17.15 compared
to Google-US ($228.16), MSN ($114.99), and Yahoo ($69.79). This lower cost can lead to
better profitability per booking.
• Average Booking Amount: Kayak’s average booking amount is $1,223.54, which is
comparable to the other platforms, indicating that it can attract high-value customers
despite the lower cost per booking.
• Return on Ad Spend (ROAS): Despite having fewer clicks than Google, Kayak delivers a much
higher ROAS. This suggests that Kayak's users are more likely to convert, making it a valuable
addition to the SEM strategy.
Given these advantages, future SEM campaigns should include a focused strategy for metasearch
engines like Kayak. This can help Air France increase its market share and improve profitability in the
long term, especially as the metasearch segment continues to grow.
