Air France Internet Marketing

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) .

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