Data Science: R - Group Project

1. Air France Internet Marketing
Strategy Proposal for 2008
Proposal to Optimize Google, Yahoo!, MSN & Kayak
Sponsored Search
Marina Team 1:
Arshdeep Kaur | Idrishan Kavak | Juan David Argüello
Tanyaradzwa Mushohwe | Ugur Duezguen | Yara Ibrahim | Yi Zhang
Date: December 1, 2008

2. Client Working History
● Media Solutions Provider: Media Contacts
● Client: Air France
● Business Goals:
○ International Growth
○ Increased US Market Share
○ Reach large customer segments
● 2007 Performance Review:
○ Successfully drove more visitors to affiliated websites
● 2008 Marketing Objectives:
○ Increase campaign efficiency to drive more clicks & conversions
○ Keep click costs low

3. Agenda
● Executive Summary
● Industry & Company Overview
● Current Internet Marketing Strategy
○ KPIs
○ Performance Review
○ Optimization Recommendations
○ Predicted KPI impact
● Proposed Strategy for 2008
● Summary

4. Executive Summary
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
• Marketing objectives
• Search Engine Marketing Optimization
• Ultimate KPIs
• Increase Net Revenue
• Decrease Advertising Cost
• Increase Return on Advertising (ROA)
• Recommendations
• Optimize publisher & bidding strategy
• Only select optimal keywords
• Targeted marketing towards young
working professional in US
• Buy: Real-time dynamic marketing
investment solution

5. Current Situation
● Airline Industry 2007
○ Rivalry -> High
○ Entry Barriers -> High
○ Threat of Substitutes -> Medium - High
○ Bargaining Power of Suppliers -> High
○ Bargaining Power of Buyers -> Medium - High
● Biggest Competitors -> American Airlines, United Airlines, Lufthansa
● AirFrance Target Market
○ Business travelers
○ Leisure travelers
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary

6. Internet Marketing Strategy
Optimization
Search Engine
Optimization
Keywords
Bidding StrategyKeyword GroupsMetasearchersPublisher Strategy
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
KPIs:
•Increase Net Revenue
•Decrease Advertising Cost
•Increase Return on Advertising (ROA)

7. Search Engine Optimization
Optimization
Search Engine
Optimization
Keywords
Bidding StrategyKeyword GroupsMetasearchersPublisher Strategy
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary

8. Efficiency by Publisher
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
KPIs
• Net Revenue
• Click-through rate
• Conversion rate
• Advertising Spend
• Overture Global and Overture US most inefficient
• ↓ traffic (click-through rate) & ↓ conversion rates
• Google(US) generate highest net revenue
• ↑ traffic (click-through rates)
• ↓ conversion
• Yahoo most efficient & valuable
• ↑ traffic (click-through rates)
• ↑ conversion rate
• ↑ High Net Revenue
search engines which delivered the most value to Air France value

9. Return on Advertising Investment per Publisher
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
KPIs
• Booking Probability
• Return on Advertising (ROA)
how campaigns can be improved to increase overall value gained from investment with a search engine publisher
• Overture Global & Overture US almost 0%
booking probability
• Recommendation: no value, divest
• Expected Impact: reduce advertising spend
• Yahoo highest value traditional publisher
• >3 x higher than average booking probability
• 2-4 x higher ROA
• Recommendation: increase investment spend
• Expected impact: increase net revenue

10. Return on Advertising Investment for Kayak (Metasearcher)
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
KPIs
• ROA
• Booking Probability
Additional opportunity to increase search engine marketing value
• ↓ cost than traditional
• > 3-6 x higher ROA of traditional search engines
• average online booking probability
• Recommendation: increase advertising investment; drive
higher conversion rates
• Expected Impact: increase net revenue

11. Keyword Optimization
Optimization
Search Engine
Optimization
Keywords
Bidding StrategyKeyword GroupsMetasearchersPublisher Strategy
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary

12. Campaign Performance
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Keyword types: which keyword approach would have a higher propensity to increase ticket sales & improve ROA

13. Recommended Keywords to Keep
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Most profitable keywords that give above average ROA
Insights:
Brended keywords are good (Paris/France/Air/Flights
Geolocation specific words are not good (Spain/Rome/Italy/Nice)

14. Recommended Keywords to Keep
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Most profitable keywords that give above average ROA
Insights:
1. Get rid of “cheap”
2. France and Paris are common to both Good and Bad, but they appear more number of times in Good.

15. Future Structure of Search Engine Marketing: No One Size Fits All
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
tailor each bidding strategy per publisher to maximize return on advertising investment (ROA)
Overture(US)
•At 44 out of 48 successful/profitable campaigns, Position 1-
4 Bid Strategy was applied
•Correlation of 68%
•Only Publisher with this pattern
Google(US)
•Evidence for necessity of Tailored Strategy for each
Publisher for Optimization of ROA

16. Future Keyword Optimization: No One Size Fits All
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Tailor each keyword per publisher to maximize return on advertising investment (ROA)
MSN GlobalGoogle US

17. US YWP Targeting Strategy
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
-Target Young Working Professionals (18-35)
-Focus on the experience economy
New mantra: “France is in the air”
-Fresh audience, Fresh look:

18. US Impact of US YWP Targeting Strategy => Increase US Market
Share by %20
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Delta, 7.32%
AA, 7.67%
United, 7.20%
Air-France,
4.84%
IAG, 4.13%
Lufthansa
Group, 3.31%
other airline,
65.53%
AIRLINE MARKET SHARE BASED ON RPKS IN
2007(BILLIONS)

19. Risks & Mitigation
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Increasing risk of competition from low-cost carriers
Consumer behavior shift towards budget travel (i.e.
price war)
Industry is susceptible to economic downturns

21. Review Summary
● Marketing objectives
○ Search Engine Marketing Optimization
● Ultimate KPIs
○ Increase Net Revenue
○ Decrease Advertising Cost
○ Increase Return on Advertising (ROA)
● Recommendations
○ Optimize publisher & bidding strategy
○ Only select optimal keywords
○ Targeted marketing towards young working professional in US
○ Buy: Real-time dynamic marketing investment solution
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary

22. Ready for TAKEOFF
Thank you for your
Attention