Data Analysis Using R and NLP: Air France Business Case
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
● Proposed Search Engine Marketing Structure & Strategy for 2008
● Summary & Conclusion
4. Executive Summary
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
● Marketing objectives
○ Search Engine Marketing Optimization
● Marketing KPIs
○ Increase Net Revenue
○ Decrease Advertising Cost
○ Increase Return on Advertising (ROA)
● Recommendations
○ Optimize publisher & bidding strategy
○ Invest in profitable keywords
○ Targeted marketing
○ Buy Dynamic Marketing Tool
5. Current Situation
● Airline Industry 2007
○ Rivalry: High
○ Entry Barriers: High
○ Threat of Substitutes: Med - High
○ Bargaining Power of Suppliers: Med - High
○ Bargaining Power of Buyers: Med - High
● Biggest Competitors
○ American Airlines, United Airlines, Lufthansa
● Air France 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
• 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
SEM Value through Kayak
• ↓ 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
12. Campaign Performance
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
keyword approach which would have a higher propensity to improve ROA
13. Recommended Keywords to Keep
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Keep most profitable keywords that give above average ROA
Insights:
• Branded 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
Remove least 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. Expanding US Market Share
Target large “online” and “experience-centric” customer segment
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Target US Young Working Professionals (18-35 yrs) by:
1. Entering into the “experience” economy
Proposed New slogan: “Experience France is in the air”
2. Appealing new logo: fresh audience, fresh look
Proposed Logo:
18. Impact of US Targeting Strategy
20% predicated growth in US Market Share from 4.8% to 5.8%
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
Source:
• https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2015:261:FIN;
• https://www.researchgate.net/figure/Passenger-traffic-growth-RPK-worldwide-from-1971-to-2007-Data-sources-
ICAO_fig1_268425966
20. 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
Executive Summary
Industry &
Company
Overview
Current
Internet
Marketing
Strategy
Proposed
Strategy for
2008
Summary
● Business objectives
○ Increase international growth
○ Increase US Market Share
○ Reach large customer groups
● Marketing objectives
○ Search Engine Marketing Optimization
● Marketing KPIs
○ Increase Net Revenue
○ Decrease Advertising Cost
○ Increase Return on Advertising (ROA)
● Recommendations
○ Optimize publisher & bidding strategy
○ Invest in profitable keywords
○ Targeted marketing
○ Buy Dynamic Marketing Tool