Good evening. Today I will be presenting my ideas on how to optimize sponsored search for Air France.
I will be clarifying our objectives, identifying the obstacles to our goals, and sharing my recommendations on how to overcome them.
As a result of search marketing, net revenues have increased by $3.9 million. These numbers can be higher. To increase net revenue, our goals include: increasing ticket sales and improving returns on advertising dollars spent.
While search marketing has been successful, there are weaknesses. These include: low click-through-rates for certain publishers few conversions for some campaigns and high cost-per-click advertisements that have yielded very little in net revenue.
As you can observe, the publishers fall into three of four different quadrants. Tactics should be tailored to the individual requirements of each publisher.
Publishers falling in quadrant 2 include: Google Global Google U.S. and MSN U.S. These search engines have a high probability of booking, but have higher than average cost-per-click.
I recommend that we stop funding campaigns that actually cost more to run than what they bring in.
This includes the Business Class campaign. Of the 655 searchers who clicked on the ad, only one booked a ticket with Air France. And at an average of $5 per click, this has not been very profitable. In addition, bid strategies should focus on higher positions for higher ROA.
Quadrant 3 publishers include: MSN Global Yahoo! U.S.
These search engines account for 20% of ticket sales despite taking up only 8% of total costs.
My recommendation is to increase funding for these publishers to take advantage of their low costs and excellent probability of booking.
The benefits of increasing traffic from MSN Global can be measured in dollars. Increasing impressions from 130,000 to 250,000 can increase tickets sales by more than 75%.
In Quadrant 4 are: Overture Global Overture U.S.These two publishers receive an average of 17 million impressions. However, click through-rates are incredibly low. This points to a failure in attracting searchers to the site.
My recommendation is to improve both search and site copy to increase ticket sales.
If CTR improves by just 1% at current levels of impressions, bookings will increase by 702.
To summarize, we can increase ticket sales by focusing on profitable publishers and campaigns and improve ROA by cutting down on costs.
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