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Optimizing Search Engine Marketing

Kaushik , Richard, Vignesh, Prakanshu, Yueying

- Air France uses SEM as a part of their marketing strategy

- They employ different strategies across different search engines

Current State - Air France has an optimal

search engine marketing strategy

- They have minimized their spend and maximize their revenue

Desired Future State

- What are the metrics that we need to be looking at?

- How does strategy differences impact each of these metrics?

Problem Definition

Executive Summary

1. Returns on advertising differ by publisher as much as 3X2. Similar campaigns can perform differently by a factor of as high as 10X3. 904 identified low-performing * zero revenue generating keywords resulted in

spends of $75,765i. The top 10 of these contribute to 30% of the spending

KeyFindings

1. Increase investment in Kayak, Yahoo and MSN2. Opportunities exist for extending usage of certain keywords across publishers and

related campaigns3. Revisit strategy for the low-performing keywords

NextSteps

*low-performing- low click through rate

Overall Publisher Performance

-0.02% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10%$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

Probability of Booking

Cos

t/Cl

ick

MSN -US

Overture (Global/US)

Yahoo-US

MSN - Global

Kayak*

Google (Global/US)

*Estimated data included

Overture US/GlobalRecommendations

• Re-consider creative• Examine offerings most

commonly found via Overture

An increase in Bookings per impression from 0.002% to 0.004%would increase Return on Advertising from about 357% to over 830%.

-0.02% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10%$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0


Cos

t/Cl

ick

Overture (Global/US)

Google US/GlobalRecommendation

• Adjust bidding strategies to lower costs• Check for under-performing

keywords

Decreasing the average cost per click for Google by just 10 centscould reduce costs by over $13,000.

-0.02% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10%$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0


Cos

t/Cl

ick

Google (Global/US)

Yahoo and MSN US/GlobalRecommendations

• Increase investment• Look for successful keywords to

incorporate with Google and Overture

Overall return on investment for these three publishers iscurrently over 1,000%. Increasing investment is certainly worthwhile!

-0.02% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10%$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0


Cos

t/Cl

ick

MSN -US

Yahoo-US

MSN - Global

Publisher-Level Insights:The Best Segments Recommendations

Attributes Yahoo Google & OvertureAverage Position [1.2,1.3) >=1.3 <1.2 [1.2,1.3)

Bid Amount - - <8.1 -Average

Conversion %9.2 7.4 7.3 9.2

Attributes Yahoo Google & OvertureAverage Position <1.3 [1.3,2) <1.3

Average Click-through %

8.6 8.4 18

Yahoo:Target position 1 or 2

Google & Overture:Target position 1

Opportunity with

Net Revenue/Total

Spend on advertising

%6,451%

Volume of Bookings/

Number of Clicks

7.3%

Total Revenue generated

$ 230,127

Total spend on advertising/ Number of bookings

$ 17.15

Return on Advertising

Transaction Conversion Rate Net Revenue Cost Per Booking

KPI’s for Kayak (over one week)

Kayak…going forward

• Volume: Does Kayak have the reach to support these returns at higher levels of investment?

• Data: Kayak’s data is not well-integrated, so analyzing success and failure may be more difficult

Concerns

• Gradually increase investment: Make steady increases without over-committing

• Continually monitor returns: Watch for under-performing campaigns

Recommendations

KPI analyses at a campaign level

Net Revenue | CTR | ROA | CPB

Net Revenue | *CTR | *ROA | *CPB1

3

2

4

Net Revenue | CTR | ROA | CPB

Net Revenue | | CTR | ROA | CPB

Avg. Position

% Exact

Avg. Search Engine Bid

% Branded Keywords

1

2

3

4

*CTR- Click Through Rate*ROA – Return on Advertising*CPB- Cost per Booking

Evaluating KeywordsHow can we evaluate existing keywords?• Primary Goals• Clicks• Conversions

• Basis for Evaluation• Clicks Per Impression• Total Conversions

Evaluating KeywordsHigh Click-Through

Rate

Low Click-Through Rate

Keywords with 150 or more impressions (2,372 records)

1+ Conversions 0 Conversions

? ✔


RateGenerally successful:

Expand usage.




? ✔


Rate


Well-targeted:Try lower bids.



?


RateRe-evaluate:

The ad is working, the offer is not.



1+ Conversions 0 Conversions✔


Rate


Unsuccessful:Let’s take a closer look…



? ✔

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

$4,000.00

$4,500.00

Sum spent on each X Keyword(Total: 904 Keywords)

Keyword Click Charges Average Position Search Engine Bid Average Cost per Click

Flight $4,247 1.9 $8.75 $3.83travel to france $3,296 2.3 $6.25* $5.55

greece flights $2,667 2.9 $6.25 $3.41europe flights $2,602 1.8 $6.25 $3.01

italy travel $2,566 2.5 $6.25 $4.12romantic vacation $2,510 2.7 $6.25 $1.67

turkey travel $2,297 2.5 $6.25 $3.50spain travel $2,027 2.2 $6.25 $3.94

athens hotel $1,545 2.1 $3.28 $2.55travel to paris $1,459 1.9 $5.36* $1.47

AirFrance Average $2,521 1.93 $5.72 $1.89

Most Expensive Keywords in the X Group


Keyword Click Charges Average Position Search Engine Bid Average Cost per Click

Flight $4,247 1.9 $8.75 $3.83travel to france $3,296 2.3 $6.25* $5.55

greece flights $2,667 2.9 $6.25 $3.41europe flights $2,602 1.8 $6.25 $3.01

italy travel $2,566 2.5 $6.25 $4.12romantic vacation $2,510 2.7 $6.25 $1.67

turkey travel $2,297 2.5 $6.25 $3.50spain travel $2,027 2.2 $6.25 $3.94

athens hotel $1,545 2.1 $3.28 $2.55travel to paris $1,459 1.9 $5.36* $1.47

AirFrance Average $2,521 1.93 $5.72 $1.89

Most Expensive Keywords in the X Group


Total Keywords

>150 Impressions

Click Through Rate > 10%

# Campaigns <=2

2,079 keywords

1,352 keywords

150 keywords

43 keywords

Identifying key Keywords

BrandedUnbranded 6 keywords37 keywords

Tested Campaigns

Tested Publishers

Opportunity

Opportunity

Air France BrandedAir France Global Campaign

French DestinationsGeo Targeted Boston

Geo Targeted DCGeo Targeted Detroit

Geo Targeted Los AngelesGeo Targeted New York

Geo Targeted PhiladelphiaGoogle Yearlong 2006Paris & France Terms

Western Europe Destinations

Air France Brand & French Destinations

Geo Targeted Houston

Geo Targeted Chicago

Geo Targeted San Francisco

Geo Targeted Seattle

Geo Targeted Atlanta

Geo Targeted Cincinnati

Google - GlobalGoogle - USYahoo - US

Overture - GlobalMSN - Global

MSN - USOverture - US

Opportunity for key Keywords

Conclusion1. Opportunity to increase investment in Kayak, Yahoo and MSN

2. Revisit strategy for the identified low performing keywords – low click through rate, 0 bookings and high cost

3. Revisit strategy for the identified high performing keywords – high click through rate, low # campaigns

Thank you!Questions?

Business

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