Air France Case

998 Words4 Pages
Air France Case Brief
Executive Summary
Rob Griffin, the senior vice president and U.S. director of search for Media contacts, a media consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France as the company seeks to compete in the hyper-competitive U.S. market. Even though Griffin is satisfied with the performance of his company, he wants to make the team to remain the leading position and provide the results that Air France wanted. At the time of the case, SEM has become an advertising phenomenon, with North American advertisers spent $ 9.4 billion in the SEM channel, up to 62% in 2005. In the past, Media contacts h had concentrated on Google, Microsoft, and Yahoo for the search engine
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It is imperative to understand the key performance indicators (KPIs) in order to evaluate the performance of SEM. The main KPIs we need to consider in this case are: Engine Click Through Rate (CTR), Transaction Conversion Rate (TCR) and Return on Ad dollar Spent (ROA). The Engine Click Through Rate indicates the percentage of visitors who actually click the ad and it measures the effectives of the ad campaign. Transaction Conversion Rate tells how many clicks are converted into actual transactions. A higher Transaction Conversion Rate indicates higher revenue. ROA indicates the revenue generated by the investment on the ad. A high ROA means the ad campaign is successful.
Based on the data provided, I have constructed a Pivot table to examine the KPIs of different publishers. From the table, we can see that the KPIs vary significantly among the publishers. For example, Yahoo stands out as the most efficient publisher, with the lowest Cost Per Click and the highest Revenue Per Booking yielding by far the highest ROA. Overture-US has a very low TCR of 9.49% compared to other publishers with two or three digit TCR. Furthermore, Engine Click Through Rate and ROA vary in different types of campaigns and Keyword Groups. For example, “Business Class” in MSN-US has a zero CTR, which means the campaign is unsuccessful. “Air France Brand” and “Air France Website” in the Keyword Group account for a significant amount of positive ROA across
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