0
increase in spend share for high flight score*
0
spike in revenue share of high flight score*
Challenge
Like most airlines, KLM faced tough times during Covid – but re-emerged with new goals, a fresh vision, and a requirement to do things smarter. Part of that meant going beyond ROAS, but the problem was that profit and margin data simply isn’t available on the necessary level. The goal then, was to replace revenue from oversaturated, low-competition, flight routes (which delivered value without spending money on advertising), to driving incremental revenue from high-competition routes instead.
Approach
Working with dentsu, KLM developed the ‘Flight Score’ model. The way it works is that after a customer books a flight, a ‘flight score’ is attributed to the booking, and incoming revenue is manipulated accordingly. The attributed data then goes to Search Ads 360 (SA360), where value-based bidding strategies use the information – together with custom floodlights – to identify the most valuable flight routes.
Results
The new model surpassed its goal of redistributing the cost share towards highly-competitive routes with a higher flight score. Overall, spending share of the low flight score routes decreased by 42%, while the costs for the higher flight score routes grew by almost half (45%). High flight score revenue share also increased by 61%.
Partnership dentsu x KLM
Thanks to the long-term cooperation between KLM and dentsu, it was possible to activate a model that requires both in-depth aviation and marketing knowledge. The strong collaboration and the teams’ expertise of SA360 and data activation helped the project move forward.
"The Flight Score model allows KLM to invest its advertising budget smarter and more effectively. Search Ads 360’s Floodlight set up also gives us the flexibility we needed to automate this process.” — Stijn Meertens, Global Paid Search Marketing Manager, KLM
*Results achieved during the campaign period 14th February to 13th March 2022 (compared to the preceding four weeks).
About Google Marketing Platform: Google Marketing Platform is a unified advertising and analytics platform that helps enterprise marketers make better decisions faster. With Google Marketing Platform, you’re in control of every campaign, so you have the flexibility to adapt to the needs of your business and your customers.
Need more information?
Contact me:
Name:
Kasper Spanjer (PPC Director)
Phone:
+31 (0)20 519 1700
Email:
kasper.spanjer@dentsu.com
Twitter:
https://twitter.com/dentsu_benelux
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