ONLINE ACQUISITION – SEARCH
ROI of 178: 1
$13 million incremental revenue
Remit:
Air New Zealand engaged Downstream Marketing in September 2007 to improving return on online advertising spend (ROAS) while driving incremental seat sales on trans-Tasman routes.
Approach:
Our initial benchmark of performance was to meet the existing digital contribution for seat sales. This equated to an 8:1 ROI ($8 revenue for every $1 spent). Our aim was to improve this through effective Search marketing.
Results:
By the end of month one, we had created $107 in revenue for every $1 dollar spent in Search. By the end of January 2008, we had pushed this to $178 (ROI 178:1).
In just four months a modest investment in Search and focused planning yielded more than $13 million in incremental revenue. Off the back of this success, Downstream has been appointed to develop a strategic Search program for both domestic flight sales within New Zealand, as well as an international Search strategy for passengers originating from foreign destinations (UK, USA, Asia).