Marketing Efficiency in Airline Industry

The Key to Achieving Marketing Efficiency in the Airline Industry

As the airline industry continues to streamline operations, we have noticed an opportunity to improve on inefficiencies in vendor management. Like other industries, airlines work with multiple partners to execute marketing and advertising strategies. While advertising and marketing spend has increased year over year, there has not been a proportionate increase in buyer conversions.

In fact, digital ad spending in travel will increase by 21.4% to $10.86 billion by the end of 2019. Yet, we have seen lower conversion efficiency as abandonment rates reached 81.8% in 2018, the highest of any industry. What can account for such inefficiency in an industry that prioritizes growth and innovation across its operations?

Conversion Efficiency

Cybba has worked with international airlines for over 6 years to address the cross-industry challenge of conversion rate optimization. We’ve identified two common sources of conversion inefficiency: 1) Attribution Overlap and 2) True Incremental Attribution.

Attribution Overlap

The average enterprise tech stack consists of 91 marketing services. Marketing teams partner with different vendors to reach customers at each stage of the buyer journey. These customer touchpoints include display prospecting, paid social, SEM, onsite engagement, abandonment emails, and display retargeting. After a successful conversion, every vendor wants a piece of the pie. This means multiple vendors claiming payouts for a single conversion, which can hurt your bottom line.

To combat attribution overlap, we recommend strategic vendor consolidation. When building out your marketing stack, consider which platforms will minimize cross-channel overlap. In our experience, clients that take advantage of Cybba’s full platform of solutions typically see an average attribution overlap of 8.54%. However, since Cybba dedupes engagement across our multiple solutions, we only count the action that converts.

The best strategy is to consolidate your efforts with a vendor that uses a single attribution approach that encompasses multiple touchpoints in your marketing strategy. By removing attribution overlap, you can achieve a potential cost savings of as much as 23% to deliver more for less.

Read more: [Blog] Attribution Inefficiency: Avoid Overpaying For Your Conversions

True Incremental Attribution

Another source of conversion inefficiency is paying for conversions that would have happened naturally. We know that about 5.3% of eCommerce customers will return to an abandoned shopping cart without a reminder.

To pay for true conversion uplift, look for vendors who can identify incrementality, and show the added value of their services. Through incrementality testing, Cybba has saved partners upwards of 12% in digital marketing costs.

To move the needle on conversion efficiency, airlines can look at consolidating their marketing services vendors. Transparent conversion attribution and incrementality testing can combat the hidden costs of attribution overlap and unnecessary attribution. The key to higher margins may be waiting right in your tech stack.

Victoria Cohen
Victoria Cohen
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