Programmatic advertising solutions can solve conundrums for companies across a wide range of industries.
Airlines are frequent users of real-time ad bidding for increasing revenue, and new research has delivered crucial insight into how this is done.
Yieldr, a provider of programmatic marketing solutions, has created an exclusive infographic for PerformanceIN to outline some of the challenges airlines face over key holiday periods, one being the month of January.
For companies running flights at the start of the year, the usual requests of driving bookings, boosting revenue and upselling to customers are desirable, but developing coherent branding and increasing revenue per available seat are also on the agenda. So, how do they go about achieving these goals?
Optimising through data
Yieldr claims that airlines will first trawl through their banks of customer data to pinpoint underperforming flights and work on ways of ensuring they’re brought up to speed.
A typical process sees the company consult with its revenue management system to identify struggling flights and search for customers which are most likely to seize upon an offer for their seats.
Airlines can utilise this data to forge a highly direct line of communication with the user and reach out to them via the deployment of custom messages. Two days after the initial contact is made, further ad impressions guarantee the user still has the deal in their mind and with the very airline making the call to action. This is a technique designed to capitalise on the increased demand for holidays during January as those in chilly climates turn to the travel 'sales season' for a cut-price break.
A successful route to purchase can be completed within four days; a short timescale given the average cost to fly, but certain techniques have enabled companies to chop their lead times down to size. Retargeting, for instance, makes ad clickers 280% more likely to convert, with Yieldr also claiming a 141% increase for non-clickers.
Mendel Senf, COO at Amsterdam-based Yieldr, says programmatic ad solutions have created huge advantages for the airlines they serve.
“Research into airlines’ revenue management data shows the benefits of programmatic advertising,” he told PerformanceIN.
“By using a mix of reach and retargeting campaigns, an airline can increase booking volume, boost website traffic and ultimately drive revenue.”
Click the image below for Yieldr’s version of the events.
Insights from Yieldr kick off a month of travel-focused content at PerformanceIN. Keep your eyes on the site for more articles on one of the world’s biggest industries.