With Flight Centre Travel Group (FCTG) having three popular brands all competing for the same customer, they challenged us to rethink how those brands treated each other in performance media. Rather than being competitors, how could they cooperate and work to a unified goal? By doing so, FCTG wanted to achieve a reduction in search spend, yet maintain search enquiry volumes.
Our solution was to develop a portfolio bidding and optimisation framework to:
• Identify inter-brand competition within the search channel.
• Develop a bidding hierarchy to reduce inter-brand competition.
• Develop priority destination tiers based on sales volume and media return.
• Develop a Win/Pass/Play framework by destination to determine which brands would compete.
In order to control the bidding between brands for a given search query, we devised a clear set of rules to determine which brand would:
• Win a specific ad rank
• Have the flexibility to play for an ad rank
• Pass on the ability to bid
Once all analyses were complete, a W/P/P framework was built for each destination, resulting in a 7% decrease in CPC, while CPC for the total travel category remained flat. By reducing CPCs in a stagnant market, FCTG was able to:
• Reduce channel expenditure by $2 million (17%) over the financial year.
• Increase search enquiries by 6,000 (+2%).