Norwegian Air lands 170% lower cost-per-booking with machine learning
- Norwegian Air saw a 170% lower cost per booking than its CPA (cost per action) goal by partnering with AdTheorent and Vizeum on a machine learning-powered digital ad campaign, which ran from Oct. 8 - Dec. 31 2018, according to results shared with Marketing Dive.
- The AdTheorent platform identified targeted variables, which led to higher engagement and will be used to develop future campaigns. For example, home-based users booked flights four times more often than users at work, among those using Wi-Fi to visit the airline’s booking site.
- Custom machine learning models were developed to target users in select U.S. flight locations, who were determined to be most likely to engage with the ad and book a flight. Pixels were placed on the booking site’s booking confirmation page to track consumer action after they were exposed to the brand campaign. Data science teams leveraged real-time feedback to optimize the campaign delivery to consumers most likely to purchase tickets.
Norwegian Air’s campaign underscores how marketers can leverage machine learning to engage with targeted consumers in a more cost-effective way. The airline was able to identify opportunities to optimize and target the consumers most likely to book a trip, and boost its brand awareness in certain key markets.
Marketers are showing a greater interest in machine learning and related technology, like artificial intelligence, to deliver more personalized content and identify prospective customers and market trends. Travel and hospitality is one industry that appears to be especially embracing the technology to target travelers with unique experiences and content that encourage them to book a trip. The campaigns are appealing to millennials, who prefer to spend on experiences like travel.
The Norwegian Air machine learning-powered digital ad campaign follows similar efforts from other travel-focused brands. Lufthansa debuted an AI-powered ad experience with IBM Watson Advertising that allows consumers to interact with the airline for general questions and travel content. The ad highlights travel locations with facts, tips, images, videos and a flight reservation option.
Emirates Vacations, which is part of Emirates Airline, saw an 87% engagement lift compared to average click-through ads, after testing an ad campaign leveraging AI-powered chatbots. The ads let people type in questions and receive answers to travel and tip questions, and offer destination and vacation package recommendations.