How Advanced Analytics Helped Alaska Airlines Achieve a 30% Increase in ROAS

January 30, 2023

As the fifth-largest airline in the United States, serving more than 120 domestic destinations, and the leading carrier of nonstop flights to and from the west coast, Alaska Airlines collects many first-party data points across different repositories. The company turned to us when it needed to bring it all together and securely house it in one location and streamline processes. 

Learn how Alaska achieved a 30% increase in ROAS through predictive lifetime value (pLTV) models

How We Did It

We built a marketing data warehouse using BigQuery in Google Cloud, which tied Alaska’s first-party data together across CRM, media and site analytics. Next, we created predictive lifetime value (pLTV) models using Google Cloud AutoML. Then we fed the predictive scores in the Campaign Manager Conversions API. This connection enabled us to use that data in Search Ads 360 (SA360) and set up an Auction Time Bid Strategy to quickly, predictively and programmatically bid to pLTV.

Along the way, we uncovered some interesting insights about the values tied to customers’ origin and destination (O&D) airports, travel days, ages, loyalty program membership and more. 

The Results

Using the advanced infrastructure and modeling has helped Alaska achieve a higher return on ad spend (ROAS). In fact, activating the information across its Google platforms led to a 30% increase in ROAS for O&D campaigns and helped the company earn $1 more per paid search click. 

Get All the Details

Watch our recently recorded webinar with Google and Alaska (featured above) to learn more about the project from our Adswerve experts Alan Rosen and Luka Cempre and from Natalie Bowman, Managing Director of Product and Digital Experiences, at Alaska Airlines.

Lastly, don’t forget to check out the case study featured in Google’s all-new privacy playbook, available now!

If you’re interested in harnessing the power of Google Cloud and Search Ads 360 for your organization or one of your clients, let’s talk!