About Virgin Atlantic and PHD UK
Virgin Atlantic is one of UK’s leading airlines serving the world’s most exciting business and leisure destinations. PHD Media, a communications planning and buying agency within the Omnicom Media Group, manages the Virgin Atlantic media planning and buying account, including the Paid Search activity.
The destination bidding capability has saved us time every week, removing the need to look at the account at a granular level to see how each destination is performing. Thanks to using Marin bidding technologies across our test campaigns, our efficiencies have improved greatly and our revenue has increased.
Not All Roads Lead to Rome
Virgin Atlantic continually faces fierce competition from direct competitors – airline companies and third party resellers who sell the same flight routes. As a result, it has to constantly monitor the market and be very reactive to any promotions that other industry players are offering – and must contend with tight turnaround times to ensure the messaging and approach is as competitive as possible.
Although PHD Media works to an ROI target, they see very different behaviours across each of Virgin Atlantic’s destinations, which means they need a tailored approach for every location. In addition, as Virgin Atlantic flights take off from three separate UK airports, they have to consider the seasonality of the airline flight destinations themselves (for example, peak travel time to New York vs. Nigeria), alongside the differing nature of their consumers’ booking habits within each part of the UK.
Each month, PHD works towards an ROI goal as its core KPI for Virgin Atlantic. PHD also considers revenue and conversions within its monthly targets. Overall success is measured by achieving better results across all targets not only on a monthly but also a longer-term year over year basis.
The nature of Virgin Atlantic’s account meant that the agency needed a new way of approaching their optimisation, as it had to take into consideration multiple KPI variables and revenue targets.
Based on the successful use of Marin across different accounts, PHD was confident it could achieve success thanks to Marin’s bidding automation, cross-account management, ease of optimisation, and reporting capabilities.
Virgin Atlantic account is using simultaneously different features in Marin like Dynamic Action based on the destination trends to optimise the bidding strategy, revenue and conversion data integration, automated and customised reporting and alerts, URL builder (each time new ad copy and keywords are added the URL is automatically generated to include all of the client’s and third party tracking requirements) and the Marin DC ID Action by Dimension- to update price and creative on the ads for a specific dimension (for example during promotions when there is a need to make multiple destination fare changes this can be done in one step using one DC ID upload sheet).
All of these elements enable us to manage the campaigns efficiently to save time, reduce manual tasks and potential human error as well as to optimise the account towards specific KPI and goals leveraging its historical data and building strategies that are really addressing their business needs.
Dynamic Action by Destination
Marin informed PHD that they could use Dimensions to monitor conversion performance. And, they could also use the data to calculate bid modifiers to increase bids on top performing destinations. These modifiers would work as an additional optimisation layer on top of the bids calculated by bidding folders.
The automated bidding feature enabled PHD to test optimising bids broken down by Virgin Atlantic flight route destinations using “Dynamic Action”, removing the need to manually monitor each destination’s performance on a week by week basis.
The account was split into two according to those destinations that had similar campaign behaviour, half controlled and half for the test.
Then, PHD used Marin’s Dynamic Action to test the destination boosts.
With regular account management and help from Marin’s bidding algorithm the agency was able to maintain brand position while steadily increasing booked revenue.
The generic bidding folder contained all generic activity. To help with reporting, they labeled each group with a destination “dimension” and depending on their conversion rates, positive boosts was applied to high performing destinations and negative boost applied to the low converting.
Spend would then be relocated to the better performing destinations within the generic bidding folder.
Bid adjustments were then applied to the “test” half to see the impact of dynamic actions on revenue figures. Alongside this, by applying positional bidding rules PHD was able to outbid Virgin Atlantic’s competitors and resellers, allowing them to maintain their ranking on top spots for related keywords terms.
Virgin Atlantic Search Campaigns Fly High with Marin Software
Although spend levels remained reasonably consistent, they were invested more efficiently with a higher ROI across media. This may provide an opportunity to increase the client’s media spend, since using Marin Software allowed the agency to optimise their campaign and achieve a higher level of revenue growth. Marin Software also streamlined Virgin Atlantic’s daily workload, improved the overall efficiencies within the account, and offered the opportunity to grow the account whilst ensuring that the agency improve upon established ROI targets.
Specific results include:
- + 79% in CVR uplift
- – 38% decrease in CPA
- + 30% increase in revenue
- + 100% increase of revenue per click
We know that AI is everywhere, but it’s still worth taking a moment to think about what the year ahead has in store for us. We present our thoughts on the most meaningful forces driving changes for performance marketers in 2024.
1. AI Transforms Supply
Artificial intelligence is redefining how we find and access information information, which means the surfaces for advertising will continue to evolve. AI-driven Search, like OpenAI's ChatGPT, Perplexity, and even Google Gemini, is better than a page full of links.
These AI systems are shifting user behavior, with more consumers preferring AI-powered search to deliver contextual answers. For advertisers, this means evolving ad formats integrated into conversational AI interfaces. OpenAI is “weighing” whether to offer ads. Imagine AI-guided shopping assistants recommending products based on real-time queries, with ads seamlessly embedded into these interactions. The challenge will be adapting inventory and placements to fit this new AI ecosystem.
2. AI Transforms Creative
Generative AI is revolutionizing ad creative, enabling brands to produce personalized, immersive content at scale. Instead of static messaging, brands can deploy dynamic campaigns that adapt to audience sentiment and trends in real time.
Even Coke has released an AI-generated commercial. The Ad Platforms are rushing to expand generative AI capabilities. As these tools mature, the "right message to the right audience" paradigm will feel outdated, replaced by hyper-responsive creative that shifts with cultural "vibes." This ability to quickly iterate creative will empower marketers to stay relevant and resonant.
3. AI Transforms Workflows
AI is moving beyond answering questions—it’s starting to do the work for us. We have long automated routine tasks like budget allocation and campaign creation, but this year, AI agents can get s#@t done for you with a simple prompt. This evolution is helping marketers focus on strategy and insights rather than execution.
Reactive Agents are great and will have a significant impact on daily tasks. Still, proactive AI continuously scouring your account for opportunities and inefficiency will lead to even better performance, driving efficiency and scalability like never before.
4. Shoppable Everything
The boundary between content and commerce is blurring. Social platforms, streaming services, and even podcasts are integrating shoppable ads to meet consumer demand for instant gratification. Platforms like Instagram, TikTok, and YouTube have already launched robust shopping integrations, but the trend is expanding.
In 2025, expect "shoppable everything" to gain traction, from QR codes on live streams to in-app shopping experiences on emerging platforms like BeReal. Have you bought something from your TV yet? Next year, you probably will. According to eMarketer, social commerce sales are projected to reach $1.2 trillion by 2025, with brands investing heavily in seamless, purchase-ready experiences.
5. Ads Everywhere
Subscription fatigue is real, and platforms are responding by increasing ad-supported models. From Netflix to Disney+, previously ad-free platforms are introducing tiered subscriptions with ads, creating new inventory for marketers.
Retail media networks are also booming, expected to command 25% of media spend by 2028, according to eMarketer. Anyone who has a captive audience is building a media network (see Western Union). This diversification offers brands more options to reach their targets, but it also requires careful strategy and tooling to manage campaigns across these expanding networks.
6. Evolving Privacy Laws
Consumer privacy continues to be a focal point, with eight new U.S. state privacy laws going into effect in 2025. These are similar to California's CCPA but add complexity for marketers, who must navigate an increasingly fragmented regulatory landscape.
Compliance will require robust systems to manage consent and protect consumer data. Additionally, marketers must focus on privacy-compliant targeting strategies, such as first-party data and contextual advertising, to stay competitive in a cookieless future.
7. The New Measurement Imperative
Accurate measurement is increasingly challenging as data collection becomes more challenging, especially if you rely on last-click attribution. Marketing mix modeling (MMM) and incrementality testing are emerging as key tools to evaluate campaign performance. Meta offers Robyn, Google has Meridian, and independent solutions address this measurement challenge.
But a better understanding of how your investment is performing and shifting dollars to the highest-performing opportunity can significantly improve your performance…what would you do with a 5x increase in conversions?
8. Google DOJ Ruling: Uncertainty, but No Immediate Action
The U.S. Department of Justice's antitrust case against Google creates uncertainty in the ad tech space. The DoJ has thoughts, however, with a new administration likely to take office in 2025, material changes to Google’s business model are unlikely in the short term.
However, given this continued uncertainty and the broad range of other platforms, marketers are wise to lessen their dependence on the Google marketing stack. Staying nimble and monitoring regulatory developments will be crucial to navigating potential disruptions.
9. The Shift to Contextual Targeting
As third-party data diminishes, contextual targeting is making a comeback. This strategy focuses on placing ads within relevant content rather than relying on individual user data, creating opportunities for brands to align with consumer interests in a privacy-friendly way.
The Burger King ‘Whopper Detour’ campaign is a prime example of successful geo-targeted contextual advertising. Innovatively leveraging location-based marketing, the campaign strategically targeted those within 600 feet of a McDonald’s location. By setting up a geo-fence around competing restaurants, Burger King could identify and connect with potential customers who were nearby. The ad was triggered by the customer’s proximity to McDonald’s and offered contextually relevant content, appealing to individuals who were likely already considering fast food purchases.
10. Cross-Channel Alignment
With more platforms and channels than ever, cross-channel alignment is essential. Consumers expect seamless experiences across devices and touchpoints, and marketers must deliver cohesive campaigns to stay competitive.
Managing and optimizing your programs in a unified platform is the cheat code for 2025. This type of integration streamlines workflows and ensures consistent messaging and performance measurement across all channels. In 2025 breaking down internal silos is a must-do.
Conclusion
Performance marketing in 2025 will be defined by the continuation of many of the themes we have been living through, but that doesn’t make them any less impactful. Staying ahead means embracing AI, preparing for regulatory changes, and adopting strategies prioritizing privacy and cross-channel integration. By aligning with these trends, marketers can position themselves for success in an increasingly complex and competitive landscape. Need help keeping up?
