MAKALU MARKETING
Overview: Makalu Marketing helped Mammoth Reservations increase profit from digital marketing by 1,422% from the 2018/2019 winter ski season to the 2019/2020 winter ski season.
Case Study: Mammoth Lakes is an idyllic mountain town nestled in the Sierra Nevada mountain range of California. At an elevation of 8000 feet, it serves as one of California’s premier ski destinations during the winter. The town also offers a host of summer activities including mountain biking, hiking, water sports, and access to Yosemite National Park.
The town is home to a large selection of vacation rentals, hotels, and restaurants that cater to more than 2.8 million tourists every year. Among these businesses is Mammoth Reservations, one of the leading vacation rental companies in Mammoth Lakes.
Mammoth Reservations offers hundreds of privately owned vacation rentals across its three brands: Mammoth Reservations, Mammoth Estates, and Mammoth Sierra Reservations.
In August 2019, Makalu Marketing partnered with Mammoth Reservations to improve digital advertising performance.
Leading up to Mammoth Reservations' peak winter season, Makalu Marketing created a Marketing Plan that focused on increasing the revenue, profit, and ROI from digital advertising. The Marketing Plan focused on three key areas:
-
Accurate measurement of revenue, profit, and ROI that is directly attributed to paid advertising.
-
Data driven optimizations, which uses the revenue, profit, and ROI data to optimize the paid advertising.
-
Advertising expansion opportunities.
Over the course of two months, Makalu Marketing implemented the Marketing Plan in partnership with Mammoth Reservations. The overall success of the plan was due to data driven decision making.
As we examine the results of the Marketing Plan, there is a clear improvement in revenue, profit, and ROI during the 2019/2020 ski season (which runs from November until March). Let’s take a look at the data:
The graph below shows Mammoth Reservations revenue over time. Shortly after the partnership began, we saw a large Year-over-Year increase in revenue during the peak 2019/2020 winter ski season.
If we look at the Year-over-Year (YoY) growth percentage for Revenue, we see healthy gains when comparing the 2018/2019 and 2019/2020 seasons.
Profit saw similar performance gains during the 2019/2020 winter ski season. Starting in November 2019, profit from paid advertising increased significantly.
Looking at the Year-over-Year (YoY) growth percentage for Profit, we see impressive performance when comparing the 2018/2019 and 2019/2020 seasons.
The final graph shows the overall Return-on-Investment (ROI) from paid advertising. ROI is a great metric because it provides an accurate representation of the overall efficiency of the advertising spend. As an example, every $1 that Mammoth Reservations invested in paid advertising returned $18 of revenue in January 2020.
Similar to profit and revenue, ROI shows tremendous performance gains when comparing the 2018/2019 and 2019/2020 seasons.
These growth metrics are a testament to the partnership and a strong focus on data driven optimizations. With a great foundation to work from, Makalu Marketing’s Marketing Plan continues to pay dividends for Mammoth Reservations. Profit, Revenue, and ROI continue to grow each year.
If you would like to learn more about the success of Mammoth Reservations, or talk to Makalu Marketing about your own business, please contact Andrew at andrew@makalumarketing.com or (650) 260-4870.