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Airline ancillary revenue generation - from the POV of the international advertiser.TRANSCRIPT
Generating Ancillary Revenue THROUGHOUT THE ENTIRE JOURNEY EXPERIENCE
Raymond GirardPresident, Spafax Interactive
May 12, 2010
Generating Ancillary Revenue THROUGHOUT THE ENTIRE JOURNEY EXPERIENCEAgenda
• Brand connections • Advertiser expectations • How airlines can deliver on those expectations• A few examples of best practices
Ancillary revenueBRAND CONNECTIONS
This isn’t a presentation about generating revenue by charging for access to the WC.
Ancillary revenueBRAND CONNECTIONS
It’s about connecting brands with your customers – and having those brands pay for the privilege.
Brand connections …BUT WHY WOULD YOU LISTEN TO ME?
We’ve been making connections between brands and airlines for 25 years – and have generated over $300m USD in the process
BRANDS / ADVERTISERS
Brands / advertisersTHE MEDIA WORLD IS CHANGING…
• proliferation of new media platforms
Addressable
Portable Searchable
Social Interactive Transactional Everywhere
Brands / advertisers…AND ADVERTISERS HAVE HIGH EXPECTATIONS
1. audience2. speed3. rich media4. ROI – return on investment5. ROE – return on engagement
Brands / advertisersTHE AUDIENCE THEY EXPECT
• targeted• connected• PMEB’s ++• segmented
Brands / advertisersTHEY WANT SPEED
• time to market• flexibility• streamlined process
Brands / advertisersTHEY WANT PROOF OF RETURN ON INVESTMENT
• research • partnership • proof of performance
Brands / advertisersTHEY WANT ENGAGEMENT
• content• narrative• a “story”
CONTENT
ONLINE
AMBIENT
TV/AVODPRINT
PROMOTION
Brands / advertisersARE GETTING WHAT THEY WANT?
Media are happy to indulge them.
THE BILLION YUAN QUESTION
Brands / advertisersWHAT DO THEY GET FROM AIRLINES?
• audience• rich media environment• engagement• …the transumer
(consumer in transit)
Brands / advertisersWHAT DON’T THEY GET FROM AIRLINES:
What is the airline advantage with advertisers? THE AIRLINE JOURNEY CYCLETM
What is the airline advantage with advertisers? THE AIRLINE JOURNEY CYCLE
pre-flight
in-flight
post-flight & research
trip prep
decision
Safety and boarding videos
Electronic publishing, website management IFE portals and social
media
Commercialisation of lounges
GUI design and interactive
development
Inflight magazines
Frequent flyer e-zines
Inflight distribution, sampling and merchandising
IFE guides
Do airlines facilitate brand connections? DEAL BREAKERS:
• limited inventory• process / red tape / bureaucracy• high CPM• no proof of ROI
MAKING CONNECTIONS
Facilitating brand connectionsADOPTING “TERRESTRIAL MEDIA” BEST PRACTICES• compete with terrestrial
media (less process)• a single point of contact
at the airline • senior management
support• adopt a “hub and
spoke” approach to media sales
AGENCIES
AIRLINE
TRANSUMER
BRANDS
MEDIA OWNERS
Facilitating brand connectionsADOPTING “TERRESTRIAL MEDIA” BEST PRACTICES• adopt a “hub and spoke” approach to media sales
SUCCESS
175+ touchpoints throuhgout the airline journeyAIR CANADA MEDIA
pre-flight
in-flight
post-flight & research
trip prep
decision
Safety and boarding videos
Electronic publishing, website management IFE portals and social
media
Commercialisation of lounges
GUI design and interactive
development
Inflight magazines
Frequent flyer e-zines
Inflight distribution, sampling and merchandising
IFE guides
175+ touchpoints throuhgout the airline journeyAIR CANADA MEDIA
175+ touchpoints throuhgout the airline journeyAIR CANADA MEDIA
175+ touchpoints throuhgout the airline journeyAIR CANADA MEDIA
175+ touchpoints throughout the airline journeyAIR CANADA MEDIA
Innovation = customer added value VIRGIN ATLANTIC MEDIA
• Drinks – Bacardi, Grey Goose, Bombay Sapphire, Mumm, Heineken, Stella Artois, Dewars, Stolichnaya…
• Cars – Jaguar, Maserati, Honda, Lexus…
• Technology – Apple, Sony, Nokia, Motorola, B&W, BlackBerry…
• Personal care – GHD, Dermalogica, Jo Malone, Cowshed…
• Food – Gü, Green and Blacks, Costa, Ben and Jerry’s…
• Entertainment – Lord of the Rings show, We Will Rock You…
• Wellbeing – Mind Gym, Personal stylists, Lifecoaches
• Media – Sky, Virgin Media, New Line, Sony
Innovation = customer added value VIRGIN ATLANTIC MEDIA
Innovation = customer added value VIRGIN ATLANTIC MEDIA
Integration with airline operations LAN AIRLINES
WHAT IS SPAFAX?
Full Service Offices
Sales Affiliates
Editorial Satellite Offices
Worldwide coverageA full service sales and editorial network
• 8 offices worldwide• 160+ full-time staff• 22 sales agents
CONTENT
CONTENT
CONTENT
Our approachA HUB AND SPOKE OPERATION
Like airlines, we’re a hub & spoke operation. We use content as the vehicle for making engaging connections between advertisers and your customers
Our partnersAIRLINES AND TRAVEL BRANDS
Thank you!STOP BY OUR BOOTH FOR A CHAT