United AirlinesAdvertising In Europe

2002 Campaign Results and

2004 RecommendationFallon - London

Mike Tunnicliffe - Marketing Manager, United Airlines

Market Background: The State Of The Brand Is Rooted In BA’s Dominance And American’s

Stronghold To The U.S.

3

Prior To Launching In 2001, Brand Health Measures Were At Historical Lows.

Source: BTM

71

6266

6467 68

19 19 1816

1816 16

18

64 65

0

10

20

30

40

50

60

70

80

90

Apr-99 Jun-99 Oct-99 Dec-99 Apr-00 Jun-00 Oct-00 Dec-00

American United

Total S pontane ous Brand Aware ne ss -Bus ine s s Trave lle rs

4

Consideration Factors For Business Travellers

D o the y fly whe re I ne e d to go?

Is the re a flight at the right tim e ?

H ave I got a loyalty card ?

H ow m uch d oe s it cost?

• Pragmatic, absolute criteria

• Practical, but non-essential criteria

Is the re a bus ine ss lounge ?

D o I ge t a flat be d or le g space ?

Is it an airline for som e one like

m e ?

S e rvice (re spons ive ) re cord ?

• More emotional/brand related criteria

Source: United qualitative reserarch, 2CV

5

Campaign Idea:

Bus ine ss flye rs take a practical vie w on trave l. The y’re

not inte re ste d in cham pagne and caviar. The y jus t want

to ge t from point A to point B with m in im al fuss .

Ins ight

U nite d und e rstand s bus ine ss trave l isn’t glam orous , but

we ’re d o ing our part to m ake it as good as it can be .

Brand Id e a ≥ C onne ctions to 1 50 U .S citie s

≥ E conom y Plus

≥ Mile age Plus

6

United Reversed 5 Years Of Flat To Declining Brand Measures.

May ’03 Feb ‘04 Increase

Business TravellersTotal Spontaneous Brand Awareness 45% 54% 20%Spontaneous Ad Awareness 7% 16% 129%Prompted Ad Awareness 12% 24% 100%

Leisure TravellersTotal Spontaneous Brand Awareness 26% 35% 35%Spontaneous Ad Awareness 3% 11% 266%Prompted Ad Awareness 9% 13% 44%

=S ignificant Increase

Im portant to Note : U nite d ove rtook both Am e rican and Virgin on Ad Aware ne ss Me asure s

S ource : Q uae s tor Post Wave D e brie f July ‘03

7

United was able to regain their lost high-yield market share in 2002

-6

-4

-2

0

2

4

6

UA BA AA VS Other

High-Yield Market Share Variance

2001 vs. 2000

2002 vs. 2001

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Consideration Increased Immediately, Demonstrating The Campaign Potential.

45

64

0

10

20

30

40

50

60

70

Percentages

Pre+Post Advertising Campaign 2002: Agree to Consider United on Next US flight

Pre-Campaign Post-Campaign

Source: Cinema research

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Key brand measures moved

0 10 20 30 40 50 60

Cares for itspassengers

A trustworthy brand

Understands theneeds of business

travellers

A high qualityairline

Post 2002

Pre 2002

Source: BTM

10

Pre

Post

Have a good

service

“Golf”prompted significant increases in being a trustworthy brand and understanding the needs of passengers

An innovative

airline

A high quality airline

Cares for its passengers

A trustworthy brand

Understands the needs of passengers

A global airline

One of the worlds largest

airlines

Flies to lots of US destinations

Has good frequent flyer

service

11

Web Traffic And Booking Engine Revenue Were At An All Time High in June/July/Oct ‘03, Corresponding To Our Advertising Bursts.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03

Unique Monthly Visitors Page Views Visits Online Revenue

Sep/Oct ’03Ad Burst

June ’03 Ad Burst

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Website Weekly Performance v Pre Campaign

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

400.0%

450.0%

Week 1 v -1 Week 2 v -1 Week 3 v -1 Week 4 v -1

First Time V is itors

Acquired V is itors

Page V iew s

Daily Uniques

United saw significant shifts in first time visitors, and daily unique visits in June 2004

13

United saw an uplift in web revenue £589,966 yr-on-yr when advertising was in market

Online Revenue 2002-2003

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2003

2002

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S ource : BTM and Q uaestor

United’s Increase In Unaided Brand Awareness Among Business Travellers Is Closing The Gap On American/

Unaided Brand Awareness-Business Travellers

0

20

40

60

80

100

120

Jul-97 Nov-87 Apr-98 Jul-98 Nov-98 Apr-99 Nov-99 Apr-00 Nov-00 Jun-01 Dec-01Jun-02 Dec-02 May-03

Jul-03 Sep-03 Oct-03 Jan-04 Mar-04

UA

BA

AA

VS

15

United has overtaken both American and Virgin at various points in Unaided

Advertising Awareness

0

5

10

15

20

25

30

35

40

45

50

May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04

Virgin

AA

BA

United

S ource : BTM and Q uaestor

16

Total Spontaneous Brand Awareness—Business Travellers

0

10

20

30

40

50

60

70

80

90

Apr-00Jun-00Aug-00Oct-00Dec-00Feb-01Apr-01Jun-01Aug-01Oct-01Dec-01Feb-02Apr-02Jun-02Aug-02Oct-02Dec-02Feb-03Apr-03Jun-03Aug-03Oct-03Dec-03Feb-04

United

American

Source: BTM and Quaestor

17

Spontaneous Advertising Awareness—Business Travellers

0

5

10

15

20

25

Apr-00Jun-00Aug-00Oct-00Dec-00Feb-01Apr-01Jun-01Aug-01Oct-01Dec-01Feb-02Apr-02Jun-02Aug-02Oct-02Dec-02Feb-03Apr-03Jun-03Aug-03Oct-03Dec-03Feb-04

United

American

Source: BTM and Quaestor

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0

10

20

30

40

50

60

First Mention Brand

Awareness

Unaided Brand

Awareness

Unaided Ad

Awareness

Prompted Ad

Awareness

Overall Awareness Levels For Business Travellers in 2003

Pre May-03

Post Jul-03

Pre Sep-03

Post Oct-03

S ource : Q uae stor Post Wave D e brie f July ‘03

A 27% increase in unaided brand awareness from pre June to post O ct ’03 bursts

There Are Significant Awareness Increases Among Business Travelers When United Is In The Market.

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05

10

1520

253035

40

First Mention

Brand Awareness

Unaided Brand

Awareness

Unaided Ad

Awareness

Prompted Ad

Awareness

Overall Awareness Levels for Leisure Travellers in 2003

Pre May-03

Post Jul-03

Pre Sep-03

Post Oct-03

S ource : Q uae stor Post Wave D e brie f July ‘03

A 46% increase in unaided brand awareness from pre June to post O ct ’03 bursts

The Same Holds True For Leisure Travellers.

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United has grown awareness amongst both the business and leisure audiences

0

10

20

30

40

50

60

PreMay-03

PostJul-03

PreSep-03

PostOct-03

PreJan-04

PostMar-04

First Mention Brand Awareness-Business

First Mention Brand Awareness-Leisure

Unaided Brand Awareness-Business

Unaided Brand Awareness-Leisure

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Base: All respondents (180/186/395/384); Q9b

Likely (4/5)

Very Likely (5)

Very Unlikely (1)

Unlikely (1/2)

Un i t e d P r e Un i t e d P o s t

1222 18 22

17 12 168

Re - Un i t e d P r eRe - Un i t e d P o s t

41 44 42 54

29 26 30 22

Consideration

Consideration Measures Increased 31.7% Amongst The Business Traveller.

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Base: All respondents (180/186/395/384); Q9b

Likely (4/5)

Very Likely (5)

Very Unlikely (1)

Unlikely (1/2)

Un i t e d P r e Un i t e d P o s t

820 15 19

167 710

Re - Un i t e d P r eRe - Un i t e d P o s t

28 44 37 46

27 22 23 16

Consideration

Consideration Has Increased 64.2% Amongst The Leisure Traveller.

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All brand measures have significantly increased except for ‘flies to lots of US

destinations’

% May 03July 03

Sept 03

Oct 03 Jan 04 Mar 04 May 03July 03

Sept 03

Oct 03 Jan 04 Mar 04

56

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11

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24

58

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57

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31

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67

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23

32

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30

35

66

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39

49

41

59

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27

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20

31

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63

17

13

27

20

7

21

25

21

64

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18

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21

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18

80

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36

30

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30

30

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66

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28

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30

30

64

16

16

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30

14

29

40

19

67

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25

Lots of destinations

Make travel easier

Understand leisure travellers

Understand business travellers

Cares

Good value

Comfortable

Modern

Affordable

Significant increase=

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Prompted media attribution for those who had seen airline advertising

60

77

56

63

TV

American Airlines

United Airlines

Virgin

British Airways

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• Revenue:– UK Revenue goal exceeded by 6.6% through 2003.– £5 million revenue increase in July/Aug ’03 (after June ad burst) from

same period 2002.

• Web:– 51% increase in web bookings in June ’03 from June ’02.– 43.6% increase in web sales in June ’03 from June ’02.– First time visitors to website increased by 186% from May-June’03.

• Market Share:– Stole 10% share points off BA and doubled economy bookings in

June ’03.

Consideration Growth Is Translating To Sales.

RO I

3.38 to 1

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– Awarded “Best Pan-European Campaign” at the Meribel Film Festival in France

• Received the ‘Crystal d’Or Award’• Up against 50 entrants, including Sony and other blue-chip brands

– Received 7 out of possible 9 Travel Advertising Awards at CIMTIG – and United won more awards than BA and Virgin combined

• Gold – Best Television Advertisement – Leisure (“Check-out” TV spot) • Gold - Best Colour Press Campaign• Gold - Best Outdoor Campaign• Silver - Best Colour Press Advertisement• Silver - Best Outdoor Advertisement• Silver - Best Transport Ad/Campaign• Silver - Best Television Advertisement - Leisure ("Tips" TV spot)

– Received 3 awards at the British Television Advertising Awards (BTAA):• BTAA is one of Britain’s Television’s industry top advertising awards• Gold – Best TV advert for “Golf” in transport advertising sector• Silver – Best use of Cinema for “Golf” • Bronze – 2003 Campaign

Summary of Creative Awards

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Awards Continued. – Received 2 awards (Gold and Silver) at UK Midsummer Awards

• This is an international commercial award ceremony recognizing outstanding creative in TV and cinema; entries from 38 countries worldwide

• Received Gold for “Golf” TV spot in Travel and Tourism Sector • Received Silver for “Itinerary” TV spot in same sector

– Shortlisted at Cannes for United television. – Marketing & Media International advertising award

• United received the top award in the travel category. • BA was also short-listed but walked away empty handed.

– APG creative planning awards 2003– Kinsale Awards winner– Creative team (Glenn/Simon) short-listed as best creative team in UK– Awarded 'SARA Certificate' for developing and executing a successful

radio campaign in Germany:

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And, The Campaign Received “Pick Of The Month” By Creative Review.

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The 2004 European Challenge.

– To develop a globally consistent, locally relevant campaign for Europe.

• Drive consideration amongst FBT’s but not at the exclusion of leisure travellers.

• Continue building brand awareness and knowledge of the United brand by creating a values connection with travellers.

Pre se rve what’s working

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The Key Difference Between The US And European Work Will Be Tonal.

Bus ine ss trave l

e nable s

opportunitie s

EUROPE

E m brace pragm atism

US

C arpe D ie m

The outtake of both cam paigns is the sam e : U nite d und e rstand s m e

and why I trave l.

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The Campaign Idea:

The

im portance of

face -to-face

contact

S e e king out

opportunitie s

A fe rtile

cre ative

id e a

O pportunitie s d on’t just com e to you, you have to go out and ge t the m .

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European Advertising Construct Recommendation.

O pportunitie s d on’t com e to you, you have to go and

ge t the m .

… be cause with 84 we e kly flights from H e athrow to

1 50 U .S . citie s we ’re the airline to ge t you the re .

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Insights For Executing Animation:

– Animation and illustration are used in European advertising much more than U.S. advertising.

– The low cost travel category employs animation to a point where it’s become wallpaper.

It’s param ount we find a unique brand s tyle , so the

anim ation is d is tinctive .

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