USA TODAY published an article yesterday describing how some airlines are capturing new streams of revenue by selling advertising space in and even on their planes.
With the impact of September 11th and surging fuel prices, airlines have had to adapt and think outside the box to survive. They’ve realized that their captive and affluent customers are incredibly attractive to marketers and can bring significant growth to the bottom line. According to the Fall 2005 Mediamark Research Survey of the American Consumer, nearly 35% of adult airline travelers have a household income of $100,000 or more.
Companies are paying up to reach these consumers and are placing ads on napkins, beverage cups, tray tables, seatback inserts, sick-sacks, and even the entire exterior of the plane. These advertisers include companies such as Coca-Cola, Saab, Hertz, Verizon Wireless, and the NBA.
This rather new source of revenue is quite lucrative: AirTran charges up to $50,000 per month to advertise on their napkins and US Airways earns about $10 million dollars annually from napkin and tray advertising.
Read more at USA TODAY.
These types of deals are becoming more and more commonplace, especially in the travel industry where companies are seeking new forms of revenue and marketers are seeking new methods of reaching these affluent consumers. In the lodging industry, Starwood has been the pioneer. It’s only a matter of time before others wake up and realize what they are missing out on.
