Tuesday, April 7, 2009

Targeted ads on airline seatback screens - millions in ad revenue for airlines.

Two blogs today, The Shearwater Blog, which focuses on airline ancillary revenue, Dennis Schaal’s blog just reported a new technology player, JETERA which will enable targeted ads to be served on passengers’ seatback screens.

Jeff McChesney, JETERA’s CEO explained in a press release issued today, "This production software forms the basis of our 'secret sauce' and allows us to quickly and easily repurpose and customize the engine for each individual airline's particular needs. It also revolutionizes the way ads are inserted into IFE systems by replacing the traditional, long and labor-intensive methodology with a dynamic, digital and highly responsive ad network.”

So, as I understand this, you’ll be watching your favorite TV shows onboard your next transcontinental flight, and WHAM – the commercials you see will be tailored just for you. Wowza – that’s targeting a captive audience. No TIVO and nowhere to run.

The press release goes on to say that “It provides digital, multimedia ads personalized to each individual passenger at their interactive seatback screen. In particular, the core engine includes an ad delivery system, an ad targeting system, associated logic with a software configurable, business rules system and robust logging routines for metrics and analysis. As a result, JETERA will deliver ads that are timely, relevant and actionable to each passenger, based on when, where and how they are traveling.”

So…they know I’m traveling to NY, they know that I’ll be there for a week, they may know that I like Broadway shows, and they may have an offer for me for the shows that have availability during my NY stay. Oh – and the “how” I’m travelling. I’m a business-class traveler, so perhaps I’ve got an expense account. Broadway show and dinner!

I haven’t spoken with the folks at JETERA yet, so I’m just supposin’….but this makes sense to me. Here’s a great example of how airlines can get beyond checked baggage and seat assignments into generating some interesting incremental income. And there’s more advertising opportunities for travel suppliers to come…

1 comment:

Dennis Schaal said...

Susan: Yes, this would be incremental revenue for airlines, and it goes beyond checked bag fees and seat assignments. But, does it really add value to the consumer, which the airlines view as just another advertising target? Give me an ancillary service with value: a discounted first class ticket, elite boarding, a bottle of champagne....something. But, I am concerned with how the behavioral advertsing blitz will impact the right to privacy. With all of these companies selling and sharing cookie data, is our private information really secure? This will become a huge issue, methinks.