condensed innovation feb 2014_#3

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February 2014, Issue #3 Catch Me If You Can What: Airline ‘VIP’ lounges are respites from the more crowded airport concourses. The relative exclusivity of the airline club visitor whether a frequent flyer or someone who has paid a fee for access makes this environment arguably one of the richest commercial interminal opportunities available. Airline clubs provide marketers with access to higher affluence, higher education, C level decision makers, opinionleaders and techsavvy innovators an audience notoriously difficult to reach through terrestrial media channels. US airlines have been spending billions collectively on renovations to their clubs in recent years. This was done in order to stay competitive – when compared to international airline lounge offerings and to meet the overall demand of increased air travel. To demonstrate its commitment, for example, Thom Filicia and Architectural Digest were heavily involved in Delta’s development of its new lounges at JFK and ATL. Even American Express has launched higherend air travel lounges in the US. So What: Extensive Reach. Delta SkyClubs provide advertisers access to more than 12 million travelers per annum. United’s 32 clubs reach over 24 million ticketed passengers per annum. Airlines register all lounge visitors when they enter a lounge, so circulation condensed innovation

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Page 1: Condensed Innovation Feb 2014_#3

 

   

                                                                                                                                                       February  2014,  Issue  #3  

Catch  Me  If  You  Can  

What:  

• Airline  ‘VIP’  lounges  are  respites  from  the  more  crowded  airport  concourses.  The  relative  exclusivity  of  the  airline  club  visitor  -­‐  whether  a  frequent  flyer  or  someone  who  has  paid  a  fee  for  access  -­‐  makes  this  environment  arguably  one  of  the  richest  commercial  in-­‐terminal  opportunities  available.    

• Airline  clubs  provide  marketers  with  access  to  higher  affluence,  higher  education,  C-­‐level  decision  makers,  opinion-­‐leaders  and  tech-­‐savvy  innovators  -­‐  an  audience  notoriously  difficult  to  reach  through  terrestrial  media  channels.  

• US  airlines  have  been  spending  billions  collectively  on  renovations  to  their  clubs  in  recent  years.    This  was  done  in  order  to  stay  competitive  –  when  compared  to  international  airline  lounge  offerings  -­‐  and  to  meet  the  overall  demand  of  increased  air  travel.    To  demonstrate  its  commitment,  for  example,  Thom  Filicia  and  Architectural  Digest  were  heavily  involved  in  Delta’s  development  of  its  new  lounges  at  JFK  and  ATL.    Even  American  Express  has  launched  higher-­‐end  air  travel  lounges  in  the  US.      

 

 

 

 

 

So  What:  

• Extensive  Reach.    Delta  SkyClubs  provide  advertisers  access  to  more  than  12  million  travelers  per  annum.    United’s  32  clubs  reach  over  24  million  ticketed  passengers  per  annum.    Airlines  register  all  lounge  visitors  when  they  enter  a  lounge,  so  circulation  

condensed innovation

Page 2: Condensed Innovation Feb 2014_#3

numbers  are  real  hard.    Oracle  has  been  one  of  the  first  advertisers  extending  its  aviation  media  reach  beyond  in-­‐terminal  advertising.    The  advertiser  has  a  long  running  lounge  ad  program  covering  key  airline  lounges  in  select  US  hub  airports.  

• Long  Dwell  Times.    Delta  Airlines  states  the  average  in-­‐lounge  dwell-­‐time  in  their  lounges  is  90  minutes.    That  is  an  awfully  long  time  for  a  relatively  confined  area.    Two  years  ago,  passengers  were  spending  between  1.5  and  2  hours  on  average  in  Virgin’s  Upper  Class  flagship  lounge  in  Heathrow.    Today  the  average  is  2.5  hours  with  10%  spending  4  hours  plus.  

• Product  Improvements.    RMG’s  digital  lounge  products  and  United  Premium  Club  Displays  have  seen  national  roll-­‐outs  and  now  enable  advertisers  to  easily  connect  with  premium  travelers  throughout  the  US.    As  an  example,  Verizon  have  started  using  RMG’s  digital  lounge  products  for  some  of  its  B-­‐to-­‐B  initiatives,  while  still  utilizing  in-­‐terminal  airport  signage  for  its  more  consumer-­‐oriented  campaigns.  

Now  What:  

• The  old  mantra  of  simply  connecting  with  premium  air  travelers  through  concourse  or  gate-­‐room  media  may  need  to  be  re-­‐assessed  as  many  travelers  spend  more  time  in-­‐lounge  vs.  concourse  and/or  gate  room.    

• Given  the  relatively  long  dwell  time  and  generally  captive  audience,  Kinetics'  Aviator  feels  the  in-­‐lounge  environment  is  particularly  well  suited  for  more  meaningful  passenger  engagement.    They  see  this  environment  to  be  especially  well  positioned  for  data  capture  and  analytics.    

• Gone  are  the  days  of  non-­‐backlit  poster  sites  near  hidden  bathroom  entrances.    With  a  more  defined  and  better  media  offer,  the  in-­‐lounge  media  touch  point  has  come  a  long  way  and  is  now  a  viable  element  in  today’s  US  aviation  media  mix.      

Contributor:  Erik  Bottema,  Aviator