Fast Facts

What
 Advertising wrapped around in-flight movies and other entertainment.

Who
   For this article, Media Life spoke with three providers:

• SpaFax, headquartered in London.

• DMX Music in Los Angeles.
• Creative Rewards in New York.

How it works
   Advertisers can directly contact the airline or work with one of the media companies. Many airlines will refer advertisers back to the media company they’re working with.
   Media companies usually provide both in-flight entertainment and advertising. In addition to movies, entertainment can include television, radio and other programming like short videos on subjects like current events or health. Sports and news coverage are commonly included.
   Movies can be shown on individual screens or on big screens. Advertisers can generally choose to be on all screens, or to target first class where it’s more likely that passengers will have access to individual screens.
   Ads are normally packaged around genres of programming like news.
    "The only thing seen straight after takeoff is news, and everyone sees it," says Sarah Lindsay-Bush, sales director for SpaFax’s London office.
   Ads are generally shown before movies, says Joe Carreira, vice president of DMX. Ads used with in-flight TV are aired before and within the program.
   Frequency of showing is up to the advertiser, though Lindsay-Bush says most passengers only watch the movie once.
   Movies are generally shown on flights lasting over four hours. That can vary from airline to airline says Rob Brookler, spokesperson for the World Airline Entertainment Association (WAEA).
   In-flight entertainment advertising is often packaged with other in-flight media like airline magazines.
   Creative is provided by advertisers.
   "Customized spots for in-flight are quite an exception in the in-flight world," Carreira says. "Network and cable TV spots fit well within the presentation format of video in in-flight." 
   Average spots are 30 or 60 seconds, Lindsay-Bush says.
   "Creative varies, but for the most part when talking about a major brand they’re probably going to use the same creative for other media because in a marketing campaign so much depends on a particular look and message," Brookler says.
   Branding is the primary objective of in-flight advertising.
   Targeting business travelers is consistent year round, Carreira says. "However, leisure-focused advertising demand increases in July and August and again in December, making availability more scarce."

Markets
   Markets are airline-route specific.
   DMX offers advertising opportunities with eight airlines.
    SpaFax provides 15 airlines with in-flight programming, including advertisements.

Numbers
   There are approximately 4,600 aircraft currently flying with some form of in-flight entertainment, Brookler says. "That includes about 42 percent of the global fleet. About 17 percent of the fleet actually has personal television, PTV."
   The industry-wide income for airline media during 2000 was $385 million U.S. and included all forms of advertising and promotions placed with airlines, according to the Inflight Management Development Centre.

How measured?
   Ticket sales can be used and media charges when applicable.

Research
   "Research that we have conducted suggests that on a global basis more advertising is placed near the news than the movies," says Wale Adepoju of Inflight Management Development Centre. 
   "Yet viewership by passengers is reverse. In the international market some 78 percent of passengers watch the movies, while the news viewership can vary between 25 percent and 60 percent, depending on variables such as time of day and time shown during flight."
   Up to 90 percent of passengers watch or listen to in-flight entertainment or read in-flight magazines at some point during their flight. Factors affecting usage include the length of journey, the quality of the in-flight entertainment and cabin class. First class was found to access short feature programming more than other classes, while 80 percent of economy class travelers chose movies, according to passengerresearch.com.
   Approximately 100 airlines worldwide show in-flight movies.
   Sponsorship is on the increase, especially where the sponsoring brand owns the content and is looking to raise awareness using targeted airlines, Adepoju says.

What product categories do well?
   Business to business is the primary category, Lindsay-Bush says.
   Other categories include computers, fashion retailers, financial, technical, automotive manufacturers, hotels and other travel-related products and services.
   Also, high-end luxury items, Carreira says.

Demographics
- Business travelers are airlines’ most frequent passengers. Air travelers, especially in premium cabins, are a mix of affluent and high-level decision-makers, according to passengerresearch.com.
- "Air travel is hugely business, with 70 percent of all passengers," Lindsay-Bush says.
- On average, 80 percent of business air travelers are in a high-income bracket, Lindsay-Bush says.
- Additionally, 60 percent are male.
- Further targeting business travelers is by age, at 30 to 55 years.
- Target a specific audience by targeting a carrier, says Tuvia Schachter, president of Creative Rewards.
- Demographic groups can be targeted by positioning ads, Lindsay-Bush says. "Positional opportunities target economy class or first class."

Making the buy
    SpaFax: Lead-time is eight weeks, with the summer travel months--July and August--booking earlier due to leisure travel, Lindsay-Bush says. "January and February are also busy with new product launches."
   Factors that affect pricing include length of ad, where it’s shown in entertainment loop, and how many times it’s played.
   Most SpaFax campaigns are three to six months.

   DMX Music:  Lead-time is 45 days. "In exceptional circumstances timelines may be stretched," Carreira says.
    Factors that affect pricing include length of spot and times shown during the same flight, Carreira says. "Number one is CPM."

    Creative Rewards: Lead-time is two to three months, depending on availability.
    Ad spots are either 30 or 60 seconds and the cost in excess of $10,000, Schachter says.

Who’s already on board?
    Shell Oil, UBS Private Banking, Citizen Watches and the airlines.

What they're saying?
   "Most airlines carry a huge percentage of a nation’s high-earners, very high-end consumers who are interested in the latest telephone, computer and hotel to stay in." –Sarah Lindsay-Bush of the London office of SpaFax

Web site info:
SpaFax at www.spafax.com
DMX Inflight at www.dmxmusic.com
Creative Rewards at www.creativerewards.com
World Airline Entertainment Association at www.waea.org

Etc.
   Inflight Productions, in London and Los Angeles, also provides in-flight entertainment and advertising.

July 1, 2002© 2002 Media Life

-Kathy Prentice writes about out-of-home advertising  for Media Life, penning her stories from the resort town of Traverse City, in the upper reaches of Michigan.

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