📈 Business & Markets

United Airlines' ad business is taking flight

Friday, Jun 14

Image: Getty

United Airlines’ passengers will soon get served another thing in addition to snacks and drinks: personalized ads.

Last week, the airline unveiled Kinective Media, an in-house media network that draws on customer data to deliver relevant advertising to its mobile app (which sees ~100 million sessions/month) as well as seatback screens.

  • “There is the potential for 3.5 hours of attention per traveler, based on average flight time,” according to United. The carrier has ~100,000 seatback screens across its fleet.
  • Kinective Media is already working with Norwegian Cruise Line, Macy’s, IHG Hotels & Resorts, TelevisaUnivision, and JPMorgan Chase.

The carrier says it will only use info from passengers 18 and older, and that all customers have the option to opt-out of targeted ads at any time.

Big picture: United is billing its ads biz as the airline industry’s first media network.

But other airlines chasing profit and revenue growth could also follow suit. They already have eyeballs and undivided attention – and advertising is a high-margin business, meaning the lion’s share of revenue would go straight to boosting the company’s bottom line.

Data-backed advertising is eating the world. Companies whose main business isn’t ads are increasingly leaning into data-focused ad networks, including Amazon, Target, Costco, PayPal, Walmart, Kroger, and Best Buy. US marketers are expected to spend ~$55 billion this year on retail-media ads (ads sold based on a retailer’s data).

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