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Inflight Advertising Market 2018: Global Projection, Solutions, and Services For
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In-flight advertising entails advertising through in-flight magazines, overhead storage bins, and setback tray tables, and sales pitches by flight attendants. With the advent of digital media in-flight advertising market has witnessed significant changes. Introduction of targeted advertising through live television and in-flight apps are expected to have a positive impact on the in-flight advertisement market.
As the in-flight advertising market is shifting towards aggressive targeted advertising through Wi-Fi connectivity, e-commerce platform and live TV services, the existing airline hardware is set to become obsolete to a certain extent. In the current scenario the airline are accepting these sudden changes in trend of advertising in order to monetize and develop ancillary revenue streams which is expected to boost airline revenues significantly. As a result, the market for inflight advertising is expected to grow at a CAGR of 11.17%.
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Major Key Players
The Leading Market Players in the global Inflight Advertising Market primarily include Panasonic Avionics Corporation, Global Eagle, IMM International, EAM Advertising LLC, MaXposure Media Group (I) Pvt. Ltd., INK, Global Onboard Partners, Atin OOH, Zagoren Collective, and Blue Mushroom. In 2016, these companies had a highest share of the market.
With the advent of digital media, advertisers have witnessed a boom in the volume of advertising content that individuals consume on a daily basis. In the in-flight advertising market, digital media advertising is expected to comparatively render traditional in-flight advertising techniques obsolete. Personal computing and personal mobile phone enable advertisers to deliver advertisements to individuals/passengers with original advertising content straight to their personal devices, which is comparatively much more affective compared to traditional methods of in-flight advertising. Digital in-flight creative advertisements add the dimension of interaction to sight, sound, and motion — and greater interaction has been shown to drive brand effectiveness.
Demand for customization of the airline passenger experience is growing from airlines and from passengers mainly due to the increasingly customized lives we lead. With more and more airlines trying to introduce high levels of customization to the aircraft cabins. Connectivity is as essential topic here, with Netflix’s “recommended for you” and Apple Music’s “For You” features providing individuals with movies and music list curated based on every individuals personal taste. With airlines and in-flight advertising firm trying to bring the same concept to the aircraft cabins, and float original in-flight advertising content towards individuals tailor made based on their personal taste.
Although the growth rate of technological innovation is exponential, once the technology peaks it is substituted by a newer version which might not be compatible with older hardware. For example, thousands of airlines still offer round proprietary Panasonic Avionics connector for previous generations of iPod and iPhone which were immediately rendered obsolete once apple shifted to lightning cable. The problem airline are set to face in the future is being able to adapt to the pace at which technology changes. Betting on additional revenue through new techniques of advertising might not be as fruitful for airlines if the hardware required for additional revenue needs to be changed every other day.
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Asia, an emerging region in the long-haul international market, relies heavily on the small and medium widebody aircraft. As a result, a number of such airlines have been entering into service recently, such as Indigo, Tigerair Singapore, Tigerair Australia, and Air Asia, which provides lucrative opportunities to in-flight advertising firms in this region. Existence of in-flight advertising firms such as Atin OOH and Maxposure Media Group have also aided the growth of the market in this region. It is expected that by 2035, more than 16,000 aircraft would be delivered in the region, which is expected to positively impact the in-flight advertising market in the Asia-Pacific region.
Similarly, the Middle East & Africa region has been witnessing a phenomenal increase in its economy, of late. The major factors driving the economy of the region, is the increased air travel and the rising tourism. As the region is located at the crossroads of Asia-Africa and Europe, their local airlines, led by Emirates, Qatar Airways, and Etihad Airlines, are well positioned to compete for the air traffic, globally. Due to the rapid increase in the number of aircraft in the region, it is expected that there would be a significant and simultaneous impact on the market.
Likewise, although several Latin American countries are going through a rough economic period, with the shrinking Venezuelan, Argentinian, and Brazilian economies, the air traffic in the region has witnessed steady growth. As a result of the growing tourism in the region, it is expected that approximately 3,000 aircraft would be delivered to the region, by 2035. This is expected to simultaneously surge the development of aircraft, which would eventually drive the growth of the in-flight advertising market.
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MRFR team have supreme objective to provide the optimum quality market research and intelligence services to our clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help to answer all their most important questions.
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