Inflight Media to Add £10 Million to Ryanair's Revenue
The company behind Ryanair’s decision to offer the outside of its planes as an advertising medium believes it could add £10 million to the airline’s top line in the first year of the scheme. Edinburgh’s Inflight Media, headed by founder Stephen Kiggins, has been formed specifically for the purpose of selling this innovative advertising space.
Reviving an Old Experiment
Ryanair previously experimented with branding four planes as an advertising trial ten years ago. With those planes facing decommissioning in January, the airline now wants to take a more systematic approach with the 140 new planes it will receive from Boeing in the next 18 months.
The Opportunity for Brands
Stephen Kiggins, the head of Inflight Media, aims to convince Europe's most famous brands that a flying advertisement is a cost-effective choice. The rate card cost is £105,000 per year, with an additional £85,000 for the actual painting of the plane. Kiggins believes that compared to other advertising channels, this presents good value for the brands. However, the biggest challenge lies in finding brands interested in long-term branding exercises rather than product-specific campaigns.
Potential Advertisers
Inflight Media has identified that it will target pan-European or global brands that operate in the areas Ryanair flies to. Brands such as banking companies undergoing consolidation, as well as drink companies such as Diageo (owner of Johnnie Walker and Guinness), are potential advertisers of this platform.
The Benefits and Challenges
The exposure and reach of this advertising medium are appealing, considering each plane completes eight flights per day, visiting eight different cities. However, there are two key problems to overcome. Firstly, Ryanair's reputation may deter some brands from associating themselves with the airline. Secondly, advertisers whose branding is already painted on a plane may not renew their contracts if they believe the advertising will simply remain on the plane after the contract period. This potential issue requires attention to avoid devaluing the advertising space.
The Perspective From Advertising Experts
Gerry Farrell, creative director of The Leith Agency, believes this medium is highly visible and mentions brands like Sky, cigars, and Ann Summers, which could benefit from this platform. Alastair Chisholm, creative director of the Avian agency, sees the potential success in targeting a captive audience. Both experts assert that it would be good value for the right advertisers.
Hotels and the Importance of Advertising
The Role of Advertising in the Hotel Industry
Advertising plays a vital role in the hotel industry, allowing hotels to showcase their amenities, services, and unique offerings to potential guests. Effective advertising can differentiate a hotel from its competitors and attract the attention of travelers.
Reaching the Target Audience
In order to maximize the impact of their advertising efforts, hotels need to identify their target audience and tailor their campaigns accordingly. Depending on the target market, hotels may choose to advertise through traditional channels such as print media, television, and radio, or utilize digital platforms like social media, search engine marketing, and online travel agencies.
Creative and Engaging Content
To stand out in a crowded market, hotels must create compelling and engaging content that resonates with their target audience. This can include captivating visuals, enticing descriptions, and special offers or promotions. By showcasing their unique selling points and highlighting the value they offer to guests, hotels can capture the attention and interest of potential customers.
Measuring the Impact of Advertising
In order to assess the effectiveness of their advertising campaigns, hotels need to track key performance indicators (KPIs) such as website traffic, booking inquiries, and conversion rates. This data can provide valuable insights into the success of different advertising channels and strategies, allowing hotels to optimize their marketing efforts and allocate resources effectively.
Adapting to Changing Consumer Behavior
The advent of online review platforms and the increasing reliance on online research by travelers has had a significant impact on hotel advertising strategies. Hotels must now focus on managing their online reputation and engaging with customers through social media platforms. Utilizing influencers and online travel bloggers can also help hotels to reach a broader audience and build trust with potential guests.
The Future of Hotel Advertising
As technology continues to advance, hotels can expect to see new and innovative advertising opportunities emerge. Virtual reality tours, augmented reality experiences, and personalized marketing campaigns based on big data analysis are just a few examples of the potential future trends in hotel advertising.