Retail Media: United Airlines shows customized ads to passengers
What: Airlines are joining the retail media frenzy with United Airlines showing ads to passengers according to what it knows about them
Why it is important: the opportunity grows, and so does the risk of missing it out.
United Airlines is leveraging customer data to introduce personalized ads on its in-flight entertainment systems, as part of its broader strategy to monetize its extensive customer insights. The airline, which serviced 165 million passengers last year, is utilizing information such as passengers’ home cities, travel destinations, age groups, and travel class to customize ads displayed both before and during in-flight entertainment like movies and TV shows.
This initiative, managed under United’s loyalty program, MileagePlus, through its advertising division Kinective Media, is mindful of privacy concerns, excluding sensitive data such as race, ethnic origin, disability status, and information about minors from its ad targeting process. Passengers also have the option to opt-out of personalized advertising.
The strategy reflects a growing trend among companies that possess significant consumer data but do not traditionally focus on advertising. This includes other large firms like Walmart, Uber, and Home Depot, which are also exploring data-driven advertising to enhance revenue streams. The shift is part of a larger movement in the U.S. market, where spending on retail media advertising is projected to hit $54.5 billion this year.
United is also exploring personalized advertising through its mobile app, offering location-based ad options to brands if users allow the app to track their location. This initiative includes partnerships with brands such as Macy’s and IHG Hotels, and major advertising firms like Dentsu. The airline plans to expand these personalized advertising efforts globally and to other online platforms.
This move coincides with a privacy review by the U.S. Transportation Department, which is examining the privacy practices of major airlines, including United, spurred by concerns over how passenger data is utilized for commercial gains.
Retail Media: United Airlines shows customized ads to passengers
