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  February	
  2014,	
  Issue	
  #3	
  
Catch	
  Me	
  If	
  You	
  Can	
  
What:	
  
• Airline	
  ‘VIP’	
  lounges	
  are	
  respites	
  from	
  the	
  more	
  crowded	
  airport	
  concourses.	
  The	
  
relative	
  exclusivity	
  of	
  the	
  airline	
  club	
  visitor	
  -­‐	
  whether	
  a	
  frequent	
  flyer	
  or	
  someone	
  who	
  
has	
  paid	
  a	
  fee	
  for	
  access	
  -­‐	
  makes	
  this	
  environment	
  arguably	
  one	
  of	
  the	
  richest	
  
commercial	
  in-­‐terminal	
  opportunities	
  available.	
  	
  
• Airline	
  clubs	
  provide	
  marketers	
  with	
  access	
  to	
  higher	
  affluence,	
  higher	
  education,	
  C-­‐
level	
  decision	
  makers,	
  opinion-­‐leaders	
  and	
  tech-­‐savvy	
  innovators	
  -­‐	
  an	
  audience	
  
notoriously	
  difficult	
  to	
  reach	
  through	
  terrestrial	
  media	
  channels.	
  
• US	
  airlines	
  have	
  been	
  spending	
  billions	
  collectively	
  on	
  renovations	
  to	
  their	
  clubs	
  in	
  
recent	
  years.	
  	
  This	
  was	
  done	
  in	
  order	
  to	
  stay	
  competitive	
  –	
  when	
  compared	
  to	
  
international	
  airline	
  lounge	
  offerings	
  -­‐	
  and	
  to	
  meet	
  the	
  overall	
  demand	
  of	
  increased	
  air	
  
travel.	
  	
  To	
  demonstrate	
  its	
  commitment,	
  for	
  example,	
  Thom	
  Filicia	
  and	
  Architectural	
  
Digest	
  were	
  heavily	
  involved	
  in	
  Delta’s	
  development	
  of	
  its	
  new	
  lounges	
  at	
  JFK	
  and	
  ATL.	
  	
  
Even	
  American	
  Express	
  has	
  launched	
  higher-­‐end	
  air	
  travel	
  lounges	
  in	
  the	
  US.	
  	
  	
  
	
  
	
  
	
  
	
  
	
  
So	
  What:	
  
• Extensive	
  Reach.	
  	
  Delta	
  SkyClubs	
  provide	
  advertisers	
  access	
  to	
  more	
  than	
  12	
  million	
  
travelers	
  per	
  annum.	
  	
  United’s	
  32	
  clubs	
  reach	
  over	
  24	
  million	
  ticketed	
  passengers	
  per	
  
annum.	
  	
  Airlines	
  register	
  all	
  lounge	
  visitors	
  when	
  they	
  enter	
  a	
  lounge,	
  so	
  circulation	
  
condensed innovation
numbers	
  are	
  real	
  hard.	
  	
  Oracle	
  has	
  been	
  one	
  of	
  the	
  first	
  advertisers	
  extending	
  its	
  
aviation	
  media	
  reach	
  beyond	
  in-­‐terminal	
  advertising.	
  	
  The	
  advertiser	
  has	
  a	
  long	
  running	
  
lounge	
  ad	
  program	
  covering	
  key	
  airline	
  lounges	
  in	
  select	
  US	
  hub	
  airports.	
  
• Long	
  Dwell	
  Times.	
  	
  Delta	
  Airlines	
  states	
  the	
  average	
  in-­‐lounge	
  dwell-­‐time	
  in	
  their	
  
lounges	
  is	
  90	
  minutes.	
  	
  That	
  is	
  an	
  awfully	
  long	
  time	
  for	
  a	
  relatively	
  confined	
  area.	
  	
  Two	
  
years	
  ago,	
  passengers	
  were	
  spending	
  between	
  1.5	
  and	
  2	
  hours	
  on	
  average	
  in	
  Virgin’s	
  
Upper	
  Class	
  flagship	
  lounge	
  in	
  Heathrow.	
  	
  Today	
  the	
  average	
  is	
  2.5	
  hours	
  with	
  10%	
  
spending	
  4	
  hours	
  plus.	
  
• Product	
  Improvements.	
  	
  RMG’s	
  digital	
  lounge	
  products	
  and	
  United	
  Premium	
  Club	
  
Displays	
  have	
  seen	
  national	
  roll-­‐outs	
  and	
  now	
  enable	
  advertisers	
  to	
  easily	
  connect	
  with	
  
premium	
  travelers	
  throughout	
  the	
  US.	
  	
  As	
  an	
  example,	
  Verizon	
  have	
  started	
  using	
  
RMG’s	
  digital	
  lounge	
  products	
  for	
  some	
  of	
  its	
  B-­‐to-­‐B	
  initiatives,	
  while	
  still	
  utilizing	
  in-­‐
terminal	
  airport	
  signage	
  for	
  its	
  more	
  consumer-­‐oriented	
  campaigns.	
  
Now	
  What:	
  
• The	
  old	
  mantra	
  of	
  simply	
  connecting	
  with	
  premium	
  air	
  travelers	
  through	
  concourse	
  or	
  
gate-­‐room	
  media	
  may	
  need	
  to	
  be	
  re-­‐assessed	
  as	
  many	
  travelers	
  spend	
  more	
  time	
  in-­‐
lounge	
  vs.	
  concourse	
  and/or	
  gate	
  room.	
  	
  
• Given	
  the	
  relatively	
  long	
  dwell	
  time	
  and	
  generally	
  captive	
  audience,	
  Kinetics'	
  Aviator	
  
feels	
  the	
  in-­‐lounge	
  environment	
  is	
  particularly	
  well	
  suited	
  for	
  more	
  meaningful	
  
passenger	
  engagement.	
  	
  They	
  see	
  this	
  environment	
  to	
  be	
  especially	
  well	
  positioned	
  for	
  
data	
  capture	
  and	
  analytics.	
  	
  
• Gone	
  are	
  the	
  days	
  of	
  non-­‐backlit	
  poster	
  sites	
  near	
  hidden	
  bathroom	
  entrances.	
  	
  With	
  a	
  
more	
  defined	
  and	
  better	
  media	
  offer,	
  the	
  in-­‐lounge	
  media	
  touch	
  point	
  has	
  come	
  a	
  long	
  
way	
  and	
  is	
  now	
  a	
  viable	
  element	
  in	
  today’s	
  US	
  aviation	
  media	
  mix.	
  	
  
	
  
Contributor:	
  Erik	
  Bottema,	
  Aviator	
  
	
  

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Condensed Innovation Feb 2014_#3

  • 1.                                                                                                                                                              February  2014,  Issue  #3   Catch  Me  If  You  Can   What:   • Airline  ‘VIP’  lounges  are  respites  from  the  more  crowded  airport  concourses.  The   relative  exclusivity  of  the  airline  club  visitor  -­‐  whether  a  frequent  flyer  or  someone  who   has  paid  a  fee  for  access  -­‐  makes  this  environment  arguably  one  of  the  richest   commercial  in-­‐terminal  opportunities  available.     • Airline  clubs  provide  marketers  with  access  to  higher  affluence,  higher  education,  C-­‐ level  decision  makers,  opinion-­‐leaders  and  tech-­‐savvy  innovators  -­‐  an  audience   notoriously  difficult  to  reach  through  terrestrial  media  channels.   • US  airlines  have  been  spending  billions  collectively  on  renovations  to  their  clubs  in   recent  years.    This  was  done  in  order  to  stay  competitive  –  when  compared  to   international  airline  lounge  offerings  -­‐  and  to  meet  the  overall  demand  of  increased  air   travel.    To  demonstrate  its  commitment,  for  example,  Thom  Filicia  and  Architectural   Digest  were  heavily  involved  in  Delta’s  development  of  its  new  lounges  at  JFK  and  ATL.     Even  American  Express  has  launched  higher-­‐end  air  travel  lounges  in  the  US.                 So  What:   • Extensive  Reach.    Delta  SkyClubs  provide  advertisers  access  to  more  than  12  million   travelers  per  annum.    United’s  32  clubs  reach  over  24  million  ticketed  passengers  per   annum.    Airlines  register  all  lounge  visitors  when  they  enter  a  lounge,  so  circulation   condensed innovation
  • 2. numbers  are  real  hard.    Oracle  has  been  one  of  the  first  advertisers  extending  its   aviation  media  reach  beyond  in-­‐terminal  advertising.    The  advertiser  has  a  long  running   lounge  ad  program  covering  key  airline  lounges  in  select  US  hub  airports.   • Long  Dwell  Times.    Delta  Airlines  states  the  average  in-­‐lounge  dwell-­‐time  in  their   lounges  is  90  minutes.    That  is  an  awfully  long  time  for  a  relatively  confined  area.    Two   years  ago,  passengers  were  spending  between  1.5  and  2  hours  on  average  in  Virgin’s   Upper  Class  flagship  lounge  in  Heathrow.    Today  the  average  is  2.5  hours  with  10%   spending  4  hours  plus.   • Product  Improvements.    RMG’s  digital  lounge  products  and  United  Premium  Club   Displays  have  seen  national  roll-­‐outs  and  now  enable  advertisers  to  easily  connect  with   premium  travelers  throughout  the  US.    As  an  example,  Verizon  have  started  using   RMG’s  digital  lounge  products  for  some  of  its  B-­‐to-­‐B  initiatives,  while  still  utilizing  in-­‐ terminal  airport  signage  for  its  more  consumer-­‐oriented  campaigns.   Now  What:   • The  old  mantra  of  simply  connecting  with  premium  air  travelers  through  concourse  or   gate-­‐room  media  may  need  to  be  re-­‐assessed  as  many  travelers  spend  more  time  in-­‐ lounge  vs.  concourse  and/or  gate  room.     • Given  the  relatively  long  dwell  time  and  generally  captive  audience,  Kinetics'  Aviator   feels  the  in-­‐lounge  environment  is  particularly  well  suited  for  more  meaningful   passenger  engagement.    They  see  this  environment  to  be  especially  well  positioned  for   data  capture  and  analytics.     • Gone  are  the  days  of  non-­‐backlit  poster  sites  near  hidden  bathroom  entrances.    With  a   more  defined  and  better  media  offer,  the  in-­‐lounge  media  touch  point  has  come  a  long   way  and  is  now  a  viable  element  in  today’s  US  aviation  media  mix.       Contributor:  Erik  Bottema,  Aviator