White Paper: Airport Advertising.docx



White Paper: Airport Advertising By: ----------, Rachel Hahn, ----------- , ----------- & -----------Many companies are looking more to airport advertising. It is not at the height it once was before the financial crisis but it is constantly improving as a platform for advertising. Airport advertising usually targets frequent fliers and business frequent fliers. These are people who take three round trip flights a year; whether that is for personal or business travel. These people spend a lot of time in the airport and thus have time to spare in the environment. Three out of four frequent fliers see an advertisement and actually read the message. This is a high percentage compared to other forms of advertising outside of airports. People skip over tons of advertisements on TV, in magazines, and on the radio. The selective attention rate is much higher for those traveling in airports simply because they have more time on their hands while waiting for their flight and are often actively seeking stimulation due to boredom associated with idle waiting time.This target audience also contains a lot of early adopters. In fact “business frequent fliers are 83% more likely than all U.S. adults to be the first to try or to buy new products and services” (Clear Channel). This is a great opportunity for marketers to take advantage of. Marketers can even place advertisements near certain baggage claim carousels that have a lot of flights from a certain geographical location to target that particular audience.Airport advertising is also a great benefit to the airport itself. Charging fees to place ads in their airport increases their operating budget. They can then offer cheaper flights and less traveling fees. Southwest Florida International “relies on non aeronautical revenue from such things as concessions sales and advertising, for about 65% of its operating budget” (USA Today). Many airports are trying to make airport advertising more appealing to their clients. They are looking to boost display capability and quality of the ads. One strategy that is being used is having a real, life size display of a product. In the Southwest Florida International airport you will see a huge Grady White boat and even a Porsche Cayman sports car sitting on display at a rate of $2,000/month. It is eye catching to have these products so close to the consumer. People were calling to inquire about the boat on a daily basis. General Manager, Ray Jahn for Fish Tale Sales & Service on Fort Myers Beach said “we're more than satisfied” with regards to the effectiveness of the display. Advertising in airports has been around for some time and has allowed airports to gain a steady source of revenue. Lately, advertisements have been becoming more creative in airports because of the lack of money coming in from other areas that airports usually make their revenue. With less revenue coming in from other areas “airport managers are becoming more tolerant of ad firms’ creative proposals” (Yu 02b). Airports are one of the best places to try creative ads because they have a large flow of people who can stop and give ads attention while waiting for their flight. Some ads are being placed in places that are extremely hard to ignore while others focus on making it beneficial for the viewer to stop and pay attention. For example, “Courtyard by Marriott has installed a temporary replica of its lobby at Denver International to promote the hotel chain's new look. The display is equipped with chairs and electrical outlets for laptops and chargers” (Yu 02b). Marriott has created an atmosphere that forces the travelers to interact with the area and it provides places to charge their devices; which is beneficial to them while they wait for their flight. Advertisements in airports are also getting larger to provide more coverage and time seen. For example, “Boston Logan's agreement with locally based Dunkin' Donuts includes installation of 7-foot-tall replicas of Dunkin' Donut coffee cups at Terminals A and C” (Yu 02b). It is nearly impossible for guests of Terminals A or C to not notice the giant Dunkin’ cup, forcing the viewers to think about Dunkin’ Donuts. Recently, advertisement banners have been placed in many unusual places such as on baggage carousels and enclosed pedestrian bridges. And lastly, some advertisers are giving away free samples. For example, “Google offered free Wi-Fi access for about two months late last year at 32 airports that normally charge for the service” (Yu 02b). This allowed users to try out the product at no cost and then feel comfortable if they choose to use it after the free trial is over knowing how it works. The article Airport Advertising Effectiveness: An Exploratory Field Study by Rick T. Wilson and Brian D. Till discusses the results of a field study done in New York City’s LaGuardia Airport Terminal C. The study was done to see how well passengers notice and interact with airport ads, what types of executions seem most effective, and what locations provide maximum exposure. The authors conducted three different studies in Terminal C. The first study was an ethnographic observation of people’s interaction with airport ads. Researchers observed 3,000 individuals over a period of 20 hours. More than a dozen spots were observed including the security checkpoint, gate, retail/food outlets, and main corridor (Wilson & Till 4). Four themes were concluded from this study. First, attention to an ad is a function of location; ads near security were only noticed 15% of the time, the location with fewest number of passengers noticing ads was near the gate, only noticed 10% of the time, and passengers in line for food or reading materials noticed ads the most (Wilson & Till 5). Second, the span of attention to ads, if a passenger notices an ad, is no more than 1 to 3 seconds. About 10% of people will look for 3-4 seconds, and another 10% will stop and read an ad for 5 or more seconds. Third, attention to an ad is a function of the passengers’ activity. If a passenger is in line for food or leisure goods, they will notice ads more than if they are in line for security or boarding. Finally, attention to an ad is a function of passenger clustering. Passengers get clustered when it comes time for boarding, in security lines, and sometimes in the main concourse, which decreases passengers’ ad observation. Another observation made was that passengers notice ads more when they are alone than if they are traveling with someone. The second study was a recognition study conducted through an 11 page survey. Participants eighteen and older seated at the rear of the concourse were selected because they had the opportunity to see the majority of the ads. Fifty-four surveys were collected, and four were eliminated. The survey included 36 different photos of ads in the concourse, including 7 filler ads not in LaGuardia, and one repeated ad. The mean number of ads that were recognized was 4.4 (Wilson & Till 7). The test-retest, which was the one repeated ad, resulted in an almost perfect agreement, which meant that there was consistency in the survey results, and the 7 fillers were also not recognized, which accounted for agreement errors. Ads in the corridor were recognized 21.1% while near security and the gate were 13.9% and 9.6% respectively. The survey results also showed that repetition of an ad twice or more raised recognition from 13.6% to 28.6% (Wilson & Till 7). The third study was done to determine recall of the ads inside the concourse. First participants were asked to list any ads they remember seeing while in the terminal unaided, then they were given 13 product categories to help prompt their memory. The mean number of brands recalled unaided was .6, and aided was .8 (Wilson & Till 9). Ads of unique size were recalled more than the standard shape, and ads with fewer words also had a higher recall. The last conclusion from this study was that ads that connected with airport related activities enhanced recall (Wilson & Till 10). This article came from EBSCO’s Business Source Complete and the survey was conducted and analyzed by two professors of marketing in 2008. Therefore we will take this as a credible source, although a new survey should be conducted to learn the most recent trends in airport advertising. Airports are a special environment with a highly defined group of customers. In 2000, 44% of the travelers visiting an airport in the United Kingdom were taking a vacation abroad. While only 3% were going abroad for business. With information like this, marketers can better understand their target market. Additionally, the customers of an airport tend to be more affluent than non-flyers. According to Gary Crawford “a link has been made between economic prosperity and airline activity.” Researchers can make informed assumptions about the people within an airport with a working knowledge about flight prices and flight routes. Airports are confined environments with a lot of emotion pressures. Travelers report feeling anxious, excited, and stressed which can manifest in different ways in different people. Due to these negative or heightened emotions marketers should “create an environment that minimizes inherent stress and accentuates or at least maintains natural levels of excitement.” Additionally, travelers have time to spare between checking in an boarding their flight. In the United Kingdom, 55% of travelers agree that they “browse to kill time.” Travelers are actively seeking out products and advertisements during their wait period. Crawford encourages marketers to implement an “impulse maximiser strategy” including the idea of “stressing the rationality of impulse buying in advertising efforts.” The advertisements should reinforce and justify impulsive behaviors. Additionally, because browsers are more likely to make impulsive purchases brands should consider having sample products for customers to buy. For example, there are vending machines that products can be placed in. Marketers should create a marketing strategy that includes advertising in the airport and opportunities for impulse purchases. This information is relevant to practioners of airport advertising because it is important to understand your target market as well as their level of involvement and reaction to the environment. The arguments are valid because of the extensive research done and pulled together from various sources by Crawford. The article “The State of Airport Marketing” is an analysis done by SimpliFlying focusing on the industry trends in 2013. The company identified trends in airport marketing: “advocacy, virtual shopping, social care, red carpet, storytelling and crowdsourcing.”Utilizing advocacy is defined as “getting people to tell people they know about your products” and mention how the principle has been utilized in business since business began. Airports want to differentiate themselves and also give travelers an experience they will remember, so they are investing in opportunities to deliver such experiences. SimpliFlying states that these initiatives are strong due to the two-way link they create between online and offline experiences. When people advocate for brands online they attract more customers who will then become advocates.SimpliFlying did a case study on the use of advocacy in airport marketing at the Eindhoven Airport in the Netherlands. The airport created a program that invites people to sign up for its ‘VIP’ program after liking its Facebook page. Two fans each month are chosen from those who filled out the form and offered benefits at the airport including: one free airport meal, express security screening, personal accompaniment and free parking at a designated spot in a prime location. In the 7 months after starting the initiative, Eindhoven Airport’s fanbase on Facebook grew by 11,000. CEO Joost Meijs said, “with a rapidly growing number of Facebook fans the time was right for us to offer our fans something extra.” The airport’s marketing manager mentioned how their campaign brings consumers into the journey instead of just giving away money and tickets like they are accustomed to on social sites.The second trend in airport marketing is virtual shopping. Airports saw the opportunity to engage travelers who are waiting in airports and have recently begun providing “boarding-gate conveniences.” One of the ways marketers have found to reach people once they have passed restaurants and stores is by creating ‘virtual shopping walls’ where customers can shop by pointing their smartphones at the wall and scanning the QR codes next to purchase items. There are three implications of virtual shopping: retailers have gained mobility, companies can analyze which points are most effective with regard to retail and maximize revenue through strategic placements, and third, airport retail has potential to become more interesting and memorable. The case study for virtual shopping was conducted in Frankfurt Airport with Heinemann Duty Free. The retailer created a “QR code wall” allowing people to make purchases from the wall that could be picked up within 15 minutes at an “airport collection point” or shipped to their homes. Once consumers scanned the codes, they got more information about the goods, could place them in a shopping cart and purchase later. Heinemann’s head of marketing says the company is more interested in studying purchase behavior than generating revenue through the wall. The third market trend is social care. Airports have begun utilizing Twitter and Facebook to provide information about key services available, retail offerings and to respond in real-time to customers who post on their brand pages. Airports have found social media to be especially useful with information regarding weather and other unpredictable events. The airports build goodwill and social advocacy by using their social platforms well. Customers have found that the customer service provided on social sites has helped reduce their anxieties about flying. SimpliFlying studied Gatwick Airport’s social presence to exemplify this trend. Gatwick has full-time staff who respond instantly to customers’ concerns and comments. The airport has its social media feeds “live on their website, highly visible on FIDS (flight information display screens) throughout the airport, and are driving offline marketing campaigns throughout the terminal.” Gatwick has won seven awards for its social media and ability to handle issues in real-time. An example of their excellence occurred last year during a snowstorm. The social team provided information on Twitter before terminal teams knew they existed and all complaints were prevented. Its 57K followers acted as social advocates for them and tweeted positively about the experience. The fourth trend is “red carpet” a term coined by Trendwatching that refers to special treatment given to customers. Airports have been targeting specific segments, such as foreign travelers, and giving them tailored services. They are using the targeting powers of social media to speak to specific groups in various languages, and also creating more comfortable experiences offline. A case for effectively using the “red carpet” occurred at Auckland Airport when they created initiatives to attract more Chinese travelers. The airport partnered with Weibo, China’s top social site, to create a travel planning application. The application helps Chinese users learn about holidays in New Zealand and allow them to plan and book travels. The airport also trains staff to understand Chinese customers more and deliver a better experience to tourist. The initiative has been successful in the sense that Chinese visitors’ spending increased by 42% in March 2013 from the previous year. The fifth trend is storytelling. Airports are investing in storytelling to create stronger connections with consumers and effectively engage them across multiple platforms while breaking through the noise. There are three reasons marketers are working hard to develop compelling stories: stories humanize brands by showing commonalities of people and the experience they have in common when traveling; stories can generate goodwill and passenger interest by showcasing “competence, expertise and unique spaces and offerings;” and social media allows for quick sharing of stories to increase brand awareness. A case of effective storytelling occurred at Dublin Airport where a six-part TV series called Life Stories was filmed. The series showcased dramas occurring in the airport with passengers and staff. Deep stories help travelers become more sympathetic toward one another and help airports understand the needs of their passengers. For example, a story about a girl who flew to China for stem cell treatment after bleeding in her brain while in her mother’s womb. Dublin airport has strategically used stories on social media to connect with passengers. The sixth trend in airport marketing is crowdsourcing which utilizes the public for ideas that assist with product innovations, developing mobile applications, and improving hand luggage. Crowdsourcing engages travelers and connects them with the brand by allowing them to provide input and therefore feel more invested. The case SimpliFlying chose to exemplify crowdsourcing occurred at Helsinki Airport with Finnair. The campaign was called Quality Hunters and crowdsourced practical ideas to improve the travel experience. In their second edition, “eight innovative, inspiring travelers” traveled around the world through Helsinki on each trip actively looking for ways to improve the experience. Each participant was assigned to focus on improving a specific aspect of the travel experience. The public was also invited to contribute ideas and submitted 260 total of which a number were implemented. The program effectively involved consumers and made them feel like part of the brand. With nearly one third of all flights being delayed, passengers are spending more time than ever in airports (Wilson & Till 1). Traveling today is becoming more of a regular affair, making airports a great place for companies to advertise. Their advertisements are becoming more creative and unusual because of the free time fliers have to stop and pay attention to an ad. Recently, companies have conducted studies to determine the best way to advertise to passengers. However, there is a need to continue to study the effects of airport advertising because the field is in general very untouched. As the fight for consumer attention continues, we can look forward to more innovative ways to advertise. Works CitedCrawford, Gerry, and T.C. Melewar. “The Importance Of Impulse Purchasing Behaviour In The International Airport Environment” Journal Of Consumer Behaviour 3.1 (2003): 85:98. Business Source Complete. Web. 13 Nov. 2013.Pal, Subhodeep. “The State of Airport Marketing: 7 Key Trends & Case Studies.” SimpliFlying. 10 June 2013. Web. 12 November 2013.Ruane, Laure. “Signs of our times: Airport ads are a big business”. USA Today 22 September 2013Wilson, Rick T., and Brian D. Till. “Airport Advertising Effectiveness.” Journal of Advertising37.1 (2008). 59-72. Business Source Complete. Web. 12 Nov. 2013. Yu, Roger. “Advertising gets life-size at many airports.” Business Source Complete USA Today 1 November 2010. Web. 11 November 2013. ................
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