Airports Council International (ACI) once urged its members to aim to generate at least 50% of its revenues from non-aeronautical sources and while it is not so doctrinaire today it still recommends that they maximise that potential wherever possible.
While some exceed rather than merely achieve that figure many others fail to match it altogether. The search is on to find new and innovative methods of increasing these revenues. One of the most promising is airport advertising though in too many cases it is a side issue and is even overlooked altogether on occasion.
The nature of that business is changing. It is no longer a case of merely putting a poster up on a wall; digital is the order of the day and advertisements are highly targeted. Advertising can and should no longer be considered the Cinderella of the airport non-aero revenue segment.
One advantage of advertising as a revenue source that stands out immediately is that it fits in with many of the other channels, i.e. it can be deployed in the terminal, in corridors, at gates and in air bridges, on airport or business estate access/egress roads and at surface transport stations (rail/bus), in car parking lots and leased car rental offices and so on. It is pretty well ubiquitous.
So far we have identified the following:
- Airport advertising spend per passenger is low with a few exceptions;
- There are opportunities in emerging markets, which is also where ad-spend is likely to grow faster;
- Global advertising spend in general is growing but is increasingly focused on TV and Internet channels at the expense of more traditional ones. Digital methods increasingly predominate;
- Anticipated GDP, air passenger numbers and advertising spend growth rates in the following years are broadly similar;
- Airport advertising falls into two categories; Out-of-Home (consumer) and B2B (business);
- It accounts in the UK for no more than 6-7% of total OOH/B2B advertising revenues.
For more on this story, read the full CAPA analysis here.
This story originally appeared on CAPA – Centre for Aviation, a Skift content partner.
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