United Airlines brings targeted ads to seat backs as companies tap their data goldmines

Trays up, ads on… That eerie feeling that your phone is listening to you is coming to your United Airlines seat back. Any of United’s 165M fliers trying to kick back with a plane movie like “Madame Web” or “Ticket to Paradise” will see ads tied to what United knows about them (for example: their destination, age group, and ticket class). United believes its new ad biz is the first of its kind in the airline industry.

• Buckled in: Fliers who don’t opt out of targeted ads and won’t spend $8 for United WiFi are an advertiser’s dream: a captive audience. United says brands are buying 3.5 hours of attention per traveler.

• New jet streams: United’s non-passenger, non-cargo revenue hit $3.2B last year, making up 6% of its total sales. Its ad biz will likely boost that figure.

The surveillance state… more like surveillance corporation. United is only the latest company whose main biz isn’t advertising to lean into data-focused ad networks. Retailers like Target, Walmart, Kroger, and Best Buy have been monetizing customer data by expanding into “retail media” (retailers selling ad spots/data). Last week, 75M-member strong Costco said it was turning on the ad-money spigot too. Targeted Rolex ads might appear on Marriott TVs in Vegas hotel rooms, and Uber ads are getting personal (picture: targeting people en route to the US Open with Lacoste ads). Last week, Lyft said it expects its ad biz to hit $400M by 2027.

• Retail media can be more effective than social-media ads because folks are targeted at a time when they’re likely to spend.