As retail media networks (RMNs) continue to pop up from across the industry, a broader transformation is quietly reshaping the digital advertising landscape. Retail giants have shown how leveraging first-party data can drive significant revenue growth by offering highly targeted advertising solutions. But the story doesn't end with retailers. Media strategist Eric Seufert coined the term “Everything is an ad network”—and the last few years have certainly proved that right.
Across various sectors, companies with rich data reserves are recognizing that they too can build alternative ad networks capable of driving new revenue streams with enticingly lucrative margins. Companies across many industries are already, or poised to begin, capitalizing on their unique data assets to create a more personalized, efficient, and profitable advertising ecosystem.
However, one sector in particular poised to capitalize: the airline industry. Rich in data about their passengers’ preferences, behaviors, and travel habits, and a relatively captive audience, airlines are uniquely positioned to create their own ad networks and unlock new revenue streams. With the global shift toward personalized marketing, airlines can offer brands a valuable opportunity to engage passengers through highly tailored advertising experiences during their journeys.
Building a unified ad network ecosystem
There’s perhaps no industry that’s better equipped to capitalize on this than the airline industry, as we’ve already seen with United Airlines’ launch of Kinective Media.
Perhaps most exciting is the potential for airlines to collaborate across industries and create a truly data-driven advertising ecosystem. With access to first-party data, airlines can offer insights that are difficult to obtain elsewhere, especially in an environment where third-party data is becoming less reliable. By building ad networks that leverage travel data, airlines can create a unified ecosystem where brands from various sectors can target the right consumers with the right message at precisely the right time.
For example, partnerships with local attractions, restaurants, or hotels could result in passengers receiving personalized offers throughout their journey. While checking in for a flight, pulling up their boarding pass, or setting up their in-flight Wi-Fi, the passenger might receive targeted promotions for award-winning Broadway shows, and those in first class might get personalized and exclusive dining experience invitations from Michelin-starred restaurants. This kind of real-time, geotargeted advertising is not just convenient for the passenger—it’s highly effective for the brand and for the airline.
The convergence of data and advertising
It’s no secret that airlines have a vast amount of passenger data—from booking details and loyalty programs to in-flight preferences and travel behaviors. When you factor in some of the smart partnerships they’ve launched like with travel insurance companies, hotel brands, and ride-sharing services, there aren’t many aspects of consumer profiles that airlines don’t have eyesight into. This wealth of information presents a powerful opportunity to monetize through advertising. By tapping into their first-party data, or through multiparty data collaborations, airlines can offer brands the ability to reach travelers with personalized ads that speak to their individual preferences and needs.
More than any other industry, airlines can deliver hyper-relevant ads at the right moments—whether that’s during the booking process, in-flight, or after landing.
In-flight entertainment systems or airline apps provide prime real estate for delivering ads that are tailored to the passenger’s destination, travel history, or preferences indicated by their previous purchases. Brands can leverage this data to promote relevant services—such as destination-specific hotel deals, local attractions, or ride-hailing services—creating a seamless advertising experience that adds value to the traveler’s journey.
Monetizing data through personalized experiences
Consumers have come to expect personalized advertising from brands, with a 2023 McKinsey study revealing that 71% anticipate this type of customization. If done well, consumers won’t mind having well-placed and personalized ads in the app or on their screens, and this should lead to more time in-app and the potential for higher engagement from passengers.
Ads presented to passengers—whether on an in-flight entertainment screen, mobile app, or through email after booking—can promote personalized services like seat upgrades, premium dining options, or tailored destination activities. This could be as simple as opening your app to get your boarding pass ready at security ahead of your flight to Los Angeles and you get served an ad from an experiences company offering discounted surfing lessons in Malibu.
At the heart of these emerging ad networks is the ability to monetize data by delivering personalized experiences. In the financial services industry, for instance, banks can use their extensive transactional data to create highly tailored marketing campaigns that offer relevant financial products at the right moment. This is not just about selling a product; it’s about understanding the consumer’s journey and providing value at every step.
Similarly, in the healthtech sector—think weight loss apps—or even within gym and fitness brands, anonymized data can be used to deliver targeted wellness programs or health-related product recommendations. By integrating health data with other lifestyle and consumption patterns, companies can offer personalized solutions that resonate with consumers on a deeper level. This approach not only drives engagement but also opens up new revenue streams for healthcare providers and their partners.
The key to success in these new ad networks lies in the ability to create a seamless and personalized customer experience across different touchpoints. As more industries adopt this approach, we will see a shift from traditional, one-size-fits-all advertising to a more dynamic, data-driven model that is both more effective and more profitable.
Expanding the advertising landscape
The potential for alternative ad networks goes beyond driving new revenue streams; it’s about expanding the very landscape of advertising. As industries like travel and hospitality, automotive, and media and entertainment begin to harness their data assets, they are redefining what it means to engage with consumers. These sectors have the ability to offer highly personalized content and experiences that traditional advertising channels simply cannot match.
These capabilities not only enhance the effectiveness of advertising but also create a more immersive and engaging experience for consumers. As a result, companies across these industries can unlock new revenue streams by offering advertisers a more precise and impactful way to reach their target audiences.
The synergy of data and innovation
In addition to the travel sector, the auto industry, with its connected vehicles, can deliver in-car ads that are relevant to the driver’s current location or journey. Similarly, media and entertainment companies can leverage viewing habits and content preferences to create targeted ads that are seamlessly integrated into the content itself.
What truly sets these alternative ad networks apart is the synergy between data and innovation. By leveraging their unique data assets, companies in different sectors can innovate in ways that were previously unimaginable. The convergence of data from multiple industries creates a powerful feedback loop, where insights from one sector can inform and enhance the strategies of another.
The future of advertising is collaborative
The success of RMNs has set the stage for a broader transformation in the advertising landscape. As industries across the board recognize the value of their first-party data, they are beginning to build alternative ad networks that are not only capable of driving new revenue streams but also of redefining the future of advertising.
The key to this transformation lies in collaboration. By unifying data from various sectors and leveraging it to create personalized, contextually relevant advertising experiences, companies can create a more effective and profitable advertising ecosystem. This collaborative approach not only benefits advertisers but also enhances the consumer experience, making advertising more relevant, engaging, and valuable.
As we look to the future, it is clear that the next wave of ad networks will be defined by their ability to innovate, collaborate, and capitalize on the rich data assets that exist across multiple industries. The result will be a more dynamic, data-driven advertising landscape—one that is poised to unlock new revenue streams and drive growth in the digital economy.
—Tami Harrigan, Vice President, Business Development, AppsFlyer Privacy Cloud