In-flight Advertising Services Market Size, Share & COVID-19 Impact Analysis, By Advertising Platform (Conventional Platform (In-Flight Magazine, Tray tables, and Headrests, Over Head Bins, Boarding Pass and Bag Tags, and Others) and Digital Platform (Digital Magazine and In-Flight Entertainment System)), By Airline Type (Low-Cost Airline and Full-Service Airline), By Airline Route (Domestic and International), and Regional Forecast, 2023-2030

The global in-flight advertising services market size was valued at USD 402.4 million in 2022 and is expected to grow from USD 494.2 million in 2023 to USD 1,100.9 million by 2030, exhibiting a CAGR of 12.1% during the forecast period. Asia Pacific dominated the in-flight advertising services market with a market share of 30.86% in 2022.

In-flight advertising services are aimed at potential consumers on an airplane. This includes advertising services in in-flight entertainment, in-flight magazines or boarding passes, on seatback shelves & overhead bins, and commercials to ease sales pitch for flight attendants. Ads can be tailor-made for travelers or multiple airline destinations, and for promoting local restaurants, hotels, businesses, and shops.

Prolonged exposure during air travel is one of the biggest advantages of advertising on air transport. The average journey takes hours, and passengers have nothing else to do. They spend a lot of their idle time watching viral ads, thereby providing undivided attention to the advertisement. In-flight advertising services are predicted to gain momentum during the forecast period owing to significant growth in global passenger aircraft and air traffic and growing demand for attractive and targeted in-flight advertising services & solutions in the aviation industry.

COVID-19 IMPACT

COVID-19 Pandemic Created Avenues for Using Innovative Modes of Advertising in Flight

The COVID-19 pandemic drastically changed the way in-flight advertising services were provided. Due to the imposition of lockdowns across the globe, air travel and related operations were completely stopped, leading to a drastic decline in the aviation industry. However, as the aviation sector reopened, the passenger traffic increased, leading to an overall increase in air travel. This scenario also created numerous opportunities for offering in-flight advertising services. Regardless of the trends, which ranged from climate change and sustainability to safety and cleanliness measures adopted during the COVID-19 pandemic, airlines were busy creating marketing strategies and advertising services to promote their business and also include information and graphics to educate about their significant presence.

• For instance, in May 2022, United Airlines, a U.S.-based global airline, unveiled an ad campaign showcasing instances of goodwill it earned during the COVID-19 pandemic.

In-flight Advertising Services Market Trends

Implementation of Digital In-flight Advertising Mediums to Boost Market Growth

There has been a notable surge in the use of digital in-flight advertising mediums in recent years. Advertisements are being shown on in-flight entertainment devices, such as monitors and tablets that are linked to e-commerce or social media profiles to direct customers to the purchase or information generation window. In many cases, companies also provide entertainment in the form of advertising to pique the interest of the passenger. Additionally, even in conventional advertising, advertisers have added a QR code that redirects customers to the company’s infographics page or in-flight apps. This directly benefits the advertiser due to a direct sale through media advertising and indirectly through piquing the interest and spreading awareness about the brand to stand out from the competitors. Furthermore, digital in-flight advertising supports eco-friendly and sustainable advertising, thereby increasing the overall value of the advertisement. Therefore, this type of advertising is highly preferred by major advertisers. For instance,

• In September 2023, Spafax, the world leader in in-flight entertainment, introduced Spafax AdConnect at the APEX Expo 2023. The all-new centralized marketplace allows advertising agencies to browse and purchase digital reports of ad inventory directly from airlines.

In-flight Advertising Services Market Growth Factors

Growing Product Application in Creating Customized and Targeted Ads to Boost Market Growth

The adoption of dynamic in-flight advertising solutions that can be updated in real-time based on flight location, destination, and passenger demographics, such as target ads is increasing. This has been a major factor driving the in-flight advertising services market growth. Airlines are partnering with ride-sharing companies, hotels, and popular travel destinations to provide integrated travel experiences and cross-promotional opportunities. Increased focus on sustainable and eco-friendly in-flight advertising solutions, such as paperless options and use of recyclable materials, can help advertisers target a new-age audience and increase their brand value. In-flight advertising services receiving increased attention in the airline industry due to the need to offer targeted marketing solutions to high-net-worth individuals and corporate & business travelers.

Increasing Demand for Inflight Entertainment and Enhanced Connectivity to Bolster Market Growth

The growth in demand for in-flight entertainment has also sparked the need for advertising.  Digital and conventional advertising in flights require an effective medium to catch the passenger’s attention during the journey. Rise in the demand for digital in-flight entertainment services has increased the supply of devices, such as tablets, monitors, and screens. Since entertainment is accessible to the passenger for the entire duration of the flight, marketers spend a lot of money to ensure as many conversions as possible through their advertisement.  Additionally, increased connectivity in the flight has led to a subtle rise in the demand for advertising. Due to better connectivity, passengers can make a direct purchase, booking, or search, leading to higher brand awareness.

RESTRAINING FACTORS

Limited Advertising Space In Flights to Limit Market Growth

Despite an astonishing growth in in-flight advertising services globally, limited advertising space in the aircraft is a restraining factor since only the brands that have a big budget to advertise can promote their products in the aircraft. Limited-space mediums, such as magazines, seat covers, trays, and in-flight entertainment devices restrict the space and increase the costs for advertising. Additionally, growing competition among similar brands will restrain the demand for in-flight advertising services in the long term.

In-flight Advertising Services Market Segmentation Analysis

By Advertising Platform Analysis

Increased Demand for Inflight Entertainment to Boost Adoption of Digital Platforms

Based on advertising platform, the market is divided into conventional platforms and digital platforms. The conventional platform segment is further divided into in-flight magazines, tray tables, headrests, overhead bins, boarding passes, bag tags, and others. The digital platform segment is further divided into digital magazines and in-flight entertainment systems.

The digital platform segment accounted for a dominating market share in 2022 owing to the vast amount of advertisement display systems that can be provided digitally during a flight. Additionally, a growing demand for in-flight entertainment systems will further accelerate the segment's progress during the forecast period. The segment is also expected to record the highest CAGR during the forecast period owing to the digitization of regular entertainment sources during flight.

The conventional platform segment is expected to record a significant CAGR during the forecast period due to the increasing use of eco-friendly and sustainable mediums, such as zero waste plates, baggage tags, trays, and seat covers for advertisements.

By Airline Type Analysis

High Number of Investments in the Full-Service Airlines to Boost the Segment Growth

Based on airline type, the market is segmented into low-cost airlines and full-service airlines.

The full-service airlines segment dominated the market in the base year. To target their desired customers, companies across the globe invest in full-service airlines to gain access to conventional and digital advertising platforms. These airlines generate significant revenue from these advertisements owing to high advertising charges.

The low-cost airlines segment is set to witness significant growth owing to expanding aircraft fleets and high passenger traffic on these airlines. These airlines are emerging in parts of Europe and Asia Pacific, leading to increased opportunities for in-flight advertising during the forecast period.

By Airline Route Analysis

Increase in International Travel Post-COVID-19 to Increase Product Demand in International Airline Routes

Based on airline route, the market is bifurcated into domestic and international.  

The international segment accounted for the largest in-flight advertising services market share in 2022 due to the subtle rise in international travel following the COVID-19 pandemic. According to the World Tourism Organization, international arrivals peaked at over 80% in the first quarter of 2023 as compared to the pre-pandemic levels.

The domestic segment is expected to record the highest CAGR owing to the high delivery of narrow-body aircraft and growing domestic air travel network in developing nations, such as India. 

REGIONAL ANALYSIS

The global in-flight advertising services market by region is segmented into North America, Europe, Asia Pacific, the Middle East, and Rest of the World.

Asia Pacific accounted for the largest market share in 2022 and is predicted to register the highest CAGR during the forecast period due to the rapid growth in aviation-related infrastructure in the region. Rise in government spending on airport and aviation infrastructures is a major driver of the regional market. Additionally, the emergence of new airlines will further boost the need for in-flight advertising services during the forecast period.

The market in North America was valued at USD 89 million in 2022 and is expected to gain significant momentum during the forecast period owing to a flourishing aviation industry and expanding air networks across the world. The region is also home to some of the world's most prominent airlines and brand marketers, making it easier and more accessible for advertisers, which will benefit the regional market's long-term growth.

Europe accounted for the second-largest market share in 2022. This is due to the growing purchasing power of nations across the region, which attracts potential marketers and emerging airlines with a wide global network. The booming aviation industry and growing demand for in-flight advertising services from emerging brands will accelerate the regional market development during the forecast period.

The Middle East is expected to witness rapid growth during the forecast period due to the booming aviation industry, increasing business aircraft deliveries, and rising purchasing power of passengers. Additionally, growing business and leisure travel, coupled with availability of chartered services, is expected to promote the market growth in the coming years.

Latin America is expected to witness substantial growth during the forecast period due to strong expansion of the aviation industry, growing establishment of aviation infrastructure, and notable increase in international travel.

List of Key Companies in In-flight Advertising Services Market

Key Market Players to Focus On Providing Customized Advertisements to Achieve Competitive Edge

The in-flight advertising services market landscape is consolidated, with several global and regional players operating in this market. Key companies are competing to co-exist with emerging domestic service providers. The top players in the market are In-flight Media, IMM International, EAM Advertising LLC, and others. Panasonic Avionics Corporation is expected to lead the market growth owing to its global presence. Other prominent players involved in the market include PXCOM, The Emirates Group, INK-Global, and others. These companies are highly involved in new product launches and frequent partnerships & acquisitions to sustain their market positions.

List of Key Companies Profiled:

• In-flight Media (U.S.)


• IMM International (France)


• EAM Advertising LLC (U.S.)


• Panasonic Avionics Corporation (U.S.)


• Spafax Group (U.K.)


• PXCOM (France)


• The Emirates Group (U.A.E.)


• INK-Global.com (U.K.)


• SmartAds (Flutter Media Pvt. Ltd.) (India)


• Aviation OOH (India)

KEY INDUSTRY DEVELOPMENTS:

• January 2023 – Delta Air Lines is establishing an in-flight media center to expand its customer base on the ground. Only 4 out of every 10 people who fly on a Delta Air Lines flight are members of the airline's SkyMiles loyalty program.


• February 2023 – Alaska Airlines announced the beginning of a new partnership with Media AOR VaynerMedia. The airline conducted a competitive review from July to October, 2022. In October, Alaska Airlines named VaynerMedia Los Angeles the U.S. media Agency of Record (AOR).


• September 2023 – Sam's Club MAP announced the launch of a media and sales performance dashboard. The dashboard brings together Sam's Club POS sales performance and Sam's Club Member Access Platform (MAP) campaign metrics at one place to help advertisers track the media impact of the advertisement.


• September 2023 – Spafax, a pioneer in in-flight entertainment introduced its latest product, the Spafax AdConnect at the APEX Expo 2023. The revolutionary platform is being promoted as a must-have marketplace of the future for ad agencies to streamline digital inventory purchasing directly from the airlines.


• December 2022 – United Airlines unveiled the Good Leads the Way marketing campaign, its biggest advertising effort in a decade. This campaign aimed to cover pilot diversity, sustainability, and efforts to improve customer service.

REPORT COVERAGE

The report provides detailed information on the market and focuses on leading companies, service types, and top applications. Besides this, it offers insights into the latest market trends and competitive landscape, and highlights key industry developments. In addition to the factors mentioned above, the report contains several factors that have contributed to the growth of the global market in recent years.

Report Scope & Segmentation