Google gets the opportunity to place ads in in-flight entertainment (seat-back and personal device). Should it proceed, or not?

  Google
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Assuming that these are Google customer ads that can be embedded in in-flight entertainment. Another clarification is on the goal : is the goal to explore this as another revenue generation opportunity or user engagement.  Assuming that the goal is revenue generation.

Goal : Assess if this is a revenue generating opportunity

Wil use the following framework (Break down the customer segments, assess strengths of the opportunity, challenges, competitive landscape, possible options, tradeoffs and recommendation. )

1. Customer segments:

  • Long distance flights > 1.5hrs 
  • Short duration flights < 1.5hrs
  • Private flights
For our analysis, lets assume we want to priortize long distance flights based on the time with the user.
2. Strengths:
  • For a flight of 1.5hr or longer, assuming the user spends a min of 30mins on the screen, there is a potential for ample impressions and to collect metrics on views and skips.  This can inturn be used for placement for ads in-flight and offline.
  • Googles services such as Youtube TV, Youtube kids, Youtube, Youtube music can be made available offline with ads
We have established a case here that its potentially good opportunity.
3. Challenges:
  • User experience: Users may not like the ads model
  • Platform intergration : How will this model work with the in-flight platform model ?
4. Competitive landscape:  I am not sure if there are ads in the current model but i am assuming amazon is evaluating the same with their streaming services.
5. Possible options and trade offs  : Below are the possible options
  • Yes proceed with ads but only on Google services – Mobile and seat back
    • Similar model as streaming.  Impressions are monetized.
    • if the customer is a paying customer using google services, google gets a cut of the revenue
We have established that this is revenue generating when the customer pays for in-flight entertainment and google provides its content and gets ad revenue.
  • Embed google ads in airline in-flight entertainment platform – Seat back (Airline provided content)
    • Many airlines specially international maintain their own platform with offline movies, games and such
    • Lend “Google” proprietary content to the airline platform. provide tiered options
      • Free subscription to google content , embed with ads
      • Paid Subscription to google content, ads free
This is also a revenue generating model where the airlines pay a subscription fee to provide Google content ad free to customers. Goal here is for adoption and user engagement before monetization.
  • Do not place ads
Since we have established the use case above, this is not an option.
Keeping 2 and 3 in mind,  Google should go ahead with placing ads in in-flight entertainment.