Qantas takes fresh tack on in-flight ads

QANTAS aims to grow its advertising revenue by tailoring the ads shown in first, business and economy classes to suit the demographic of passengers.

Qantas executive Olivia Wirth.

QANTAS aims to grow its revenue by tailoring the ads shown in first, business and economy classes to suit the demographic of passengers.

The change is part of a major shake-up of its approach to advertising, moving away from the traditional model of ads in between in-flight TV shows and movies.

The airline has opened its advertising to an invitation-only tender to the TV networks, including SBS, Channel Seven, Channel Nine, Channel 10 and Fox, along with Bauer Media, which has managed its on-screen advertising since 2001.

Qantas group executive for brand, marketing and corporate affairs Olivia Wirth said passengers watched content differently from how they did five years ago, and so the strategy needed to change.

“We want those responding to the tender to treat this as a blank slate,’’ she said.

“Our approach to date has been quite conventional, with TV adverts slotted in between programs. We’re going to the market for some fresh ideas, and while we want to maximise our revenue we also want to improve the in-flight entertainment experience overall.”

The new advertising model would also include banner ads, sponsored content and dedicated channels.

Ad man John Singleton said he thought it was a good idea, but that it wouldn’t bring in anywhere near the money Qantas needed. It was a very small advertising market, he said.

“Compared to the total sales revenue of Qantas, the advertising they get on board was always irrelevant in the boom days so it’s going to be even more irrelevant now,’’ he said. “There’s no one sitting around now thinking how can I spend more money on aeroplanes, and if so how much will I divide it between business and first and economy.”

The new contract will take effect in July, with the tender announced next month.