United May Use Customer Data to Help Brands Show Targeted Ads on Its Planes

• According to the Wall Street Journal, United Airlines may use its customer data to sell personalized ads.
• Some of the targeted ads could be specific movie titles on seatback screens, for example.
• Marriott launched a similar platform in May 2022 to capitalize on the lucrative “retail media” industry.

United Airlines may start pulling from its treasure chest of passenger data to help companies show targeted ads to its customers, The Wall Street Journal reported on Wednesday.

People familiar with the situation told the outlet that some of these personalized ads could end up on the seatback screens onboard United aircraft or when using its mobile app, allowing the airline to monetize its mass of customer information.

According to a presentation viewed by the WSJ, one example could be an entertainment brand using United’s passenger data to suggest one of its movies to a customer.

The ad could be based on the passenger’s known vacation spot near that specific company’s theme parks and a recent purchase using miles for that brand’s merchandise, the WSJ reported.

While people told the WSJ that United has yet to decide on committing to its targeted advertising venture, doing so could spark backlash from customers who don’t like the idea of their information being sold.

However, management is aware of the potential annoyance of targeted ads and is carefully planning its launch if the business comes to fruition, the WSJ reported.

And, thanks to privacy laws, the people familiar said United customers could opt out of having their information shared for advertising purposes.

United isn’t the first to think up a targeted advertising business like this.

In May 2022, Marriott launched a “retail media” network that uses data from its 164 million Marriott Bonvoy loyalty members to suggest “relevant products and services during their travel journey.”

“For travelers, tailored brand experiences will drive smarter purchase decisions and a more fulfilling travel experience,” the company said in a press release, noting ads could be on their hotel televisions, on the app, and in emails.

According to software development company Clearcode, “retail media” is the practice of brands using data collected from their core business, like travel, and showing it in places like a retailer’s website, app, or video screens.

And the lucrative industry isn’t slowing down. According to Insider Intelligence, US companies are estimated to spend $55 billion on ads in 2024 and as much as $85 billion in 2026.