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

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

Asked at Google over a year ago

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deepblues · Answer 1 · 2020-05-21T00:20:40+0000

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.