United Airlines Explores New Advertising Frontiers Using Passenger Data: Report

United Airlines Holdings, Inc. UAL is reportedly contemplating utilizing its passenger data to assist brands in providing targeted customer advertisements. 

This strategy places United among a growing list of companies aiming to use their vast reserves of user data for advertising purposes, according to a news report by the Wall Street Journal.

United Airlines is considering displaying targeted ads on its in-flight entertainment systems and its booking and check-in app, the report added, citing some sources. 

However, as indicated by some insiders, the company has not finalized its decision and may opt not to pursue a targeted advertising venture.

Airlines have traditionally capitalized on their captive audience by presenting various advertisements, such as commercials on seatback screens, in-flight shopping catalogs, and sometimes even ads on cabin walls. 

Introducing personalized advertising would significantly enhance United's advertising operations, the report read.

United's leadership is thoughtfully deliberating on the introduction of personalized ads, aiming to avoid irritating passengers or causing concern with overly tailored messages, per the report. 

The airline plans to comply with privacy laws by offering customers the option to opt out of having their data utilized for these personalized advertisements.

According to research firm Insider Intelligence, U.S. marketers are projected to invest $46.4 billion in "retail media" advertising this year, the Wall Street Journal noted. 

This form of advertising involves selling ads based on data from retailers who don't typically engage in ad sales but possess customer data from their primary business, it added.

Read Next: United Airlines Plans Priority Boarding For Window-Seat Economy Passengers To Save Time: Report

Price Action: UAL shares are trading higher by 2.32% to $40.35 on the last check Wednesday.  

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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