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What Delta Airlines could learn from Disney - how to add millions in profit to the bottom line
I mentioned earlier that my family just finished a fantastic vacation to Disneyland. Anyone who knows Disney knows that the Disneyland Resort is an incredibly profitable cash cow. The SoCal park brings in billions each year. I then flew home on another American institution - Delta Airlines - a company that is losing millions each year and has been in and out of bankruptcy more time than anyone can count.
Being at Disneyland (they get an A in business) gave me an idea for Delta (they get an F in business). I noticed an incredible amount of advertising all over the park. For example, a rest area outside of the Big Thunder Mountain Railroad was sponsored by Brawny Paper Towels. Above the sinks, there were tips on washing your hands sponsored by Purell. I’m not sure what these companies paid for placement but considering the fact that Disneyland - including California Adventures - brings in 20 million visitors each year - I am willing to bet that Disney makes a pretty penny off these ad placements.
Now, take a look at a Boeing 757 like the one I flew on today. Why not place ads on the back of the tray tables? Why not have a company like American Tourister sponsor the overhead bin. Heck, why not say something like “this Delta flight is sponsored by Diet Coke - be sure to ask for a Coke product when we come around later in the flight…” right before the safety rundown. Each seat on the Delta 757 has TV piped in from Direct TV and they aren’t even taking advantage of selling ads on the low third on these screens. Heck, why not paint huge corporate brands on the sides of the plane? Its like one huge billboard. The possibilities are endless.
What could they charge for all that brandalism? A ton of money considering the millions who travel each year on Delta. When someone is sitting on a plane with no where to run and little else to do you have an incredible opportunity to advertise to that person. What else could I do for the 15 seconds it took me to wash my hands except read the Purell tip right in front of me. What does that look like on a plane when you have someone’s attention for hours? Its like watching ads right before a movie starts - they have you and they are going to get your attention and time for an ad. On a plane that could be worth a lot of money.
Delta needs to take a cue from Disney and learn how to make money on subtle advertising. It could be the boost they need to keep them in business.
Brilliant! I wonder if (a) they are getting gov’t subsidies (yes, I live under a rock) and (b) that would be an issue.
Left by Jason Alba on 03/11/2008Sounds like Ryanair in Ireland. Or Google for that matter. Interesting how most companies think they need to draw revenue from a ticket sale.
Left by David on 03/12/2008I can tolerate ads on a quick bus route but the idea of sitting and staring at an ad for surely something I would never buy (as about 99% of ads I see are for products I dont want & corporations I dont support) is horriflying.
As a consumer who’s largest expense next to rent is flying (to visit friends/family/education/work), the idea that my $500 flight doesn’t at least afford me the opportunity to be in an environment free of someone trying to sell me something is disheartening.
They already do this in some forms: the magazine, sky mall, using Coke products and certain food brands, and I am certain Direct TV is partner not just a provider.
I know you are speaking from a business perspective but from a human perspective I think this is a horrible idea.
Left by David on 03/18/2008