The Current Podcast: United Airlines’ Mike Petrella on Personalizing the In-Flight Experience
Release Date: September 25, 2024
Introduction
In the latest episode of The Current Podcast, hosts Damian Fowler and Ilyse Liffreing engage in an enlightening conversation with Mike Petrella, Managing Director of Partnerships at United Airlines. The focus of their discussion is United Airlines' groundbreaking initiative, Connective Media, the airline industry's first commerce media network. Launched in June, Connective Media leverages United’s extensive customer data to craft personalized and immersive travel experiences. This innovation arrives amid the burgeoning popularity of retail media networks in the ad tech space, which enable brand marketers to target consumers using retailers' first-party data.
Launch of Connective Media
Mike Petrella delves into the strategic reasoning behind United Airlines' venture into commerce media networks. He emphasizes the distinction between traditional retail media networks and United’s approach:
“We consider ourselves a commerce media network and we distinguish ourselves as a commerce media network... the commerce media network embraces the emotion, the journey, the feelings of all parts of the funnel.”
— Mike Petrella, 00:59
Connective Media boasts an impressive database of 108 million profiles, renowned for its accuracy due to stringent data collection standards required for air travel. This robust data foundation enables United to create comprehensive user profiles, facilitating personalized interactions throughout the entire travel journey—from planning and booking to the trip itself and even post-travel activities.
Understanding the Long Purchase Journey
The conversation highlights the extended nature of the travel purchase journey. Unlike spontaneous purchases, air travel involves significant planning and multiple touchpoints:
“It is very few people spontaneously book tickets to destinations. Right. And when you're in that mindset, you're in a planning mindset...”
— Mike Petrella, 03:00
Petrella explains how Connective Media captures both endemic (travel-related) and non-endemic (general lifestyle) behaviors, allowing United to offer relevant recommendations and advertisements beyond just travel services. This holistic approach ensures that the messaging resonates with customers at various stages and contexts of their lives.
Collaborating with Brands
United's media network extends across multiple platforms, including the company’s website, mobile app, airport digital signage, in-flight entertainment (IFE) systems, and more. Petrella provides specific examples of how United partners with diverse brands to deliver tailored content:
“It's the breadth of commerce... it makes the journey easier. It makes it feel like it's Damian Fowler's journey, not just a customer who purchased a seat in one of our planes.”
— Mike Petrella, 05:21
Connective Media integrates advertising seamlessly into different environments, ensuring that each touchpoint—from lounges to seatback screens—is optimized for personalization without being intrusive.
Customer Insights and Target Segments
A critical aspect of Connective Media's success lies in its deep customer insights. Petrella shares that United captures over 120 targetable segments, encompassing attitudinal, behavioral, lifestyle, and transactional data:
“Our audience indexed to the highly affluent individual, married, college-educated homeowner, household income of 250,000 plus...”
— Mike Petrella, 07:52
These insights enable United to align with premium brands like Bottega Veneta and Macallan, while also catering to a diverse passenger base, including a significant Hispanic demographic through partnerships like Televisa Univision.
Advertising Strategies and Personalization
Personalization is at the heart of Connective Media’s advertising strategy. Petrella outlines how United ensures privacy and data integrity while delivering targeted advertisements:
“We are a very privacy-centric, privacy-safe, conservative approach to what we're doing... Data collaborations through clean rooms, proper encryption...”
— Mike Petrella, 09:06
The aim is to provide relevant content without compromising customer privacy, utilizing secure methods to manage and analyze data.
Interest from Brands and Market Reception
Since its launch, Connective Media has garnered overwhelming interest from various brands and sectors. Petrella describes the positive reception and the challenges of managing choice for partners:
“The reception to what we've been doing has been incredibly positive and it feels great... there's a use case for all brands and we're always open to exploration and conversations...”
— Mike Petrella, 10:14
United maintains a premium approach in selecting partners to preserve brand integrity while ensuring value for both customers and advertisers.
Changes in Air Travel Post-Pandemic
The pandemic significantly altered air travel dynamics, and United has observed a robust resurgence in passenger numbers. Petrella attributes this growth to United’s focus on delivering an exceptional travel experience:
“People fly United for the experience. We do not compete with low-cost carriers. That's not our model.”
— Mike Petrella, 11:26
United’s top-rated app, user-friendly operations, and high-caliber staff contribute to a seamless and personalized travel experience, further enhancing customer loyalty.
Customer Feedback and Market Impact
Feedback from customers has been highly positive, with many expressing excitement over Connective Media’s innovative approach:
“I've come up and said, I'm so excited you're doing this... we're proud of bringing a legitimate business with a very, very focused Northstar that is focused solely around the customer.”
— Mike Petrella, 13:59
The swift market entry and the strategic focus on customer-centricity have positioned United as a leader in the integration of media and travel.
Future Trends and AI Integration
Looking ahead, Petrella anticipates significant trends in the merging of travel and media, particularly the integration of artificial intelligence:
“The introduction of AI... Humans know which questions to ask. AI will figure out what other questions to ask... the ability to extract new data, new intelligence, new insights.”
— Mike Petrella, 15:38
United aims to stay ahead by leveraging AI to enhance analytics and continually modernize its offerings, ensuring sustained leadership in the media network space.
Partnerships and Competitive Landscape
Petrella acknowledges the competitive nature of the retail media space but remains confident in United’s unique positioning:
“If you partner with everyone, you partner with no one. So I think there's opportunities in the travel space... we have to be selective.”
— Mike Petrella, 17:36
United is open to strategic partnerships that align with its goals, emphasizing collaboration and mutual growth within the industry.
Pressure to Deliver and Commitment to Excellence
Despite the competitive environment, Petrella expresses a personal commitment to excellence and delivering on United’s promises:
“I don't feel the pressure from the industry. I feel the pressure to deliver... I'm excited because this is real and it's good, and we will be responsible for our success.”
— Mike Petrella, 19:36
His dedication underscores United’s determination to maintain high standards and drive continued success for Connective Media.
Conclusion
In this insightful episode, Mike Petrella provides a comprehensive overview of United Airlines' innovative Connective Media network. By leveraging extensive and accurate customer data, United is redefining the in-flight experience through personalized advertising and seamless integration with various touchpoints. The initiative not only enhances the passenger journey but also offers unparalleled opportunities for brand partners. With a forward-looking approach that embraces AI and strategic partnerships, United Airlines is poised to lead the convergence of travel and media, setting new standards for the airline industry.
For those interested in the intersection of travel, technology, and personalized customer experiences, this episode offers valuable insights into how United Airlines is pioneering change in the aviation sector.