Asia inflight market to topple Europe from second spot

The company, which has snared inflight publishing deals from three Asian airlines since entering the region earlier this year, has pegged ad revenue growth for Asia-Pacific airlines at 12 per cent for 2004, with the region to replace Europe as the world's second biggest ad market this year. In 2005, Apac airline ad revenue is expected to grow 29 per cent to US$217 million, with a similar rate of increase tipped for 2006. According to Ink Publishing's UK-based chief executive, Jeffrey O'Rourke, the figures were generated using airline and advertising revenue growth rates, and adding in Ink's own proprietary research into airline yields. He pointed to three key drivers behind inflight publishing growth in the region. Firstly, the region's airlines are growing at 15 per cent per year; secondly, regional advertising is growing at 12 per cent year on year; and, thirdly, the liberalisation of airports -- which is creating new opportunities for low-cost airlines. "The low cost business model also enhances the effectiveness of inflight media," said O'Rourke. "Basically the low cost model is about using planes more by reducing turnaround times and increasing the amount of time spent in the air. With low cost airlines, advertisers reach more passengers per seat and per magazine. All of these forces are combining to move inflight media up the advertising agenda." Gosh Advertising director of planning Sharon Lee noted that the advantages of inflight media lie in the captive nature of the audience, and its affluence -- and pointed to telcos and credit cards as ideal advertisers on the medium. However, she cautioned that 'splitting' inflight titles into lifestyle and entertainment versions could prove detrimental, given the popularity of airline entertainment guides.