Thursday, January 18, 2007

What's Next In Airport Security? Advertising

For advertisers, it's a fantasy come true: a captive audience unable to walk away from their message because they have no shoes.

That's just the kind of dream scenario now offered to companies by the Transportation Security Administration--the folks who man the security checkpoints in airports. They're selling ads at the bottom of security bins, used to hold laptops, shoes and keys during airport screening. In return, the companies buy the bins, sorting tables and carts used to move the baggage through the line.

The new program is a win-win-win, they say: Advertisers reach frequent flyers, the TSA saves millions on equipment and airports gets a cut of the profits. So far the ads are only in four airports, but the Transportation Security Administration hopes to expand the program over the next year. On Thursday it's hosting an Industry Day at its Arlington, Va., headquarters to connect airport administrators with adverting agencies.

The program is the brainchild of SecurityPoint Media, which sells bins emblazoned with Rolodex ads. The small, St. Petersburg, Fla.-based company first contacted the TSA in 2002, with a plan to equip security checkpoints with advertiser-labeled gear. Last year, TSA approved the first pilot program in three Tennessee airports. LAX, the Los Angeles International airport, joined in July.

So far Rolodex, which targets many of its products at business travelers, is the only advertiser participating in the program. Rolodex's parent company is Sanford Brands, which also owns Rubbermaid--the company making the plastic bins for the new system. The campaign increased Web traffic to the Rolodex site, according to the company.

For the advertisers, the program is a chance to reach a wealthy demographic: Frequent flyers. According to a 2004 study of frequent flyers by market research company Arbitron (nyse: ARB - news - people ), airline travelers are 80% more likely to have an annual household income over $100,000. They're also more often household or business decision makers.

"It fits well with the Rolodex position of clean and organized," says Doug Kruep, the company's director of brand development office solutions.

Each airport can cut its own contract with any advertiser it chooses. What's non-negotiable is that the advertiser must provide new bins, tables and carts for the security check point on a regular basis. TSA reserves the right to pull what they consider offensive or inappropriate ads (no jokes about bombs, please).

The new equipment could add up to serious savings. The plastic containers, officially called "divestiture bins," cost about $7 each and must be replaced every 90 days. Over the past six months, TSA has saved $250,000 on bins, tables and carts at LAX. Furnishing the TSA employees with carts reduced on-the-job injuries, which cost the agency tens of millions in workman's compensation claims each year. It also sped up screening by 80%. "We provide little things that enhance and speed up the line,” says Joe Ambrefe, president of SecurityPoint Media.

Airports believe ads will equal profits. "We are always looking for creative ways to increase nonairlines revenue to help us keep our operating costs down," said Chicago Department of Aviation spokeswoman Wendy Abrams. Chicago airports plan to submit a proposal to the TSA asking to cut an additional contract covering bins with Clear Channel (nyse: CCU - news - people ), their advertising provider. Chicago airports would get 60% of the advertising revenues from the bins both at O'Hare and at Midway, says Abrams. LAX opted to put some of their own ads in the bins in lieu of cash.


Source - Forbes.com

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