The IFE industry experienced several significant trends in 2023 that reshaped advertising and media onboard — and will certainly continue in 2024. One of the most prominent was the noticeable shift in brand strategies as many brands opted to create content specifically for onboard use — which marks a sharp departure from traditional advertising models.  

At Spafax, we’re excited to be at the forefront of this new approach to creating more immersive, engaging content and advertising opportunities designed to be informative and entertaining instead of overtly promotional. On that front, one major 2023 highlight for Spafax was the launch of AdConnect, our proprietary centralized marketplace that enables agencies and advertisers to purchase digital ad inventory directly from airlines. This innovative new platform is a win for all parties and positions Spafax, brands, and agencies for success in 2024 and beyond.  

We expect that as the new year progresses, more airlines will recognize the value of developing content that has the capacity to drive strong revenues for airlines while enhancing the IFE experience. Along with the growth and adoption of AdConnect in the IFE industry, here are the industry trends we’re most excited about in 2024. 

All-In-One IFEC 

A notable (though not entirely surprising) trend was the growing interest in comprehensive ‘all-in-one’ IFEC solutions. This was especially evident at the APEX FTE conferences in Singapore, highlighting the industry’s adoption of unified hardware, software, content and revenue generating solutions. We expect this trend to continue to gain momentum, even among larger legacy carriers. 

Streaming and Connectivity 

As 2024 warms up, the integration of streaming content and improved satellite connectivity onboard aircraft is a key trend. This development offers novel advertising opportunities for airlines. Advertisements could be incorporated into streaming content similarly to ground-based streaming services, with options like pre-roll ads or product placements. Enhanced connectivity also opens avenues for targeted advertising through onboard Wi-Fi interfaces and airline apps. These initiatives allow airlines to offer more personalized passenger experiences while exploring new revenue streams. At Spafax, we're committed to guiding our airline partners in harnessing these opportunities effectively, ensuring seamless integration with their brand and passenger engagement strategies. 

Capitalizing on Programmatic Ad Spending Growth 

The programmatic advertising market is expected to reach $616 billion by 2024. Spafax is tapping into this massive growth potential in various ways, including the launch of our new AdConnect platform.  

Spafax’s AdConnect offering was specifically designed with this growth opportunity in mind — as well as making it much easier for brands and agencies to collaborate. Spafax AdConnect is a proprietary centralized marketplace enabling agencies and advertisers to purchase digital ad inventory directly from airlines. Developed on the backbones of Salesforce and AWS, Spafax developed Spafax AdConnect to address the unique needs of inflight advertisers. While it can operate programmatically, the platform’s offline functionality is by design, ensuring ads can be delivered even in connectivity-challenged environments, like the aircraft cabin. 

By continually expanding our offering of data-driven insights, we will ensure our airline customers and their passengers have access to more targeted and compelling ad experiences throughout the coming year. 

Advertising Will Become More Personalized 

Imagine boarding a flight and being greeted with ads that resonate with your specific travel patterns and preferences. This is the kind of highly personalized advertising that is expected to grow significantly in 2024. However, it is also important to understand the impact of hyper-personalization on advertising reach on advertising reach. For example, targeting specific groups, like women over 30 who love vegan food, could lead to more relevant and engaging content, but it also involves a compromise by displaying ads to a much smaller audience and at a higher cost. 

This cutting-edge approach, mirroring trends in other sectors, focuses on tailoring content to individual tastes, turning every journey into a curated, highly personal experience. It combines innovation and discretion, allowing passengers to opt out when they want, therefore striking a crucial balance between engaging content and respecting privacy. Spafax remains deeply committed to adhering to GDPR and other regulatory standards. We rigorously protect passenger data, ensuring private information is never shared without explicit consent from our passengers. 

Learning from CTV and In-App Advertising Trends 

The growth of in-app advertising provides valuable insights for IFE advertising and highlights the importance of creating engaging, interactive ad experiences – an option we are actively exploring to integrate into both seatback and mobile IFE platforms. 

AI Goes Mainstream 

Throughout the next 12 months, we will likely witness a broader integration of generative AI models into programmatic advertising, including IFE. These advancements are poised to enhance value creation and consumer engagement while improving the efficiency and effectiveness of IFE advertising, offering passengers increasingly personalized and engaging content experiences. 

At Spafax, we plan to integrate machine learning into AdConnect, our proprietary centralized marketplace that enables agencies and advertisers to purchase digital ad inventory directly from airlines. This advancement will revolutionize our current manual screening process for advertising content. By automating compliance checks with airline guidelines, we aim to reduce the volume of ads requiring manual review, enhancing efficiency and accelerating the approval process for airlines. This AI-driven approach signifies our commitment to innovation in inflight advertising. 

Abundant Opportunities in IFE 

The ability to identify IFE trends and predict industry needs is what makes our media sales team so adept at staying ahead of the curve. We tap into cross-channel developments and continually reinvent existing inventories to ensure offerings appeal to modern brands and agencies. This approach underlines Spafax’s long-standing commitment to innovation and adaptability. 

With abundant opportunities for innovative advertising partnerships in 2024, airlines will need experienced partners like Spafax to help them capitalize on revenue opportunities and ensure that campaigns are suitable for their brand image, passenger demographic, and entertainment hardware capabilities. Creativity is at the heart of everything we do, and we infuse every project with fresh creative insight while pushing the boundaries of technology to deliver exceptional results for our clients — this year and every year.