United Airlines uses sustainability and ad flexibility to boost its brand

Two years ago, United Airlines threw out its usual brand flight plan and decided to take a different route. COVID-19 was raging, the travel industry was a mess following lockdowns and restrictions and consumers were scared. Instead of ramping up prices to make up for lost revenue, the Chicago-based airline focused on brand purpose and how United could become the airline of choice to customers during their time of need. The company permanently eliminated change fees for travelers, overhauled sustainability efforts, mandated that its employees receive COVID vaccines and invested in pilot training. “We had a lot of examples—more so than in the past—of how we were differentiating from competitors,” said Maggie Schmerin, United’s managing director and head of global advertising and social media. “That inspired our team when it came to advertising and marketing to really step it up.” See all of Ad Age's 2022 Marketers of the Year here. Ad Age Next: CMO Get your tickets for the Dec. 7 event in New York Register here Earlier this year, United told its story through a new brand campaign, “Good Leads the Way”—its largest advertising effort in nearly a decade. Working with new agency of record 72andSunny, the airline used peppy new spots and candid images to communicate how it’s no longer your average airline. The work is meant to connect with customers on a deeper level as United seeks to be more of a travel partner, rather than just a carrier choice based on price. The brand also shifted its advertising calendar to be more flexible with both media and message. Schmerin said the new work sought to answer questions such as, “Is this a campaign that another airline can easily come in and put their logo on top of?” she said. “We kept using that as the lens to remind ourselves that we are so much more than just an airline. We wanted to make sure we designed this work to elevate United beyond aviation.” The strategy is paying off. In October, United reported earnings that beat analyst expectations. Revenue, at $12.88 billion for the third quarter, was up 66% from the year-earlier period. Net income nearly doubled over last year to $942 million. The brand is also forecasting a profitable fourth quarter. Of course, as consumers return to travel, United is not the only airline seeing gains. Delta Air Lines recently posted record revenue, for example. However, experts say the changes United has made into its overall brand strategy will pay off long-term. Looking at its business from the point of view of its customers has helped, according to Robert Cole, senior research analyst at travel market research firm Phocuswright. “The airline for years had been all about optimizing revenue,” Cole said, noting “passenger-hostile activities” such as added bag fees and eliminating formerly free services. With its new approach, he added, United has been “very smart on a lot of things—just looking at the whole brand and product in their industry from a holistic perspective.” Yet Cole warned that United could be challenged by the continued sluggish demand in business travel. While leisure travel has rebounded to exceed pre-pandemic levels, the gap between its business counterpart is still wide, with some estimating that the latter is down 30%. The recent economic instability, including scores of employee layoffs, could exacerbate the declines. Schmerin said that operating through the pandemic taught United to be flexible and strategic with its marketing, and the company has been getting more savvy with its media buys. For example, when United unveiled “Good Leads the Way” in the spring, it bought a national spot during the penultimate episode of the popular “This Is Us” TV show. United, which works with Dentsu on media, knew the episode would likely attract the same number of viewers, but the media buy for a 30-second spot was significantly less than in the finale, where United placed a smaller buy in its hub cities only. “That’s one example of a strategy we are taking to be as cost-effective as possible,” Schmerin said. Schmerin and her team of 25 have overhauled United’s annual advertising schedule to be more nimble, creative and responsive to current events. Advertising and social media teams now sit alongside public relations and earned media so they can better react with marketing. United now regularly switches up its digital screens at airports, treating the channel the same way it treats marketing on Facebook or Instagram. Last month, the brand ran a cheeky campaign aimed at rival Southwest Airlines, which doesn’t allow customers to pick seats ahead of time as United does. The push used digital ads and directed travelers to a call service that would remind them to check in for their Southwest flight. In addition, United has ramped up contextual advertising around sustainability. It posted signs on trash cans in California that explained how the airline turns garbage into jet fuel. “Gone are the days where we just have two big advertising pushes a year,” said Schmerin. “We’re all about how can we be relevant and do a better job in social and advertising.” See all of Ad Age's 2022 Marketers of the Year here. Ad Age Next: CMO Get your tickets for the Dec. 7 event in New York Register here

United Airlines uses sustainability and ad flexibility to boost its brand

Featured Stories