South America’s largest airline group, LATAM Airlines, scored a double win by reducing their cost per user (CPU) with help from streaming company SeenThis, whilst also addressing the impact of digital advertising on the climate through significant carbon reductions.
LATAM Airlines reduced CPU across all key markets by as much as 83% – with adaptive streaming from SeenThis – using less data, energy and avoiding unnecessary CO2 emissions from digital advertising.
Challenge
In 2022, LATAM and its media agency Matterkind worked with SeenThis to increase its video reach and hit performance and cost efficiency goals. Previously, the airline’s high-quality video content was limited to expensive video inventory placements, while display campaigns used static banners.
As for the environment, the internet is a major polluter and represents at least 2% of global greenhouse gas emissions, which is on par with that of the aviation industry. A significant share of the media industry's internet CO2 footprint stems from the large amount of data transferred through the internet infrastructure to ensure that digital ads are delivered to an end user. Data transfer represents 30% of the internet's energy consumption.
Solution
LATAM Airlines partnered with SeenThis and used their streaming technology which enables advertisers to run high-quality video within display, increasing the airline’s video reach at a lower cost, and energy use, than typical video CPM.
“With indirect emissions stemming from digital advertising, it’s important we act now; implementing innovative solutions,” explained Jesper Benon, CEO at SeenThis. “Our technology loads instantly and minimises unnecessary data transfer. This leads to a reduction in the environmental impact of digital content versus traditional video ad serving technology.”
Results
As a performance-focused brand, LATAM measures ROI on every digital campaign. The high-quality video within display delivered an impactful viewer experience; dramatically outperforming static display banners.
Following positive initial campaigns across key markets in Latin America, the brand decided to extend the partnership and stream its global campaigns across all continents, delivering reduced CPU results, including:
● -83% in US
● -47% in Mexico
● -65% in Europe
● -15% in Oceania
Using the SeenThis emissions calculator for the LATAM campaign, data savings were estimated to be around 25%, corresponding to approximately 14 tonnes lower CO2 emissions.
LATAM Airlines’ Marketing Technology Team Lead, Manuel Breve, commented: “We will continue to optimise our media spending towards more sustainable options, and at the same time improve ROI and performance. That is truly amazing.”
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