How Japan's Largest Airline Used Video to Cut Operating Costs by a Third
All Nippon Airways (ANA) uses video extensively to engage with its broad base of domestic and international travelers. From TV commercials and in-flight entertainment to digital advertising and direct marketing campaigns, video is raising brand awareness, driving customer engagement and online sales, and communicating critical travel information.
“Our goal is to increase direct sales by driving viewers to the ANA Sky Web website, where they can access a wide range of information and make purchases,” states Ken Nishimura, Assistant Manager, Digital Marketing, Market Communications. “Today, almost 90% of domestic airline tickets are purchased directly from our site, and video has been very successful in attracting customers.” The largest airline in Japan in both revenues and number of passengers, ANA flies on 83 international and 116 domestic routes.
But, as ANA expanded its use of video, it was becoming more expensive to manage distribution, and ensure a consistent viewer experience. Numerous internal departments and external companies are involved in the production and distribution of video. Sales recognition videos originate with the Sales Department, while the Entertainment Department produces in-flight video clips and entertainment videos. The marketing department creates videos to drive brand awareness, generate leads, and drive ecommerce. And, 'how-to' videos, such as how to fill out an immigration card, originate in numerous other internal departments.
“The videos, as well as our business partners, were disjointed and scattered all over the place. We had to communicate with each department who owned the video, the groups who created the video clips, as well as ANA systems and management stakeholders,” explains Mr. Nishimura. “Previously, we outsourced video operations to an external company. But, that complicated our approach, added to costs, and required more time. We needed to find a better way.”
ANA looked for a solution that would ensure high resolution, improve efficiencies, deliver cost benefits and strong performance. They chose the Brightcove online video platform, which is enabling a fundamental change in how the airline distributes video content.
A Single Platform for Multiple Departments
“One of the biggest merits of implementing Brightcove is being able to manage everything from a single place,” states Mr. Nishimura. “We can easily upload the videos we create with different partners for different campaigns. Although video production still is spread out across a number of departments, now we distribute all video through the Brightcove platform, which simplifies our processes and improves the quality of the video.”
“From the early phases of video utilization, all the way to operation, impact measurement and data recycling, Brightcove offers a simpler approach,” continues Mr. Nishimura. “The process, from the time we receive the videos until the time we upload them, is extremely efficient. As a result, we’ve reduced operating costs by 33%. Now, it takes half as many days to get a video complete and uploaded, which I think is an amazing benefit. Plus, you could say it's a much more enjoyable experience.”
33% Reduction in Operating Costs
“With Brightcove, we have reduced the number of time-consuming tasks, such as coding the raw footage. Now, we simply upload the video and the Brightcove platform figures all the encoding algorithms. The quality is really good with Brightcove,” adds Mr. Nishimura. “The video clips are optimized automatically for the best possible picture based on environmental factors such as the viewer’s connection speed and strength, which provides viewers with hassle-free viewing.”
The Brightcove online video platform also enables ANA to utilize a single platform for mobile and social, Apple TV and Roku. “In the past, video was considered something special, but with Brightcove it is extremely easy to distribute video clips – you just upload the raw footage.”
“The Brightcove workflow for making video available to users is extremely simple. The online video platform is user-friendly and free from lags or hurdles with regard to resolution. And, it enables us to collect and analyze statistical data on each video; to measure and gauge customer reactions."
Analytics Inform ANA’s Business Decisions
Brightcove’s analytics tool is a major benefit of the Brightcove platform for ANA. “The process used to end when we uploaded the video clip. Now, we use the video metrics as the basis for planning, which is something we could never do before.”
Previously, when ANA released a new commercial, or ran a direct marketing campaign using video, they saw an increase in traffic to the main ANA website, but ANA had no way of knowing what was behind the increase; were viewers watching the videos or looking at other page content? The airline used analytics tools for each page, but could not see viewership for videos.
Using Brightcove, ANA analyzes the total number of unique video views, monitoring exactly how long viewers watch each video, and the viewership by country. “Before implementing Brightcove, we only had vague numbers to work with, but now we have more reliable numbers,” states Mr. Nishimura. “It is immediately obvious which videos are being watched and which ones are not. With Brightcove, we can see what we previously could only guess about.”
“As a result, we have been getting more and more internal requests to use our videos from other departments in our company. I think the videos will be used even more in the future.”
“Since Brightcove began distributing our media, the videos can be viewed without any problems. We really think of this as a standard infrastructure, which is indispensable for running the site,” concludes Mr. Nishimura.