The WestJet Channel Takes Off on Rogers Cable

Will 24 hours a day of advertising turn into sales?

The Motley Fool

By Cameron Conway

Earlier this month, WestJet Airlines (TSX:WJA) launched its own “ambient” television channel on Rogers (TSX: RCI.B, NYSE:RCI). WestJet’s channel 206 is available to customers in Ontario, New Brunswick, and Newfoundland and is designed to entice potential customers with pictures of warm sunny beaches, spotlighting locations such as Grand Cayman, Bermuda, and St. Martin-St. Maarten, just as the cold grip of winter grabs ahold of the Great White North.

The evolution of the fireplace channel
WestJet seems to be following in the footsteps of a Swiss Chalet marketing campaign from 2011-2012, which showed roasting chickens on a 24/7 loop to lure people into its stores. In the same fashion, WestJet is hoping that images of warmer landscapes could lure people out of the cold and onto the company’s aircrafts.

If 24 hours of Caribbean destinations isn’t your thing, the channel is also slated to show “behind the scenes” footage of WestJets “ramp” activities such as loading and unloading planes, pushing planes to taxing positions, and the general activities of its ground crews — activities that certain viewers may find interesting. From my own personal experience, the novelty of staring at the underside of a WestJet 737 didn’t last very long … although viewers won’t have to enjoy the same view at 6 a.m. in -40C like I did.

24-hour commercial
WestJet is no doubt hoping that this 13-week experiment turns into actual sales, or at the very least greater interest in the WestJet brand. It’s been successful thus far — boasting 34 consecutive profitable quarters and in its most recent quarter, it reported a year-on-year increase of nearly 300,000 passengers. But it’s eager for more growth — it has a stated mission of becoming “one of the five most successful airlines in the world.”

As I’ve written about here at Fool.ca repeatedly (see here and here), companies are having to try harder — and be more creative — to market their services and attract the attention of potential customers. Simple 30-second television commercials or display ads in national newspapers are no longer a sure thing.

If WestJet’s 13-week gamble is successful, it could mark another shift in the marketing world. If it fails — well, at least its downside is protected, as it’ll only be charged for the amount of viewers the channel gets.

WestJet shareholders should welcome this as a novel idea worth an experiment. (Selling an entire channel for advertising is also a novel experiment for Rogers!) I’ll be watching with curiosity to see if this works.

And hey, even if we can’t afford to actually fly to a Caribbean beach on a WestJet plane, at least we’re now able to watch it on TV.

Disclosure: Cameron Conway does not own any shares in the companies mentioned.

More on Investing

how to save money
Energy Stocks

Gasoline Is Up 27.8% in a Year: This Oilsands Giant Is Cashing In

Suncor's integrated operations generate substantial cash, although a strong oil quarter shouldn't become a permanent assumption.

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

I’d Put An Entire Year’s TFSA Room Into This 5.5% Dividend Stock for $32 Monthly in Retirement Income

With its stable rental income, high-quality tenant base, and long-term growth potential, CT REIT would be an excellent buy for…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Got $2,000? 2 Canadian Dividend Stocks I’d Buy Before the Next Market Dip

If you are worried about the next market dip, buy these two dividend stocks with $2,000 to find safety from…

Read more »

happy woman throws cash
Dividend Stocks

5 TSX Dividend Stocks for Steady Cash Flow: What I’d Buy With $5,000

If you are looking for stable and growing income that you can depend on, these TSX dividend stocks are a…

Read more »

young people stare at smartphones
Investing

TFSA Investors: This Dividend Stock Pays a 4.5% Yield for Consistent Cash

Rogers Communications (TSX:RCI.B) stock has a juicy dividend and a dirt-cheap multiple this October.

Read more »

The sun sets behind a power source
Dividend Stocks

Taking CPP at 60 Shrinks Your Cheque 36%: This Dividend Stock Helps Bridge the Gap

Fortis can supplement retirement income, but dividend cash and a permanently reduced CPP pension aren't interchangeable.

Read more »

Data center servers IT workers
Dividend Stocks

The 4.3% Dividend Stock That Can Pay Retirees Cash Every 30 Days

Granite REIT (TSX:GRT.UN) has a 4.3% yield paid monthly.

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

BlackBerry Stock Jumped 8% On Tuesday: What’s Going on ­– and Is It a Buy?

A growing QNX royalty backlog provides a solid base for future growth and is likely to support BlackBerry’s business.

Read more »