Expert: Nontraditional ad methods may boost brand recognition

Traditional ad strategies aren’t working

Kristina: For many marketers traditional ad strategies haven’t been as effective since the beginning of the pandemic – why is that? 

Ryan Millman, Founder & CEO, UnDigital: A confluence of events have had a significant impact on marketers since the start of the pandemic, including rising CPM’s and a loss of attribution due to privacy regulations and the industry’s shift away from cookies and third-party trackers. Not to mention, there’s a plethora of logistical issues like labor shortages and supply chain backups impacting inventory and therefore impacting advertising – no brand wants to spend money on an ad for a product that won’t ship until next year.

In this environment, brands (especially in the retail, CPG and direct-to-consumer sectors) have had to completely rethink how they approach marketing. Many are turning to new and innovative methods that are powered by first-party data.

Non-traditional ad strategies may increase brand awareness

Kristina: Over the next 3 years digital ad spends are expected to eclipse traditional; we’re also seeing more businesses go with nontraditional methods – like turning their packaging into an ad. What is driving this trend of ‘unboxing marketing’? 

Ryan: The only way to succeed in the challenging environment outlined above is to relentlessly focus on your company’s brand. Brand is a moat. Your brand is based on how your customers perceive you. That perception is formed by every touchpoint your customers interact with. There is no touchpoint more important to your customers than the receipt of their order.

This is why the many innovative companies are starting to use the inside of their packages to connect with customers on a more personal level with unboxing marketing. 

While traditional package inserts are static and expensive, brands like Unilever Prestige (i.e., Murad and Tatcha), Peter Thomas Roth, PetPlate and more are using UnDigital – which is a first-of-its-kind printer/software combination that turns packages into a fully automated, targeted, measurable marketing channel – to deliver the perfect message for every customer and build brand affinity while also increasing customer retention.

Kristina: What kind of response are brands seeing from these nontraditional methods? 

Ryan: We often compare our technology to Google retargeting but for packages. Brands using our in-package personalization are increasing customer retention rates by 5% to 15%. This increase in retention turns into a massive increase in dollar growth when taking a customer’s LTV – and many of our customers are seeing up to $3 in incremental revenue per order. 

Why your business should consider non-traditional ad methods

Kristina: What makes this kind of marketing/advertising a win – not only for the business but for the customer? 

Ryan: For brands, unboxing marketing is really a no-brainer. Whether the goal of a campaign is to drive brand loyalty, increase sales, cut down on customer service calls (by offering detailed instructions for specific SKUs) or simply to make the customer smile, packages have a 100% open rate – no other channel can claim that with confidence. 

Retailers (even those as big as Amazon, Walmart and Target) are missing out on a huge opportunity by not taking advantage of the millions of packages they ship out daily. Think about it: In 2020 alone, Amazon Logistics delivered over four billion packages in the US. That’s four billion missed opportunities to engage with customers at the moment they are happiest with undivided attention: when they are opening up their package. And, considering our customers see up to $3 in additional revenue per order because of unboxing marketing, the impact on revenue could be massive. 

For customers, unboxing marketing delivers the personalized experiences they have come to expect without the creepy third-party tracking that made it possible in the past. Many of our customers are using their packages as a means to deliver personalized offers, recommended products based on order history, instructions for the products in the package, and even “handwritten notes” to make the customer feel special. They get content that helps them get the most out of their order – and it’s a win-win because it often comes with a CTA that drives the retailers KPI’s.