Not more than 50% of marketing budgets are allocated to below-the- line advertising

The Power of On-Pack Cross Promotions

MARKETING NEWS

Jun 7th 2011, 14:52

Research commissioned by the Point of Purchase Advertising Institute, the global organisation for marketing in retail shows that not more than 50% of marketing budgets are allocated to below-the- line advertising when this is in fact where purchasing decisions are made. 

Whilst above the line advertising creates awareness, interest and desire for a product and may drive consumers in store, in store communication provides the call to action for purchases and therefore closes the loop. A particularly potent technique of closing this loop is through on-pack cross promotions.

On-pack cross promotions are a tactful mechanic to launch products or to inform consumers of new variants of a product. For example, a Fix-a-Form™ leaflet label placed on a specific product can include detailed information such as product benefits, background information and price on the new product within the range. On-pack cross promotions can also be utilised to create brand associations. An on-pack sticker for a cheese spread on a loaf of bread, for example, allows both products to leverage on each other’s product intrinsics and brand equity. Through linking two complimentary products, for example, fish fingers and tomato sauce, on-pack cross promotions have the power to increase sales. An on pack device on a product can drive consumers, who otherwise would have only purchased that one product, to consider purchasing the complimentary product and vice-versa.

With over 70% of purchasing decisions made in store, brand owners and marketers need to re-allocate their marketing budgets towards below-the- line advertising and include in store promotions such as on-pack cross promotions into their marketing arsenal.