WILLISTON, SC - Crane Merchandising Systems, a Crane Co. company, has released a white paper from Sequent Partners demonstrating the long-lasting effectiveness of place-based advertising on connected vending machine screens.
Sequent Partners is a specialized brand and media metrics consultancy focused on helping marketers, research companies, and the media to navigate the changing media landscape.
"The sales lift consumer packaged goods (CPG) companies gain by advertising on vending screens persists long after the campaign ends and likely extends to retail channels beyond vending itself," said Jim Spaeth, Partner, Sequent Partners.
The white paper reports on a 12-week KitKat advertising campaign that ran on Crane-connected vending screens located both in places that have virtually no repeat consumers and in places where the consumer base is constant. The campaign generated nearly four million impressions as well as a 15 percent increase in KitKat vends across all locations.
However, the more interesting finding is that machines displaying the ad retained their sales lift 19 weeks after the ad came down. "Post-campaign sales lift was highest in colleges where the same consumers tend to notice and repeatedly buy from the machine. This suggests that vending ads create loyal consumers who keep buying the product over and over again, something many in the vending industry have long suspected, but been unable to prove at scale," said Sharon Peyer, Vice President of the Crane Media Network.
"Consumer packaged goods brands spend heavily on advertising with the goal of successfully launching products and growing their sales. They also use attribution models to understand the contribution individual advertising mediums like TV, radio, print, mobile, and in-store circulars contribute to a product's total sales growth," Spaeth said.
The white paper calls on CPGs to conduct a more comprehensive study that explores the effect of vending advertisements on subsequent purchases across all retail distribution channels. This study would help CPG companies understand how to incorporate targeted, place-based vending advertising into their media plans and should lead to vending being included in their attribution models.
Historically, vending machine screens have not been included in the CPG brands' advertising budgets or their attribution modeling. This white paper provides evidence of why that practice should change in the era of digitally connected vending touch screens.
"The Internet of Things and digital touch screens have made it possible for vending to offer CPG brands valuable new insights into the kinds of people who buy their products, and a new mechanism for influencing those consumers' long-term purchase behaviors with location-based targeted marketing," Peyer said.
She added that, in the future, Crane plans to share the consumer behavior data gleaned from its ad campaigns with operators so they can better manage their product placements and drive optimal sales growth across their businesses, factoring in which types of products sell best in specific locations, for example.
Crane's digital advertising programs are managed over-the-air by the Crane Media Network and run across all Crane-connected screens whose operators have signed up to participate in digital advertising. In the last two years, Crane has delivered more than 40 campaigns across more than 16,000 screens in the United States alone.