Pizza Box Advertising: the Ideal Ad for Stay-at-Home Consumers
Pizza Box Advertising: learn more about this concept.
COVID-19 and the Changes in the Advertising Industry
The ripple effects from the COVID-19 crisis continue to spread throughout the business world, with the advertising industry now feeling its destructive effects. There are still many uncertainties as to how the next few months will impact the global community, both professionally and personally, so it is essential to look at both spectrum to make educated decisions regarding advertising investments.
Marketers will have to adapt. It will be key for their survival to staying on top of the latest trends, watching the data for insight. The increased “work from home” periods will naturally lead to an increase in the time spent at home. A survey conducted by the platform Numerator indicated many industries are shifting their advertising messaging. As example, restaurants are pivoting to food delivery message. The food industry has been quick to pivot their messaging to focus on in-home delivery options.
Adzze has been re-thinking the advertising tactics adapting to a more sensitive message. The team has working on extending its capabilities to offer advertising concepts that can reach the consumers at their safest place: at home. One of these methods uses pizza boxes as advertising space. Think of this as small moving billboard that gets delivered at the consumer’s home. Studies demonstrated that this type of ads can evoke an 80% recall rate (8 out of 10 households individuals remember to see an ad on the pizza box) with an average ROI of 150%. This means, for every 1 dollar the advertiser invested in a pizza box advertising campaign, they received at least additional 2.5 dollars of sales. For more details, see the article Estimating the ROI of Pizza Box Marketing.
How Does Pizza Box Advertising Work?
The advertisement is printed on pizza boxes (or pizza toppers) and shipped to the pizzerias that the advertiser selected. The advertising pizza venues distribute to the consumers locally or they deliver at their homes. These venues are recognized pizza chains, so the advertiser has exposure to reputable brands. The pizza box ads get delivered in the hands of the consumers at their homes reaching on average 45 min of brand exposure. Sometimes the consumer leaves the pizza in the fridge generating additional exposure. On average, each Pizza Box Advertising venue delivers 2,000 pizza box ads per month with an estimate 1.8M impressions/month.
There are few reasons why marketers would choose Pizza Box Advertising instead of other traditional media vehicles:
Benefits of Pizza Box Marketing
High Brand Recall
Consumers are overwhelmed with digital ads that they see for a fraction of second and barely remember them. The attention span for digital ads is minimal to make them remember. The pizza box ads create a surprise effect making it more memorable. Studies show that this type of ads can evoke an 80% recall rate (8 out of 10 households individuals remember to see an ad on pizza boxes).
A quick example: using pizza boxes and/or pizza box-toppers, your message reaches an average of 2.5 people who have contact with the box. They then spend an average of 10 minutes viewing and interacting with your messaging (and forget about if they put the box in the fridge overnight!) So, a campaign of 50,000 boxers/toppers will give you an OUTSTANDING customer contact duration of 1,250,000 minutes or over 20,833 hours!
The budget used to place a 1 billboard on a high traffic highway for 1 month can be re-allocated to distribute 60,000 pizza boxes. This is sufficient to cover all households of a small town in the USA.
High Return on Advertising Spend
The average ROI is 2.5X. This means, for every 1 dollar the advertiser invested in a pizza advertising campaign, they received at least additional 2.5 dollars of sales.
This article will elaborate on the details of each reason.
Advertising Boxes and Stay-at-Home
The use of OOH and billboards will most likely experience more decline in the coming weeks, given the growing number of cases of infection in the United States. Businesses that dearly need to get the word out about their enterprise will have to embrace new-age advertising to stay in business. This means more customers will abandon billboard advertising to adopt indoor ads; a strategy which brands trying to avoid the cut-throat cost of sign advertising have happily been using to market themselves in recent times.
Adzze has been adapting the advertising vehicles to a more sensitive message. The team has working on extending its capabilities to offer advertising vehicles that can reach the consumers at their safest place: at home. One of these concepts uses pizza boxes as advertising space.
Pizza Box Marketing is real! The ads printed on the boxes are inspected during the campaign to ensure pizzerias are distributing them to consumers. The ads on pizza boxes have an unconventional and unexpected nature. This creates a surprise effect making your brain to better perceive and understand the message. The advertising message is placed on the center of the box generating guaranteed impressions. Sometimes the consumer leaves the pizza in the fridge generating additional exposure and more impressions. On average, each venue delivers 2,000 pizza box ads per month with an estimate 1.8M impressions/month.
Over 3 billion pizzas are sold in the U.S every year, thereby becoming an extremely powerful marketing tool to reach American consumers. Over 83% of pizza stores offer delivery service displaying the custom pizza box with the ad directly on the table of the consumer. Very often the the box with the advertisement is placed in the refrigerator, allowing for multiple impressions. On average, each pizza venue delivers 2,000 ads per month providing more hours of exposure for less cost than most other ways to advertise.
Pizza Box Marketing and Targeting
Another advantage (in comparison to traditional OOH) is the possibility to segment the audience and precisely target a specific demographic profile by selecting pizza venues in specific zip codes. It is ideal for new businesses or for existing ones that are opening new locations. Pizza venues can display the advertisement in the neighborhood and raise awareness of the new location. Additionally, businesses can use coupons to boost sales and track the ROI of the advertising spend.
An effective advertising strategy should enable a clear way to track number of impressions. Traditional billboard advertising display lack of targeting and tracking possibilities. If the billboard is placed at the side road of a highway, many drivers cannot focus on the ad message generate a low engagement with the target audience. Recently, unconventional agencies came up with alternatives to solve the targeting issues with approaches as mobile billboards, digital OOH, ads on trucks and other ads in places people don’t expect to see as flags, backpacks, inflatable objects, gas pump and balloons.
Pizza Box Advertising is a more effective tool because it creates an effect of surprise in the mind of the consumer that receives the pizza boxes. This element of surprise regains consumers attention as it generates a cognitive stimulus. This effect makes the ad message more memorable. Each pizza box top can be seen on average by 3 people per household. They will have a meal staring at your advertising message so it will be impossible to ignore the message.
Cost comparison with other Media
The cost of Pizza Box Marketing depends on the total quantities/units to be produced, the complexity of the creative/design, the distribution location and shipping costs. By selecting the right agency, the unit cost of a pizza box might vary between $0.80-1.50 and the pizza toppers $0.30-0.60 per unit.
Let’s now compare it with the current outdated advertising methods:
The costs of billboards typically depend on the creative, format, size, location and demographics. It is not viable to calculate the number of impressions since billboard companies cannot precisely identify how many people are looking at the billboard – usually these are guesstimates based on the traffic of the area. Traditional billboards cost $14,000-20,000/month in larger markets.
Now let’s put it into the comparison perspective:
Using the same budget of 1 billboard during 1 month in a larger market, the advertiser can reach approximately 60,000 households with a personalized message on your pizza toppers. This is a large reach impact that could cover every household in a small city.
What would you prefer?
Paying for a billboard that is not personalized and not even noticed by distracted drivers?
Reaching 60,000 households that will literally grab your ad in their hands?
Direct Mail is another outdated tactic. The cost of direct mail as postcards are approximately $0.20-0.40 per unit. This is at similar price range as a pizza toppers.
Now let’s put it into the comparison perspective:
Approximately 60% of the postcards or letters go straight to the garbage and don’t even get noticed while 100% of the consumers must see your pizza box ads. This brings the ‘’cost per visualization’’ of post cards 2x higher than Pizza Box Advertising.
Calculating the Return on Investment of Pizza Box Marketing
Let’s assume that you are the Marketing Manager of a local movie theater. The recent pandemic caused you a drastic business harm since the past months most Americans were forced to stay home quarantined. Now that your activities are back to normal you must recover the lost sales with more a creative approach.
You start planning a campaign to distribute 20,000 pizza toppers using local pizzerias. The pizza box ads will include a free popcorn in case they purchase a movie ticket.
Typical conversion rates of Pizza Box Marketing range between 4-6%. This percentage will depend on how attractive the offer is and how compelling the artwork is. Let’s assume for this case a 5% client conversion.
Audience Reach: 20,000 toppers
Converted clients (5%): 1,000 new customers
Sales price of the ticket: $15
Incremental sales (after the campaign): $15,000
Cost of the ads campaign: $6,000
Return on the Pizza Box Advertising investment: 2.5x
Conclusion: for every 1 dollar you invested in a door hanger campaign, you received at least additional 2.5 dollars of sales.
Adzze has been adapting the advertising vehicles to a more sensitive message. The team has working on extending its capabilities to offer advertising vehicles that can reach the consumers at their safest place: at home.
Accenture Report (2016). The Future of Advertising
Bain & Company (2016). Online or Traditional, What’s is Better for Brands? Nov, 2016
Jurca, M. (2015). Ambient advertising characteristics and schema incongruity as drivers of advertising effectiveness. Journal of Marketing Communications.
Kimmel, A.J., (2005). Introduction: Marketing Communication in the New Millennium. In: Marketing Communication-New Approaches, Technologies and Styles, Kimmel, A.J. (Ed.). Oxford University Press, Oxford, pp: 1-6.
Lumen Research (2016). Marketers Continue to Waste Money as Only 9% of digital Ads are viewed more than 1 Second.
Nielsen’s Audience Report (2018). The State of Traditional TV: Updated with Q3 2018 Data Arris’ Consumer Entertainment Index.
Wall Street Journal (2018). P&G Contends Too Much Digital Ad Spending Is a Waste.
Be sure to check out the below video for more information, and if you have any questions or would like to place your brand In-the-Hand of consumers, please reach out to Kevin Hicks at firstname.lastname@example.org.