Greg Hrinya, Associate Editor07.15.16
While the goal of many labels is to pop off the shelf, the role of the promotional label is to attract consumers to something new or different about an item. These labels tend to involve shorter runs and have color-sensitive features to draw attention. In advertising a company or service, these labels might be found on hand sanitizers, confectionery bags, water bottles, magnets, stickers, among others.
Promotional labels will often include in-mold labeling (IML), as well. These labels will be featured on cups and other assorted drink ware, especially when promoting a movie, concert or sporting event. Other promotional labels include shelf talkers, which call out to the consumer, or coupons that accompany a product. These may come in the form of inserts, peel-offs–known as piggy-back labels, or removable sticker ads.
These labels serve an effective role in the marketplace. The usage of instant redeemable coupons (IRCs) have a high rate of success, as they attract attention and provide cost savings. According to Kim Hensley, a product manager with Mactac Roll Label, recent research from a Promotional Marketing Association report finds that instant on-packaging coupon redemptions have increased by 33%. Additionally, Inmar’s 2014 coupon trends report states that in the food industry redemption rates section, IRCs are at a high of 23.85% compared to the traditional newspaper at 0.3%; for non-food items, IRCs have a redemption rate of 32.67%.
“If a consumer is looking at several products side-by-side, the one with the promotional offer will move off the store shelves faster than the products without,” explains Hensley. “If it is a coupon label, the consumer feels good about their purchase because they received an additional savings. It really sets you apart from the competition.”
Promotional labels can come in many forms, as well. “There is a wide variety of media, some of which is very different from the typical pressure sensitive labelstock,” says Victor Gomez, sales manager of Industrial Solutions, Epson America. “For example, IML and confectionery bags are unsupported films, sometimes very thin. Shelf talkers may be printed on card stock that is single or double sided, or on durable materials like Tyvek. In applications like shelf talkers, there are no adhesives, but where an adhesive is needed, like stick-on coupons or bumper stickers, the choice of adhesives is much more varied. Many promotional labels are delivered in sheet form and applied to the finished product in a secondary process, rather than in roll form (IML, stickers, retail, etc.). Some markets, such as pharmaceutical, have specific regulations for the way promotional labels are made, the content allowed and how they are to be used.”
According to David Grossman, chief operating officer of Durham, NC, USA-based Logo Label Printing, the content of the label is “louder,” shouting out something new or different about the product. There may be no difference in the size, shape or material.
Promotional labels commonly stray away from the typical imagery and color schemes, and experiment with sizes, materials and colors that are unique to attract new customers. In many cases, these labels will be directed at geographic or niche markets. Adam Gray, president and CEO of SheetLabels.com, Glens Falls, NY, USA, says that a key factor for successful promotional labels involves standing out from the original brand messaging. It should, however, not appear to be a different brand in itself, as brand association is critical.
A small addition to an already popular label could generate attention at the shelf. “Older, more commonly seen labels having a fresh look can attract a new customer base that may have not noticed the product before,” explains Gray. “Cycling through various sets of imagery while keeping the baseline brand the same can also show consumers that the brand cares about the quality of their product. By keeping it fresh and within trends, the company can also show that it cares about communicating its purpose to the consumer.”
Shelf talkers will help a product stand out on the shelf by calling attention to certain pricing or nutritional information. “The label may be the most important part of selling a wine bottle, but a label affixed to the shelf at a liquor store, or to the bottle neck of the product itself can add a summary expert review to promote a particular vintage,” adds Gomez. “A promotional label on a shelf display can have a QR code that is readable by an app on the consumer’s smart phone, linking the shopper to a site with more information about that product, including how-to videos. For example, a consumer at a home improvement store could see instantly how a product is used.”
Ryan Dunlevy, sales and marketing manager for Reid Label & Digital Graphics, a label and packaging manufacturer in Andover, MA, USA, explains that brands will often go outside the box, using different materials and special effects. “The more a customer or brand can make its promotional labels stand out or pop, the more attention they will grab,” Dunlevy says. “We see lots of people looking at foils and unique laminates and finishing. Some customers are even taking high-end approaches and utilizing hot stamping and embossing for giveaways and promotional needs.”
Reid Label & Digital Graphics, a label printer focused on servicing the needs of a wide variety of industries, finds that brands will often send out customized beer labels to clients in order to celebrate an anniversary or company milestone. Printed media and collateral can also be used to provide information about a brand or launch a specific event.
Reid runs promotional labels on its HP Indigo 6800 and 6000 roll presses and 5600 sheet presses. “Promotional labels, for us, tend to be an add-on to our core business and a great way to further provide solutions to our customers and allow them the ease of working with one vendor,” explains Dunlevy. “We provide them with the same approach and level of service for their promotional print needs as we do for their core label business. If we are doing a beer label, we might as well be doing their stickers and promotional labels, as well.”
SheetLabels.com recently invested in a Domino N610i UV inkjet press to meet its growing demands from brand owners. The press allows the company to provide promotional labels in the short- and mid-run categories. “When brand owners are working to communicate a new message, test a product in a small geographic location to see if it is a success, or promote a product or new pricing model, all of these variables require the labels to be customized exactly to these campaigns,” says Gray. “Often times, the labels are small quantity lots, tailored to varying messages for the same brand.”
SnugZ, a promotional products company based in West Jordan, UT, USA, specializes in promotional labels and relies on Epson for these shorter runs. SnugZ uses the SurePress L-4033AW and the included Wasatch RIP and Print Management Software. “One of the features that we love about the SurePress is its repeatability – it allows us to take a job that we printed a year ago and print it today and have it look exactly how it did a year ago,” says Jennifer Imes, digital print manager, SnugZ. “In the past, we have had issues getting fine detail, especially in small text, but the SurePress has allowed us to print small text that is legible, which is an amazing selling point for our customers.”
According to Epson’s Gomez, the SurePress L-4033 is excellent for matching color. He says, “The Orange and Green inks give the extra ‘pop’ to graphics that are meant to grab the consumer’s attention,” he explains. “Readable text down to 4 point is not a problem for SurePress, since the proprietary Epson printheads work with variable drop sizes starting at 3 picoliters to deliver up to 720 x 1440 dpi in the L-4033 and 600 x 600 in the L-6034.”
The SurePress also prints White ink, which is advantageous for clear items like water bottles, as well as metallic or wood veneer. The White’s opacity on the L-4033 can also be adjusted to meet a specific job’s requirements. The SurePress L-6034, on the other hand, features inline digital varnish. These enhancements are valuable for promotional graphics, where a spot varnish gloss treatment of text on a matte background will emphasize messaging. The L-6034 also has low migration UV inks, useful for food related applications.
Gomez adds that quick print and commercial print shops that are not in need of heavy narrow web label production can benefit from the Epson ColorWorks C7500 tabletop color label printer.
A promotion for one
The growing popularity of digital printing has increased the demand for variable data and customization. SheetLabels.com’s Adam Gray describes customization as “the backbone of promotional labeling.”
HP has had great success with national promotions, including working with companies like Coca-Cola, OREO and Planters. In the “Share A Coke” campaign, each bottle featured a personalized label that was printed with an HP Indigo WS6000 Series digital press.
“Digital printing has allowed printers so much more flexibility and agility to jump into different markets and also allow customers more cost-effective ways to customize and tailor their promotions,” says Reid Graphics’ Dunlevy. “They can run multiple versions of a promotion or unique art without changing over plates and the added setup costs. Customers can just send a file or multiple files and they can be run as a batch at higher volumes, providing them with more cost-effective pricing.”
“Customization is everything right now,” explains Grossman of Logo Label Printing. “From the smallest to the largest companies, they are asking for custom labels in the form of either private label or within their own product name. Coke’s program with individual names on the bottles is a perfect example. Everyone wants to do that now. We used to print labels for water bottles for a local Mercedes dealer. Within a case of water, each bottle had a label with a different model car on it. If clients were considering a specific model, they would get a water bottle with that model on the label. Only digital printing can do that.”
Logo Label Printing specializes in promotional labels, with the end uses ranging from trade shows, car dealerships and special events. Grossman says that these labels represent a significant part of his business. The company’s digital capabilities have allowed it to thrive in this market. Logo Label Printing features three different digital printing technologies under one roof – an EFI Jetrion inkjet press, an HP Indigo wet toner digital press, and a Xeikon press using dry toner technology.
“From our perspective, the ability to simplify the process of variable data printing with digital technology has been a huge boost,” says Grossman. “The process is quick and simple. All that we need is a spreadsheet and away we go. We base the press that we will use on the material and the complexity of the graphics, along with cost restrictions that the client may have. We can give our clients the option that best meets all of their requirements.”
According to Gomez, variable data printing for direct marketing “enables the oxymoron of mass customization.” Promotional label highlights often include text, images, consecutive or unique numbers, bar codes, QR codes or any other form of variable data. In addition, the ability to track data on items like discount coupons could tell brands how effective certain promotions were in reaching its desired customer base.
“Customization leads to more effective messaging,” explains Gomez. “Promotional labels can be deployed in support of localized events like concerts and festivals. They can also be adapted to events that require quick turnaround. For example, the participating sports teams for championships aren’t known until a short time before the event. Digital printing allows for quick customization of promotional labels – IML for beverage cups, for example – tied to the specific teams that will compete, and quickly again once the winner is known.”
Contending with challenges
The promotional labels market is not without its challenges, however. As brands tighten their budgets on larger campaigns, short runs enabled by digital printing can more appropriately target key demographics.
“The budget share of print advertising in every form, including promotional labels, is squeezed as marketing spend is redirected to online spending,” says Gomez. “While this is a challenge for print media overall, one effect is to encourage more tightly targeted promotional campaigns for the money that is available.”
According to Gray, promotional labels might have to deal with regulations, depending on the market. Challenges are often seen around regulations. He says, “If a craft beer company in New York, for example, wants to run a promotional flavor or promotional labeled beverage, they must be in line with strict guidelines and have the label approved by the State Liquor Authority in New York.”
There is also a functional challenge, especially when dealing with redeemable coupons. According to Mactac’s Hensley, the multilayered labels require converters to create the top ply, which will be the promotional coupon, and the bottom ply is the film that will stay on the substrate or the product it’s applied to. “The bottom ply is typically a clear film so you can still see the product packaging and graphics underneath,” she says. “The adhesive is also very important here because it needs to stay adhered to the substrate. The top ply (coupon) stays on until pulled using a dry release adhesive. Coupons are designed to remove cleanly with no adhesive residue.
“Clear films with a hot melt adhesive, such as Mactac’s GF9002, make great base stock for IRCs that are often applied to flexible packaging,” Hensley adds. “Once applied to a product, IRCs allow for a top layer to be removed and used as a coupon or additional product information fold-out, while leaving the clear labelstock attached to the product.”
Dunlevy believes that competition will increase between traditional printing and newer technologies. These methods could include QR codes, NFC chips, mobile apps, and even website URLs and Twitter handles. Many brands will need to evaluate smart technology and its cost feasibility in attracting new customers.
“The market itself is very wide, and the types of labels that can fall into this category are so varied,” says Dunlevy. “It all comes down to how it is presented to your customer and how well you can position it as a value-add.”
Due to the cost and technological nature of smart labels, NFC technology might not be right around the corner – at least in this market. “I believe that NFC could have its place in this space, as promotional coupons and games could be offered to users, but this type of technology will only be received by a particular audience – one that is very tech-savvy and familiar with how to access the resources offered,” adds Gray. “Therefore, careful examination of the market demographic is important before testing an NFC campaign.”
Promotional labels will often include in-mold labeling (IML), as well. These labels will be featured on cups and other assorted drink ware, especially when promoting a movie, concert or sporting event. Other promotional labels include shelf talkers, which call out to the consumer, or coupons that accompany a product. These may come in the form of inserts, peel-offs–known as piggy-back labels, or removable sticker ads.
These labels serve an effective role in the marketplace. The usage of instant redeemable coupons (IRCs) have a high rate of success, as they attract attention and provide cost savings. According to Kim Hensley, a product manager with Mactac Roll Label, recent research from a Promotional Marketing Association report finds that instant on-packaging coupon redemptions have increased by 33%. Additionally, Inmar’s 2014 coupon trends report states that in the food industry redemption rates section, IRCs are at a high of 23.85% compared to the traditional newspaper at 0.3%; for non-food items, IRCs have a redemption rate of 32.67%.
“If a consumer is looking at several products side-by-side, the one with the promotional offer will move off the store shelves faster than the products without,” explains Hensley. “If it is a coupon label, the consumer feels good about their purchase because they received an additional savings. It really sets you apart from the competition.”
Promotional labels can come in many forms, as well. “There is a wide variety of media, some of which is very different from the typical pressure sensitive labelstock,” says Victor Gomez, sales manager of Industrial Solutions, Epson America. “For example, IML and confectionery bags are unsupported films, sometimes very thin. Shelf talkers may be printed on card stock that is single or double sided, or on durable materials like Tyvek. In applications like shelf talkers, there are no adhesives, but where an adhesive is needed, like stick-on coupons or bumper stickers, the choice of adhesives is much more varied. Many promotional labels are delivered in sheet form and applied to the finished product in a secondary process, rather than in roll form (IML, stickers, retail, etc.). Some markets, such as pharmaceutical, have specific regulations for the way promotional labels are made, the content allowed and how they are to be used.”
According to David Grossman, chief operating officer of Durham, NC, USA-based Logo Label Printing, the content of the label is “louder,” shouting out something new or different about the product. There may be no difference in the size, shape or material.
Promotional labels commonly stray away from the typical imagery and color schemes, and experiment with sizes, materials and colors that are unique to attract new customers. In many cases, these labels will be directed at geographic or niche markets. Adam Gray, president and CEO of SheetLabels.com, Glens Falls, NY, USA, says that a key factor for successful promotional labels involves standing out from the original brand messaging. It should, however, not appear to be a different brand in itself, as brand association is critical.
A small addition to an already popular label could generate attention at the shelf. “Older, more commonly seen labels having a fresh look can attract a new customer base that may have not noticed the product before,” explains Gray. “Cycling through various sets of imagery while keeping the baseline brand the same can also show consumers that the brand cares about the quality of their product. By keeping it fresh and within trends, the company can also show that it cares about communicating its purpose to the consumer.”
Shelf talkers will help a product stand out on the shelf by calling attention to certain pricing or nutritional information. “The label may be the most important part of selling a wine bottle, but a label affixed to the shelf at a liquor store, or to the bottle neck of the product itself can add a summary expert review to promote a particular vintage,” adds Gomez. “A promotional label on a shelf display can have a QR code that is readable by an app on the consumer’s smart phone, linking the shopper to a site with more information about that product, including how-to videos. For example, a consumer at a home improvement store could see instantly how a product is used.”
Ryan Dunlevy, sales and marketing manager for Reid Label & Digital Graphics, a label and packaging manufacturer in Andover, MA, USA, explains that brands will often go outside the box, using different materials and special effects. “The more a customer or brand can make its promotional labels stand out or pop, the more attention they will grab,” Dunlevy says. “We see lots of people looking at foils and unique laminates and finishing. Some customers are even taking high-end approaches and utilizing hot stamping and embossing for giveaways and promotional needs.”
Reid Label & Digital Graphics, a label printer focused on servicing the needs of a wide variety of industries, finds that brands will often send out customized beer labels to clients in order to celebrate an anniversary or company milestone. Printed media and collateral can also be used to provide information about a brand or launch a specific event.
Reid runs promotional labels on its HP Indigo 6800 and 6000 roll presses and 5600 sheet presses. “Promotional labels, for us, tend to be an add-on to our core business and a great way to further provide solutions to our customers and allow them the ease of working with one vendor,” explains Dunlevy. “We provide them with the same approach and level of service for their promotional print needs as we do for their core label business. If we are doing a beer label, we might as well be doing their stickers and promotional labels, as well.”
SheetLabels.com recently invested in a Domino N610i UV inkjet press to meet its growing demands from brand owners. The press allows the company to provide promotional labels in the short- and mid-run categories. “When brand owners are working to communicate a new message, test a product in a small geographic location to see if it is a success, or promote a product or new pricing model, all of these variables require the labels to be customized exactly to these campaigns,” says Gray. “Often times, the labels are small quantity lots, tailored to varying messages for the same brand.”
SnugZ, a promotional products company based in West Jordan, UT, USA, specializes in promotional labels and relies on Epson for these shorter runs. SnugZ uses the SurePress L-4033AW and the included Wasatch RIP and Print Management Software. “One of the features that we love about the SurePress is its repeatability – it allows us to take a job that we printed a year ago and print it today and have it look exactly how it did a year ago,” says Jennifer Imes, digital print manager, SnugZ. “In the past, we have had issues getting fine detail, especially in small text, but the SurePress has allowed us to print small text that is legible, which is an amazing selling point for our customers.”
According to Epson’s Gomez, the SurePress L-4033 is excellent for matching color. He says, “The Orange and Green inks give the extra ‘pop’ to graphics that are meant to grab the consumer’s attention,” he explains. “Readable text down to 4 point is not a problem for SurePress, since the proprietary Epson printheads work with variable drop sizes starting at 3 picoliters to deliver up to 720 x 1440 dpi in the L-4033 and 600 x 600 in the L-6034.”
The SurePress also prints White ink, which is advantageous for clear items like water bottles, as well as metallic or wood veneer. The White’s opacity on the L-4033 can also be adjusted to meet a specific job’s requirements. The SurePress L-6034, on the other hand, features inline digital varnish. These enhancements are valuable for promotional graphics, where a spot varnish gloss treatment of text on a matte background will emphasize messaging. The L-6034 also has low migration UV inks, useful for food related applications.
Gomez adds that quick print and commercial print shops that are not in need of heavy narrow web label production can benefit from the Epson ColorWorks C7500 tabletop color label printer.
A promotion for one
The growing popularity of digital printing has increased the demand for variable data and customization. SheetLabels.com’s Adam Gray describes customization as “the backbone of promotional labeling.”
HP has had great success with national promotions, including working with companies like Coca-Cola, OREO and Planters. In the “Share A Coke” campaign, each bottle featured a personalized label that was printed with an HP Indigo WS6000 Series digital press.
“Digital printing has allowed printers so much more flexibility and agility to jump into different markets and also allow customers more cost-effective ways to customize and tailor their promotions,” says Reid Graphics’ Dunlevy. “They can run multiple versions of a promotion or unique art without changing over plates and the added setup costs. Customers can just send a file or multiple files and they can be run as a batch at higher volumes, providing them with more cost-effective pricing.”
“Customization is everything right now,” explains Grossman of Logo Label Printing. “From the smallest to the largest companies, they are asking for custom labels in the form of either private label or within their own product name. Coke’s program with individual names on the bottles is a perfect example. Everyone wants to do that now. We used to print labels for water bottles for a local Mercedes dealer. Within a case of water, each bottle had a label with a different model car on it. If clients were considering a specific model, they would get a water bottle with that model on the label. Only digital printing can do that.”
Logo Label Printing specializes in promotional labels, with the end uses ranging from trade shows, car dealerships and special events. Grossman says that these labels represent a significant part of his business. The company’s digital capabilities have allowed it to thrive in this market. Logo Label Printing features three different digital printing technologies under one roof – an EFI Jetrion inkjet press, an HP Indigo wet toner digital press, and a Xeikon press using dry toner technology.
“From our perspective, the ability to simplify the process of variable data printing with digital technology has been a huge boost,” says Grossman. “The process is quick and simple. All that we need is a spreadsheet and away we go. We base the press that we will use on the material and the complexity of the graphics, along with cost restrictions that the client may have. We can give our clients the option that best meets all of their requirements.”
According to Gomez, variable data printing for direct marketing “enables the oxymoron of mass customization.” Promotional label highlights often include text, images, consecutive or unique numbers, bar codes, QR codes or any other form of variable data. In addition, the ability to track data on items like discount coupons could tell brands how effective certain promotions were in reaching its desired customer base.
“Customization leads to more effective messaging,” explains Gomez. “Promotional labels can be deployed in support of localized events like concerts and festivals. They can also be adapted to events that require quick turnaround. For example, the participating sports teams for championships aren’t known until a short time before the event. Digital printing allows for quick customization of promotional labels – IML for beverage cups, for example – tied to the specific teams that will compete, and quickly again once the winner is known.”
Contending with challenges
The promotional labels market is not without its challenges, however. As brands tighten their budgets on larger campaigns, short runs enabled by digital printing can more appropriately target key demographics.
“The budget share of print advertising in every form, including promotional labels, is squeezed as marketing spend is redirected to online spending,” says Gomez. “While this is a challenge for print media overall, one effect is to encourage more tightly targeted promotional campaigns for the money that is available.”
According to Gray, promotional labels might have to deal with regulations, depending on the market. Challenges are often seen around regulations. He says, “If a craft beer company in New York, for example, wants to run a promotional flavor or promotional labeled beverage, they must be in line with strict guidelines and have the label approved by the State Liquor Authority in New York.”
There is also a functional challenge, especially when dealing with redeemable coupons. According to Mactac’s Hensley, the multilayered labels require converters to create the top ply, which will be the promotional coupon, and the bottom ply is the film that will stay on the substrate or the product it’s applied to. “The bottom ply is typically a clear film so you can still see the product packaging and graphics underneath,” she says. “The adhesive is also very important here because it needs to stay adhered to the substrate. The top ply (coupon) stays on until pulled using a dry release adhesive. Coupons are designed to remove cleanly with no adhesive residue.
“Clear films with a hot melt adhesive, such as Mactac’s GF9002, make great base stock for IRCs that are often applied to flexible packaging,” Hensley adds. “Once applied to a product, IRCs allow for a top layer to be removed and used as a coupon or additional product information fold-out, while leaving the clear labelstock attached to the product.”
Dunlevy believes that competition will increase between traditional printing and newer technologies. These methods could include QR codes, NFC chips, mobile apps, and even website URLs and Twitter handles. Many brands will need to evaluate smart technology and its cost feasibility in attracting new customers.
“The market itself is very wide, and the types of labels that can fall into this category are so varied,” says Dunlevy. “It all comes down to how it is presented to your customer and how well you can position it as a value-add.”
Due to the cost and technological nature of smart labels, NFC technology might not be right around the corner – at least in this market. “I believe that NFC could have its place in this space, as promotional coupons and games could be offered to users, but this type of technology will only be received by a particular audience – one that is very tech-savvy and familiar with how to access the resources offered,” adds Gray. “Therefore, careful examination of the market demographic is important before testing an NFC campaign.”
