Trial, awareness and conversion are the most important objectives of any brand manager.  Through my experience in the CPG world, I’ve been asked many times, “How do I get the consumer to purchase my product at regular price.” Well, there are a few routes to get to that destination. Let’s explore digital advertising versus sampling.

If it’s a new product, we need to get the awareness aspect out there. We need to teach consumers about the product, educate them on what the product is, how it can benefit them, and why they should try it.

In the digital world, you would use a vendor’s capability to either email their subscriber list or leverage their digital ad capabilities. With that, you are banking on someone opening an email or clicking on a digital ad. Open rates and click through rates essentially spiral down to a minumum audience from a max spend.

Here’s an example: a fully branded email goes out to 500K people. Let’s just say they have a 10% open rate. That would be 50,000 people opening the email. With an average click through rate of 10%, you’d get 5,000 people actually clicking through to your offer.

You’d be on a CPM (cost per thousand) rate which would mean you over paid for 5,000 people to see your offer. In regard to digital ads, the industry average for click rates is about one click for every 1,000 impressions. You’ll need a lot of impressions for just one click.

With that in mind, physical sampling via an ecommerce parcel has the best awareness angle as it has a 100% open rate. The consumer is eagerly waiting their purchase and when they open their parcel, they see the brand front and center. Our trial rates have reached as high as 97%, and we see conversion rates around 40%.  We place the brand where they want to be, in the consumer’s home. In the house! No digital ad purchase can certainly do that.