Good packaging versus a TV commercial

Carton with gold foil

Carton with gold foil

Interview with leading packaging designer interviewed Armin Angerer, one of Europe’s leading designers with the Peter Schmidt Group. In the interview he puts forward a very convincing argument that brand owners should invest more in designing and producing good packaging than in TV ads. He thinks that the packaging of a product has a greater and longer impact on the consumers’ decision making than a fleeting TV ad.

Promotion Budget: Packaging versus TV ads

He compares the spending on TV ad versus a complete packaging relaunch. “With a budget of some €150,000 to €200,000 you can accomplish a complete packaging relaunch, whereas the same amount of money will pay for shooting a 15- to 20-second TV spot with a single airing at the most, which basically amounts to nothing. Packaging lets you achieve a far more sustainable impact with less expenditure.”

70% of Purchase Decisions are made in-store

Mr. Angerer goes on to explain the longevity of the influence of a products’ packaging – on-shelf, at home in fridge or cupboard and the package will usually be handled several times. He states “This conveys a far more sustainable brand message as well as product experience at the same time. Packaging and product become a single entity. The efficiency, the “magic” of packaging, is its closeness to the product.”

Packaging spend should come from the marketing budget

Mr. Angerer also has an interesting angle on how companies view spending on packaging. He believes that in most companies, packaging is part of the purchasing department budget and therefore the emphasis is on keeping costs as low as possible. He argues that instead, packaging should be seen as a marketing tool. Therefore the packaging spend should come from the marketing budget where the focus would be on how well the packaging helped to sell more product (rather than on achieving reductions in the cost of the packaging).
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