UK – Connected packaging popularity is expected to grow in 2023 to educate customers and improve sustainability credentials, reveals Appetite Creative.
In its second annual connected packaging survey, Appetite Creative says that connected packaging has experienced a rise in popularity in the last 12 months, with over four-fifths (81%) of those surveyed stating they have used connected packaging, compared to just over half (54%) in 2022.
The biggest barrier for almost half of the respondents is lack of business capabilities and preparedness (48%), price (20%) and complexity (11%).
According to the survey, there is a stark contrast from the results in 2022 when a third (29%) stated it wasn’t a business requirement, a mindset found in only 7% of respondents this year.
Almost half (48%) consider connected packaging important to help educate customers, which paints a similar picture seen in last year’s survey.
Other valuable factors this year included direct customer interaction (45%) and using connected packaging to inform product updates or marketing decisions (42%).
Data collection requirements lagged behind with a third (29%) of those surveyed considering it important.
Jenny Stanley, Managing Director at Appetite Creative said: “Despite the cost-of-living crisis and global economic uncertainty, investment in connected packaging experiences continues to rise.
“No longer only a data collection tool, connected packaging is now a long-term customer relation and educational media channel, which helps companies navigate ever-changing sustainability requirements and inform product development and marketing decisions.
“Moving from a tipping point into mainstream usage this year, the perceived value of connected packaging has shifted to a business ‘must-have’.”
Increased investment in digital marketing spend is planned in 2023 by 88% of those surveyed vs. 59% in 2022. Businesses plan to increase spend on connected packaging campaigns by between US$31,000 to US$50,000, claiming almost half of the respondents (42%).
This is more than double seen back in 2022 when 40% planned to increase investment by less than US$18,000.
Over four-fifths (88%) claim to be planning a connected packaging campaign this year and the majority (92%) of respondents consider connected packaging to be increasingly important to the packaging industry in the next 12 months and beyond.
These numbers have ticked up year on year, with only two-thirds (59%) in 2022 citing plans for a connected packaging campaign and 85% considered it important for the industry.
Connected packaging is deemed increasingly important as a sustainable way to connect with and educate customers (57%) and it is perceived by almost half (44%) to be becoming the main route to communicate directly with customers.
Over a third (38%) surveyed believe it encourages customer loyalty, with gamification ranking in a similar position (36%) indicating playable ads are an important route to engaging with younger audiences.
Increased sustainability pressures on packaging producers and the introduction of new EU packaging laws have positively impacted the perceived value of connected packaging.
The majority (91%) of respondents agree that it helps to improve the sustainability credentials of a company, vs 80% in 2022.
New survey questions added this year looked at gamification in marketing campaigns, a seemingly popular connected experience tool with 70% claiming to use or consider using it.
Almost two-thirds (57%) adopted traditional mobile games, a third (31%) used augmented reality games and 11% shared a quiz through a connected packaging experience.
Almost half (48%) used gamification to promote a new product or drive sales, 17% to collect data and 15% to improve brand recognition.
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