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Pay-for-Performance Marketing: A ZEISS CPG Case Study

“Price is what you pay, value is what you get” – Warren Buffet

Can Ads promise a positive ROI?

ZEISS, best known as the world-class German premium lens manufacturer, introduced a brand-new product to the US market: the warming eye mask. Already commonplace in Asia, warming eye masks are a CPG novelty in the US, and their key retail partner, Walmart needed support to ensure sales velocity at launch. This case shows how pay-for-performance marketing was a necessary catalyst in driving CPG sales, and how Criterion Global maneuver through certain measurement challenges to craft a campaign that was both efficient and effective at driving trial and sales.

pay-for-performance-media-zeiss-warm-eye-mask

Pay For Performance Marketing: Pros/Cons

Every campaign tells a story. And regardless of a brand’s global renown, each new product and new market starts with a blank canvas. Here’s how pay-for-performance marketing gave their new product launch a powerful head start.

ZEISS, renowned for its excellence in precision lenses, was distributed at major retailers across the US, with ample shelf space at Walmart and Walmart Vision Care. From high-precision lenses to cleaning products that keep those lenses sparkling, ZEISS products support the art of “seeing.” However, Warming Eye Masks are all about… not seeing.” It’s not an ordinary ZEISS vision product; it provides your eyes with a well-deserved break.

Despite well-established presence on Walmart shelves nationwide, launching new eye masks presents a distinct set of challenges. Given its novelty, it’s essentially unknown –  Consequently, there was a necessity to initially “educate” consumers while concurrently developing approaches directly tied to sales. This campaign nuance, further complicated by budget constraints, had a twofold central challenge: raising awareness about the warm eye mask among potential consumers and driving trial purchases.

Solution: Pay for Performance Marketing

The solution lay in a strategic shift towards pay-for-performance marketing. Acknowledging the risk associated with low awareness of the product and the introduction of a new product category, we opted for a model that aligned with the advertiser’s concerns – we need to deliver positive ROI. Our focus is on individuals with high interest, those actively seeking new experiences, and those highly engaged. With coupon apps like Ibotta, Fetch, and Shopkick, we negotiated a purchase-based or CPC billing model to mitigate the financial risk, such that payments were tied directly to performance.

Coupon apps provide a great opportunity for educating potential customers. One standout feature is their ability to connect us with highly engaged users who are eager to earn points. These users are typically open to trying out new products. The use of a performance-based billing system makes it easier to integrate brand messaging. An interesting aspect is that these apps empower users to not only visit physical stores but also find products on shelves and even take photos inside the store! Directing users straight to the product in-store is a game-changer.

As the saying goes, seeing is believing. Among users who physically engaged with the product, an impressive 14% made unplanned purchases.

global cpg pay for performance

Among users who physically engaged with the product, an impressive 14% made unplanned purchases.

Results: Pay-For-Performance Marketing Impact

The campaign delivered tangible results, demonstrating that advertising can indeed drive sales.

With a modest investment, Zeiss successfully moved over 30,000 campaign-attributable units of the new eye masks, generating a positive ROI.

This outcome underscores the potential of pay-for-performance marketing, showcasing that even within limited budgets, strategic planning and targeted partnerships can yield significant returns

Conclusion: A Tool for New Brand Launch

Zeiss’s eye care category product diversification exemplifies the power of adapting marketing strategies. Pay-for-performance marketing adds a degree of certainty in a new brand launch (or in this case, new product launch), as a risk-mitigated approach that aligns with both budget constraints and the need for effectiveness.

This case study underscores the importance of paid media as a key tool for new brand launch.

Takeaway: Pay-for-performance marketing adds a degree of certainty in a new brand launch (or in this case, new product launch).