Fast Facts

What
   Ads, logos and promotions displayed on the exterior, lids and labels of carryout cups.

Who
   For this article, Media Life spoke with two companies: Encompass Media Group of New York City and PromoCup, the New York company whose claim to fame is the launch of ad cups more than a decade ago.

How it works
   In addition to being printed on the exterior of carryout coffee cups, ads can be placed on lids, on cold cups and on peel-off or scratch-off labels.
   In addition to branding, advertisers use the cup ads for promotion.
   "We can run contests with peel-off coupons on hot or cold cups," says Marc Friedman, PromoCup president. "Or have a scratch-off, like a lottery ticket."
   Cups are distributed through street vendors, delis, diners, grocery and convenience stores, truck caterers, gourmet stores and pizzerias.
   "Each market across the country has a dominant cup," says Encompass partner Michael Travin. "Texas, for example, uses foam cups. They don’t use paper. So advertising is available on those foam cups.
   "You can take it one step further to size. In New York the dominant cup is 10 ounces, in Texas it’s 12 to 16 ounces with 20s dominant in the foam cups market."
   Clear cups, used for iced coffee and teas, juices and other cold drinks, are two-sided with art displayed on one side and print on the other, Travin says.
   Campaigns are often in conjunction with other out-of-home venues. "For continuity advertisers may take the creative used on their billboards and busses and tweak it a little to tie into a coffee cup campaign," Friedman says.
   Cups are often a component in campaigns that also include bags and umbrellas.
   More than one compatible advertiser could share a cup, Travin says.
   Creative is usually supplied by the advertiser.
   "We recommend a clean, clear look for creative," Travin says.
   Peel-off labels are available in a variety of sizes and colors, says Encompass Media partner Adam Pierce. "They’re comparable to game pieces on McDonald’s cups, only they can be larger with a maximum of 1 inch by 1 inch."
   Labels can be placed on one or both sides of a cup, though one side is most common.
   The entire lid can be used for branding, Pierce says.
   "The whole lid or a portion, the center if you like, can be printed, or you can used raised lettering." Lids are usually printed in one color.
   Logos and contact information are often included in creative, Friedman says.
   The cup or coffee theme is often used in creative. Examples of PromoCup campaigns include "Wake up and smell the coffee" and "Something’s brewing," from Kenneth Cole. The Weather Channel used "Remember, the weather doesn’t take coffee breaks," while Tide came out with "No wonder it’s called automatic drip coffee."
   Cup ads can be printed in one-color to four-color process.
   Encompass advises advertisers to choose a color background. "A white cup can look dirty after a little handling," Travin says. "We guide them to use blue, green, yellow, orange."
   Advertisers are primarily national and regional companies, Friedman says. "We see national companies trying to reach a local market, like Cablevision to Long Island."
   Local companies like hospitals also do well, Pierce says.
   Campaigns can encompass one market or many.

Markets
   PromoCup is in any U.S. market, Friedman says. West Coast markets include Los Angeles, San Francisco, San Diego, San Jose and Sacramento.
   Encompass Media is in primary markets, coast to coast, Travin says.

Numbers
   In New York, 160 million cups of coffee are bought from independent locations each month, Pierce reports.
   More than half, or 52 percent, of the adult population in the U.S., drinks coffee daily, according to Encompass Media and the National Coffee Association. That totals 107 million daily drinkers.
   On average, regular coffee drinkers consume 3.3 cups daily. The average size serving is 9 ounces.

How measured?
   Distribution numbers are used as well as a multiplier to reflect impressions beyond the initial customer. Unaudited factors range from eight to 10 impressions per cup. Other coffee shop customers, pedestrians and co-workers all fall under the other impressions category.
   "A lot of companies in this economy are looking for a return on their investment, results they can track," Pierce says. "So they’ll take an out-of-home media form like cups and turn it into a direct response mechanism they can measure, say, with an 800 number."
   Photos can be used for proof of performance.

What product categories do well?
   Entertainment including television, radio and movies do well, as does print media like newspapers and magazines.
   Travel including airlines and online reservation services, consumer products, financial institutions and services, technology companies, retail fashion and Broadway shows also do well on cups.
   Non-profit organizations and political campaigns have also used cup ads.
   Coffee companies and restaurants may not be compatible because of competition.

Demographics
   Demographics can be targeted by geography, Friedman says. "A New York buy to reach low income markets would distribute in Harlem and the Bronx while a higher income consumer would be targeted in the financial district."

Making the buy
   PromoCup: Lead-time is approximately four weeks.
   Campaign length depends on the number of cups and the advertiser’s goals, Friedman says. "A million cups can last a month or we can stagger distribution to make them last three months, depending on the client’s desire." The average program is a million cups per month.
   An advertiser can cherry pick a neighborhood, as specific as zip codes or street corners.
   Factors that affect pricing include market distribution and quantity.
   PromoCup offers exclusivity within a market or portion of a market. "For instance, New York City can handle multiple advertisers," Friedman says.
   Encompass Media: Lead-time is four to six weeks.
   Factors that affect pricing include cup size, numbers and locations.
   Campaigns are typically one month, but can also be based on a number of cups. "Typically we like to find out what else they’re doing in terms of their campaign and build a strategy. If their radio is two months then the cups should be one month," Pierce says. "If they’re solely using cups, a one-month flight is a million cups in 100 locations."
   Each venue goes through between 1,500 and 4,000 cups per week. The same ad will appear on each cup at a single venue.
   A minimum buy is 250,000 cups.
   Advertisers can buy a portion of a DMA, Travin says. "In larger markets we can break it down by zip code."
   Ad advertiser must buy the cup to also advertise on the lid, Travin says. The lid is an add-on purchase.

Who’s already on cups?
   ABC, Cinemax, CNN, Discovery Channel, Fox News, HBO, NBC, Nick at Night, Today Show, Weather Channel, Entertainment Weekly, Newsday, New York Times, Continental Airlines, Court TV, New York Health and Racquet Club, Delta, United, Expedia.com, Avon, Best Buy, Procter & Gamble, Trident, Commerce Bank Washington Mutual, Kenneth Cole, Nordstrom, Target and the Radio City Christmas Spectacular.

Web site info
PromoCup at www.promocup.com

January 13,2003© 2003 Media Life

-Kathy Prentice writes about out-of-home advertising  for Media Life, penning her stories from the resort town of Traverse City, in the upper reaches of Michigan.

Send to a Friend| Printer-Friendly Version
Cover Page | Contact Us