As you can see in the two soaps on the left, it's a simple piece of card stock with the name of the soap and ingredient information on it - and wrapped around the bar either horizontally or vertically. The two soaps on the right, and the one on the bottom, were shrink wrapped after the cigar band label was put on. The one in the upper left is bare except for the label.
One advantage of cigar band labels is that they are easy to make, and can be printed simply at home. One disadvantage of cigar bands is shrinkage. Even after you label it, the soap will continue to cure - which means that water is evaporating out of it. When water evaporates out, the soap shrinks a bit. I'm sure you've seen soaps sitting on shelves in stores where the cigar band label is loose or falling off of the soap. That's due to the soap continuing to cure. The shrink wrapping helps this quite a bit.