Promotional Products Statistics

Some promo stats sourced from our friends at APPA and The Advertising Specialty Institute.

Trends in the promo product world

The Promotional Products Industry influences and is influenced by, certain trends. Increasing awareness by end users, as well as businesses becoming more accountable of their environmental impact has contributed to particular trends in the industry.

Eco-Friendly, or Green Products are increasing in popularity. Manufacturers and clients are constantly seeking ways to minimise their carbon footprint. Phrases such as socially responsible, renewable, sustainable, biodegradable, organic and recycled are increasingly popular ways to describe the environmental or social benefits of some merchandise. However, it is important to be aware of misinformation or lack of education as to what actually constitutes an eco-friendly product. For example, many plastics are not able to be recycled and many people don’t recognise the difference between recycled and recyclable material. However, the more a product is likely to be reused by a consumer can also be of some long term environmental benefit. Whilst eco-friendly products are a great idea, be cautious about over-using, or misusing them. If your organisation has made no other moves towards eco-friendly initiatives (or has no plans to continue this in the future)  it might send a mixed message to your recipients.

TIP:  Eco-friendly Examples include TCLs Hessian Jute Bag, RPET Cap and Visor, 3D Neoprene Coaster to eliminate wasted napkins and Hessian Coaster.

Increasing awareness about Product Safety has lead to higher quality control of products. Organisations are increasingly aware of potential hazardous elements in promotional products, for example phthalates, calcium and lead may be found in cheap promotional products. Whilst historically many organisations were driven solely by price, highly publicised cases of promotional products which have caused harm through lack of safety measures has meant people and organisations are rightfully demanding products that strictly adhere to safety standards.

Technology is another important trend. Just as technology is enabling manufacturers to create more sophisticated promotional products, consumers are also more technologically savvy. This means products complementing electronic devices such as Laptop Sleeves, iPhone Pouches & Arm Bands, Camera Cases, Mouse pads and GPS Cases are increasingly welcomed. Technologically advanced products are impressive, though typically more costly promotional incentives. There are also more instances of promotional items being imprinted with a company’s website address, encouraging consumers to interact with their organisation online. If gifts are particularly savvy technologically or in supporting technology it is likely consumers, particularly in younger demographics will value and use them regularly. However, it is important to be aware that a promotional product at the cutting edge of technology today might appear outdated in as little as 6 months. E.g. promotional USBs will continue to decrease in use due to increased smart phone capabilities.

The trend of presenting and appreciating quality products with a high perceived value has developed – often a small increase in spend per item can raise consumers’ perceptions of a company.  Research indicates that when a consumer is given a faulty or extremely cheap promotional product they may connect that poor item or experience to that company, leaving a negative perception. Whilst in the past consumers were often happy with any free product, an abundance of inexpensive products with little intrinsic value has left consumers far more appreciative of good quality promotional products which serve a purpose. The best products engage with the consumer, challenge or amuse them and have a real purpose and use. Technological advances have made higher quality products easily possible. There is also improved quality control by suppliers, with manufacturing facilities taking more care to ensure products manufactured are in line with current standards.

Organisations are more aware of the value of allowing increased lead time for products. By giving sufficient time to consider the benefits of products businesses can ensure they have optimum time and opportunity to find the right product at the best price. Increased lead time can also save on the costs of the product, ensuring the most cost effective freight (particularly when being manufactured overseas). This ties in with the reality promotional product distributors are being acknowledged as an important extension of organisations’ marketing departments with knowledge and ideas rather than merely the means by which to purchase the item required. If budgets and lead times are considered from the beginning of the promotion, suppliers and distributors can pass on advantages such as reduced minimum order quantity and cost and time efficient manufacturing.

Even in tough financial times promotional products for pets are popular. Pet-centric promotional items, such as pet rugs and pet balls are a cost effective way for people to spoil their pets and spread positive brand messages. Despite many societal changes, people’s relationships with their pets remain stronger than ever and pets are valued members of many households. Promotional items aimed at pets are a fun way to remind consumers that a business is animal and family friendly.

Retail trends such as what is fashionable in clothing or technology are closely monitored and acknowledged by Promotional Product Professionals. Consumers are appreciating retail-inspired products that take into account contemporary fashions and desires. More attention is being paid to sizing of apparel, moving away from one-size-fits-all apparel to enable a range of sizing and styles.

Gifts that bring a unique offering, including those trends listed above may help make a promotional campaign truly savvy and reflective of current consumer desires and the environment the business is operating in. 

Tip – The Creative Locker is very trend savvy, offering a great range of eco products e.g. 3D Coaster & tech-savvy products e.g. Hat with LED lights. 

Kid friendly promo items

The Creative Locker has been expanding our range lately with some kid friendly options that are sure to be a hit with younger audiences!

This includes balls, headwear and frisbees to encourage outdoor play, along with ipad sleeves, flags, coin bags, backpacks, drink golders, pencil cases and more!

Children are an integral part of most homes and the youth demographic is a savvy, influential group with increasing buying power.

We offer fun, safe options that will capture the attention of kids (and their parents!), help children expand their imagination and increase brand awareness within households!

Visit www.thecreativelocker.com for more info!

A brief history of the promo products world

1789 First known promotional products in The United States – commemorative buttons for the election. More than 27 varieties of buttons were produced during George Washington’s term of office.

1875 Industry as we know it began, nurtured by newspaper owners, who (already equipped with printing technology) realised imprinting promotional items would provide additional revenue during slow economic periods. Newspaper owner Jasper Meek is considered the father of promotional merchandise; producing burlap book bags after seeing a school boy drop his books in dust.

1893 At the World’s Columbian Exposition, a promotional venture by H.J. Heinz involving a “Heinz” Pickle Pin led to police intervention to control mass interest from crowds. By the fair’s end over one million of these pins had been given away and some reports claim this venture saved the company from impending financial doom.

1900 By now, the industry was benefiting from technological advances enabling mass production and quality, long-lasting advertising messages. This combined with inspired and informed salespeople and an expanding economy helped spur rapid industry growth. 

1904 The first trade association for the Promotional Products Industry was formed, titled the Advertising Manufacturers Association. It is now known as PPAI, or Promotional Products Association International.

1914 First book about the Promotional Products Industry is published, titled Specialty Advertising: The New Way to Build Business by Dr Henry J. Bunting.

1930s During the Great Depression the industry encountered difficulties, but is also acknowledged with helping organisations promote and sell products e.g. imprinted caps promoting Coca Cola and calendars accompanying Wrigley’s Gum.

1940 Business Promotion had a special issue promoting the industry. It noted words of wisdom such as “A good pencil given away as goodwill is much better than a bad cigar and much more lasting . . .”

1945 Introduction of “miracle” material plastic and ball point pens influences the industry, with pens still a common promotional item.

1950s Industry became more sophisticated, establishing a modern distribution and sales system. Manufacturers moved away from internal sales executives, relying on distributors to access the national market. These distributors were lead by Brown & Bigelow, who noted the most successful approach was to identify a client’s marketing problem and provide practical ideas to solve said problem.

1960s Era of political turbulence, combined with the rise of consumerism and the hippie rebellion ensured success of politically charged promotional merchandise. Millions of anti-war and civil rights themed buttons, badges and stickers were produced.

1970s First real explosion in growth of the industry, with corporate organisations solely dedicated to the supply and distribution of promotional items appearing globally. The late 1970s saw the rise of the collector’s boom, where savvy collectors began collecting promotional memorabilia.

1980s Demand for generic product catalogue which distributors could brand as their own and give to corporate clients grew.

1986 APPA, the Australasian Promotional Products Association is created, providing support, education and advice for manufacturers and distributors.

1990s New and more sophisticated catalogue services becoming available. Until now peak season was around Christmas time.

2000s The Creative locker is created, focusing on beverage related promotional items and headwear. TCL moves away from the trends of sourcing from overseas organisations or manufacturing locally by owning and managing a factory in China, combined with office and manufacturing capabilities in Australia.

21^st century - Businesses are becoming more inventive in their marketing strategies and are using promotional merchandise through the entire year to promote their brands, products, services and events. The industry in Australia and Worldwide has seen massive growth, which shows little signs of slowing down.

*Elements of this timeline were derived from Nelson & Kanso, Today’s Promotional Products Industry, Journal of Promotions Management, 8:1, 3-24

Times to Consider Using Promotional Products

• At Corporate events e.g. grand openings, trade shows, conferences, golf days etc
•  To introduce a new product or encourage stakeholders to try a particular product
• As a gift with purchase or sales/loyalty incentive program to reward or encourage repeat sales.
• As a display at point-of-purchase for sales
• To recognise and encourage employee achievements and internal workplace programs
•  As part of Non-profit programs, fundraising, as a service to community, club identification, education or safety programs
• To encourage customer loyalty, reignite interest from dormant customers and generate new customers
• To promote a message, educate consumers and raise awareness
• As part of Guerrilla Marketing campaigns
•  To create a buzz around a product or event, encouraging word-of-mouth advertising
• To accompany an invitation to an event, possibly a “teaser” to encourage attendance
• To bolster public relations or media relations, including raising profile and assisting or sponsoring community events
• To gain impact and reinforce purpose for a company announcement
•  As a method of thanking and expressing appreciation to key stakeholders
•  Direct mail outs to targeted audience
• To celebrate a company anniversary or commemorate an event or myriad occasion
• Traffic building – e.g. drive users to a website, or to sign up for an e-newsletter
• Particularly during slow economic periods merchandise will help differentiate organisations from competitors
• To encourage or accompany market research, promoting the provision of information from targets e.g. via surveys and focus group participation

Benefits & Advantages of Promotional Products

There are many reasons why promotional items can be beneficial to your marketing campaign, and building your brand;

• Attract attention and raise awareness towards your brand and organisation; optimising visibility, increasing the level of company recognition and leaving traces of a campaign or message. This attention may come from consumers, clients, other businesses or even the media if the product is unique and newsworthy. Promotional merchandise can help shape a distinctive, memorable and recognisable identity for businesses. It can also influence or alter perceptions, giving the impression that a smaller organisation is in a particularly well established position.
• Promotional merchandise encourages consumers to personalise, connect and interact with a brand and the organisation it represents. The items link a person with a brand in a positive way, a constant reminder of an organisation, and hopefully of a good experience had with that company. Logoed items are great ways for building associations with a particular brand, particularly when companies can tap into the culture of their target audience.

• Create, develop or strengthen relationships with new or existing clients, thereby encouraging customer loyalty and promoting return business. Promotional items help demonstrate to stakeholders that they are important to your organisation and are a great way of saying thank you to valued customers.  They are important for goodwill, increasing affection and strengthening loyalty in customer relationships. Merchandise can also positively influence and motivate business relationships.
• Promotional items typically have a longer physical and mental retention than above-the-line advertising methods. Merchandise has the ability to retain a message in a longer lasting way than many other forms of marketing.  The products will continually reinforce a brand and message without further effort or intervention from that company. When accompanying purchased products or consumables, (particularly those with a short expiration or use-by date), the merchandise and branding message may outlast the product in question, lengthening the opportunity for exposure.

• Promotional items cost less than other advertising methods, particularly when considering the CPI (Cost per Impression) as they are more repetitive in nature, repeatedly displaying the message at no additional cost. Promotional Items, particularly those that are highly usable and visible promote a brand and message to an infinite number of consumers.
• They are cost effective in that they are typically mass printed, and often companies providing the product will also provide product and design expertise at little or no extra cost. Required quantities are usually quite low, meaning businesses can target as few as one hundred valuable clients, keeping within strict budgetary requirements. Branded items can also often be claimed as a tax deduction.

• Promotional products reflect and respond to consumers’ increasing desire for instant gratification. They can cut though other forms of advertising and drive brands to the forefront of consumers’ minds, combining creativity and functionality for maximum effect. Promotional items are a great way to create a buzz around an organisation, product or event, stimulating and encouraging word of mouth and referrals.
• The items have distinct advantages not always available in traditional media. This includes high recall, tangible interaction and positive overall impression of the organisation providing the item.

•  Promotional merchandise can directly target niche markets in a highly effective way, ensuring valid prospects are reached, without the waste associated with traditional media. Merchandise provides a way to speak directly to target markets, and businesses should be able to guarantee a strong reaching of their desired audience.

• Promotional products have a high perceived value and are effective add-ons with sales – often consumers are willing to pay extra for an item if it comes with an incentive such as a promotional gift.

• There is a wide availability of products, easily chosen, shaped, designed and delivered for virtually any situation. They are also easily themed to tie in with marketing campaigns.
•  Promotional items are accessible and easy to order. Increasingly organisations are providing information online, making the decision making and ordering process smooth and efficient. There are many reputable companies who are able to help educate you regarding styles, trends, potential pitfalls, safety and international labour standards, as well as the newest products on the market.  
• There are methods available to measure the impact and effectiveness of promotional items, ensuring companies can see how they are impacting on the bottom line of their business. Promotional merchandise can also help identify what is working in an advertising campaign (establishing a strong relationship often leads to clients giving feedback more honestly and freely), whilst complementing targeted marketing campaigns and other advertising methods. They can also serve as an effective tool for encouraging data collection from stakeholders and conducting market research.

• Improve employee morale and aid staff retention when given to staff within a business. Internal employee rewards can promote company objectives and team spirit, encourage particular behaviours and acknowledge achievements. Motivated employees can boost company productivity, and giving branded gifts to recognise achievement will create good business exposure and promote bonding with employees.
• Help ensure increased traffic to tradeshow booths or corporate promotions and entice, engage and excite show visitors and clients.
• Creative, entertaining and functional way to communicate a message whilst motivating targets and inciting their desire to purchase. The item may incite immediate action; alternatively it will help keep company in the forefront of minds regarding future purchases.
• Consumers will continue to use the product as long as they feel it is useful and practical. They may even pass it along to friends or family when the product has ceased serving a purpose to them.
• They are the only type of advertising likely to be truly welcomed and utilised at a personal level by your customer, probably eliciting a genuine “thank you”.

TIP!

The cost of promotional merchandise may be questioned by inexperienced users, particularly those who see their desired item available at a lower price through retail outlets. However promotional merchandise orders are rarely of the same quantity ordered by retailers. Furthermore, printing on other manufacturers products may be ineffective, poor quality or not possible for legal reasons. Cheap products can end up being quite costly in the long term, and it is important to rely on custom made products that you are proud to have your brand on. Sometimes the freight cost is quite substantial, in extreme circumstances even outweighing the cost of the products.  There are many factors to be aware of when ordering, and the benefits of a well conceived promotional merchandise distribution will far outweigh the cost.

About the Promotional Product Industry

Typically the Promotional Product Industry is made up of two sections:

Suppliers – These are the organisations that manufacture, import, imprint, convert or produce promotional products. Typically they produce custom orders on behalf of the distributor, and the products are only available through Promotional Product Distributors. Suppliers will generally not accept orders from businesses that do not resell their products. These suppliers may manufacture in Australia, but also often have manufacturing facilities in countries with greater and often more cost effective manufacturing capabilities such as China or the United States.

Distributors – Distributors are independent agents who usually source from a range of suppliers, depending on the desired product and needs of the client or end user.  They often develop ideas for clients as to the most effective ways to use merchandise in marketing or promotional campaigns. Sophisticated distributors may have valuable services such as marketing expertise and graphic design skills and will assist in evaluating the effectiveness of a promotional product campaign. They tend to act as brokers between manufacturers and end users, typically not maintaining inventory of any stock other than samples.

It is estimated there are over 2500 promotional product distributors in Australia, with the majority of these being small businesses. Of these 2500 companies, approximately 600 are members of APPA, the Australasian Promotional Products Association, a non-profit organisation which many promotional product companies are members of. (Source www.appa.com.au)

The expansion of the promotional products industry in the past decade has also seen businesses attempt to use alternative channels to procure items, including via direct-selling houses, advertising agencies, retail stores and from manufacturers overseas, with varying levels of success.

There are a variety of organisations and institutes that support promotional product manufacturers, distributors and purchasers.

APPA (The Australasian Promotional Products Association) is a professional trade organisation that provides education, resources, media and advice to members (Suppliers and Distributors) predominantly in Australia and New Zealand.

The Promotional Media Group (PMG) maintains a database of product and service providers relating to the promotional industry in Australia and New Zealand.  It includes PromoDirect, which also offers an industry magazine (Promotion Magazine), Promotional Product Ideas Book, Promotional Products Directory, industry job board, and also runs the Australian Promotional Expo (APE).

Other organisations such as APMA (Australasian Promotional Marketing Association – powered by The Communications Council) represent Promotional and Experiential Marketing Agencies in Australia and New Zealand. Their role includes managing business issues which affect members, providing services to members in financial, legal and professional areas as well as education/training.

Internationally, major organisations include The ASI (Advertising Specialties Institute), which is described as the “largest media and marketing organization serving the advertising specialty industry.” The Promotional Products Association International also has over 8000 members, with the majority of these from the United States or Canada. In the United Kingdom, the two main trade bodies are Promota (Promotional Merchandise Trade Association) and BPMA (British Promotional Merchandise Association).

The popularity of promotional merchandise is reflected in their rapid sales increase. APPA Statistics suggest the industry in Australia is worth $2.02 billion, an increase of 45% in the last 5 years. The industry worldwide is estimated to be worth a staggering $18 billion in annual sales. Some of the promotional product industries’ major users include financial institutions, health care providers, non-profit organisations, educational providers, automotive organisations, government agencies, entertainment/sporting events, telecommunications companies, distributors of alcoholic beverages and many more.

Tip – The Creative Locker is a member of reputable organisations such as APPA & Promo Direct.

What are Promotional Products?

Promotional Products (aka Corporate Merchandise, Branding Items, Business Gifts, Swag or Advertising Specialties) are items that companies give away (typically at no cost to, or overt obligation from, the consumer) to clients, potential clients, business associates, employees and other stakeholders. The items typically come with some kind of branding, logo or promotional message such as a slogan or company mission statement. There is a variety of reasons why promotional products are used; most often to strengthen branding, establishing brand recognition and increasing awareness of a company. They may be used to create or reinforce an image or promote an event; reminding existing customers and arousing curiosity from potential customers. The aim is to encourage new or repeat use of the company’s products or services, in part through the building or strengthening of the relationship between an organisation and its stakeholders. The response may be instant, but there is also a strong likelihood of the impact being a slow (though regular!) burn, with the majority of merchandise remaining in the presence of the target for months or even years.

Promotional merchandise may be direct – and used by the recipient directly and consistently for an extended period of time. For example, a mouse pad that sits on their desk at work and brings a personal level of attachment to the consumer from the organisation that provided the product. The branding message is subconsciously embedded in the mind of the recipient with each use.

Other types of promotional products use the promotional item as a travelling advertisement, a billboard for the company. Apparel such as t-shirts and hats or accessories such as bags are common examples. Each time the consumer uses or wears the product it is highly likely the item and branding message will be seen by people that the promotional product holder interacts with.

Promotional items may be a premium i.e. given with some requirement to undertake an activity, for instance register on a website to receive a free cap. The incentive is the driving force. They may be a recognition award such as a plaque recognising an employee achievement. Some high-end executive or business gifts may not even have any imprint from the company providing the item.

Whilst promotional product acceptability and popularity is growing, it is important to recognise that a target market is more likely to interact with and utilise a product if it has a particular benefit to them, whether it be particularly unique, stylish, useful or creative. Consider what your relationship is with the target market and what the market predominantly consists of e.g. families, other businesses etc. If your merchandise ties in with both your core business activities and the recipients interests or values then it will likely be a great fit!

The best promotional items are typically ones used frequently because they are of some use or intrinsic value to the consumer on a regular basis. Sometimes it is finding the balance between the everyday and the creative that can be a challenge. A well designed and strategically placed logo on a useful product may have the desired effect, however certain demographics will respond better to particular product elements. 

Even the best-designed products are essentially just products. Success often follows when they are part of a well conceived promotional campaign. The product may even be the centre of the campaign, however for maximum effect (and perhaps the possibility of the product becoming iconic) consider utilising merchandise as one element of a considered, structured campaign that seeks results which can be assessed and measured for effectiveness.

Promotional items are a great part of an advertising budget as they are more targeted and strategic than most traditional mass media advertising. The audience for merchandise can be well considered and precise. Whilst television advertisements, newspaper ads etc may be seen by more people (at least on the actual day of advertising), it is unlikely they will be kept or valued in the way a tangible advertising product is utilised. Traditional advertising also tends to interrupt audiences, whereas promotional merchandise provides a way of engaging with users. They also offer a unique ability to build a relationship with the recipient of the item, which will continue through the lifespan of that product (and possibly beyond), a distinct advantage compared to other media, where the relationship typically ends when the consumer looks away from an ad.

Studies suggest traditional media is losing impact compared to newer media and many marketing agencies and businesses are seeking alternative ways of building consumer relationships. Factors such as audience segmentation, the escalating costs of mass communication, increasing numbers of advertisements and competition for market share, combined with the proven success of merchandise as a marketing communications tool means the promotional industry provides an attractive option. Promotional products are not only an effective mass-media alternative, but can also be easily integrated into the media mix for maximum effect, capitalising on the current movement towards integrated communication.

A key benefit of promotional products is personalising a brand and emphasising not just the physical practicalities of a product, but the emotional connection and personal advantages which become intrinsic through the consumer’s use of a product or services. Once a promotional item is given it opens up the relationship between business and client. Depending on how the item is given to the recipient, businesses may be privy to instant and valuable feedback as to their perception of the product and organisation. Promotional items are also accepted or declined in an active way by the recipient; enabling businesses to better determine their true level of interest. Used wisely, merchandise will help organisations build and maintain a reputable company image.

Statistics are varied as to how many times a person needs to hear or see a message before it registers in their brain. Some say as few as three times, others as many as ten. However a tangible promotional item, particularly one constructed with care and creativity is likely to cut through the estimated 3000 advertising messages a person is exposed to each day. It is also about the only form of advertising people will physically interact with and get excited about, engaging them and making them feel valued whilst eliciting a positive response and appreciation for the organisation providing the product!