Decoding Promotional Products Industry

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Promotional Products Logo ApparelBusiness Gifts Marketing Materials

Decoding the

Promotional ProductsIndustry

1. Promotional Products: A Genesis

2. Promotional Products Association International (PPAI)

3. How does the promotional industry work?

4. What are promotional products used for?

5. Who buys promotional products?

6. Tips for choosing a promotional product

7. Why business owners prefer promotional products over other advertising media?

8. When should you give away promotional

9. �e most successful product categories

10. �e items customers love to receive!

11. Conclusion

12. References

Index

products?


Promotional Products: A Genesis

Barack Obama's 2012 Presidential Campaign deployed an arsenal of promotional products to get his message across to American citi-zens. Car magnets, stickers, bands and t-shirts are some of the pro-motional products that were used to highlight his campaign. A dedi-cated site (h�ps://store.barackobama.com) allowed visitors to browse and purchase political merchandise.

Obama, however, wasn’t the �rst President to use promotional prod-ucts. �e reliance on promotional giveaways is a practice that dates back to the �rst American President – close to 300 years ago. In 1789, supporters of George Washington – the Father of the Nation – handed out a�ractive commemorative brass bu�ons when he was successfully elected as President. �e bu�ons displayed the message: “GW: Long Live �e President”.

�ese bu�ons caught the fancy of several entrepreneurs – they real-ized that products could be customized and deployed as marketing tools for business growth. As a result, the 1800s witnessed the intro-duction of advertising calendars, wooden specialties and the Farm-

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Jasper Meeks: �e Revolutionary

Jasper Meeks is regarded by many to be the Father of the modern promotional industry. In the late 1800s, he convinced a local shoe store to imprint their name on school bags and supply them to needy children. �is triggered a promotional frenzy and several other busi-nesses started imprinting their names on anything they could lay their hands on – calendars, caps, fans and even aprons!

�us, the late 1800s became the launching pad for the promotional industry as it is known today.

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Promotional Products Association

By 1903, America was host to a number of promotional products manufacturers. But they lived in di�cult times and business was mostly unpredictable. �ey needed a common platform to boost the perceived value of promotional products to achieve buyers' objec-tives.

On November 20, 1903, a group of 12 manufacturers got together to form the Promotional Products Association International (PPAI).

Ever since its inception, PPAI has been highlighting the use of pro-motional products as an advertising medium across the world and especially in the United States.

Some interesting facts about PPAI:

Since 1903, PPAI has undertaken more research and surveys than any other entity in the promotional industry. PPAI Research is renowned for its valuable insights and surveys on the industry

PPAI regularly felicitates the industry’s top performers with awards for categories such as customer service, creativity and ingenuity

PPAI is responsible for the PPAI Expo, the industry’s biggest and most relevant tradeshow that a�racts thousands of people from the USA and across the globe


International (PPAI)

PPAI Publications serves as the leading communication network for the promotional industry. PPAI is behind sev-eral renowned magazines such as Promotional Consultant Today and PPB Newslink


How does the promotional industry work?

The promotional products industry is powered by an e�cient supply chain that has the manufacturer as the starting point and the buyer at the end. Sandwiched between these two are the industry’s most important entities – the Suppliers and the Distributors.

�e Suppliers source the promotional products from the manufac-turers and make them available to Distributors. �e distributors, in turn, o�er these products to business owners or individuals.

�e arrival of Internet several decades ago resulted in a �erce ba�le online between Distributors for customer supremacy. As a result, several websites o�er fabulous deals and discounts on products and shipping.

Today, an individual can place a bulk order for promotional products from the comforts of home itself with the products being delivered to their doorsteps.


1. �e buyer visits the Distributor's website and places an order for a product. He provides a logo and/or message for imprint on the product.

2. �e Distributor gets the artwork ready and provides it to the supplier who imprints it on the product.

3. �e order is �nally shipped out from the supplier's warehouse.

1 2

3Distributor Supplier

Buyer

What are promotional products used for?

Promotional products are primarily used to highlight a product, service, cause or an individual. is is achieved by giving away busi-ness gi�s, awards, prizes, commemoratives and other imprinted or decorated items.

e 2009 PPAI Program Category Study lists the following as the Top 10 Uses for promotional products:

1. Brand Awareness

2. Tradeshows

3. New Customer/Account Generation

4. Dealer/Distributor Programs

5. Public Relations

6. Employee Relations & Events

7. Not-For-Pro�t Programs

8. New Product/Service Introduction

9. Employee Service Awards

10. Customer Referrals


Who buys promotional products?

Hundreds of American �rms and institutions place bulk orders for personalized products each day. �ey imprint their logo or message on products and distribute them among their target audience, whether its customers, students, employees or the general public.

A 2007 survey by PPAI sheds some light on the Top 10 buyers of promotional products:

1. Education: Schools, Colleges, Universities

2. Financial: Banks, Savings & Loan Companies, Credit Unions

3. Not-for-Pro�t Organizations

4. Health Care: Hospitals, Nursing Homes, Clinics

5. Construction: Building Trades, Building Supplies

6. Trade, Professional Associations and Civic Clubs

7. Real Estate: Agents, Title Companies, Appraisers

8. Government: Public O�ces, Agencies, Political Candidates

9. Professional: Doctors, Lawyers, CPAs, Architects

10. Restaurants and bars

Which sector do you belong to?


Tips for choosing a promotional product

The process for choosing a promotional product is an art and requires a�ention to detail. ere are thousands of products available online and it is important to choose one that matches the advertiser’s branding requirements best.

When an advertiser searches for a product, he will be keen on the im-print area, which is the space where the text or logo is printed on pro-motional products. An imprint area’s dimensions primarily depend on the size of the product. If you are placing an order online, share your logo with the Distributor’s design team and ask them to provide a sample to judge how well your logo will look on a product. You should �nalize a product only a�er you are satis�ed with the way your logo is projected.

A survey conducted by PPA on recipients of promotional products shed some light on what people look out for while choosing a pro-motional product:

1. Usefulness: How useful is this giveaway? For example, a pen, clock or calendar can be put to great use by recipients.

2. Quality: Is the product high in quality? Will it stand the test of time? For example, a set of elegant wine glasses will e�ciently a�ract your customer to the brand.

3. A�ractiveness: How appealing does the product look? An visu-ally t-shirt or pen easily endears itself to recipients and they will use it for long, giving your brand valuable visibility.


4. Tastefulness: �e product should be in good taste and not o�ending the recipient’s sensibilities in any manner. Stay away from products with vulgar overtones.

5. Convenience: How convenient is the product to use?

6. Uniqueness: Is your product unique or is it similar to other products given by competitors?

7. Longevity: Will your product serve the recipient for a long time?

�e below graph provides the results of the survey:


98.30%

71.80%61.50% 59.80%

45.40%40.70%

28.20%

Usefulness Quality A�ractiveness Tastefulness Convenience Uniqueness Longevity0

10

20

30

40

50

60

70

80

90

100

Why business owners prefer promotional

Advertisers believe in the power of promotional products and its ability to launch an eective and memorable marketing campaign. �e �nal objective of advertisers is to establish a strong connect with their target audience. In a 2009 PPAI survey of buyers, participants ranked promotional products over other media such as TV, newspa-pers and the Internet.

�e dierent aributes that went in favor of promotional products are:

1. Cost �exibility: Most buyers will testify that the majority of pro-motional products are available in cost-e�cient prices that �t within marketing budgets.

2. Long-term promotion: If the quality of the product is good, there is every chance a recipient will use it for a long period. �is provides long-term brand recall at the cost of a single exposure.

3. Boost repeat business: Many companies believe that promotional products help them bond with their existing customers beer, thus facilitating repeat business

4. Audience-friendliness: A promotional product - whether it’s a bag, pen or shirt - is mostly handy in nature and will not be consid-ered a nuisance.

5. Tra�c generation: Products can be given away to aract tra�c at tradeshows, events and stores.

products over other advertising media?


Some interesting PPAI facts:

Reach:• 44% received a promotional product in the last 24 months

Recall:• 89% could recall the name of the advertiser on a promotional

Response:• 83% of respondents like receiving a promotional product with an advertising message

• 48% would like to receive promotional products more o�en

• 69% generally keep the promotional product if they have a use for it

• 36% generally give the product to others if they have no use for it–ensuring additional exposure for the advertiser

• 35% generally keep the product if they like the advertiser

product received in the previous 24 months


When should you give away

There is no doubt that the holiday season presents an ideal opportunity for companies to give away some quality products to serve as reminders of their brand. However, products received by customers at the most unexpected times are the most e�ective.

Here are some pointers on when to give away promotional products:

1. To mark an occasion associated with the business such as an anniversary or product/service launch. �is way news about the product or services spreads far and wide

2. To thank customers for their business

3. To support community events, social causes, sport teams, and educational programs.

4. To recognize employees for their hard work and length of service to the company

promotional products?


The most successful product categories

While choosing a giveaway, it will be useful to know the products that have been regularly sought by advertisers. A 2009 sales study un-dertaken by PPAI identi�es Wearables (t-shirts, sweatshirts, caps, etc) as the most sought a�er category. Writing instruments, bags, cal-endars and drinkware follow in that order.

31.20%1. Wearables :

8.68%2. Writing instruments

. Wearables :

Port Authority® Scoop Neck Shirt

Hanes® ComfortSo�® Sport Shirt

31.20%

Port&Company Zip Hooded Sweatshirt

Port Authority® Scoop Neck Shirt

Giles Cap

Hanes® ComfortSo�® Sport Shirt

Ladies Silk Touch Piped Polo

Port&Company Zip Hooded Sweatshirt

Reversible Sleeveless Tee

. Writing instrum

Storm Pen

ments um

Bic® Clic

8.68%

Celeste PenStorm Pen

Easy Flow Gel Pen (Black Ink)

Celeste Pen

Bic® Brite Liner Grip

Bic® Clic

Canoodle Pen

The items customers love to receive!

Even though Wearables are the most successful category, they are a distant 3rd in the list of products customers love to receive. As part of a 2011 survey of recipients of promotional products conducted by PPAI Research, food items (chocolates, mints, etc.) were found to be the most desired items by customers. It is important that advertisers choose a product that will strike a chord with their customers. For this, it is important to be familiar with the promotional products that are most sought aer by indi-viduals.

�e top 10 products customers love to receive include:

1. Food items (chocolates, mints, etc.) 2. Time-related giveaways (watches, clocks, calendar, etc.) 3. Wearables (t-shirts, sweatshirts, caps, etc.) 4. Writing instrument (pens, pencils, markers, highlighters, etc.)5. Electronics (mouse pads, �ash drives, pouch for handheld devices, etc.)6. Fun (toys, puzzles, stress relievers, etc.) 7. Healthcare (walking pedometers, �rst aid kits, exercising equipment, etc.) 8. Beauty (combs, manicure sets, etc.) 9. Compact items for personal use (wallets, money clips, etc.) 10. Tool kits 11. Bags, notebooks, briefcases 12. Others


Conclusion

With every passing year, the distribution of promotional products has grown by leap and bounds.

As has been demonstrated by facts and �gures in this whitepaper, there is no doubt that promotional products are eagerly looked for-ward to by customers.

If you are on the lookout for an e�ective advertising product, you will do your brand a world of good by choosing a promotional product.

At Promo Direct, we are commi�ed to providing buyers with quality reference material on promotional products. If you have any queries on promotional products, do get in touch with our team.

Call: 1-800-748-6150www.promodirect.com [email protected]

References

PPAI - High End, Low End: Which Promotional Products Work Best? A Study of Consumer and Buyer Reactions PPAI - �e 2010 Estimate of Promotional Products Distributor Sales PPAI - Business Gi� Practices PPAI - E�ectiveness of Promotional Products As An Advertising Medium PPAI - 2010 Promotional Products Fact Sheet PPAI - Promotional Products: �e Key Ingredient to Integrated Marketing

h�p://www.trasa.net/public/index.cfm?fuseaction=articles.view&id=5352 h�p://www.nebs.ca/pdf/products/Using_promo_products.pdf
