Decoding

Promotional Products
Industry

the

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Promotional Products Logo Apparel Business Gifts Marketing Materials

Index
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. 10. e most successful product categories products? e items customers love to receive!

11. Conclusion 12. References

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Promotional Products: A Genesis

Barack Obama's 2012 Presidential Campaign deployed an arsenal

of promotional products to get his message across to American citizens. Car magnets, stickers, bands and t-shirts are some of the promotional products that were used to highlight his campaign. A dedicated site (h ps://store.barackobama.com) allowed visitors to b browse rowse a and purchase political merchandise.

he r st tP resident t to o use promotional prodObama, however, wasnt th the rst President 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 realized that products could be customized and deployed as marketing tools for business growth. As a result, the 1800s witnessed the introduction 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 businesses 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 International (PPAI)

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' objectives.

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 promotional 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

for categories such as customer service, creativity and ingenuity

PPAI regularly felicitates the industrys top performers with awards PPAI is responsible for the PPAI Expo, the industrys biggest and

most relevant tradeshow that a racts thousands of people from the USA and across the globe www.promodirect.com, info@promodirect.com Call: 1-800-748-6150

network for the promotional industry. PPAI is behind several renowned magazines such as Promotional Consultant Today and PPB Newslink

PPAI Publications serves as the leading communication

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How does the promotional industry work?

cient supply chain that has the manufacturer as the starting point and the buyer at the end. Sandwiched between these two are the industrys most important entities the Suppliers and the Distributors. e Suppliers source the promotional products from the manufacturers 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.

The promotional products industry is powered by an e

1
Buyer

2
Distributor Supplier

3
1. 2. 3.

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. e Distributor gets the artwork ready and provides it to the supplier who imprints it on the product. e order is nally shipped out from the supplier's warehouse.

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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 business 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. 2. 3. 4. 5. 6. 7. 8. 9. 10. Brand Awareness Tradeshows New Customer/Account Generation Dealer/Distributor Programs Public Relations Employee Relations & Events Not-For-Pro t Programs New Product/Service Introduction Employee Service Awards Customer Referrals www.promodirect.com, info@promodirect.com Call: 1-800-748-6150

Who buys promotional products?

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. 2. 3. 4. 5. 6. 7. 8. 9. 10. Education: Schools, Colleges, Universities Financial: Banks, Savings & Loan Companies, Credit Unions Not-for-Pro t Organizations Health Care: Hospitals, Nursing Homes, Clinics Construction: Building Trades, Building Supplies Trade, Professional Associations and Civic Clubs Real Estate: Agents, Title Companies, Appraisers Government: Public O ces, Agencies, Political Candidates Professional: Doctors, Lawyers, CPAs, Architects Restaurants and bars

Hundreds of American

Which sector do you belong to?

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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 advertisers branding requirements best. When an advertiser searches for a product, he will be keen on the imprint area, which is the space where the text or logo is printed on promotional products. An imprint areas dimensions primarily depend on the size of the product. If you are placing an order online, share your logo with the Distributors 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 promotional 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 visually t-shirt or pen easily endears itself to recipients and they will use it for long, giving your brand valuable visibility. www.promodirect.com, info@promodirect.com Call: 1-800-748-6150

4. Tastefulness: e product should be in good taste and not o ending the recipients 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:

100 90 80 70 60 50 40 30 20 10 0

98.30% 71.80%

61.50%

59.80% 45.40% 40.70% 28.20%

Usefulness

Quality

A ractiveness Tastefulness Convenience Uniqueness

Longevity

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Why business owners prefer promotional products over other advertising media?

ability to launch an e ective 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, newspapers and the Internet. e di erent a ributes that went in favor of promotional products are: 1. Cost exibility: Most buyers will testify that the majority of promotional 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 be er, thus facilitating repeat business 4. Audience-friendliness: A promotional product - whether its a bag, pen or shirt - is mostly handy in nature and will not be considered a nuisance. 5. Tra c generation: Products can be given away to a ract tra c at tradeshows, events and stores. www.promodirect.com, info@promodirect.com Call: 1-800-748-6150

Advertisers believe in the power of promotional products and its

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

product received in the previous 24 months

Response:

83%

of respondents like receiving a promotional product with an advertising message en

48% would like to receive promotional products more o

for it

69% generally keep the promotional product if they have a use 36%
generally give the product to others if they have no use for itensuring additional exposure for the advertiser

35% generally keep the product if they like the advertiser

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When should you give away promotional products?

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

There is no doubt that the holiday season presents an ideal

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The most successful product categories

that have been regularly sought by advertisers. A 2009 sales study undertaken by PPAI identi es Wearables (t-shirts, sweatshirts, caps, etc) as the most sought a er category. Writing instruments, bags, calendars and drinkware follow in that order.

While choosing a giveaway, it will be useful to know the products

1. . Wearables :

31.20%

Port Authority Scoop Neck Shirt

Hanes Comfor ComfortSo tSo Sport Shirt

Port&Company Zip Hooded Sweatshirt

Giles Cap

Ladies Silk Touch Piped Polo

Reversible Sleeveless Tee

2. . Writing instruments instrum um ments

8.68%

Storm Pen

Bic Clic

Celeste Pen

Easy Flow Gel Pen (Black Ink)

Canoodle Pen

Bic Brite Liner Grip

The items customers love to receive!

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 a er by individuals. e top 10 products customers love to receive include: 1. 2. 3. 4. 5. Food items (chocolates, mints, etc.) Time-related giveaways (watches, clocks, calendar, etc.) Wearables (t-shirts, sweatshirts, caps, etc.) Writing instrument (pens, pencils, markers, highlighters, etc.) 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

Even though Wearables are the most successful category, they are a

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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 forward 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.

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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

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