Promotional Products Association International
Table Of Contents
Section A: Industry Information and Statistics
Section B: Applications of Promotional Products
Section C: Research Studies
Section D: Conclusion
SECTION A
INDUSTRY INFORMATION AND STATISTICS
Items used to promote a product, service or company
program, including advertising specialties, premiums,
incentives, business gifts, awards, prizes,
commemoratives and other imprinted or decorated items.
How big is the Promotional Products
Industry?
$17,721,945,690
.
Source: The PPAI 2011 Sales Volume Estimate
1992
1993
1994
1995
$17.72
$16.56
$15.64
$18.10
$19.44
$18.78
$18.01
$17.31
$16.34
$15.63
$16.55
$14.94
$13.18
$9.49
$8.04
$7.01
$5.22
1991
$6.22
$5.13
$11.88
$17.85
Industry Sales in Billions
(PPAI Sales Volume Estimates by Year)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Games
1.60% ( 1.52%)
Personal
Clocks and
1.56% (1.37%) Food Gifts, 1.52%
Watches
(1.53%)
1.16%
Buttons/Badges/Ribbons,
(0.96%)
1.49% (1.98%)
2011 SALES BY
PRODUCT
CATEGORY
(2010 in parentheses)
Automotive
1.92% (1.69%)
Textiles
2.27% (3.15%)
Stickers and Decals
2.39% (2.26%)
Other 2.54% (2.90%)
Magnets 2.55% (2.02%)
Wearables
29.64% (31.13%)
Sporting Goods 2.59% (2.06%)
Housewares
2.70% (2.41%)
Recognition/Awards/Trophies/
Jewelry 3.21% (3.77%)
Electronic
3.32% (3.12%)
Writing Instruments
8.99% (9.04%)
Computer Products &
Accessories
3.76% (1.97%)
Desk /Office/Business
Accessories 6.00% (5.28%)
Drinkware 6.68%
(7.00%)
Bags
7.17% (6.46%)
Calendars
6.93% (8.37%)
Weight for 2011
48.74% for companies 2.5 million
or more in sales and 51.26% for
companies with less than 2.5
million in sales
Top Buyers of
Promotional Products by Industry
1. Education: schools, seminars
2. Financial: banks, credit unions, brokers
3. Not-for-profit: (e.g. charities, churches)
4. Health care: hospitals, nursing homes, clinics, pharmacies
5. Construction: building trades, building supplies
6. Trade, professional associations and civic clubs
7. Real Estate: agents, title companies
8. Government: public offices, agencies, political candidates
9. Professional: doctors, lawyers, CPAs, architects, etc.
10. Restaurants and bars
(2007 Top Buyers study)
SECTION B
APPLICATIONS OF PROMOTIONAL
PRODUCTS
2011 SALES BY PROGRAM
CATEGORY(2010 in
parentheses)
Other
3.56% (4.98%)
Customer Referral
4.35% (3.76%)
Internal Promotions
4.85% (4.44%)
Safety Education
5.44% (4.18%)
Marketing Research
1.20% (1.38%)
Brand Awareness
12.67% (11.30%)
New Customer/Account
Generation
10.84% (11.52%)
Not-for-Profit Programs
5.50% (7.86%)
Trade Shows
10.45% (9.28%)
New Product/Service
Introduction
6.16% (9.13%)
Dealer/Distributor
Programs
9.41% (7.59%)
Public Relations
9.58% (10.71%)
Employee Service
Awards
6.59% (4.72%)
Employee Relations
and Events
9.40% (9.14%)
WEIGHT FOR 2011
48.74% for companies with $2.5 million or more
in sales
51.26% for companies with less than $2.5
million in sales
Advantages of Using Promotional Products
• Flexible
• Tangible and long-lasting
• Impact easily measured
• Higher perceived value
• Complements targeted marketing
• Complements other advertising media
SECTION C
A SELECTION OF RESEARCH STUDIES
ON PROMOTIONAL PRODUCTS AND THE
EFFECTIVENESS OF THE MEDIUM
A Study on Calendar Usage in U. S. Households and
Effectiveness of Promotional Calendars
A 2010 study of U.S households conducted by PPAI revealed these statistics on calendar
usage:

Almost 8 out of 10 households stated that calendars were either, important, very
important or extremely important in their daily lives

Almost 8 out of 10 (79 percent) households surveyed, reported having a printed
calendar in their home.

75 percent of households surveyed, had a printed calendar in the kitchen

The average number of printed calendars per household was 3.12

Wall calendars were the most popular type of calendar - 89 percent of households had
at least one calendar in their home

The kitchen was the most popular location for the wall calendar followed by the home
office
The study also found:

Eighty-two percent of households enjoy receiving calendars as a promotional gift

The wall calendar was the most common of calendar for 91 percent of households that
received an advertising calendar

Of those who reported having just one advertising calendar, 74 percent could
remember the name of the company advertised and 72 percent could remember the
product or service/message advertised

Seventy percent plan to do business with the company that gave them the calendar

Forty-eight percent had a more favorable impression of the advertiser

Forty-one percent have referred the company who gave them the calendar to
somebody else

Wall calendars were the most used advertising calendar
Advertising calendars were found to be effective to:
• Aid recall in advertising
• Elicit referrals
• Create a greater propensity for repeat business
•Shows proof of loyalty
•Convey a message
•Create/extend brand recognition
The Effectiveness Of Promotional Products As An Advertising
Medium
A study of American consumers conducted by PPAI in December 2009
revealed that:





83% of American consumers surveyed like receiving a promotional
product with an advertising message
89% of consumers surveyed could recall the name of the advertiser
on a promotional product they received in the past 24 months
Consumers were asked to think of a promotional product they had
received in the past two years and to recall the specific product, the
advertiser and the message: A whopping 76.2% recalled all three key
pieces of information
48% would like to receive promotional products more often
38% feel promotional products serve as a constant reminder of the
advertiser
The study also found that:

Promotional products are powerful, both as effective forms of
communication and as useable, necessary tools.

Results reveal just how just how seamlessly promotional products
integrate into life, impacting the daily routines of the recipients.
Consumers reported the following:
• 91% had at least one promotional product in their kitchen
• 74% had at least one promotional product in their work area
• 55% had at least one promotional product in their bedroom closet
Promotional Products – A Key Ingredient to Integrated
Marketing
In a 2006 study conducted in a controlled environment by researchers at
Louisiana State University and University of Texas at San Antonio
researchers explored:

Effectiveness of promotional products when compared to other
traditional forms of advertising such as television and print

Synergistic effects of promotional products when used along with
these other media
A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing
(Contd.)

Seven groups of people were exposed to advertising for a new
pizza product via the three mediums, namely, television, print and
promotional products
These groups were:







Group 1:
Group 2:
Group 3:
Group 4:
Group 5:
Group 6:
Group 7:
TV Only (control group)
Print Only (control group)
TV-Print (control group)
Promotional Product (Experimental group)
TV-Promotional Product (Experimental group)
Print-Promotional Product (Experimental group)
TV-Print-Promotional (Experimental group)
A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing
(Contd.)
In particular, the questions in the study measured the following:






Advertisement credibility
Attitudes toward product, advertisement or promotional product
Product purchase intention
Referral value
Impressions of the advertisement
Perceptions about the product
A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated Marketing
(Contd.)
When comparing the effectiveness of promotional products with television
and print, findings revealed:

While the print ad came in first overall, the promotional product
outperformed television across the board.

Respondents preferred advertising through a promotional product to
the television ad in terms of their:
-

Positive attitudes toward the ad (41% to 18%),
Positive attitude toward the product (20% to 16%),
Message credibility (54% to 33%)
Purchase intent (25% to 17%)
Referral value (26% to 16%)
Adding a promotional product to the media mix generated favorable
attitudes toward the ad in all cases (up to 44%)
A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products – A Key Ingredient to Integrated
Marketing (Contd.)
When examining the synergistic effects of promotional products
when used along with other media, findings of the study revealed:

Integrating a promotional product with television and print ads
increased referral value as well as credibility of the message

Groups who were exposed to promotional products tended to rate the
advertising message more positively than those groups not exposed to
a promotional product
A 2006 Study by Louisiana State University and University of Texas at San Antonio
Promotional Products’ Impact on Brand/Company Image
Overall Image


An experimental study conducted
by Georgia Southern University
shows that recipients of
promotional products have a
significantly more positive image of
a company than those who do not
receive promotional products.
For the study, the researchers
selected, as the test company, a
restaurant located in a college town
a few miles from a university
campus.
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Product
Image
Uniqueness
Perception
Lunch Patronage Likelihood
Dinner Patronage Likelihood
A 2005 Study by Georgia Southern University
No Product
Promotional Products’ Impact on Brand/ Company
Image (contd.)
Likelihood To Recommend The
Business

The group receiving the
promotional product was
significantly more likely to
recommend the business to others
than the group that received
nothing.
3.2
3
2.8
2.6
2.4
2.2
2
Product
No Product
Promotional Products’ Impact on Brand/ Company
Image (contd.)
Perception Of The Business As
Reflected By Positive Comments
About The Company

The group receiving the
promotional product had a
more positive image as
evidenced in their comments
about the company than the
non-recipient control group.
The difference was
statistically significant.
1.2
1
0.8
0.6
0.4
0.2
0
Product
No Product
Promotional Product Incentives Produce Valuable
Referrals From Satisfied Customers
0.05


Accompanying a request for
referrals, an offer of a
promotional product incentive or
an offer of a promotional product
incentive and eligibility in a
sweepstakes drew as many as
500 percent more referrals than
an appeal letter alone.
Offers of promotional product
incentives are likely to be
substantially more effective than
enclosing free promotional
products with an appeal letter.
0.045
4.80% 4.80%
0.04
0.035
0.03
0.025
0.02
0.80%
0.015
0.01
0%
0.005
0
0
Appeal Letter alone
Letter plus free promotional product
Letter + promotional product incentive for referral
Letter + promotional product incentive + sweepstakes
A 2005 Study by Louisiana State University and Glenrich Business Studies
Effectiveness of Promotional Products at Tradeshows

71.6% of attendees who
received a promotional
product remembered the
name of the company that
gave them the product
PERCENT OF COMPANIES THAT
REMEMBERED THE NAME OF
THE COMPANY
80.00%
71.6%
70.00%
60.00%
50.00%

76.3% of attendees had a
favorable attitude toward the
company that gave them the
product
A 2003 Study by Georgia Southern University
40.00%
30.00%
20.00%
10.00%
0.00%
28.4%
Yes
No
Increase Booth Traffic with Promotional Products
Are Pre-show mailings with
Promotional Product Offerings
More Effective in Increasing Booth
Traffic Than Mailings Without?


Including a promotional product with a
pre-show mailing or an offer of a
promotional product increases the
likelihood of an attendee stopping by a
tradeshow booth
As a general rule, promotional products
of greater value generate more sales
leads than products of lower value
45%
41%
40%
36%
35%
30%
25%
23%
20%
15%
10%
5%
0%
Mailer Only
A 2004 study by Georgia Southern
University
Mailer with
Magnet
Mailer with Tshirt Offer
Impact, Exposure and Influence of Promotional Products
Reach:


71% of business travelers
randomly surveyed at DFW
Airport reported receiving a
promotional product in the last
12 months
33.7% of this group had the item
on their person - a coveted
location for advertising
Recall:
• 76.1% of participants could recall the name of
the advertiser on the promotional product that
they received in the past 12 months
• In comparison only 53.5% of participants could
recall the name of an advertiser they had seen
in a magazine or newspaper in the previous
week.
80.00%
76.10%
70.00%
60.00%
53.5%
50.00%
40.00%
30.00%
20.00%
10.00%
A 2004 Study by L.J Market Research
0.00%
Print Media
Promotional
Products
Impact, Exposure and Influence of Promotional Products (contd.)
Impression of the Advertiser
•
52% of participants in the study did business with the advertiser after
receiving the promotional product.
•
Of those who had not done business with the advertiser that gave them
the product, almost half stated that they were more likely to do
business with the company that gave them the item
•
52.1% of participants reported having a more favorable impression of
the advertiser since receiving the item.
Impact, Exposure and Influence of Promotional Products (contd.)
Frequency of Exposure/Lower Cost Per Impression


73% of those who used the promotional product that they had received
stated that they used it at least once a week
45.2% used it at least once a day
The greater the frequency of exposure, the lower the cost per Impression
Repeated Exposure


55% of participants generally kept their promotional products for more than
a year.
22% of participants kept the promotional product that they had received for
at least six months.
Impact, Exposure and Influence of Promotional Products (contd.)
Why Keep the Promotional Product


75.4% of those who received a promotional product stated that they
thought the item was useful
20.2% kept the promotional product because they thought it was attractive
Pass - Along Exposure

Participants of the study were asked what they do with promotional
products that they do not keep. 26% of participants reported that they give
the item to someone else.
Clients Respond to Business Gifts
A study by Wayne State University demonstrated that business gifts not only
improved sales but also customer attitudes.
Results were compared among three groups:
a) The letter Group -a group that received a letter of thanks
b) The Silver Group - those that received a letter plus a silver desk set (a $20
value)
c) The Gold Group - those that received a letter plus a gold desk set (A $40
value)
A 1998 study by Wayne State University
Clients Respond to Business Gifts
5.0
4.5
4.0
4.7
3.5
3.0
3.7
2.5
2.0
3.0
2.8
4.2
Satisfaction
3.6
Intent to Buy
1.5
1.0
0.5
0.0
Letter
Letter+Silver Gift
Letter + Gold Gift
1 = Very Dissatisfied/Very unlikely to buy and 7 = Very Satisfied/Very likely to buy
Trade Shows
To promote traffic at its booth, an exhibitor sent invitations to 4900
trade show registrants. Registrants were further broken down into
smaller groups, each of which received from zero to three
gifts(before, at, and/or after the show).
The researchers measured booth traffic, post-show memory of
having received the invitation and goodwill toward the company.
A 1991 Study by Exhibit Surveys, Inc
Trade Shows
Booth Visitation Rates
25%
20%
15%
10%
11.6%
5%
4.2%
0%
Product + Offer for Matching Incentive
at Show
Invitation Only
The use of promotional products in this study increased:

Booth visitation

Remembrance of the invitation

Feelings of goodwill
Improve Direct Mail Response Rates with
Promotional Products

The use of promotional products in conjunction with a sales letter can
make a significant difference in direct mail response rates.

The use of promotional products can also improve a business’
effectiveness in converting leads to sales appointments.
A 1992 study by Silver Marketing Group
15%
13%
11%
9%
7%
5%
7.3%
3%
1%
1.8%
2.7%
Sales Letter
Letter & Promotional Product
-1%
* In terms of appointments secured
Letter plus offer of
Promotional Product Incentive
The inclusion of a promotional product to a mail promotion
increased the response rate by 50%
The use of promotional products as an incentive to respond
generated four times as many responses as a sales letter
alone
The use of a promotional product as an incentive to respond
reduced the cost per response by two-thirds.
Repeat Business
New customers who receive promotional products, on average, return
sooner and more frequently, and spend more money than new customers
who receive coupons. In two separate studies, SMU researchers tested
whether promotional products would outperform coupons in the area of
repeat business and sales. Promotional product recipients spent 27%
more than coupon recipients and 139% more than welcome letter
recipients over an 8-month period.
Promotional product recipients were also 49% more likely than coupon
recipients and 75% more likely than letter recipients to return and patronize
the business in each of the eight months studied.
A 1994 Study by Southern Methodist University
Total 8-Month Spending
$250
$200
$219
$173
$150
$100
$92
$50
$0
Promotional
Product
Coupon
Sales Letter
Employee Awards and Incentives
In 1994 Baylor University randomly surveyed 1,500 people, asking
their opinions regarding employee awards and incentives.
Survey recipients were asked to rate how most employees felt about
awards and incentives.
A 1994 Study by Baylor University
The survey found that:
• Employees like awards and incentives
• Employees are motivated to win awards
• Employees work hard to win awards
• Employees encourage their co-workers to work toward awards and
incentives.
Motivating through Incentives

A 1999 survey by the Incentive Federation Inc., revealed that incentive
programs are both highly effective as well as cost efficient.

The survey was sent to 4,000 executives in a cross section of
American Companies. Respondents were current users of
merchandise and travel items for motivation/incentive applications.

The study revealed that American businesses spend $23 billion
annually on merchandise and travel for motivational use.
A 1999 Incentive Federation Study
How Incentives are Used
90%
80%
70%
60%
82%
50%
66%
61%
40%
48%
30%
20%
10%
0%
Sales Incentives
Consumer/User
Promotions
Non-Sales
Recognition/Motivation
Dealer Incentives
Percentage of Incentive Programs that Achieve Established
Goals
89.00%
88.00%
88.30%
87.00%
86.00%
85.00%
84.00%
83.00%
82.00%
83.10%
83.70%
81.00%
80.00%
Dealer Programs
Consumer/User Programs
Sales Programs
Generate Customer Referrals Using Promotional
Products
A 1993 study by Baylor University found that customers who receive
promotional products are more willing to provide leads than
customers who don’t receive promotional products.
Twenty Mary Kay consultants participated in a study where half of
them distributed promotional gifts to customers and the other ten
offered no promotional items to their customers. Both groups then
asked customers (200 in all) to refer names of acquaintances.
A 1993 Study by Baylor University
Findings
50%
45%
40%
44%
35%
30%
35.8%
Gift
25%
No Gift
20%
15%
10%
13.3%
11.7%
5%
0%
Referrals Per Salesperson
Number of Customers giving
Referrals
Customers who received a promotional product were 14% more
likely to provide leads than those who did not
Sales people who gave promotional gifts to their customers
received 22% more referrals than sales people who did not use
promotional products
40% of the salespeople who used gifts commented on how
well the gifts were received by their customers
Build Customer Goodwill with Promotional Products

Promotional products foster customer goodwill toward a
company and its salespeople.

A 1992 study by Baylor University, involved a textbook publisher
sending 4000 educators either: 1) a pocket calculator plus a
letter, 2) a lower priced highlighter pen plus a letter or 3) a letter
only.
A 1992 study by Baylor University
Feelings of Goodwill
Toward Company and Sales Representative
Scale:
1=negative/6=positive
6
5
4
3
3.22
2.72
2
2.12
1
0
More Expensive Gift
(Calculator)
Less Expensive Gift
(Highlighter)
Sales Letter
The use of promotional products in this study resulted in:

An increase in feelings of goodwill toward the company and its salespeople

A more positive attitude among those who received the calculator than for
those who received the less expensive highlighter pen

On questions relating to the customers’ personal feelings toward the company
and its sales representatives, customers who received the calculator scored
52% higher than the letter only group.
Dimensional Mailings

The packaging of promotional products can evoke curiosity as well as an increase
in direct mail response rates. A 1993 Baylor University study revealed that the use
of dimensional mailers can significantly improve response rates over direct mail
alone.

For this study 3000 school administrators were divided into three groups and
received either: 1) sales letter and sales literature, 2) sales letter, literature and a
promotional product, 3) the sales letter, sales literature and promotional product but
delivered in a box with a die-cut slot.
A 1993 Baylor University study
Dimensional Direct Mail Response Rates
5%
4%
3%
3.3%
2%
2.1%
1.9%
1%
0%
Sales Letter
Letter and Promotional
Product
Letter, Promotional Product &
Dimensional Packaging
Improve Response Rates to an Advertising Campaign With
Promotional Product Mailings
In a 1996 study PPAI helped a national tile distributor integrate the use of direct mail and
promotional products into a print advertising campaign.
One group of subscribers received only the trade ad.
Other groups received a sales letter, a promotional product, or a promotional product
incentive along with the trade ad.
1996 study by Dallas Marketing Group
Findings
10%
9%
9.55%
8%
7%
6%
5%
4%
4.20%
3%
2%
1%
0%
2.30%
.70%
Trade Ad
Ad+Letter
Ad+ Stress Ball
Ad + Calculator
Incentive
SECTION D
CONCLUSION
The value of Promotional Products is in their ability to carry a message to
a well-defined audience. Because the products are useful to and
appreciated by the recipients, they are retained and used, repeating the
imprinted message many times without added cost to the advertiser.
The information contained within this presentation will provide a greater
knowledge of promotional products, the industry and its applications.
This information has been made available to you courtesy of
Promotional Products Association International
For more Information contact: PPAI, 3125 Skyway Circle North, Irving, Texas
75038
www.ppai.org
UPIC: PPAI