I’ve come across some figures mined from a Marketing Sherpa report in the US on how Promotional Products are out-performing TV and online mediums. Whether these figures ring true outside the US has yet to be proven (at least by us) but some interesting numbers nonetheless.
These facts and figures were based on the US market in 2006, the Australasian market is not as big yet, but the figures are intriguing nonetheless. The original report was posted on Marketing Sherpa but now has been moved to a pay-per-view status. Luckily for you, we have the summary for you.
The facts and figures to follow have been sourced from a number of studies over the past few years:
Louisiana State University and Glenrich Business Study, 2005
L.J. Market Research, DFW Airport Study, 2004
Georgia Southern University Study, 2003
Baylor University, Mary Kay Study, 1993
The US market is worth $USD16.9 billion in 2006 - no shortgage of funds here and probably explains why this marketing sub-discipline is now accounting for 3 times more of the ‘advertising’ dollar.
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.
52.1% of participants reported having a more favorable impression of the advertiser since receiving the item.
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.
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% more referrals than an appeal letter alone.
Customers who received a promotional product were 14% more likely to provide leads than those who did not. Salespeople who handed out promo items received 22% more referrals than those who did not give out free gifts.
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.
71.6% of attendees who received a promotional product remembered the name of the company that gave them the product.
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 ad messages.
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.
While these facts and figures shine a positive light on the promotional products industry in the US, we’d be interested to test them against the market here in Australia and see whether we achieve similar statistics in what is presumably a smaller (but mature) market.
With the help from APPA, this might be a useful exercise to assess the health and sustainability of the industry.
If these figures are true and reflective of a global market then imagine the effectiveness of integrated campaigns. We are strong advocates of a wholistic approach when it comes to the use of promotional products. Despite what these figures might suggest, ‘brand-slapping’ on every item under the sun does very little in our eyes. As we move towards a more fragmented audience with many niche markets collectively making up a significant portion of our commercial environment, every interaction with people needs to carry a distinct message and ignite conversation. Promotional products and traditional media on their own both have difficulty establishing this, but creating multiple touchpoints that runs through the the different mediums is what solidifies the message and moves consumers from indifference to action.
Our prediction and plan for our promotional products business rides on multimedia and online integration to enhance the level of interaction and participation (see Boony). The creation of dedicated micro-sites and virtual products (online games, QR codes) are allowing people to create their own brand experience. The promotional product prompts the conversation and directs attention to a virtual portal, how deep that portal goes is left entirely up to the consumer. This is true customisation and a snapshot of our convergence culture. We will start to see promotional products that merge “real life” and “net life” seamlessly.
Some more useful (or not so useful) tools and links:
APPA - Australasian Promotional Products Association
State of the Industry Report - annual research study with massive amounts of data on the promotional products universe (in the US)