2017 Promotional Products Fact Sheet3125 Skyway Circle North, Irving, Texas 75038 888-I-AM-PPAI (426-7724) www.ppai.org

www.Promot iona lProductsWork.org

What Is The Value Of A Promotional Product?Because the products are useful and appreciated by recipients, they are retained and used, repeating the imprinted message many times without added cost to the advertiser.

What Is PPAI?Promotional Products Association International is the only international not-for-profit trade association for the promotional products industry. The Association offers education, technology, tradeshows, business products and services, and legislative support to its more than 14,400 global member companies. PPAI has celebrated 113 years of service to the promotional products industry and its members, making it one of the oldest trade associations in the United States.

Source: PPAI 2015 Sales Volume Study

What Is A Promotional Product?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?More than $20.81 billion, according to the 2015 PPAI Sales Volume Study. This annual study is sponsored by PPAI and conducted by researchers at Relevant Insights.

Industry Sales Volume In Billions

How Is The Industry Structured?• A promotional consultant develops solutions to marketing challenges through the innovative use of promotional products and is a resource to corporate buyers, marketing professionals and others wanting to increase brand awareness, tradeshow traffic, employee retention and more. There are more than 23,000 promotional consultant firms in the industry. To find one in your area, use the search tool at www.promotionalproductswork.org. • Suppliers manufacture, import, convert, imprint or otherwise produce or process products offered for sale through promotional products consultants. • As the trade association for the promotional products industry, PPAI represents the interests of both member and nonmember promotional product companies, more than 37,000 U.S. companies providing more than 510,000 U.S. jobs.

Source: PPAI 2015 Sales Volume Study

SALES BY PRODUCT CATEGORY

DID YOU KNOW?The promotional products industry consists of 37,661 companies and 510,032 industry jobs.

Top Ten Buyers

Source: PPAI 2008 Buyer Marketplace Study

EducationFinancialHealthcare Not-For-ProfitConstruction

Government Trade & Professional AssociationsReal EstateAutomotiveProfessionals: Doctors, Lawyers, CPAs, etc.

Top Ten Uses

Brand RecognitionBrand/Product AwarenessCorporate IdentityPublic Relations & GoodwillCustomer Retention & AppreciationGenerate Sales & Referrals

Employee Communications & RecognitionNew Product IntroductionMotivate Behaviors & Incentive ProgramsNew Customer Acquisition

Source: PPAI 2014 Buyer Behavior Study

Source: PPAI 2016-17 Little Black Book

1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.8 0.9 1.1 1.3 1.5 1.8 2.0 2.3 2.4 2.8 2.9 3.13.8 4.0 4.2 4.5 5.0 5.1 5.2

6.27.0

8.09.5

11.913.2

14.9

17.916.6

15.616.3

17.318.0

18.8 19.418.1

15.616.6

17.718.5

19.8 20.020.8

PPAI 2015 Annual Distributor Sales SummaryPPAI has researched and released industry sales data since 1965. This annual distributor sales study is considered the most definitive and comprehensive of its kind in the industry based on actual sales reported by U.S. promotional consultant companies. The information is used primarily to measure industry growth and to convey to prospec-tive buyers of promotional products the magnitude of the industry and the wide acceptance of the products it produces and sells. In 2015, the survey was conducted by Relevant Insights LLC, an independent market research, on behalf of PPAI. Methodology and detailed findings can be reviewed in the full report at ppai.org/research.

Wearables32.04%

Personal/Pocket-Purse Products

1.14%

Gift Cards 0.57%

Food Gifts 1.55%

Clocks & Watches 0.93%

Automotive Accessories

1.70%

Writing Instruments

7.67%

Bags7.67%

Computer Products

4.17%

Other 2.70%

Health & Safety Products 1.98%

Buttons/Badges/Ribbons 1.54%

Games 2.03%

Electronic Devices & Accessories

3.05%

Magnets 1.80%

Textiles2.63%

Drinkware7.54%

Desk/Office/Business Accessories

5.04%

Sporting Goods/Leisure/Travel Accessories

2.28%

Housewares/Tools 2.31%

WEIGHT FOR 201544.48% for companies with $2.5

million or more in sales and55.52% for companies with less

than $2.5 million in sales

2015 SALES BY PRODUCT CATEGORY

Recognition Awards/Trophies4.12%

PRODUCT CATEGORYWearables: T-shirts, golf shirts, aprons, uniforms, blazers, caps, headbands, jackets, neckwear, footwear, etc.Writing Instruments: Pens, pencils, markers, highlighters, etc.Bags: Totebags, shopping bags, satchels, gift bags, drawstring bags, cosmetic bags, paper bags, duffel bags, briefcases, etc.Drinkware: All glass, china, ceramic, crystal, plastic and stainless steel drinkwareDesk/Office/Business Accessories: Folders, desk pen sets, calculators, non-dated paper products, cubed paper, scratch pads, adhesive notes, stationery, journals, etc.Computer Products and Accessories: USB drives, Mouse pads, monitor frames, disk carriers, wrist pads, software, etc.Recognition Awards/Trophies/Jewelry: Awards, trophies, plaques, certificates, figurines, jewelry, etc.Calendars/Dated Products: Wall and wallet calendars, desk diaries, pocket secretaries, etc.Electronic Devices and Accessories: Radios, TVs, iPods, Mp-3 players, phones, videotapes, music CDs, phone cards, Flashing products etc.Textiles: Flags, towels, umbrellas, pennants, throws, blankets, etc.Housewares/Tools: Measuring devices, kitchen products, picture frames, household decorations, ornaments, tool kits, first aid kits, furniture, flashlights, cutlery, weather instruments, etc.Sporting Goods/Leisure Products/Travel Accessories: Picnic/party products, camping equipment, barbecue items, bar products, binoculars, luggage, passport cases, etc.Games/Toys/Playing Cards/Inflatables: Balloons, Kites, balls, puzzles, stuffed plush, etc.Health & Safety Products: First-aid kits, hand sanitizers, etc.Stickers and Decals: Stickers, decals, static clings, lettering, etc.Magnets: Magnets and magnetic productsAutomotive Accessories: Key tags, bumper strips, road maps, floor mats, window shades, etc.Food Gifts: Candy, cookies, nuts, gourmet, meat, spices, bottled water & other drinks etc.Buttons/Badges/Ribbons: Buttons, badges, ribbons, signs, banners, etc.Personal/Pocket-Purse Products: Pocket knives, grooming aids, lighters, matches, sunglasses, wallets, etc.Clocks and Watches: Clocks, watches, etc.Gift Cards: No examplesOther: No examples reported

Calendars 3.72%

Stickers & Decals 1.82%

Distributor Number Of 2015 Sales % Increase/Decrease In Company Size Distributor Companies Volume Sales Volume Over 2014

Less than $2.5 million 22,153 $9,256,371,349 -6.63%

$2.5 million or more 868 $11,551,799,373 +14.05%

INDUSTRY TOTAL 23,021 $20,808,170,722 +3.82%

The year 2015 was a year of average positive growth for promotional products distributors, but also a year in which the gap between small and large distributors widened enough to change the balance between both groups in the total sales volume figures for the industry. 2015 was the year of the large distributor. Overall, distributors’ sales volume increased by 3.82% which puts the promotional products industry’s revenues at $20,808,170,722 in 2015.

1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.8 0.9 1.1 1.3 1.5 1.8 2.0 2.3 2.4 2.8 2.9 3.13.8 4.0 4.2 4.5 5.0 5.1 5.2

6.27.0

8.09.5

11.913.2

14.9

17.916.6

15.616.3

17.318.0

18.8 19.418.1

15.616.6

17.718.5

19.8 20.020.8HISTORIC ANNUAL ESTIMATE OF SALES IN BILLIONS

2017 Promotional Products Fact Sheet3125 Skyway Circle North, Irving, Texas 75038 888-I-AM-PPAI (426-7724) www.ppai.org

www.Promot iona lProductsWork.org

89%of consumers have received a promotional product in the last six months

REACH1

POSITIVE IMPACT2 brands consider promotional products mostly or always

effective in achieving marketing goals7Nearly

in 10

Millennials GEN Xers Baby Silent Boomers Generation

1)

2)

3)

4)

5)

Promotional Broadcast Online Print Mobile Products

9 in 10 recall the branding

8 in 10 recall the messaging

7 in 10 recall the call to action

RECALL1 REASONS1

Who Recalls What Best?

Millennials best recalled social media.

Generation Xers best recalled directional calls to action, or statements with definitive instructions.

Baby Boomers best recalled points of reference such as website domains or contact information.

NameBRANDING

Logo

SloganMESSAGING

Tagline

Website

CALL TO ACTION

Social Media

Contact

Directional

Hashtag

**A COMPANY’S:

people keep promotional products:

3TOP

reasons

FunFunctional

Trendyresearchedthe brandmore likely to do business with the brand

REACTION1

82%had a more favorable impression of the brand

RESONANCE1

REPEATED EXPOSURE1

83%79%

81%keep promotional products for more than a year

POWER OF PROMOTIONAL PRODUCTS1

#1Ranked most effective form of advertising to prompt action across all generations

1Source: PPAI 2017 Consumer Study • 2Source: PPAI 2016 Buyer Behavioral Study

Copyright © 2017 Promotional Products Association International. PPAI Research™. All rights reserved.

11+ Years 6-10 Years 1-5 Years <1 Year

18% 22%

41%

19%