It’s Just a Matter of Fact.

Promotional Products Work!

Paul Bellantone, CAE President & CEO Promotional Products Association International

What is a Promotional Product?

A PRODUCT often imprinted with a logo or message that’s used to promote

a company’s products, services or BRAND

Other names for promotional products: • Advertising specialties • Giveaways • Premiums and incentives • Corporate gifts • Awards and prizes • Commemoratives items or keepsakes • Gift with purchase

Even some items without a logo have a strong enough BRAND image to be considered a promotional product. CAN YOU THINK OF ANY?

Advertising Media Expenditures

Media Method 2011 2012 % Chg Direct Mail 50.0 51.1 2.2 Television 45.2 49.7 10.0 Newspaper 20.7 18.9 -8.5 Internet 31.7 36.6 15.0 Point-of-Purchase* 28.5 30.5 7.0 Cable TV 23.5 24.4 3.4 Consumer Magazines 21.7 21.1 -2.9 Promotional Products 17.7 18.5 4.4 Radio 14.1 14.3 1.5 Sports Marketing 12.2 13.0 6.0 Business Magazines 7.9 7.6 -4.8 Billboards 6.4 6.7 4.6 Product Placement 4.3 4.8 11.4 Mobile Phone Advertising 1.6 3.4 111.0 Total 304.3 320.3 11.9 * Estimated

Sensory Medium Turn a tangible product with an ordinary message into a marketing experience that your audience can smell, taste, see, hear & touch

Promotional Products Engage Your Audience!

47% Keep promotional products more than a year!

Length of Use

Promotional Products: A $19 Billion Industry

Wearables 41% Writing Instruments 35% Drinkware 19% Sporting Goods 15% Pocket/Purse Items 13%

1 Brand Awareness 2 New Customer/Account Generation 3 Trade Shows 4 Public Relations 5 Dealer/Distributor Programs 6 Employee Relations and Events 7 Employee Service Awards 8 New Products Introductions 9 Not-for-Profit Programs 10 Safety Education

Promotional Products: A $19 Billion Industry

Top Sales By Program Category

1 Health/medical/hospitals 13.8% 2 Education/schools/universities 11.3% 3 Manufacturing/distribution 8.1% 4 Financial/insurance 7.8% 5 Technology 6.7% 6 Associations/clubs/civic groups 6.3% 7 Construction 5.8% 8 Nonprofit/not-for-profit 4.2% 9 Restaurants/travel/lodging 4.1% 10 Retail 4.1%

Promotional Products: A $19 Billion Industry

Top Promotional Product Users Vertical Markets

1 Shirts 22.7 2 Bags 8.7 3 Writing instruments 8.1 4 Glassware/ceramics (Includes mugs) 6.0 5 Caps/headwear 5.6 6 Other wearables 4.8 7 Buttons/badges/ribbons/stickers/ decals/emblems/transfers/lanyards 4.3 8 Desk/office/business accessories 4.2 9 Recognition awards/trophies/jewelry 3.7 10 Calendars 3.0

Promotional Products: A $19 Billion Industry

Top Promotional Product Items TRENDING: Food gifts, personal pocket items, buttons

Fleeting Nature Of Traditional Advertising

30 Seconds

7 Words 10 Seconds

140 Characters

15 Minutes

Staying Power

Promotional products generate a

Up to 50% greater recall rate than other major media

60 Seconds

32 Minutes

53% use promotional products once a week or more

Frequency Of Use

Where They’re Kept

One In Four walk around with a promotional product

People Avoid Traditional ADVERTISING

10–15% of adults between

the ages of 17 and 35 go out of their way

to dodge traditional advertising,

branding them “Ad Avoiders”

Advertising Media Expenditures

Media Method 2011 2012 % Chg Direct Mail 50.0 51.1 2.2 Television 45.2 49.7 10.0 Newspaper 20.7 18.9 -8.5 Internet 31.7 36.6 15.0 Point-of-Purchase* 28.5 30.5 7.0 Cable TV 23.5 24.4 3.4 Consumer Magazines 21.7 21.1 -2.9 Promotional Products 17.7 18.5 4.4 Radio 14.1 14.3 1.5 Sports Marketing 12.2 13.0 6.0 Business Magazines 7.9 7.6 -4.8 Billboards 6.4 6.7 4.6 Product Placement 4.3 4.8 11.4 Mobile Phone Advertising 1.6 3.4 111.0 Total 304.3 320.3 11.9 * Estimated

82.5% are willing to take a survey

70.6% will visit a tradeshow booth

41.9% engage with social media

33.2% make a purchase

35% refer to contact information

Promotional Products = ROI!

Impact on Perception = ROI

59% had a more favorable impression of the advertiser after receiving a promotional item

22% Significantly

More Favorable

37% Somewhat

More Favorable

37% Neutral

1% Somewhat

Less Favorable

0.4% Significantly

Less Favorable

Promotional Products have the unique ability to BUILD RELATIONSHIPS with staff, prospective employees, vendors, customers and consumers: Once you accept the product – we have a relationship. That relationship will continue throughout the useful life of the product. Your relationship with most other media begins when you see it and ends when you look away.

Promotional Products Are Memorable

Love It More than

59% of people have a favorable impression of an advertiser after receiving a promotional product

Do You Remember?

You remember them, and so do others!

Remember

88% of people can recall the company and brand on their promotional product

How a raised awareness and money for cancer research?

That you stood in line to get from the radio station?

The you use, with the name of your favorite coffee shop where you buy your coffee, tea or latte?

How about the color PINK?

IMPROVE PERCEPTION More than HALF of consumers have a favorable impression of the advertiser on a promotional product HELP CLOSE SALES 20% of consumers MAKE A PURCHASE after receiving a promotional product MAKE THEM REMEMBER YOU 88% of consumers could RECALL an advertiser from a promotional product GET ON THEIR GOOD SIDE 8 out of 10 people LIKE receiving promotional products, while 7 out of 10 people find online advertising annoying

Numbers Don’t Lie

Thumbs Up

87% of people like receiving promotional products

COST PER IMPRESSION IN THE U.S. Prime Time TV 1.8 cents Magazines 1.8 cents Newspapers 0.7 cents Promotional Products 0.6 cents SUPERIOR PASS-ALONG VALUE 66 percent of U.S. respondents give away unwanted items to someone else. APPEAL TO SPECIFIC DEMOGRAPHICS Gen-xers and older own more promotional drinkware than those under 35. YOU WEAR IT WELL Higher wage earners are more likely to own a promotional jacket.

Cost Per Impression

0.6 cents Better than TV, magazines, newspapers

Numbers Don’t Lie

Promotional Products = ROI!

59% had a more favorable impression of the advertiser after receiving a promotional item

• Personalized – Highly Targeted!

• Tangible and Long-Lasting

• Easily Measured Impact

• Easily Distributed (Human Touch – Viral)

• High Perceived Value

• Complements Other Advertising Media

Many Competitive Advantages

Got The Message

76.2% of people can recall the product, service and message on their promotional product

• Go beyond a product – enlist a strategic brand partner – a Distributor

• Expert campaign integration & evaluation

• Advanced innovation, hot trends, new items, technologies & processes

• Exclusive access to thousands of products & production methods

• Product safety guidance & assurance

Promotional Professionals Promote & Protect Brand Integrity

Ask The Experts

Promotional Professionals are the best source for designing & implementing creative, successful campaigns.

RESULTS Speak Louder Than

Words.

Thank You! Research Citations & Sources:

PPAI: www.ppai.org/inside-ppai/research ASI: www.asicentral.com/asp/open/Research