Promotional Products Sales Hit $17.8 Billion, a New Record

Sales of promotional products jumped 5.1% from $16.9 billion in 2004 to $17.8 billion in 2005, the third consecutive year of increases and a new record, according to The Advertising Specialty Institute (ASI).

Spending on promotional products was twice as large as Internet display advertising, five times greater than outdoor advertising and more than cable TV advertising, ASI said as part of the results of its annual promotional products industry sales analysis.

The growth was driven by increased recognition that promotional products should be included in marketing campaigns and by the overall strength of the U.S. economy, ASI said.

“This analysis indicates that the promotional products industry continues to experience solid gains, including three years of increasing sales, as more and more companies realize that promotional products—apparel items, pens, mugs—have a lasting impression on recipients and provide a strong return on the marketing investment,” said Timothy M. Andrews, president of ASI, in a statement.

Distributors showed optimism about 2006, but are watching several factors that will impact the industry—the volatility of oil prices, the proliferation of pricing information available on the Internet, and the increasing importance of China and India as product manufacturing forces, ASI said.