Promotional Products Sales Hits Record at $19.6 Billion
Sales of promotional products rose 5.4% to from $18.6 billion in 2006 to $19.6 billion in 2007, a new record, according to The Advertising Specialty Institute (ASI).
Spending on promotional products was nearly three-quarters (73%) larger than Internet display advertising, close to five times greater than outdoor advertising and more than 83% larger than radio advertising, ASI said in its annual promotional products industry sales analysis.
The firm attributes the growth to marketers’ recognition that promotional products are a powerful, memorable and cost-effective way to promote a brand.
“Advertising specialties are hidden gems for many marketers, and I believe they are using them to break through an overload of noise facing consumers everyday,” Timothy M. Andrews, ASI’s president and chief executive officer, said. “They break through because advertising specialties are essentially memorable gifts and it’s hard for a customer to throw away a useful gift—especially one with a personal message or logo on it. Brand exposure continues as long as the client keeps the item—sometimes for a lifetime. So, not only do they provide the ability to personalize your advertising, they provide a high ROI for a small investment. That’s a powerful combination.”
The increase marks the fifth consecutive year of growth for promotional products. The compound annual growth rate over the last five years was 4.7%, Andrews said. Year-over-year growth during that time ranged from 3.2% to 5.4%, he said.
While Andrews said advertising specialties have proven to be “relatively recession-proof” and sales remain strong, distributors are cautiously optimistic for 2008. The group is looking at three key factors that could impact the industry. They include the need to ensure product safety and compliance, the increased demand for products that are environmentally-friendly and the volatility of prices for natural resources used in manufacturing, such as oil for plastics, according to ASI.
