WHITHER PROMOTIONAL PRODUCT SALES?
Sales of ad specialties either fell for the first time in four decades last year, or were one of the few advertising media to rise during the year, depending on which of two new reports you consider.
A survey conducted by Promotional Products Association International estimates that sales fell 7.3 percent to $16.6 billion during the year. That’s the first drop in 40 years, according to the Irving, TX-based association.
Meanwhile, the Advertising Specialty Institute says the total actually rose three percent to $16.5 billion.
Both organizations attribute the sales swing to Sept. 11. PPAI blames the recession: “Obviously, no one could have anticipated what happened in September and our industry is not immune to the damaging effects of that tragedy,” says PPAI president Steve Slagle, who predicts “a strong recovery” for the segment.
ASI says marketers used more promotional products after Sept. 11: “People are still using promotional products to convey important messages and missions-[especially] in the aftermath of Sept. 11, where items like T-shirts, lapel pins, and baseball caps played an important role in the nation’s public outpouring of grief and support,” says Richard Kern, editor-in-chief of ASI’s monthly publication, “The Counselor.”
Belt-tightening marketers replaced ad-budget cuts with smaller promotional product campaigns to “plug the dike and maintain a solid image in the face of economic adversity,” adds ASI vice chairman Marvin Spike.
PPAI’s study, to be released June 15, is based on a survey of 15,775 distributors conducted by Louisiana State University and Glenrich Business Studies, Hot Springs, AR. ASI’s data comes from its roughly 17,000 distributor members.
Oh, and for the record: PROMO itself weighed in on the negative side of the debate, estimating that promotional product sales fell 10.4 percent to $16 billion last year.
