Early History Of The Promotional Products Industry

According to the Promotional Products Association International (PPAI), the first known promotional products in the United States are commemorative buttons, tracing back to 1789, when George Washington was elected president. Dating back to the early and mid 1800s are advertising calendars, wooden specialties and the Farmers' Almanac. But it was not until the latter part of the 19th century that an abundance of promotional products were developed and marketed, leading to the birth of the industry as it is known today.

Trends and Data (as reported by PPAI)
The 2009 sales volume figures reflect a decrease of 13.61% percent in distributor revenues over 2008. This decrease puts the promotional product industry’s revenues at $15,638,571,468 down from $18,101,298,808 in 2008. 2009 saw decreases in revenue for both large and small distributor companies. Larger companies with sales of $2.5 million or more experienced a smaller decrease of 2.35% over 2008 while smaller companies saw a huge decrease of 22.62%.
This year also showed very noticeable changes in the number of companies in the industry that report promotional product sales. Smaller companies with sales less than $2.5 million decreased from 21,500 last year to 21,150 this year. In contrast, larger companies with sales of $2.5 million or more increased from 830 to 857 in number in 2009. This increase in a count of larger companies is partly due to reporting by companies who were previously primarily in the printing,
forms, packaging, health supply industries (i.e dental, eye care, medical and veterinary supply) that now report significant sales in promotional products. The total number of distributor companies counted this year were 22,007 as opposed to 22,330 last year.

Top Buyers of Promotional Products
The following list ranks the top purchasers of promotional products according to the findings of a 2003 study by Louisiana State University and Glenrich Business Studies. Industries were ranked by distributors according to the volume spent on promotional products by each industry.

Advertising Campaigns

Promotional product mailings can dramatically improve response rates.

Customer Goodwill

Promotional products foster customer goodwill (positive attitudes and feelings) toward a company and its salespeople.

Customer Referrals

Generate customer referrals using promotional products.

Direct Mail

Make a significant difference in direct mail response rates with the use of promotional products.

Employee Awards & Incentives

Awards and incentive programs improve performance and motivate employees.

Repeat Business

Customers come back more frequently when you implement direct mail programs using promotional products.

Three Dimensional Direct Mail Packaging

Packaging of promotional products can evoke curiosity, as well as increase direct mail response rates.

Tradeshows

Promotional products increase traffic to an exhibitor's tradeshow booth.


How to Build a Successful Promotional Campaign

Seven Steps to a Successful Promotional Campaign

According to the Promotional Products Association International (PPAI), successful promotion campaigns don't happen by chance. To realize goals, promotional products programs must be carefully planned, taking into consideration the audience, budget and, of course, the ultimate result to be gained.

Ready to plan your next promotion? Use the consultant search engine to locate a PPAI member consultant in your area. You and your consultant will discuss these seven important elements to help you plan the best promotion for reaching your objective:

1. Define a specific objective.

Whether the goal is to increase traffic at a trade show exhibit or to boost sales with current clients, the first step in any campaign is to clarify the purpose of the program.

2. Determine a workable distribution plan to a targeted audience.

Distribution of a promotional product is as important as the item itself. Research shows that a carefully executed distribution plan significantly increases the effectiveness of promotional products. For example, a pre-show mailing to a select audience delivers more trade show traffic and qualified leads than simply distributing items to passerby at the show.

3. Create a central theme.

Linking a recognizable logo and color to all aspects of a campaign, from promotional products to sales sheets to product packaging, helps create an instantly recognizable image.

4. Develop a message to support the theme.

Supporting a campaign's theme with a message helps to solidify a company's name, service or products in the target audience's mind. For instance, to promote its services to small businesses, a bank created the theme "Are you tired of being treated like a small fish?" and sent fish-related products to its prospects along with promotional literature.

5. Select a promotional product that bears a natural relationship to your profession or communications theme.

A good example is a company that developed a magic motif for its conference at Disney World. Attendees received magic-related products to tie in with the theme "Experience the magic at Disney®."

6. Don't pick an item based solely on uniqueness, price or perceived value.

Don't fall prey to the latest trends or fads. The most effective promotional products are used in a cohesive, well-planned campaign.