As a small business owner, you’re always searching for ways to grow your brand, increase visibility, and maintain customer loyalty; without stretching your marketing budget. One of the most effective and cost-efficient strategies to achieve this is through promotional products. These branded items, ranging from custom pens and promo bags to drinkware and branded caps, are powerful tools for maximizing your brand’s presence and build customer loyalty.
The blog will explain what are promotional products, how they can benefit your small business, and why they should be an essential part of your marketing strategy.
The concept of promotional products has been part of marketing strategies since the late 1800s. Back then, businesses began recognizing the potential of using branded items to attract customer attention and build brand recognition.
Today, the promotional products industry generates billions in revenue each year. Businesses of all sizes use branded products to increase brand awareness, improve customer retention, and drive sales.
Do You Know?
➣ The promotional products industry generates over $23 billion in annual sales.
➣ 85% of consumers remember the brand on a promotional product they receive.
➣ 8 out of 10 people keep and use promotional items that are practical, like mugs or tote bags.
What Is the Definition of Promotional Products?
Promotional products are branded items given to customers, clients, or employees to promote a business. These products usually feature the company’s logo, name, tagline, or other branding details. Businesses use them to highlight events, launch new products or services, or announce special discounts for their customers.
According to the dictionary promotional products definition:
“Promotional products” (also called promotional items, merchandise, or gifts) include items like pens, mugs, bags, t-shirts, coasters, calendars, caps, clocks, or notebooks. These Promotional items are often designed with the company’s logo and contact details. They remind customers of the brand and its services, making them an effective branding tool.
Organizations of all types – businesses, non-profits, and foundations – use promotional products to promote their services or offerings. These items are usually practical and useful in daily life, like tote bags or mugs, which also display the company’s branding and contact information.
How Do Companies Acquire Promotional Products?
Companies, most importantly small businesses usually acquire promotional products through specialized suppliers or distributors. These suppliers offer a wide range of items, from pens and t-shirts to tote bags and drinkware. Businesses select products that are aligned with their brand, fit their marketing requirements, and fall within the budget. By selecting useful products, companies aim to increase brand awareness and customer loyalty.
Below mentioned are two different players in the promotional products industry:
- Suppliers: These companies focus on creating and customizing promotional products to meet the specific requirements of their customers which are mainly small businesses.
- Distributors: These companies market and distribute the products, ensuring that customer requirements are communicated to the suppliers.
When a business decides to acquire promotional products, it usually works with a distributor first. After selecting the type of product and customization details, the business places an order with the distributor. The supplier then manufactures the products as per the customer’s individual demand, and the distributor delivers the finished items to the customer. With these products in hand, businesses can effectively increase brand visibility and drive customer engagement.
What Are the Most Popular Promotional Products?
Promotional products come in many shapes and sizes, and what are promotional products that likely to be impactful for your business, depends on your business model, the industry, and the audience.
These promotional products are chosen based on how well they increase brand exposure over time. The success of these items is often measured by “impressions,” or the number of times a person is exposed to the product and its branding throughout its life. The longer an item lasts, the more impressions it generates. Based on estimated lifetime impressions, here are some of the most popular promotional products:
- Outerwear: Jackets create about 6,100 lifetime impressions.
- T-Shirts: Promotional t-shirts generate approximately 3,400 lifetime impressions.
- Headwear: Items like hats and visors achieve around 3,400 lifetime impressions.
- Bags: Tote bags, backpacks, and drawstring bags bring in about 3,300 lifetime impressions.
- Writing Products: Pens, pencils, and notebooks achieve around 3,000 lifetime impressions.
Other widely-used promotional products include polo shirts (2,300 impressions), office stationary (1,450 impressions), drinkware (1,400 impressions), and umbrellas (1,100 impressions). Power banks and USB drives also rank among the top, with 900 and 700 lifetime impressions, respectively.
Additionally, personal protective equipment (PPE) like branded masks, hand sanitizer, and face shields has become a popular promotional product category in recent years. These items continue to be effective in keeping a company’s image visible.
What Is the Average Lifespan of Promotional Products?
The effectiveness of promotional products can be measured by the number of lifetime impressions they create. The longer a product is used, the more impressions it can generate, leading to greater marketing benefits. Understanding how long people keep and use promotional items is crucial for businesses to get the most value from their marketing efforts.
Here is how long people typically keep promotional products:
- More than one year: Around 18% of consumers keep them for more than a year.
- Between one and five years: About 41% of consumers keep them for five years.
- Between six and 10 years: Approximately 22% of consumers keep them for six to 10 years.
- More than 10 years: Around 18% of consumers keep them for more than 10 years.
This data shows that about 18% of consumers keep promotional products for over a year. This means promotional products can be a powerful tool for long-term branding, maximizing impressions and brand visibility over time.
Why Businesses Use Promotional Products?
Promotional products help businesses stand out among competition, connect with their customers, and build valuable relationships. Externally, by offering branded items, they can drive sales, referrals, or mark the launch of a new product. Promotional products also help drive certain actions, like participating in events or special offers. Businesses also use promotional products to show appreciation to employees, partners, or other stakeholders engaged with the company. Giving gifts can strengthen these relationships and show gratitude, which can lead to better and long-term relations.
Some common reasons businesses use promotional products include:
- Brand Awareness & Recognition
- Customer Appreciation & Retention
- Employee Appreciation & Retention
- Incentive Programs & Behavior Change
- Product Awareness & Recognition
- Public & Investor Relations
- Sales & Referral Generation
Do Promotional Products Work as an Effective Marketing Strategy?
Promotional products can be a powerful marketing tool if used correctly. Companies need to clearly define their goals and assure that the items they offer are useful to the customer, and also represent their brand well. When done right, promotional products can help businesses achieve several goals.
According to PPAI statistics, here’s how effective promotional products can be:
- Almost 100% of consumers are willing to take action to get a promotional product.
- Around 96% of consumers want advance notice when a company plans to give away promotional items.
- About 80% of consumers react quickly to marketing products, even if they don’t know the brand.
- Around 72% of consumers link a company’s reputation to the quality of its promotional products.
- Nearly 70% of brands consider promotional items an effective way to meet their marketing goals.
Additionally, promotional products are ranked as the top advertising method for prompting consumer action across all generations, from Baby Boomers to Millennials. This makes promotional products one of the most popular and effective ways to reach and engage customers, prospects, and even employees. The lasting impact of these items, often called “stickiness,” makes them more effective than other marketing methods.
Which Promotional Products Are the Most Suitable for My Organization?
Choosing the best promotional products depends on your industry, organization, and the people you want to reach. It’s important to align your promotional items with your overall strategy, brand, and goals. Well-chosen promotional products can leave a lasting impression long after the recipient has received the item.
As mentioned earlier, wearable like t-shirts, hats, and jackets are among the most popular and effective promotional products. These items work well across many industries because they are practical and have a long-lasting impact.
To find the most suitable promotional products for your organization, consider the following factors:
- Vision: Your company’s mission or vision will guide your choice of promotional items. For instance, a company focused on sustainability might avoid products that contribute to waste.
- Existing Offerings: It’s important to avoid mixing promotional products with your core products or services. This helps maintain clear product awareness and avoids confusion.
- Strategy: Promotional products should reflect your brand and strategy. They should align with the image and message you want to convey.
To make this process easier, organizations can use surveys to gather feedback from the target audience. This can help you understand what are promotional products, and which items will be most appreciated and useful.
Frequently Asked Questions
