The latest independent research on the effectiveness of promotional products and its potential for return on investment (ROI) was completed back in 2010, but the conclusions of the global study are still relevant today. The research looked at the cost and return of using promotional products in relation to all other forms of advertising, with information collected through in-person interviews with business people from the United States, United Kingdom, Canada and Australia.
The research clarified what many of us already knew – that promotional merchandise is cost efficient by offering the lowest cost-per-impression of all forms of advertising. Many businesses pay out excessively for advertising slots on the radio, internet and television, with some spending in the region of $4 million for half a minute of exposure during events like the Superbowl. Such advertisements are expected to reach a high number of people, but they come without the possibility of tracking returns or specifically targeting your potential customers.
On the other hand, inexpensive promotional products offer the most cost efficient advertising solution, with one of the highest potentials for return on investment. The research found that over 60% of respondents had done business with an advertiser after receiving a promotional gift or logoed product, despite the fact that promotional products can be printed for less than $1 per unit.
So what drove these increased sales, and how do promotional products encourage such a high return?
People remember you
Research showed that 83% of American respondents could remember the advertiser for a promotional product which they owned. Logoed products like pens and mugs are used frequently and lead to greater retention of your logo, and brand identity as a whole. On top of this, nearly 62% of respondents admitted to giving away promotional products if they aren’t being used, with only 22% actually throwing them away.
As well as being remembered, promotional merchandise will ensure that your company logo receives a particularly high number of impressions over its lifetime. Useful items like pens, cups and lanyards can be used on a daily basis, clocking up an impressive number of impressions and spreading your company logo in the process. The latest statistics suggest that pens receive over 400 impressions per month, shirts receive over 300, and bags over 1,000. Bear in mind that these walking billboards will often be used for 6 months too, so it is worth investing in higher quality promotional merchandise from suppliers like Wearable Imaging.
Reinforce brand identity
Research showed that promotional products, as a form of active branding, are more effective and memorable than passive branding options like flyers or television airtime. Promotional merchandise which can be used in everyday life and requires interaction will unsurprisingly reinforce your company’s brand identity to the greatest extent.
People will like you
Everyone likes to receive something for free, but research showed that over 41% of respondents had a more favorable opinion of an advertiser after receiving a promotional product. Potential customers find value in the item each time it is used, thereby building a good impression of the advertising business. People are more likely to purchase from companies that they know and like than those who are neutral or unfamiliar, thus leading to greater sales and ROI.
Has your business used promotional products as a form of advertising? Did you notice a good return on investment?