Marketers Expected to Invest More in Promotional Products
After two down years in 2008 and 2009, vendors in the promotional products industry are expecting a sales increase in 2010. At the end of 2009, the industry recorded sales of $15.6 billion, a drop of 13.6% when compared to 2008. A studied carried out for the Promotional Products Association International indicates that 25.3% of large distributors in this industry expect to see bigger sales in 2010 and another 13.5% expect sales to remain even with 2009.
At least one operator noted that though the financial recovery is unsteady, “companies and organizations are realizing they have to keep marketing to get through these economic difficulties.” And study analysts say that distributor optimism about 2010 revenue levels is valid. The ad industry buzz is lately about targeted and online reach, instead of generic broad audience reach and promotional products can be used to strenthen one-to-one business relationships. Analysts cite the most recent communications media trends report from Veronis Suhler Stevenson to support their belief that promotional products are likely to grow through 2015. To get marketers to order more wearables with logos, calendars, pens/pencils and other commemoratives, distributors will promote these items as communications solutions rather than just as products.
As marketers contemplate how much of their budget to allocate to promotional products, look for distributors to be working hard to show them the connection between their investment in a solution and increased customer loyalty.
[Source: Nelson, Richard. Louisiana State University for U.S. Promotional Products Sales. Promotional Products Association International. June 2010. Web. 4 Oct. 2010]