A recent study published by the British Promotional Merchandise Association (BPMA) shows conclusive evidence of a direct correlation between promotional merchandise and an increase in sales and brand awareness. The study also showed that investing in promotional gifts as a form of advertising delivers an equal or higher return on investment as other marketing strategies. This was the first study done of its kind and we are pleased to present the findings here to show you the value of promotional merchandise.
– 66% of participants claimed they could recall the brand on the promotional product received with the past 12 months.
– The ROI on promotional products delivers a higher ROI than radio and outdoor advertising, and is equal to TV and print.
– 79% would be likely to do business again.
– Most participants (87 per cent) kept a promotional item for longer than a year!
– About half (56 per cent) said their impression of the company improved after receiving a branded item.
With the average cost of promotional products at £0.003, the return on investment for using promotional gifts as a marketing strategy is higher than that of radio advertising and equal to that of television and print advertising with two main differentiating points that make investing in promotional products a better option. A promotional product campaign can be launched with a significantly lower budget option that a radio, or television campaign. The second advantage of promotional products is that the recipients tend to keep the branded gift. In fact, the study revealed that 87 % of promotional gift recipients said that they kept them for longer than 12 months. This is especially the case when the promotional item is functional and useful.
What are their favourites? Roughly half (45 per cent) of the participants would most like a USB drive, while 39 per cent choose a pen, 39 per cent an electrical item and 36 per cent a tea or coffee mug.
Further, 18% of respondents stated that they had kept mugs longer than any other items, 15% a USB drive, and 12%. Around one-third indicating they had kept an item for between one and two years and 30% between three and four years, highlighting that around 87% of recipients had kept a promotional item for longer than 12 months.
Regarding the ROI compared to other advertising spends, the cost per impression for a mug is £0.001, a mid-range pen £0.001, a calendar £0.004, a USB stick £0.005 and an umbrella £0.003. With an average cost per impression of £0.003, these figures compare extremely favourably with the cost per impression of other media with TV coming in at £0.008, radio at £0.003 and advertising hoardings at £0.003.
The BPMA survey, which randomly selected 14,728 adults who werescreened on receiving promotional items at either work or home, also uncovered the sentiment involved in receiving branded gifts. More than half of the survey participants said that their opinion of a brand or company was more favourable after receiving a promotional product. The survey showed that promotional products make it more likely that the recipient will do business with the company in the future. In addition they have a greater recollection and awareness of the brand.
The online survey was commissioned by the BPMA and was carried out in Summer 2011 by ActionPoint Marketing Solutions Ltd.
Based on this data, it is evident that companies that incorporate promotional products into their marketing mix will benefit, not only in profits from sales, but also an increase in brand awareness.