In March, PPAI embarked on a first-of-its-kind benchmark study—PPAI Buyer Insights: Ad Agencies and Advertisers—to determine buying habits and preferences for promotional products among advertising agencies and corporate advertisers. Of the 400 who responded, 178 were advertising agency decision makers and influencers in the purchase of promotional products, and 222 were corporate advertisers with annual revenues of $10 million or more.
The study results yielded a satisfying mix of methods to better understand the needs of this demanding segment of buyers along with several unexpected and enticing sales opportunities for promotional consultants.
Paul Bellantone, CAE, president and CEO of PPAI, sees the data as further confirmation that promotional products are effective, deliver a high level of brand recall and generate sales. “According to the study, 74 percent of buyers at advertising agencies and large corporations consider promotional products effective or highly effective,” he says. “This clearly gives the promotional products advertising medium a prominent place in the marketing mix. Advertising performance goals put a great deal of pressure on agencies and advertisers to deliver results, and study data show promotional products can help drive a high rate of return on the dollar as a part of the core advertising planning and buying strategy.”
Key Takeaways
When asked about the buying process, about eight in 10 advertisers and advertising agencies say they purchase promotional products from promotional consultants—a significantly higher percentage over any other purchasing method including online, retail/catalog and/or third party.
Just over half of the project budgets/campaigns put together by advertising agencies and advertisers surveyed include promotional products.
Advertisers are significantly more likely to buy promotional products as needed—without having a specific budget. This gives promotional consultants additional opportunities to encourage seasonal or new product purchasing throughout the year.
In the past 12 months almost all the advertising agencies and advertisers surveyed say they purchased promotional products (96 percent)—with 75 percent of those individuals purchasing three or more times during the period.
Roughly 40 percent of those surveyed say their companies have spent $25,000 or more on promotional products during this timeframe. This suggests room for sales increases in average spend by becoming integrated into the buying process.
Promotional products are seen as strong influencers of brands as they are used to promote brand recognition, brand/product awareness and corporate identity. As a result, the use of promotional products increased good will and increased brand recall.
When asked about promotional product effectiveness, almost 75 percent of respondents say these products are either effective or extremely effective.
The top three drivers of both groups are equal (77 percent) when deciding to include promotional products: price, design/function and they are a proven favorite of recipient.
In the past 12 months advertising agencies and advertisers report that apparel was the category of promotional products most frequently purchased. Apparel was followed by writing instruments and sporting goods, leisure products and travel accessories.
When advertising agency respondents were asked which promotional products were most effective, apparel was the overwhelming response followed by printed advertising materials (booklets, posters, flyers, signage, labels, inserts, print advertisements, bookmarks, discount coupons and laminated charts). Electronic devices and accessories and writing instruments tied for third place.
While apparel was also the overwhelming top choice of advertiser respondents, their second and third choices varied from their agency counterparts. For these, writing instruments and desk/office/business accessories were seen as the second and third most effective promotional products used during the past 12 months.
More than half of advertising agencies and advertisers use promotional products in creating brand recognition and awareness.
While there will always be areas of opportunity to increase market share, the majority of advertising agencies and corporate advertisers recommend using promotional products (88 percent) and almost three-quarters of respondents believe promotional products have contributed to campaigns’ successes.
Turn the page for a further look at study highlights; PPAI members can find the full study online at www.ppai.org/research.
>>The Buying Process
Eight in 10 advertising agencies and advertisers purchase promotional products from a promotional products consultant—a significantly higher percentage over any other method of purchase (online, retail/catalog and/or third party).
Advertising agencies are more likely than advertisers to include promotional consultants as part of the team.
The top drivers in deciding to use promotional products are price, design/function and the preference of recipients for promotional products.
Apparel is the top category of promotional products most often purchased in the past 12 months by both groups, followed by writing instruments and sporting goods/leisure products/travel accessories.
Investment In Promotional Products
Advertisers are more likely than advertising agencies to buy promotional products as needed rather than having a specified budget.
Promotional Products As Media Investments
Advertising agencies are more likely than advertisers to include promotional products in their media buys.
Ninety-six percent of advertising agencies and advertisers have purchased promotional products in the past 12 months and 75 percent have done so three or more times during that period.
Four in 10 spent $25,000 or more on promotional products in the past 12 months.
Promotional Products Effectiveness
Among both groups, more than half believe promotional products are effective in promoting brand recognition, brand/product awareness, corporate identity, public relations and goodwill.
Campaign Use of Promotional Products
The majority of respondents would recommend using promotional products, and many believe they contributed to campaigns’ success. However, only a third measured the response to the campaigns or included some form of tracking mechanism.
Tina Berres Filipski is editor of PPB. Suzanne Fine is PPAI’s market research coordinator.
>>Seize These Opportunities To Build More Business
Think ahead—far ahead. Find out the advertising agencies’ media planning and buying cycles (which are usually a year in advance of the campaign or event) to more likely be included in their media buys along with other traditional and digital media.
Track it. Only a third of advertising agencies and corporate advertisers track results. As a result, only half or less know the return on investment of using promotional products. Develop a way to measure response to the campaigns or include some kind of tracking mechanism to help your clients better gauge the effectiveness of their efforts using promotional products.
Take it easy. Learn to ask the right questions to better uncover your clients’ real needs and challenges, and work slowly to build effective, long-lasting client relationships.
Partner up. Approach advertising agencies to establish partnerships as they are more likely to value synergy with promotional consultants.
Who Was Surveyed
By Gender
Men
53%
Women
47%
By Age
Under 35
14%
35-44
14%
45-54
27%
55-64
33%
65+
12%
By Industry
Agency Client
Advertiser
Healthcare
28%
7%
Manufacturing
19%
25%
Financial Services
18%
6%
Automotive & Transportation
17%
4%
Retail
15%
3%
Technology
15%
7%
Food & Beverage
15%
4%