What are Promotional Products and why are they an effective marketing strategy?
What are Promotional Products and why are they an effective marketing strategy?
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(Reading time: 6 mins)

Promotional products are company branded products given to consumers to promote a business’s product/service aiming to drive in and retain customers. Some common promotional gifts are pens, calendars, bags and mugs, the more practical a product the higher the chances the consumers will keep them and thus remember them. Commonly, a typical promotional product will include details such as brand logo, tag lines, and contact details. To help customers remember the brand, the promotional product chosen should have a high correlation with the brands products.

On top of that, the quality and value of the promotional products in crucial as the products become the first exposure of the promoted goods/services with the customers therefore, the quality will be perceived parallel to the product and service initially promoted via the promotional product.

Promotional products are deemed as one of the most effective marketing strategies used by companies around the world in which companies often spend millions in marketing budget on such giveaway products to stay at the top of the consumers mind. The reason behind spending millions on giveaway product has expansive research which shows extensive results. According to research on Promo’s Influence (Promotional Products) conducted by *Advertising Specialty Institute (ASI), there is a high consumer recall rate of 85% and likewise another study done on trades how attendees showed that 71% of them were found to be able to recall a brand one year post trade show. On top of that, ASI also mentioned that promotional products exhibit a low Cost per Impression (CPI) of 1/10 of a cent per impression making it an effective and affordable marketing strategy.

Brands spend millions on this strategy because of its high success rate and affordable CPI based on the understanding of human psychology. Typically, the need to reciprocate and the Bandwagon Effect.

Humans are programmed to reciprocate. When we receive, we feel obligated to return the favor either through being the brands consumer or recommending it to others. This works rather well with products that are practical and can be used daily such as mugs, bags and apparels. As these products have high practicality and use, they tend to promote longer lasting impressions.

Besides element of reciprocity, brands make use of the Bandwagon Effect to instate a crowd behavior. This is highly correlated to the influencer/KOL presence on social media thus the use of Influencer Marketing with promotional products, triggering an increase in brand exposure. This therefore, elicit the followers in purchasing the brands products as behavior alignment with their chosen influencer. With that, it is a fact that promotional products marketing has a higher success rate compared with other marketing efforts such as ads and commercials. And the industry continues to enjoy a steady growth annually, currently at an increase of 15.1% with the focus shifting sharply towards sustainability.

With the rise in environmental concerns, many brands have now started switching to sustainable promotional products. There is a growing market in millennial consumers looking for environmentally friendly products and are willing to pay more for sustainable goods over conventional products of the same nature. With that, companies are on a constant lookout for sustainable promotional products to represent their eco-friendly core product made with sustainably sourced material. It also allows the consumers to see the sustainability efforts of the company, thereby increasing consumer trust and brand loyalty.

Adan Promotional Concepts is able to help you retain and attract consumers with a variety of high quality eco-sustainable promotional products.
It is easy being a sustainable business with ADAN!



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