Benefits of Promotional Products

Most definitely, you have heard about promotional products or have dealt with them at some point.

Personally, I deal with promotional products, and the major challenge I face when I look for the best is the tight competition. How is that so? Each brand will try its best to sell out their products, making it confusing for the customer to choose.

Nonetheless, these products come with several benefits, and this guide will help you understand better.

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The Relevance of Promotional Products

So what exactly are promotional products? They are valuable and tangible items that are decorated or branded with a specific logo or message of the advertiser. Normally, they are used to inform consumers about the specific brand. Other than brand awareness, how do promotional products work, and can they really yield the expected results? Yes, they can.

It has been studied that the majority of leading organisations set up a specific budget that caters to product promotion. As a matter of fact, such organisations set aside about 10% of the annual marketing budget specifically for promotional products.

So how do these organisations handle the promotional items? By utilising and exploiting the pre-existing or preferred relationships. The strong relationships between the client and distributors have enabled the product promotion a success in many businesses.

The APPA Report

Research carried out by the Australasian Promotional Products Association showed that 90% of the mega business organisations utilised product promotion to enhance their brand awareness. Other reasons for using product promotion include the following;

• Engaging with the consumers
• Adding value to the attendees at a specific event
• Strengthening the value of the brand
• Utilising the chance to outshine the competitors

The APPA noted that 84% of the mega corporates admitted the product promotion strategy delivered value for money. On the other hand, about 81% agreed that their preferred suppliers understood their specific business needs. Still, more than 70% stressed that it is important for a business unit to be innovative, creative, and proactive.

The ASI – Global Advertising Specialties Impression Report

The Advertising Specialty Institute released the 2016 Global Advertising Specialties Impression Study, which stated that product promotion yielded the best results, and was the most cost effective medium for marketing. It was also studied that promotional products moved from one consumer to the other. The consumer using a specific promotional item will most likely pass it to another person when they are done with it.

Studies show that people across the Australasia have at least seven promotional items in their homes or place of business. This just shows how common promotional products are, whether in an office or at home.

The PPAI Report

The US-based Promotional Products Association International carried out research that proved how relevant product promotion was to a business organisation. Some of the reasons why most businesses preferred product promotion include the following;

• It presented a better chance to recommend the business
• It promoted the overall image of the brand
• It is easier to patronise the business with product promotion
• Over 57% of consumers use and keep a promotional item for years {some keep them for even more than four years}
• Product promotion is a great way of reaching out to the consumer on a personal level
• Promotional products are widely used across the Australasia, and their budget is always versatile. You can use the smallest product to the largest and most expensive and still reach out to the consumer.

Clearly, product promotion is of a great importance and benefit to business. It helps the organisation spread out their message to the consumer and also put the business on the front line against its competitors.

Another great benefit of the promotional products is that they offer an accountable, measurable, and overly affordable advertising option in the tough economic times.

Marketers are advised to build and recompense brand loyalty to make it through in the current market. Organisations are also expected to recognise and appreciate their suppliers, employees, and most importantly the clients.

Studies show that marketers spend between AUD1.5 billion to AUD2 billion on product promotion each year.

Effect of Product Promotion To The Consumer

In general, the major point of focus is on the consumer, who is the final destination of a specified product. Even though the intermediary players are also important, the consumer is basically the target person in the long run. So, why is product promotion such a big deal to the marketers?

• Because 76% of the consumers will remember the name branded on the specific product {promoting brand awareness}.
• Around 52% of the consumers have a positive impression of a company when they get a promotional item {promoting customer satisfaction}.
• Around 52% of people will be willing to work with a specific organisation after they receive a promotional product.
• Almost 50% of the recipients use promotional products every day.
• About 55% of the consumers will retain the product for over a year.

With the product promotion, a business will end up spending less and achieving more. Above all, they get the chance to remind the specific people that it’s an honour to do business with them.

The Product Promotion Account in Homes

A bigger percentage of promotional products across Australasia are used in homes. That said, here are more findings from major advertising organisations.

• Most of the promotional items in homes are used in the kitchen.
• 91% of the people in Australasia have at least one promotional item in their kitchen.
• Conversely, 81% of them have more than two promotional items in the kitchen.

On average, people spend between three to five hours of their day in the kitchen, which why most of the promotional items are found there.

Offices and Promotional Products

The target audience of most promotional items is either at home or in the office. This makes the office the number two place where the promotional items are used. Keeping that in mind, here are the stats on promotional products in the office;

• Approximately, 73% of people use at least one promotional item in their office.
• 59 % of them have two or more promotional items in the office.
• Further research shows that over 50% of people in the offices retain their promotional item for more than one year. Some hold on to their items of over four years.

The rate of use of promotional items in offices is almost similar to that in homes. That is why marketers are utilising every possible chance to spread out their wings with product promotion.

Business Travellers with Promotional Items

Research shows how business travellers also benefit majorly from product promotion. They also depend on these products to some extent. Here are some stats from a study;

• About 71% of the business travellers claimed to receive a promotional item within 12 months.
• Out of them, 7% carried the specific item with them.
• A further 56% held on to the particular item for over a year.

Can Product Promotion Help to manage Staff and Boost the Brand Interest?

Product promotion is super-effective in promoting the overall brand image. However, it has proven to be beneficial even in staff motivation and retention. Here is a look at the stats that prove this point;

• Around 75% of HR managers applied product promotion in their organisations to recognise their staff members.
• Amazingly, 100% of the advertisers surveyed pointed out that product promotion brought in a positive and satisfactory response to the marketing campaign.
• 72% of the HR and marketing managers claimed that product promotion helped majorly in retaining and motivating the staff members.
• About 69% of the marketers mentioned that product promotion helped to boost the brand interest. A further 84% claimed that the method helped to promote the brand impression.

It is a medium that is easy to use and also capable of delivering favourable results to the organisation.

Important Points About Product Promotion

• An advertisement entails a product that is blended with a promotion. Without the promotion, it is just a mere product.
• The product is one of the elements in the marketing campaign {it depends on other elements to make the campaign complete}
• For an advertising campaign to be successful, there must be a strategic plan. Unless you plan in advance, you would be wasting time if you just dispose the products to your target market.
• Creativity is a major aspect of the marketing campaign. It is what will determine the brand promotion and final profits after the campaign.

So what makes a product promotion campaign successful?

1. Analysing the collected data
2. Having an emotional and logistical approach
3. Understanding and differentiating the active and passive promotions
4. Applying the elements that trigger the action engagement
5. Having a knowledge of the technical logo application

Putting these factors into consideration can assure you of a swift and effective product promotion campaign.

Thanks to the Australasian Promotional Products Association, leading promotional product experts in Australia, the Pacific Islands, and New Zealand has been able to deliver their products with professionalism.

APPA offers its members education, training, Code of Conduct, pricing advantages purchases, as well as annually acknowledgement via awards. This way, customers can depend on the product promotion organisations for reliable product and services.


Keep in mind that not every product promotion campaign will work as expected. So you must use the right approach, choose the relevant product, and work with a reliable dealer.

We deal with various promotional products and are long-term members of the APPA.

If you want to know more about how product promotion works, and how you can benefit from it, contact us today, and we will help you with it.

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About the author

Robert Howth