Promo - October 2008 - (Page 34)

Industry Trends Report 2008 P&I Premium Connections Promotional products find their mark /Amy Johannes Believe it or not, those pens and calendars handed out at trade shows make a lasting impression. Of the 71% of business people who received a promotional product in the last 12 months, 34% had the item with them at the time of the survey, the Promotional Products Association International (PPAI) found. Of that group, 35% kept the item after two years, and 22% kept it after six months. Even better, 76% of the group recalled the advertiser’s name on the product they received, Items like the reusable, 100% organic cotton and 52% did business with V Natural Organic the advertiser. grocery tote are high “When people have premiums at events or on distributors’ wish lists as customer so many choices, it’s on tours. And premiums premiums. important that they have appear to deliver better a personal connection,” ROI (55%) compared to says Sherri Lennarson, chair-elect of ad specialties (15%), the survey found. PPAI. “These brands become a part Perhaps the biggest change to hit the of people’s everyday lives. There’s a lot industry this year is the green moveof intrinsic value.” ment. For instance, imprinted mugs Sales of promotional products and reusable water bottles are replacing jumped 3.5%, to $19.4 billion, in 2007, disposable cups and bottles. a new record, the association says. “Choices like this allow companies Apparel is the top catto repeat important messages and egory at 30.7%, followed tangibly show good stewardship,” SNAPSHOT Promotional product by writing instruments Lennarson says. sales hit $19.4 billion (10.3%), bags (7%), Supplier Vitronic Promotional drink ware (6.3%) and Group’s V Natural line is one example. 76% of people recalled an desk/office/business The firm introduced the line just over advertiser’s name accessories (6.1%). a year ago and has since added new on the product they Education, financial, items, including reusable totes availreceived in the last 12 months health care, not-forable in organic cotton fabric or recycled profits and construction materials geared for grocery shopping. Gift card spending marketers are the top “It’s one of our core focus areas,” is expected to near $100 billion buyers. Restaurants and says JoAnn Riley Beckman, Vitronic bars emerged for the Promotional Group’s director of marfirst time on the top-10 list. The averketing and product development. “We age order size of the products is about are going to continue to see more prod$1,000, Lennarson says. ucts coming out.” Nearly half of the respondents Gift cards are also big business on to Promo’s 2008 Premiums and both the consumer and business fronts. Incentives Survey said they hand out Shoppers are expected to spend nearly $100 billion this year, likely up 5% to 10% over 2007, says Dan Horne, associate professor of marketing at Providence College in Rhode Island. However, due to tough economic conditions, the types of items people buy are changing, he says. “We see people buying socks and underwear,” Horne adds. “In the past, gift cards were spent on something special.” Rising fuel and food costs are also giving new appeal to gas cards and grocery cards, says Rich Killian, president of RK Incentives. But the key to staying on top is innovation, he says. “Technology is certainly going to help the category,” Killian says. A top trend dominating employee incentives is an increase in individual awards. Rather than pick a one-size-fits-all gift, companies are offering more choice to suit individual tastes. Instead of offering a gift card that can be used at any establishment, employees want something that speaks to their interests, such as a gift card to their favorite retailer or restaurant. “We’re all down to that basic need thing,” says Bob Dawson, chairman of the Incentive Research Foundation’s Research Committee. “It doesn’t take a lot to be really creative, but it does take time to do something individual.” While internal incentive programs have dipped slightly, with 25% of firms running them this year, some 12% of companies plan to establish one within a year, Promo’s P&I Survey shows. “It all comes back to one thing— a movement toward one-to-onemarketing,” adds Bruce Bolger, managing director of the Incentive P Performance Center. l 34 october 2008 / WWW.PROMOMAGAZINE.COM / Promo http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - October 2008

Promo - October 2008 Contents Editor's Note 'Happy' World Legal Challenges Enter the Dragon 2008 Industry Trends Report Overview Direct Mail E-mail Coupons Event Marketing Games, Contests and Sweeps Interactive Licensing Loyalty Marketing Mobile Marketing P&I Product Placement Retail Sampling Q&A: Hoop Dreams Pro Awards Finalists Resource Center The Agency Center Compassion Fatigue Index of Advertisers

Promo - October 2008

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