It’s no secret that promotional merchandise is helpful to businesses in many ways. For instance, it’s a great way to increase brand awareness with customers. And it’s also a practical way to gain feedback on what a company offers people. But just how effective are promotional products?

Most businesses rely on them to help increase awareness and revenue. There are many different types of promotional merchandise that one can use. How do you know which ones work the best? And which ones should you avoid?

The British Promotional Merchandise Association (BPMA) have done a recent study on the topic. More than 1,000 people got asked to take part in the survey. Various sectors got represented, such as IT, retail and insurance.

The following provides a useful insight into the world of promotional merchandise for businesses.

What products do companies buy to use for their promotions?

Many firms are buying unusual products like plants and ice cream to promote their brands. Despite that fact, they are also buying “traditional” products too:

• 91% – pens. Even though we live in an age of technology, we all still need to write things down by hand! Pens are a brilliant way to promote any brand, product or service;
• 66% – bags. Totes, drawstrings, and even cooler bags get used for promotional purposes;
• 66% – electronics. All kinds of technology get used from USB flash drives to Bluetooth speakers;
• 62% – mugs. Everyone needs a cup of tea or coffee to give themselves fuel for the day ahead. Mugs are classic but well-received promotional items;
• 61% – clothing. Branded T-shirts, “hoodies”, jackets and even sunglasses; and
• 10% – notepads. They could be small reporter’s’ notepads or large desk pads with printed calendars.

Why are those products bought?

You might think the answer is simple: for promotional purposes! But, what are those “purposes” and which ones are the most popular? Here is a glimpse into the marketing campaigns used by companies:

• 74% – brand awareness freebies. Promotional products get given away to potential customers to raise interest in their brands;
• 59% – exhibitions, seminars and conferences. Businesses love to network with one another; it’s a well-known fact. Events are brilliant places to increase brand awareness;
• 19% – direct mail campaign. Almost one-fifth of companies send freebies out in the post to their customers;
• 15% – incentive programmes. A nice touch when you want to thank someone for helping you build your brand; and
• 9% – recognition programmes. Some firms send merchandise to suppliers and resellers to thank them for their hard work.

The BPMA say over 70% of respondents use promotional merchandise to increase brand awareness.

What are the ingredients for a successful promotional product?

There are hundreds, if not thousands of products that can get used for promotions. They all do different things, but which ingredients make them a success?

• 81% – quality. Just because a product is free doesn’t mean it should be flimsy and fall apart when used;
• 71% – memorability. Promotional products work when they get remembered by their recipients;
• 69% – relevance. The BPMA found that people are more inclined to use a product if it’s relevant to them;
• 65% – usefulness. Pens, mugs and USB flash drives are items that most people use each day. They are the kinds of items that work best for any promotional campaign;
• 31% – long life. A product isn’t going to be useful if it only has a short life span. Of course, there are some exceptions (like ice cream)!

How much do companies spend on promotional materials?

The short answer is “it varies”! Some firms have tight budgets while others spend a lot to generate the most interest in their brands. The top five annual spends are as follows:

• £501 to £2,000 – 22%;
• £2,001 to £5,000 – 21%;
• £5,001 to £10,000 – 19%;
• £10,001 to £50,000 – 17%; and
• £50,001 to £100,000 – 10%.

Less than 5% of respondents spend £500 or less on their promotional merchandise. And fewer than 4% of those surveyed would ever spend more than £100,000.

What would make marketers spend more on promotional products?

It comes as no surprise that having a bigger budget tops the list at 58%! Around 38% of respondents would spend more if there were more relevant product ideas. And 29% would spend more if they could source cheaper products.

Here is an insight into the other reasons firms don’t spend as much as they’d like:

• 28% would only spend more if there is a greater chance for ROI;
• 24% aren’t too happy with the service received by their suppliers;
• 24% want to see better evidence to support the power of promotional products; and
• 15% would only increase their budget if their customers showed a greater demand.

How do people source promotional products?

The Internet has made it easier for companies to find and buy products to send out to their customers. 81% of respondents say they use the Web to research the best products for their needs. Meanwhile, 45% go back to their previous suppliers.

Previous experience and word of mouth play a big part in a firm’s buying decisions. That’s because 40% of them source suppliers off the back of recommendations. And 39% make a purchasing decision after attending an exhibition or event.

Believe it or not, less than a third of respondents would only use a catalogue to buy their merchandise! Just 12% buy from cold callers at their premises, and 9% from advertising.

What is important when choosing a supplier?

The BPMA’s survey revealed the following top five factors companies consider before selecting suppliers:

1. The supplier understands the firm’s needs;
2. Customer service;
3. Price;
4. Quality; and
5. Legal compliance (i.e. safety testing, accreditation).

Which promotional items do people like the most?

People that responded to the BPMA survey listed all kinds of weird and wonderful items. Here are some of the best ones, in no particular order:

• Minion USB stick;
• Retractable phone charger;
• Desktop fan;
• Chocolate;
• Phone stand;
• Inflatable dinosaur; and
• Marshmallows.

Although food can have a short shelf life, it gets welcomed by all people that receive them! Sometimes unusual products (like the inflatable dinosaur) work well because they are memorable.