Do Promotional Products Work? Reasons Why Businesses Still Use Them
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Do Promotional Products Work? Reasons Why Businesses Still Use Them

Do promotional products work? Understand their impact on brand visibility and advantages of using promotional items in your marketing efforts.

Tim Kuo

Tim Kuo

Sep 11th 202416 min read

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Promotional products, or corporate swag, can be a great way to engage your audience, but do they work? Imagine you just received a box of goodies from a company where you do business. You open it to find a quality insulated cooler branded with the company's logo and useful items inside, like a first aid kit, flashlight, and reusable water bottle, with their logo prominently displayed. Which would you prefer? A promotional product like this or a boring old piece of paper? You probably said the cooler. So did I, and so would most people. Now, if you asked me what I knew about the company whose logo adorned all of these valuable items, I could tell you quite a bit. I could even recite their tagline. This is the power of promotional products. Let's look at some research to understand better how much of an impact they can have on your business and if they would be a good investment.

One way to make the research process more manageable is to look at case studies on the effectiveness of using promotional products for marketing in business. Giftpack, for example, specializes in company branded swag and offers a solution that can help you achieve your goals.

What Are Promotional Products?

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Promotional products have become more than just freebies—they're a powerful marketing tool with impressive stats to back them up. With over $20 billion in annual revenue, it's clear that these branded goodies are making a significant impact.

The Lasting Impact of Promotional Products

Why are they so effective? For starters, 86% of consumers can recall the brand on a promotional product they've received within the last two years. That’s a pretty fantastic number, showing how these items stick in people's minds long after they've been handed out. And it gets even better: 85% of consumers do business with the advertiser after receiving a promo item. That’s not just a fleeting impression; it's turning into real business.

The Ubiquity of Promotional Items in Daily Life

From the humble promotional pen you use daily to the branded mug you sip your morning coffee from, these items are everywhere. In fact, 91% of consumers have at least one promotional product in their kitchen, making them a constant, subtle reminder of your brand.

Promotional Products as a Smart Investment in Brand Visibility

These little trinkets are doing a lot of heavy lifting, whether it’s a:

• Stylish tote bag

• Useful USB drive

• Handy keychain

They’re not just giveaways; they’re smart investments in keeping your brand front and center in the minds of your audience.

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Do Promotional Products Work? Reasons Why Businesses Use Them

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Promotional products have stood the test of time as one of the most effective tools in a marketer's arsenal. And it’s not just about slapping a logo on a pen or tote bag. These items are powerful because they keep your brand in front of consumers in a natural and engaging way. Imagine a customer sipping their morning coffee from a mug with your logo on it, every sip subtly reinforces your brand in their mind. This constant exposure makes promotional products so effective at building brand awareness.

Recall Rate of Promotional Products

Did you know that 76% of people can recall the name of a brand on a promotional item they’ve received? That’s a staggering level of recall, especially when you consider how quickly people forget ads they see on TV or online. The physical nature of promotional products helps them stick in people’s minds, making your brand more memorable.

Promotional Products to Drive Sales

But it’s not just about being remembered; it’s also about driving action. Offering a promotional item as part of a bundle at checkout or as a gift with a purchase can boost sales more than a simple discount. Customers love getting something extra, and this perceived added value can be the nudge they need to purchase. It’s no wonder American businesses collectively spend around $20 billion yearly on promotional products.

Impact of Promotional Products on Consumer Experience

And let’s not forget how much people genuinely enjoy receiving these items. According to a 2021 Consumer Study Report by PPAI, 94% of participants said they like getting promotional products, and 83% even mentioned that these items make their experiences more enjoyable. What’s even more interesting is that three out of four people said they’d consider switching to a brand that offered them a promotional item, even if they hadn’t done business with that brand before. That’s the power of a well-timed freebie.

The Multiplier Effect of Promotional Products

Promotional products don’t just benefit the initial recipient. About 63% of people who receive a promotional item pass it on to someone else. This means your brand reaches even more potential customers, all thanks to a single promotional item.

The ROI of Promotional Products

Promotional products work because they are memorable, drive sales, and are genuinely appreciated by consumers. Plus, they have the bonus of extending your brand’s reach through word-of-mouth referrals. So, promotional products are worth the investment if you want to make a lasting impression and grow your business.

Giftpack’s Corporate Gifting Service

At Giftpack, our driving force is to simplify the corporate gifting process while maximizing the impact of each gift. Utilizing our custom AI algorithm, we create highly customized scenario swag box options for you. We deliver globally and have an extremely user-friendly platform. We curate the most fitting gifts from a vast catalog of over 3.5 million products worldwide (which is ever-increasing).

By carefully considering an individual's basic demographics, preferences, social media activity, and digital footprint, we tailor each gift selection process regardless if the recipient is an employee, a customer, a VIP client, a friend, or a family member. With a wide range of locally and globally sourced gifts, we ensure that personalized gifting is accessible and achievable on a large scale, delivering meaningful connections across the globe.

Try Giftpack's client gifting service for free today.

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Why Your Target Audience Wants Them

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Promotional products create a solid connection between brands and their target audience. Research shows that 80 percent of people remember the branding on a promotional product they received in the past year. What’s more, 83 percent like receiving them. There is a good chance your customers fall into one of these categories.

They might even have one of your promotional products sitting on their desk. If you truly want to reach your target audience, consider using promotional products to boost your brand, especially if they align with your business goals and target audience.

The Emotional Connection of Receiving a Promotional Product

Customers often feel a sense of accomplishment when they receive a promotional product. Even though the item is free, they feel like they’ve earned it, contributing to a positive emotional response. This feeling of reward can enhance customer satisfaction and lay the foundation for long-term loyalty, making them more likely to engage with your brand in the future.

The Principle of Reciprocity

Another psychological factor at play is the principle of reciprocity. This social norm suggests that when someone receives something, they feel a natural urge to give something back. In the context of promotional products, this could mean that customers are more inclined to support your business after receiving a free item.

They might do this by:

• Becoming a loyal customer

• Making additional purchases

• Sharing the branded product with others

This indirect reciprocity benefits your business by expanding your reach and solidifying customer relationships.

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Brand Alignment and Practicality

Customers are particularly receptive to promotional products that align with their personal needs and preferences. When a product is useful and well-designed, it not only meets the customer’s immediate needs but also reinforces positive associations with your brand. This alignment between the product’s purpose and the consumer's desires can significantly enhance its impact, making it more likely that the customer will keep and use the item, further increasing brand visibility.

5 Benefits Of Using Promotional Products

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1. Boosts Brand Recognition Like No Other

If your goal is to gain new customers, your first order of business is ensuring they are familiar with your brand and what you offer. The promotional products you hand out will help your customers remember you and what you do in the long run. If you choose the right product, the product and your brand will stay with them long. It will serve as a constant reminder of your company.

2. Provides Cheap, Everyday Exposure

Other forms of advertising only stay in front of someone’s eyes for a few seconds. Valuable promo items stay in sight most of the time. A trendy t-shirt will remain in the recipient’s closet for years. Plus, hundreds, if not thousands, of people see your brand name every time they wear it. A USB stick on their keychain reminds you of your company every time they use it. Think of these items like a years-long commercial.

3. Better Than a Business Card

Every business person is familiar with business cards. These valuable tools allow you to introduce yourself and your business to potential customers. You might be surprised to learn that promotional products do the same thing but with even better results. Almost three-quarters of people who receive a promotional item can remember the name of the company that gave it to them.

The same can’t always be said about giving out a business card. When the item contains your information, like my logo, slogan, or contact information, it can be much more helpful than a business card.

4. They Deliver Massive ROI

Promotional products are one of the most cost-effective forms of advertising because they make an enormous impression on those who receive them. Companies spend thousands on digital marketing without knowing their return on investment. 85.4% of consumers would rather receive a promotional product than a marketing email.

Here’s an angle you perhaps hadn’t considered:

In any business, your people are your most excellent resource. Greeting new hires with gift sets of branded desk accessories, such as mouse pads, sticky notes, and stress relievers, can make them feel welcome immediately and strengthen their loyalty and affinity toward their new company.

5. They Resonate With Your Audience

It is crucial to choose promotional gifts that your audience will use. If you give away high-quality, full-color T-shirts or writing equipment, people will likely wear and use them. Consider the environmental impact of sustainable drinkware or tote bags, which are also helpful to consumers in their everyday lives and replace single-use water bottles and grocery bags.

These items are especially appealing to eco-conscious folks looking to cut down on their use of plastics and connect your brand to the cause. When your audience uses your promo items, they become a walking advertisement for your brand, so make sure the products you choose tell the brand story you want to share.

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How To Incorporate Promotional Products Into Your Existing Marketing Efforts

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1. Start with Your Audience

Understanding your target audience is the first step. Who are they? What do they like? What’s their age, and what are their fundamental interests? The more specific you get, the better your promotional products will hit the mark. For instance, if your audience is environmentally conscious, eco-friendly products like reusable tote bags or bamboo utensils will likely make a more substantial impact.

2. Budget Wisely

Next, you need to nail down your budget. Typically, businesses allocate between 5% to 10% of their revenue to marketing, which should be earmarked for branded merchandise. How much you spend will depend on the occasion, the scale of your campaign, and what will give you the best return on investment (ROI). For example, a high-end item might be perfect for a select group of VIP clients, while more affordable items could be ideal for broader distribution at events like trade shows.

3. Select the Right Products

Once you’ve defined your audience and budget, it’s time to narrow your options. Choose a few potential products and weigh them against each other. Consider not just the cost but also the design and printing options, which can significantly affect the overall appeal of the item. A well-designed product that aligns with your brand and meets your audience’s needs will have a far more significant impact.

4. Plan Your Distribution

Deciding how and where to distribute your promotional products is as crucial as selecting the items. Think about the occasions where these products will be most effective. Business events like trade shows are prime opportunities to distribute freebies, allowing you to engage directly with potential customers. But don’t overlook smaller events, like holiday parties or company anniversaries, where a thoughtful gift can strengthen relationships.

Leveraging Social Media for Brand Promotion

Social media is another powerful tool for distribution. Running giveaways or contests online can create buzz around your brand. Encourage participants to like, share, follow, and tag others to maximize exposure. This not only spreads awareness but also builds a community around your brand.

Brand Ambassadors and Employee Advocacy

Consider leveraging brand ambassadors or even your employees and clients. By giving them promotional products, you turn them into walking billboards for your brand. These items help keep your brand in mind every time they’re used, whether it’s a:

• Stylish sweatshirt

• Sleek water bottle

• Handy tech gadget

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10 Examples Of Effective Promotional Products

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1. Custom Tote Bags: Sustainable, Practical, and Highly Customizable

Tote bags are versatile, reusable, and environmentally friendly, making them popular for consumers who value sustainability. They are often used for shopping, carrying books, or as an everyday bag, giving your brand significant exposure in various settings. You can choose from a variety of materials, including:

• Cotton

• Canvas

• Jute

Customization can include full-color printing, embroidery, or adding a custom design or logo. To make the tote bag more functional, add pockets, zippers, or other features.

2. Branded Water Bottles: Promote Healthy Living and Sustainability

With the increasing focus on health and sustainability, reusable water bottles are a must-have item. They help reduce plastic waste and promote a healthy lifestyle, aligning your brand with positive values. Water bottles are frequently used at the:

• Gym

• Office

• During outdoor activities

Water bottles can be made from stainless steel, BPA-free plastic, or glass. You can customize them with your logo, brand colors, or a motivational message. Some bottles also offer unique features like:

• Infusers

• Double-wall insulation

• Flip-top lids

3. Tech Accessories: Practical Products for the Digital Age

In our increasingly digital world, tech accessories are highly valued for their practicality. Items are useful for anyone with a smartphone or computer, making them ideal for tech-savvy audiences or professionals who need to stay connected like:

• USB drives

• Power banks

• Wireless chargers

These accessories can be customized with your brand's logo or message, often through laser engraving, screen printing, or even full-color UV printing. You can also select unique shapes or designs that resonate with your brand’s identity.

4. Customized Apparel: Turn Your Customers Into Walking Billboards

Apparel is among the most impactful promotional items because it turns your customers into walking billboards.

• T-shirts, hoodies, and caps can be worn frequently, offering ongoing exposure for your brand.

• High-quality, stylish apparel also enhances brand loyalty, as customers are likelier to wear items they feel good in.

• Apparel can be customized with screen printing, embroidery, or heat transfer vinyl. You can choose from various colors, materials (like cotton, polyester, or blends), and styles (e.g., crew necks, v-necks, or zip-up hoodies).

Consider creating limited-edition designs to increase their appeal.

5. Branded Notebooks and Pens: Office Supplies That Promote Learning

Notebooks and pens are staples in both professional and educational settings. They are practical and widely used, making them excellent tools for keeping your brand in front of your audience. Every time someone takes notes or jots down an idea, your brand is reinforced in their mind.

Notebooks can be customized with your logo on the cover, and pens can feature your brand name or slogan. To align with sustainability values, you can also opt for eco-friendly materials like recycled paper or bamboo pens. Adding special touches like elastic closures, bookmarks, or pen loops can make these items even more desirable.

6. Coffee Mugs and Tumblers: Everyday Items for Daily Brand Exposure

Coffee mugs are essential daily for many at home or in the office. They offer a significant amount of space for branding and are often used multiple times a day, providing consistent visibility for your brand. Tumblers are perfect for people on the go, making them ideal for busy professionals or commuters.

Mugs and tumblers can be customized with ceramic, stainless steel, or glass finishes. You can print your logo, tagline, or creative design that resonates with your audience. Consider offering:

• Color-changing mugs

• Insulated tumblers

• Spill-proof lids

7. Eco-Friendly Products: Promote Your Brand and Sustainability

With growing consumer awareness about environmental issues, eco-friendly promotional products are highly appealing. Items like bamboo utensils, recycled notebooks, or plantable seed cards promote your brand and showcase your company’s commitment to sustainability. You can customize these products with your logo using eco-friendly inks or laser engraving.

The materials often carry a message of sustainability, such as bamboo or recycled paper, which can be highlighted in your branding efforts. Packaging can also be made from recycled or biodegradable materials to reinforce your brand's eco-conscious image.

8. Desk Accessories: Keep Your Brand Visible in Professional Settings

Desk accessories are perfect for keeping your brand visible in a professional setting. Mouse pads, desk organizers, or phone stands are used daily, making them practical and appreciated gifts. They help keep workspaces organized while also reinforcing your brand's presence.

Desk accessories can be customized with your logo, brand colors, or motivational quotes. Mouse pads can be printed in full color. Desk organizers can feature engraved logos or branded compartments. Phone stands can be made from plastic, metal, or bamboo, each offering different customization techniques.

9. Fitness Gear: Help Your Audience Reach Their Wellness Goals

With the increasing focus on health and wellness, fitness gear like yoga mats, resistance bands, or sports bottles resonates with an active audience. These items are used frequently in gyms, at home, or outdoors, providing regular exposure for your brand. Fitness gear can be customized with your logo, often using screen printing or embossing.

You can choose colors that match your brand and even include motivational phrases or designs that inspire your audience. Offering a set of fitness items (e.g., a yoga mat and resistance bands together) can also create a more comprehensive and appealing package.

10. Travel Accessories: Ideal for Frequent Flyers

Travel-related items like luggage tags, pouches, or neck pillows are perfect for constantly moving audiences. These products are often used repeatedly, making them great for long-term brand exposure. They are:

• Trendy in tourism

• Hospitality

• Corporate travel industries

Travel accessories can be customized with your logo, brand message, or even full-color designs. You can choose materials that reflect your brand’s image, such as leather for a premium feel or silicone for a more casual vibe. Some travel items, like luggage tags, can also include space for the user to add personal information, adding functionality to the product.

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Build A Meaningful Employee Recognition Program With Ease with Giftpack's Client Gifting Service

Giftpack's driving force is to simplify the corporate gifting process while maximizing the impact of each gift. Utilizing our custom AI algorithm, we create highly customized scenario swag box options for you. We deliver globally and have an extremely user-friendly platform. We curate the most fitting gifts from a vast catalog of over 3.5 million products worldwide (which is ever-increasing).

By carefully considering an individual's basic demographics, preferences, social media activity, and digital footprint, we tailor each gift selection process regardless if the recipient is an employee, a customer, a VIP client, a friend, or a family member. With a wide range of locally and globally sourced gifts, we ensure that personalized gifting is accessible and achievable on a large scale, delivering meaningful connections across the globe.

Make your gifting efficient and improve employee attrition rates with Giftpack AI.

Visit our product page to unlock the power of personalized employee appreciation gifts.

Enjoying this article? Learn about making employee appreciation easier with Giftpack
Ask us anything about Corporate Gifting
Tim Kuo

Tim Kuo

Sep 11th 202416 min read

About Giftpack

Giftpack's AI-powered solution simplifies the corporate gifting process and amplifies the impact of personalized gifts. We're crafting memorable touchpoints by sending personalized gifts selected out of a curated pool of 3 million options with just one click. Our AI technology efficiently analyzes each recipient's social media, cultural background, and digital footprint to customize gift options at scale. We take care of generating, ordering, and shipping gifts worldwide. We're transforming the way people build authentic business relationships by sending smarter gifts faster with gifting CRM.

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