From Trinkets & Trash to Luxury Swag

Whether you refer to them as: giveaways, ad specialties, freebies, incentives, trinkets and trash or swag; promotional products seem to be everywhere.  From the moment you jump out of bed to when you get in the shower at the end of your day, promotional products are a part of everyday life. According to Promotional Products Association International (PPAI) this industry is worth more than $20.8 billion and reportedly grew 2.2 % in the year 2017 (Sales Volume Study). However what most people don’t know is that the promotional merchandise industry is relatively new, and had rather humble beginnings. So how did an industry that is still developing become such an influential part of our lives?

Understanding what the industry is and the service it provides is key for understanding its rapid growth. Operators in this industry imprint blank specialty items such as: keychains, pens, and magnets and distribute a client’s advertising message by printing on these products.  These items are given away by companies to promote: brand awareness, customer appreciation, awards, incentives, and many other advertising specialties. In recent years, many companies’ advertising budgets have been boosted due to larger corporate margins and increased consumer spending, which in turn results in an increased demand for this industry’s services.

The rise in corporate profits is directly related with the explosion of the promotional products industry which took place in the 1970s after a number of corporate companies recognized the benefits of promoting their corporate identity through the use of personalized gifts (ASI). Promotional products had a resurgence as businesses remained cautious after the great recession and opted for low-cost methods of reaching customers. As traditional forms of advertising increased in price, lower-priced forms of advertising increased in popularity. Promotional products are effective advertising vehicles as recipients of these giveaways see an imprinted ad message many times without any added cost to the advertiser.

Furthermore, the success of this industry has brought forth an increased selection of specialty goods that providers can offer. At one point, businesses purchased promotional products due to their low cost, and affordability which meant that options were limited. However as budgets increased the list of products that could be personalized grew as well, giving companies the option to customize more extravagant and lavish products. Today you can virtually customize anything, including name brand products. The industry is no longer associated with cheap trinkets but rather has become a synonym for luxury swag.

The future is certainly looking bright for companies operating in this industry as growth is expected to continue with the introduction of new systems and technologies. The industry will benefit from integrating new forms of advertising with already existing ones (Ibisworld.ca). We can already see how successful marketing efforts combine a number of platforms for a well-rounded campaign. We can expect mobile and web-based advertising as well as traditional print, TV and radio advertising to be increasingly used in conjunction with promotional products.