Promotional Products: The Key Ingredient to Integrated Marketing

1. Promotional Products: The Key Ingredient to Integrated Marketing How Promotional Products, Print and Television Advertising Impact Consumer Perception

2. Advertising Challenge • Traditional forms of advertising and promotion are losing ground to newer media.

3. Emergence Of Ad Avoiders • Study conducted by Microsoft and Starcom found that 10 – 15% of adults between 17 and 35 years old are “Ad Avoiders” • They don’t like advertising • They find it “annoying” • Source: Brandweek, Mike Shields, 2/19/2007

4. Ad Avoiders • Two types of avoiders: • Active • Passive

5. Active Avoiders • Active avoiders’ message to advertisers is “be good or be gone” • Active avoiders tend to be “young, tech-savvy men who deliberately consume media that has no ads, like DVDs and satellite radio” • Source: Brandweek, Mike Shields, 2/19/2007

6. Passive Avoiders • Passive avoiders “simply can’t be bothered with ads” • “The passive group is comprised of women, often parents, who gravitate to leisure activities that are untouched by ads, such as books or board games” • Source: Brandweek, Mike Shields, 2/19/2007

7. How Do You Reach Avoiders? • 12% of avoiders watch less than one hour of TV per week versus 3% among non-avoiders • Avoiders index low for listening to the radio and reading magazines • Source: Brandweek, Mike Shields, 2/19/2007

8. Opportunity for Promotional Products • Promotional products have the unique ability to engage the recipient • Unlike traditional media that interrupts • Promotional products engage

9. Promotional Products Key Ingredient In Integrated Marketing • New study proves the addition of promotional products actually increases favorability ratings toward ads among the same key demographic group!

10. Key Demographics Studied • In 2006, researchers at Louisiana State University and the University of Texas at San Antonio utilized a group of 18-34 year olds to study: • The effectiveness of promotional products • Compared that effectiveness to television and print advertising

11. The Study Measured • Credibility of the advertisement • Attitudes toward the product, advertisement and promotional product • Product purchase intention • Referral value • Impressions of the advertisement • Perceptions about the product

12. Study Details • Participants were exposed to pizza ads: • Television commercial • Print ad • Promotional product

13. Results • Key finding - adding a promotional product to the media mix generated favorable attitudes towards the ad in all cases(up to 44%); • Increased brand interest (69%); • And created a good impression of the brand (84%)

14. Advertising Effectiveness Of The Three Mediums • While print came in first, the promotional product outperformed television across the board • More positive attitude toward the promotional product than TV ad (41% to 18%) • More positive attitude toward the product (20% to 16%) • Increased message credibility (54% to 33%) • Greater intent to purchase (25% to 17%) • And higher referral value (26% to 16%)

15. Advertising Effectiveness of Integrated Campaigns • Integrating a promotional products with the TV commercial outpaced the two other media along in message credibilityand referral value. • Integrating a promotional product with TV and print ads increases the referral value and message credibility.

16. Effectiveness • Groups exposed to promotional products have a more positive outlook towards the ad and brand than those not exposed to the product.

17. Synergy • A promotional product as an ad medium generates more positive attitudes toward the product than exposure to a TV commercial in conjunction with a print ad • In all cases, integrating a promotional product with a TV commercial and print ad is more effective that the use of: • A promotional product alone • TV and print ads in combination

18. In A Nutshell… • Promotional products: • May be effectively employed as a stand-alone advertising medium • Add to the media mix to create impact • Are a source of useful information • Enhance impressions about both the brand and product • Contribute to consumer intent to buy

19. The Authors • This experiment was conducted in November 2006 for PPAI by: • Dr. Richard Alan Nelson, Ph.D. (Professor, Louisiana State University), • Dr. Ali M. Kanso, Ph.D. (Professor, University of Texas at San Antonio) and • Dr. H. Paul LeBlanc III, Ph.D. (Assistant Professor, University of Texas at San Antonio).

20. Why Are Promotional Products Powerful? • Unique ability to build a relationship with the recipient • Once you accept the product – we have a relationship. That relationship will continue throughout the useful life of the product. • Your relationship with most other media begins when you see it and ends when you look away.

21. Why Are Promotional Products Powerful? • Traditional advertising disrupts the passive recipient’s environment • Promotional products are either accepted or declined in an active fashion by the recipient • The recipient’s environment is often enhanced by the addition of the promotional product.

22. The Medium of Engagement • What counts is not so much what promotional products are, but what they accomplish as a medium to achieve engagement, communication and integration results.

23. What is PPAI? • PPAI is the promotional products industry’s international trade association offering education, technology, tradeshows and legislative support to it more than 7,500 global members comprised of those who make and sell promotional products. • Suppliers/Manufacturers: manufacture, import, decorate products • Promotional Consultants: consult with clients (marketers) to research, develop and deliver effective programs to achieve maximum results

24. The Indelible Power of Promotional Products www.promoideas.org