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While Traditional Advertising Media Dips,
Promotional Advertising Rises To A Record High

A recent study conducted exclusively for Promotional Products Association International (PPAI) confirms that estimated sales of promotional products in 2005 increased 4.06 percent to $18,013,763,752, the largest sales figure in the history of the industry.

The study was conducted exclusively for PPAI by Richard A. Nelson, Ph.D., at the Manship School of Mass Communication at Louisiana State University and Rick Ebel, principal of Glenrich Business Studies in Corvallis, Oregon.

"Since 2000 the industry has rebounded significantly in step with the general economy," says Steve Slagle, CAE, president/CEO for PPAI. "In 2000, industry sales were recorded at about $17.8 billion, the highest ever at that point, and our 2005 sales volume has topped that mark, signaling a healthy and growing industry. PPAI will continue its efforts to educate and motivate end buyers to consider promotional products as an integral advertising medium and a preferred choice for buyers making smart decisions about how to spend their promotional and advertising dollars."

In comparison with traditional advertising media, sales of promotional products grew 4.06 percent in 2005 while other major mass media advertising is reported down or flat. Broadcast TV advertising* is down 2.4 percent and local TV advertising* is down 8.8 percent while newspaper advertising** is up only 1.5 percent.

Even more impressive is that at more than $18 billion, promotional products sales have surpassed local radio advertising ($15.6 billion), internet advertising ($12.5 billion), Yellow Pages advertising ($15.9 billion) and outdoor advertising ($6.3 billion).

According to PPAI, promotional products include useful or decorative articles of merchandise that are used in marketing and communication programs. The items are usually imprinted with a company's name, logo or message. Promotional products that are distributed free are called advertising specialties; imprinted items given as an incentive for a specific action are known as premiums. In addition, business gifts, awards and commemoratives are also considered promotional products.

"I think it's appropriate to break out the champagne," says researcher Ebel. "In 2005, business overall was buoyant, and the industry recovered all the lost ground and then some from the recession. However, we might temper our jubilation somewhat because the rising river didn't float all the boats. As in other industries, some promotional consultant companies continued to struggle. When we analyze our data, we may find that some specific categories, possibly by company size or service capability, are encountering impediments they couldn't surmount. It's all the more reason for using these statistics, making comparisons and asking why."