We all have no choice but to deal with budgets. It is pretty obvious that we can’t spend more than we have (unless we are the government!). Overall marketing budgets have increased in recent years, but basically all the increases and some of the existing funds went into more digital messaging.
Reports that the promotional products media industry will break a sales record and reach nearly $28 billion is exciting and leads you to think that is a growing achievement, but the 2.6% change from the previous year is strictly a result of 3% annual inflation. Profits also had volatility due to supply issues and tariffs.
Recent trends and looking for those trends to continue, are great news for promotional products media however.
What I call “Action Now” marketing, things like end of the month sales, gift with purchase, two for one sales and all others that have a specific time to act, are designed to generate immediate sales. These marketing strategies build store traffic, may increase current revenue, but generally build no customer loyalty and reduce margin.
At the same time businesses became aware of digital fatigue, basically consumers ignoring much of the digital messaging that is thrown at them, they also realized that brand building to sustain customer loyalty needed a physical component with the ability to have long exposure. In addition the sponsoring of social engagements and events are expected to see increases. The isolation of operating in a digital world is expected to give way to more face to face business environments.
All these anticipated trends can be (many are) supported with the influence of promotional products. The strongest indication that these strategies are getting top consideration is the allocation of marketing dollars. 2026 is expected to have 60% supporting long term brand building with 40% to Action Now marketing. That is a total reversal from where things have been in recent budgeting.
This major shift in allocating marketing investment is in the B2C (business to consumer) market segments - with our promotional products media industry positively affected from the changes. B2C is where the end buyer of promotional goods uses them to influence their customers and prospects.
It is my brief that one of the forces moving marketing is the dozen or more years experience marketing managers and executives now have. From the early 2000s there were generational transitions of family businesses and hiring of newly graduated university students, all young people with the belief that everything is digital and destined to continue in that direction. Even the major ad agencies had an attitude of “let’s do some ads” rather than “let’s sell something”.
Consumers didn’t have the same opinion. Pre-run (before the desired content) ads on YouTube and other platforms went from 90 second commercials down to 5 seconds in many instances. Longer format ads allowed consumers to skip most of the ad if they had no interest. Paid subscription services that were ad free began interrupting content with ads and then offered an additional ad free service at additional cost. The point is they know people will avoid digital advertising if they can.
Promotional products media has everything this expected trend needs to accomplish the goals that have been set. Budget friendly long lasting advertising with unlimited ad impressions is the basic definition of our industry and always has been. Now is a great time to discuss this with your clients and plan their marketing strategy for the next year.