Whether you are a supplier, distributor or somewhere in-between, there is one thing that brings us together: we all believe in the power of promotional products as an advertising medium. I joined the PPAI team during the fall of 2015 as your research coordinator and quickly became a believer as well. Why? Because we had solid research to back our beliefs.
Our 2017 Consumer Study, released earlier this year, revealed that 83 percent of consumers said they are more likely to do business with a brand after receiving a promotional product. Yet the promotional products industry represents only seven percent of the world’s advertising spend. So, are companies getting a solid return on the 93 percent of advertising dollars spent outside the promotional products industry? The short answer is…no, not really.
The results, featured in this month’s PPB article, “Tipping The Scale: How Promotional Products Compete In A New Era Of Advertising,” might surprise you. When compared with traditional and emerging forms of advertising, promotional products clearly lead the field in terms of reach, recall and reaction.
Advertising is a science and we have the numbers to back the winning formula for our industry. I encourage each of you to take a few minutes to read this article, post it your blogs, forward it to your colleagues and share it with your clients. This data will help your clients prioritize their spending and help secure your place in their budget. Read an excerpt below and #GetInTouch today.
Tipping The Scale: How Promotional Products Compete In A New Era Of Advertising
PPB Feature | PPAI Exclusive Research
Brands spend billions of dollars each year on efforts aimed at influencing consumers by following a traditional marketing model. The U.S. alone accounts for an estimated $298 billion in ad expenditures annually and was recently named the world’s largest advertising market.
Developed in 1898 by one of advertising’s founding fathers, Elias St. Elmo Lewis, the traditional marketing model narrows the consumer decision-making process into four key stages: awareness, interest, desire and action (AIDA). This model helps marketing strategies steer the consumer through each stage of the decision-making process.
Historically, advertising has been considered the most creative influencer for brands—a belief that is protected and nurtured by many of the world’s leading ad agencies. Yet the world we live in today looks much different than it did in 1898. Now consumers have access to information to form their own opinions of brands.
They are constantly connected to a free flow of information and ideas. They have become a more informed group of consumers who are learning more, engaging faster and expecting convenience and speed in every aspect of life. And marketers who were once following a linear and much more predictable progression to deliver their messages are now placed in an oversaturated, erratic maze they must learn to navigate. The shifting consumer purchasing path is shaking up the competitive dynamics in nearly all industries, including advertising.
Marketers today must adjust to the new consumer expectations or they will be left behind. The end of the linear consumer journey can be pinpointed back to 2015 when Google introduced micro-moments, which give brands exactly one minute to be where the consumer is looking to meet their need. This drastically alters the way you approach consumers, but most importantly the way you understand them. Advertising strategies were once based on a gut feeling or on the person who made the most convincing argument; today, advertisers need to adopt consumer insights. There is no argument that this new era of advertising has created a headache for buyers and sellers of advertising, and for those responsible for measuring it.
Twenty years ago, the world was a far simpler place for brand advertisers: broadcast was king and online was an emerging fad. Since the turn of the century, there has been an explosion in the availability of data. From CRM systems to big data, companies have become increasingly data driven. Mobile advertising is the fastest growing medium, although broadcast still holds the greatest market share in ad spend (Figure 1). This is largely due to mobile’s integration of data and marketing strategy. Seismic shifts in technology during the past decade have created a cookie-crumb trail following consumers as they navigate their path to purchase.
They are on tablets while watching television. They use smartphones to price compare while they shop. Crumbs are dropped at every stop. This produces a granular, nearly infinite record of what consumers see and do, which in turn enables marketers to gain access to an unprecedented level of precision—a strategy many have turned to. This streamlined approach, however, treats advertising touchpoints as if each works in isolation, causing many marketers to get lost in an unlimited flow of unfiltered data.
We live in a data-rich world, but it’s not necessarily information-rich. Customer demographics and buying patterns tell us the ‘what,’ but not the ‘why.’ To get ahead, marketers must dig deeper to capture a clearer understanding of consumers, their needs and desires. Understanding consumer insights and using numbers that truly quantify impact across platforms will be irresistible to advertisers who want the full story—and might just tip the scale as we know it.
Read the full article here.