Tag Archives: government spending

Oklahoma Governor’s Promotional Products Spending Directive

Recently, Oklahoma Governor Mary Fallin issued an over-reaching directive that singles out and severely limits state spending on promotional products advertising for an indefinite period of time. While several media outlets, also funded by advertising revenue, reported on the ban, none considered or reported on the effectiveness of promotional products advertising or the wide-ranging ramifications it will have on all Oklahomans.

As the number one most effective advertising medium when it comes to driving consumers to take action, building loyalty and generating interest, promotional products must not be unfairly singled out and indiscriminately limited in scope and reach. In response, below is PPAI’s statement released to the media.


STATEMENT

IRVING, TX – December 11, 2017 – Promotional Products Association International today issued the following statement from PPAI President and CEO Paul Bellantone, CAE, in response to Oklahoma Governor Mary Fallin’s Executive Order 2017-37, which limits spending on promotional products advertising.

“Promotional Products Association International (PPAI) supports balanced budgets and the responsible use of taxpayer dollars; however, the promotional items deemed “nonessential,” according to the Executive Order 2017-37, are anything but. In fact, points raised in the order are exactly why promotional products are one of the most effective, cost-efficient and longest-lasting media used by advertisers, marketers and the State of Oklahoma.

The spending limits set forth by Executive Order 2017-37 unfairly target the promotional products industry and will diminish the ability of the state and its agencies to effectively and efficiently communicate and deliver essential programs and services like education, employment, health care, disaster relief, social services, fire and police protection to the citizens of Oklahoma by eliminating the most useful and tangible form of communication—promotional products.

Senator Kay Floyd of Oklahoma City, said it best:

‘The stress balls save veterans lives. And that stress ball is something that they can carry around with them, but it also has a hotline number or additional information that that veteran needs in order to get benefits or resources from the Department of Veterans Affairs.’

Compared to other media, promotional products advertising is preferred by consumers while other forms of media are often avoided or blocked. Promotional products are one of the fastest-growing and most cost effective advertising media, ranking seventh among traditional and digital media in annual expenditures at $22 billion. On an annual basis, promotional products contribute millions to the Oklahoma economy, with 416 companies providing more than 2700 jobs.

Promotional products are proven to be one of the most effective media available to advertisers. Because promotional products are tangible, useful and highly targeted to the audience they reach, 79 percent of consumers retain them for one to more than five years, and 88 percent recall the advertiser/message, delivering the highest rate of reach, recall and return on investment in the advertising industry.

Promotional products educate, recruit, highlight safety awareness, urge organ donations and encourage healthy living and lifestyle choices. Promotional products recognize and reward employee achievements and inspire action. Promotional products are used to celebrate milestones, sign legislation and reinforce life-saving messages. Promotional products are the most cost-effective method to communicate important messages to Oklahomans.

PPAI and the Oklahoma promotional products industry look forward to working with Oklahoma administration officials to better inform the state’s procurement processes and use of promotional products.”


CALL TO ACTION

The success of our industry depends on us making a strong, collective stand for promotional products as the best marketing tool and advertising medium for communicators. It is our shared responsibility to stand up for the industry because it’s good for consumers, advertisers and marketers and yes, governments. The promotional products industry facilitates communication, prosperity and relationships by helping connect organizations and businesses with their audiences in a tangible and meaningful way.

I ask you to take action to protect the interests of the promotional products industry. Included below are steps you can take now and in the future when these types of reports occur:

  1. Write the Governor and State Representatives today.
  2. Immediately share the news with PPAI by emailing stories/reports to PR@ppai.org
  3. Keep an eye out for rumors and threats to the industry’s credibility–if you hear of something, let us know.
  4. Advocate! Stand up for the industry that has been so good to you and to all of us—defend its good name.
  5. And finally, know the facts. They are strongly in our favor.

Guest Post | The Best of Government Spending

Today, I am pleased to present a guest post by Counselor Editor, Andy Cohen.

This Counselor Commentary was published in response to the KHOU investigative report broadcast last week.

Thank you Andy for your staunch support of this great industry!

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It’s common – and wrong – to question how government agencies spend money on promotional products. Those are smart investments, even though some don’t want to admit it.

Election season really does bring out the worst in just about everybody. Candidates, political action committees, backers, government officials, and voters even – they all end up slinging mud at some point in an election year. So, 2016 is certainly no different, and considering the tenor of the presidential campaign, it may even be the worst yet.

But one common line of criticism, which definitely ramps up during election years, is how government offices (local, state, federal) spend money on promotional products. These are used in many ways by public offices – rewards for employees, awareness campaigns, job fairs, and retention and hiring efforts. They’re all legitimate expenses because they provide value and help these government offices spread their messages and achieve their goals.

Not everybody wants to admit that. Take officials in Texas, for example. A recent report on KHOU, a CBS-affiliated television station in Houston, and online at KHOU.com revealed that the media outlet’s “investigative reporters” totaled up how much state government agencies spent on promotional products that it used as rewards for employees between September 2008 and December 2015. The grand total? A whole $8.8 million worth of what the report calls “trinkets.”

The range of promotional products that state agencies in Texas used over that seven-year time period – can I stress, SEVEN YEARS! – was rather impressive. There were items such as weather station desk accessories, water bottles, coffee mugs, travel tumblers, blankets, umbrellas, jump ropes, juggling balls, pens, notepads, and business card holders. They were also used in a variety of ways, including as performance and retention rewards, and as training tools at meetings.

“These items were purchased and utilized to reinforce training concepts,” Bryan Black, a spokesman for the Texas Health and Human Services Commission, told KHOU in reference to the juggling balls that the agency purchased. “Different quality control scenarios were written on the balls, and the balls were then used as a tool for the participants to answer scenario-based questions and apply the information presented during the class to reinforce learning.”

A completely reasonable purchase for a state agency to make, but KHOU decided to make this a referendum on public spending, saying that “your tax dollars” bought these items. The implication, of course? Wasteful spending. So, they found somebody who would speak out against it.

“I think it needs to be seriously looked at,” said Peggy Venable, senior policy fellow with Americans for Prosperity, a non-profit government watchdog group. “We do want government employees who are recognized for doing a good job, (but) how do we do that? I don’t think it’s with junk.”

Well, Ms. Venable, you have no idea what you’re talking about. It has been proven time and again that promotional products provide value beyond just the item that’s handed out – just check out the many ASI Ad Specialties Impressions Studies we’ve conducted at www.asicentral.com/study. They’re far from the “junk” you call them, because they actually provide a return-on-investment better than most other forms of marketing media. And, as rewards promotional products are particularly impactful because recipients actually keep and repeatedly use the items in their everyday life – reinforcing the message that the agency handing the items out wants to impart.

The media outlet in Houston and the one non-profit watchdog representative that they chose to quote are making a lazy and easy argument that tends to rear its ugly head whenever government spending becomes an issue. So, the whole state of Texas spent $8.8 million on rewards for employees and training tools over a seven-year period – less than $1.3 million per year for one of the largest states in the union. I’d argue that they didn’t actually spend enough, and could have gotten more out of what KHOU refers to as “your tax dollars at work” by doing more consistent promotional products campaigns. Maybe they should have targeted some extra education and training efforts toward local media, so they too can see and feel the impact of promotional products.