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Buyer Insights: Ad Agencies & Advertisers
A study of their buying habits, preferences & level of satisfaction with promoti...
Methodology
Data Collection
15-minute online survey
Sample
400 respondents including 178 Agencies and 222 Advertisers
Samp...
Key Findings
Buying Process
8 in 10 Agencies and Advertisers buy promotional products from promotional consultants,
which ...
Key Findings
Promotional Products Effectiveness
Promotional products are often integrated into the advertisers budget (52%...
Key Findings
Investment in Promotional Products
Across Agencies and Advertisers, 7 in 10 consider promotional products eff...
Key Findings
Promotional Products & Media
Overall, 7 in 10 have used promotional products in stand alone campaigns, and 6 ...
Page 7
Buying Process
How Promotional Products Are
Purchased
About 8 in 10 Agencies and Advertisers purchase promotional products from a promoti...
Promotional Products Consultant
Considered Part of the Team
Agencies are more likely to include promotional products consu...
80% 75%
Importance in Decision to Use
Promotional Products (Top 2 Box)
Total
(n=241)
Agency
(n=95)
Advertiser
(n=146)
77%P...
Promotional Products Purchased in
Past 12 Months
Apparel was the
category of
promotional
products most
often purchased
in ...
Investment in
Page 12
Investment in
Promotional Products
Promotional Products Budget
Promotional products are often part of the advertisers budget, which is also reflected in the
...
Promotional Products Inclusion in
Media Buy/Advertising Investment
Agencies are more likely to include promotional product...
Promotional Products Purchase Frequency:
Past 12 Months
96% have purchased promotional products in the past 12 months
75% ...
Promotional Products Spending:
Past 12 Months
Total
(n=253)
Agency
(n=102)
Advertiser
(n=151)
4 in 10 spent $25,000 or mor...
Promotional Products
Page 17
Promotional Products
Effectiveness
Promotional Products Effectiveness
7 in 10 consider promotional products effective or highly effective
Total
(n=264)
Agenc...
Promotional Products Purpose
Promotional products are often used to promote brand awareness and support corporate
identity...
56%
Increased
goodwill
59%
Total
(n=251)
Agency
(n=95)
Results of Promotional Products
Usage
The use of promotional produc...
Promotional Products Campaign
Usage Diagnostics
The majority of Agencies and Advertisers would recommend
using promotional...
Most Effective Promotional Products
Used in Past 12 Months
Apparel is
considered one
of the most
effective
promotional
pro...
Promotional Products
Page 23
Promotional Products
& Media
Campaign vs. Stand Alone Usage
Combining the use of both types of campaigns, about 7 in 10
have used promotional products ...
32%
25%
22%
22%
33%
22%
22%
21%
Exhibits/trade shows
Print
Social media
Email
34%
19%
21%
20%
Media Used in Conjunction Wi...
Promotional Products Campaign Setup
Most Agencies and Advertisers customized or imprinted the
products included in campaig...
Page 27
Demographics
Who We Talked To
Total Agency Advertiser
(n=400) (n=222) (n=178)
% % %
Page 28
% % %
Gender
Male 53 46 62
Female 47 54 38
...
Where They Work
Most Agency Advertiser
Clients Are…
(n=222)
Sector
(n=178)
% %
Business Sector/ Industry
Healthcare 28 7
M...
What They Do
Total Agency Advertiser
(n=400) (n=222) (n=178)
% % %
Job Function
Sales manager/director 32 23 43
Account/cl...
Their Company Financials
Agency Advertiser
(n=222) (n=178)
Page 31
S6. What is your company revenue?
S7. What are your age...
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Ppai 2014 Buyer Study Report Final

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PPAI 2014 Buyer Study Report Final

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Ppai 2014 Buyer Study Report Final

  1. 1. Buyer Insights: Ad Agencies & Advertisers A study of their buying habits, preferences & level of satisfaction with promotional products Prepared by April 2014
  2. 2. Methodology Data Collection 15-minute online survey Sample 400 respondents including 178 Agencies and 222 Advertisers Sample source: Third-party online panel Research Now and Redbook database Page 2 Sample source: Third-party online panel Research Now and Redbook database Sample Screening Criteria – Decision maker or influencer in the purchase of promotional products – Advertisers: Revenues of $10 million or more Field Date March 5 – 28, 2014
  3. 3. Key Findings Buying Process 8 in 10 Agencies and Advertisers buy promotional products from promotional consultants, which are considered part of the team by 41% across both groups Agencies are more likely to consider their promotional products provider as part of their team (61%), suggesting that promotional products consultants would benefit from Page 3 team (61%), suggesting that promotional products consultants would benefit from approaching agencies to establish partnerships Price, design/function and preferences were the top drivers in the use of promotional products for Agencies and Advertisers Apparel was the category of promotional products most often purchased in the last 12 months by both Agencies and Advertisers
  4. 4. Key Findings Promotional Products Effectiveness Promotional products are often integrated into the advertisers budget (52%) and the campaign budgets agencies manage for their clients (54%) However, Advertisers (41%) are more likely than Agencies (28%) to buy promotional products as needed, without having a designated budget for it Page 4 About 1 in 4 Agencies recommend promotional products to be included in the media buy for their clients’ advertising and marketing campaigns Agencies are also more likely to actually include promotional products in the media buy they do for clients (19%) and invest in this advertising medium (17%) than Advertisers (9%, respectively) In the past 12 months, 9 in 10 Agencies and Advertisers have purchased promotional products at least once, with 4 in 10 spending $25,000 or more in this medium
  5. 5. Key Findings Investment in Promotional Products Across Agencies and Advertisers, 7 in 10 consider promotional products effective or highly effective Promotional products are often used to promote brand recognition (62%), brand and product awareness (58%), and to support corporate identity (52%) Page 5 The use of promotional products have often resulted in increased goodwill (56%) and brand recall (44%), but less so in on customer acquisition (31%), increased market share (22%) and overall ROI (16%) Apparel is considered one of the most effective promotional products categories by both Agencies and Advertisers The majority of Agencies and Advertisers would recommend using promotional products (88%) and many believe they have contributed to the campaigns’ success (73%) However, only a third have measured the response to the campaigns or included some form of tracking mechanism
  6. 6. Key Findings Promotional Products & Media Overall, 7 in 10 have used promotional products in stand alone campaigns, and 6 in 10 have used them in conjunction with other media Promotional products were often used in exhibits/trade shows (33%), followed by print (22%) and social media (22%) Page 6 They are less often used in combination with mass media such as Radio (6%), Outdoor (5%) and TV (4%) Most Agencies (91%) and Advertisers (96%) customized or imprinted the products included in campaigns using promotional products in their last campaign Half of promotional products were mailed to specific vertical markets in their last campaign
  7. 7. Page 7 Buying Process
  8. 8. How Promotional Products Are Purchased About 8 in 10 Agencies and Advertisers purchase promotional products from a promotional products consultant Total (n=267) Agency (n=110) Advertiser (n=157) 80% Promotional Consultant 79% 80% Page 8 A4/B3. How does your company purchase promotional products [on behalf of your clients]? 10% 7% 3% Consultant Online Retail or catalog Third party 10% 7% 4% 10% 8% 2%
  9. 9. Promotional Products Consultant Considered Part of the Team Agencies are more likely to include promotional products consultants as part of the team Page 9 A4a/B3a. Do you consider the promotional products consultant a member [of the team working on behalf of your client/of your marketing team]? Total (n=212) Agency (n=86) Advertiser (n=126)
  10. 10. 80% 75% Importance in Decision to Use Promotional Products (Top 2 Box) Total (n=241) Agency (n=95) Advertiser (n=146) 77%Price Price, design/function and preferences are the top drivers in the use of promotional products for Agencies and Advertisers Page 10 80% 72% 71% 67% 65% 60% 61% 53% 34% 45% 75% 81% 82% 67% 66% 64% 60% 67% 33% 22% A15/B14. Thinking of the last time in the past 12 months [a client’s campaign/when your company purchased] promotional products, how important were each of the following factors in the decision to use promotional products? 77% 77% 77% 67% 66% 62% 61% 61% 33% 31% Price Design/function Proven favorite of recipients New idea "Gift" perception of items used Info about message longevity retention Logistics Uniquely positioned as ad medium not considered a nuisance Recommendation from another person Suggestion from vendor
  11. 11. Promotional Products Purchased in Past 12 Months Apparel was the category of promotional products most often purchased in the last 12 months by both Agencies and Agency Page 11 Agencies and Advertisers A9/B9. List three promotional products purchased in the last 12 months [on behalf of your clients/at your company]? Advertiser
  12. 12. Investment in Page 12 Investment in Promotional Products
  13. 13. Promotional Products Budget Promotional products are often part of the advertisers budget, which is also reflected in the campaign budgets agencies manage for their clients However, Advertisers are more likely than Agencies to buy promotional products as needed, without having a specified budget for promotional products Agency (n=126) Advertiser (n=160) 52% Usually a formal part of the 54% Formal part of Mktg or PR Page 13 A3/B2. Which of the following best describes how the budget for promotional products is [integrated in your clients’ advertising and marketing campaigns/set up at your company]? 52% 28% 18% part of the campaigns No budget, buy as needed Clients handle it most of the time 54% 41% 3% Mktg or PR budget No budget, buy as needed Part of the ad agency budget
  14. 14. Promotional Products Inclusion in Media Buy/Advertising Investment Agencies are more likely to include promotional products in the media buy they do for clients and invest in this advertising medium About 1 in 4 Agencies recommend promotional products to be included in the media buy for their clients’ advertising and marketing campaigns Total (n=255) Agency (n=113) Advertiser (n=142) Page 14 A3a. On average, what percent of the time are promotional products featured in your agency’s recommendations for your clients’ advertising and marketing campaigns? A3b/B2a. On average, what percent of the time are promotional products included in [the media buy for your clients’ advertising and marketing campaigns/your company’s media buy]? A3c/B2b. On average, what percent of the investment in [your clients’ advertising and marketing campaigns/advertising] do promotional products represent? 26% Recommend promo products to clients
  15. 15. Promotional Products Purchase Frequency: Past 12 Months 96% have purchased promotional products in the past 12 months 75% have done so 3 or more times during the same period Total (n=263) Agency (n=107) Advertiser (n=156) Page 15 A7/B7. How often has your company purchased promotional products, giveaways or incentives [on behalf of your clients] in the past 12 months? 4%4% 5%5% 3%3% 5%5% 3%3% 6%6% 16%16% 17%17% 15%15% 22%22% 19%19% 24%24% 15%15% 14%14% 17%17% 38%38% 42%42% 35%35% 5+ times 4 times 3 times 2 times 1 time None
  16. 16. Promotional Products Spending: Past 12 Months Total (n=253) Agency (n=102) Advertiser (n=151) 4 in 10 spent $25,000 or more on promotional products in the last 12 months Page 16 A8/B8. On average, how much did [you/your company] spend on promotional products [on behalf of your clients/for internal use at your company or department or for an external marketing/advertising campaign] in the last 12 months? 14%14% 11%11% 17%17% 23%23% 21%21% 26%26% 22%22% 24%24% 21%21% 13%13% 14%14% 13%13% 28%28% 30%30% 23%23% $50K or more $25K < $50K $10K < $25K $5K < $10K Under $5K
  17. 17. Promotional Products Page 17 Promotional Products Effectiveness
  18. 18. Promotional Products Effectiveness 7 in 10 consider promotional products effective or highly effective Total (n=264) Agency (n=108) Advertiser (n=156) 11%11% 10%10% 12%12% Page 18 A6/B6. Overall, how effective do you find the use of promotional products? 1%1% 1%1% 2%2%1%1% 1%1% 24%24% 23%23% 24%24% 63%63% 66%66% 61%61% 11%11% 10%10% 12%12% Extremely effective Effective Somewhat ineffective Extremely ineffective Don't know
  19. 19. Promotional Products Purpose Promotional products are often used to promote brand awareness and support corporate identity Total (n=265) Agency (n=109) Advertiser (n=156) 62%Brand recognition Brand/product 62% 62% Page 19 A5/B4. Which of the following best describes how promotional products have been used [in your clients’ campaigns/at your company]? 58% 55% 51% 42% 41% 40% 38% 33% 29% 25% 16% Brand/product awareness Corporate identity Public relations and goodwill Customer retention & appreciation Generate sales & referrals Employee communications & recognition New product introduction Motivate behaviors & incentive programs New customer acquisition Drive traffic Call to action 54% 48% 45% 38% 39% 30% 39% 31% 31% 28% 22% 60% 60% 56% 46% 43% 46% 38% 35% 28% 24% 12%
  20. 20. 56% Increased goodwill 59% Total (n=251) Agency (n=95) Results of Promotional Products Usage The use of promotional products have often resulted in increased goodwill and brand recall However, a direct impact on customer acquisition, market share and overall ROI in less frequent 54% Advertiser (n=156) Page 20 44% 31% 23% 22% 22% 16% 4% Increased brand recall Customer acquisition Increased response rate Increased website traffic/conversions Increased market share Increased overall ROI Increased fundraising 43% 35% 23% 30% 25% 23% 4% A12. Thinking of the last time in the past 12 months a client’s campaign included promotional products, did the use of promotional products result in any of the following? B5. Has the use of promotional products at your company resulted in any of the following? 44% 28% 22% 18% 19% 12% 5%
  21. 21. Promotional Products Campaign Usage Diagnostics The majority of Agencies and Advertisers would recommend using promotional products and many believe they contributed to the campaigns’ success However, only a third measured the response to the campaigns or included some form of tracking mechanism Total (n=242) Agency (n=95) Advertiser (n=147) Page 21 87% 78% 37% 38% A11/B11. Thinking of the last time in the past 12 months [a client’s campaign/your company did a marketing/advertising campaign that] included promotional products, please answer the following questions. 88% 73% 35% 33% Would recommend as part of future campaigns Contributed to success of advertising/branding campaign Products included tracking mechanism, website, phone number or QR code Response was measured 89% 70% 34% 31%
  22. 22. Most Effective Promotional Products Used in Past 12 Months Apparel is considered one of the most effective promotional products categories Agency Page 22 A10/B10. List the top three most effective promotional products used in the last 12 months [on behalf of your clients/at your company]? Writing instruments are also considered very effective by Advertisers Advertiser
  23. 23. Promotional Products Page 23 Promotional Products & Media
  24. 24. Campaign vs. Stand Alone Usage Combining the use of both types of campaigns, about 7 in 10 have used promotional products in stand alone campaigns, and 6 in 10 have included them as part of advertising campaigns Total (n=242) Agency (n=95) Advertiser (n=147) Page 24 A13/B12. Thinking of the last time in the past 12 months [a client’s campaign included/when your company purchased] promotional products, were the promotional products used as part of an advertising or marketing campaign or a standalone campaign? (n=242) (n=95) (n=147) 37%37% 25%25% 35%35% 3%3% 36%36% 29%29% 34%34% 1%1% Stand alone Campaign Both Other 37%37% 22%22% 37%37% 4%4%
  25. 25. 32% 25% 22% 22% 33% 22% 22% 21% Exhibits/trade shows Print Social media Email 34% 19% 21% 20% Media Used in Conjunction With Promotional products were often used in exhibits/trade shows, followed by print and social media They are less often used in combination with mass media such as Radio, Outdoor and TV Total (n=241) Agency (n=95) Advertiser (n=146) Page 25 22% 21% 15% 19% 13% 13% 13% 13% 7% 7% 7% 4% 3% 1% 20% 19% 19% 15% 15% 14% 11% 11% 10% 6% 5% 4% 4% 1% Experiential/special events… Internet advertising Promotions Direct mail Product samples Contests/sweepstakes Gifts with purchase Point of purchase Product placement/sponsorship Radio Outdoor TV Mobile advertising Other 19% 17% 21% 12% 16% 14% 10% 10% 12% 6% 3% 3% 4% 1% A14/B13. What media were promotional products used in conjunction with?
  26. 26. Promotional Products Campaign Setup Most Agencies and Advertisers customized or imprinted the products included in campaigns using promotional products Half of promotional products were mailed to specific vertical markets Page 26 91% 59% Total (n=242) Agency (n=95) Advertiser (n=147) 94% 55% Products were customized or imprinted Were mailed to specific vertical market 96% 52% A11/B11. Thinking of the last time in the past 12 months [a client’s campaign/your company did a marketing/advertising campaign that] included promotional products, please answer the following questions.
  27. 27. Page 27 Demographics
  28. 28. Who We Talked To Total Agency Advertiser (n=400) (n=222) (n=178) % % % Page 28 % % % Gender Male 53 46 62 Female 47 54 38 Age Under 35 14 9 17 35-44 14 16 13 45-54 27 29 26 55-64 33 34 31 65+ 12 12 13 Agency 56% Advertiser 44% S1. Are you…? S2. What is your age group? S4. How would you describe your company?
  29. 29. Where They Work Most Agency Advertiser Clients Are… (n=222) Sector (n=178) % % Business Sector/ Industry Healthcare 28 7 Manufacturing or construction 19 25 Financial services 18 6 Automotive & transportation 17 4 Retail 15 3 Technology 15 7 Food & beverage 14 4 Industrial 14 5 Government 12 0 Page 29 S3. In what business sector/industry is your organization? A1. In what business sector/industry are most of your clients? Government 12 0 Consumer products 11 5 Education 11 3 Travel & hospitality 10 2 Pharmaceutical & healthcare 9 2 Telecommunications 9 1 Restaurants 8 1 Associations, institutions, unions, non-profit, etc. 7 1 Consumer electronics 7 1 Food processing & agriculture 7 1 Groceries & food retailers 7 0 Recreation 7 0 Apparel wear & shoes 6 1 Hardware & construction 6 2 Real estate 6 0 Consulting 4 2 Tobacco products & supplies 2 0 Housewares & appliances 0 1 Marketing & advertising 0 2 Media 0 1 Pharmaceutical 0 3 Other 19 12
  30. 30. What They Do Total Agency Advertiser (n=400) (n=222) (n=178) % % % Job Function Sales manager/director 32 23 43 Account/client services manager/director 5 8 2 Account supervisor/manager/director/executive 5 8 2 Marketing manager/director/VP 5 3 7 Media director 4 7 0 Media planner 4 6 1 Sales promotion manager/director 4 3 4 Page 30 S5. What is your job function? Sales promotion manager/director 4 3 4 Marketing communications manager 4 2 6 Event planning manager/director 3 2 3 Brand/product manager/director 3 1 6 Chief creative officer/creative director 2 4 0 Communications/corp. communications manager/director/officer 2 3 1 Production manager 1 1 2 Art director 1 1 1 Chief marketing officer 1 1 1 Direct marketing/direct response manager/director 1 1 1 Planner 1 1 1 Social media/digital/interactive marketing manager/director 1 1 1 Account planner/senior account planner/planning director 1 1 0 Media buyer 1 1 0 Print production manager/director 1 1 0 Public relations manager/director 1 1 0 Media account director 0 1 0 Account executive public relations 0 0 1 Other 20 20 20
  31. 31. Their Company Financials Agency Advertiser (n=222) (n=178) Page 31 S6. What is your company revenue? S7. What are your agency billings? (n=222) (n=178) % % Agency Billings Company Revenue Under $250K 6 $10M < $20M 20 $250K < $500K 3 $20M < $50M 26 $500K < $1M 3 $50M or more 54 $1M < $5M 15 $5M < $10M 12 $10M < $20M 15 $20M < $50M 17 $50M or more 29

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