ppai

1. Buyer Insights: Ad Agencies & Advertisers
A study of their buying habits, preferences & level of satisfaction with promotional products
Prepared by
April 2014

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. 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. 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. 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. 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. Page 7
Buying Process

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. 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. 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. 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. Investment in
Page 12
Investment in
Promotional Products

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. 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. 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. 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. Promotional Products
Page 17
Promotional Products
Effectiveness

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. 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. 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. 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. 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. Promotional Products
Page 23
Promotional Products
& Media

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. 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. 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. Page 27
Demographics

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. 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. 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. 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