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Cost-Effectiveness of Promotional Products


Global Advertising Specialty Impressions Study, V. 4
By Larry Basinait

Advertising specialties are less expensive per impression than most other forms of media. The investment in ad specialties is modest, more targeted and more achievable for smaller businesses than other forms of advertising.

As the chart on this page illustrates, promotional products have a lower cost-per-impression in the United States than prime-time television advertising, national magazine advertising and newspaper ads, and a similar CPI to spot radio and Internet advertising.

However, a report published in October, 2012 by Forrester Research, "U.S. Online Display Ad Spend $12.7B in 2012," sheds some light on Internet advertising. It points out that CPMs are actually on the rise. The average CPM — cost per thousand impressions — for 2012 was $3.17, but by 2017 that will rise to $6.64, largely because of the shift to real-time bidding and away from portal buys where placement is not guaranteed. The rise, the analysts note, is also a supply and demand issue: marketers are competing for similar audience segments and bid density is continuing to increase.

The cost of advertising specialties are not expected to increase markedly in the next four years, making them an even better comparison to other forms of media advertising such as the Internet.

Cost-Effectiveness of Promotional Products