What a Year | Ad Specialties Top $18.6 Billion in 2006 - Up 4.5%

Wednesday March 14, 2007 | Filed under: Industry Initiatives, News About ASI

Wow. This was quite a year for advertising specialties! (And I’m not usually one for hyperbole, or exclamation points, as my staff knows.)

ASI just released the results of its annual industry sales analysis, indicating revenues topped $18.6 billion in 2006 - up 4.5 percent from 2005 and a new record. Congratulations to everyone!

What this means is that spending on advertising specialties was almost twice as large as Internet display advertising, nearly five times greater than outdoor advertising and more than cable TV advertising* for the same period, even outpacing the 3.4% growth rate for the United States GDP. Impressive, by any measure.

This exclusive annual analysis, conducted by ASI, shows that 2006 growth was driven by a healthy economy in North America and increased interest from businesses using advertising specialties as an alternative to other forms of advertising and as an integral part of their marketing campaigns.

The ASI analysis also indicates a new record, with steady increases in sales over the last four years and points to the excellent health of the industry.

I believe businesses are recognizing that ad specialties have a lasting impact in the minds of recipients, have very reasonable costs-per-impression and provide a positive return on investment for marketers.

Also, the sales growth reflects, in part, the traditional ad specialty industry embracing new distributors, especially those from adjacent, complementary markets - such as printing and signs - that are seeking to expand their level of ad specialty sales.

Many of these distributors have now qualified to become part of the ASI distributor network, allowing them to access some of the $1.3 million in educational opportunities ASI provides each year that make them more knowledgeable and giving them the chance to attend five ASI Shows.

Importantly, by helping these distributors join the industry, ASI reinforces to them the value of sourcing products through the 3,400 ASI suppliers in the network, helping to drive revenue for suppliers.

In 2006, the number of ASI distributors rose to 20,000, up six percent from the end of 2005, and the number of franchise members increased to more than 1,500.

Outlook

Looking ahead, I think we’re all optimistic about 2007, but we need to keep a close eye on several factors that are impacting our industry:

1) Volatility of prices for natural resources used in manufacturing products, such as oil for plastics.

2) Availability of competitive information accessible via the Internet.

3) Emergence of both India and China as more stable manufacturers of high-quality products.

There’s more information in our media release - click here to read it.

If there’s anything ASI can do to help your business, please let me know anytime. My e-mail address is tim.andrews@asicentral.com.

Warm regards,

TA