The Advertising Specialty Institute (ASI) recently announced 2014 sales of promotional products are on track to once again beat spending on mobile, radio and newspaper advertising.
Research firm eMarketer estimates that spending on mobile advertising on smartphones and tablets will hit nearly $18 billion in 2014, followed by newspapers at nearly $17 billion and radio at $15.5 billion. The advertising specialty industry, which hit sales of $20.5 billion in 2013, already experienced year-over-year growth of about 6% during the first half of 2014.
For 18 consecutive quarters, both suppliers and distributors have reported increasingly bigger sales. Revenues jumped an average of 5.1% for suppliers and 6.1% for distributors in the second quarter of 2014, when compared with the second quarter of 2013, according to ASI research reports.
Further, distributors are bullish about their prospects for 2014, with two-thirds expecting an increase in sales over 2013 as of July, according to ASI analysis. Larger revenue distributors are even more positive than smaller revenue distributors, with nearly three-quarters expecting an increase.
According to the eMarketer report, total media ad spending in the U.S. this year will see its largest increase in a decade, with total ad investments jumping 5.3% to reach over $180 billion, achieving 5% growth for the first time since 2004, when ad spending increased 6.7%.
"Low-cost, high-impact promotional products continue to attract major marketing dollars from businesses who want to spread the word about their brand, company or event because they allow even small companies to achieve as high an ROI as major corporations," said Timothy M. Andrews, president and chief executive officer of ASI. "Further, end-buyers consistently remember the advertisers on logoed items and feel good about the brands on promo products they use day in and day out. How many people say that about TV commercials or pop-up ads?"
At about half a penny, promotional products have a lower cost-per-impression (CPI) in the U.S. than prime-time TV and national magazine and newspaper ads, according to ASI's 2014 Global Advertising Specialties Impressions Study, a cost analysis of promotional products vs. other advertising media.
ASI's groundbreaking global research also shows that promotional products deliver commanding advertiser recall among 85% of consumers surveyed. The superior advertiser recall far exceeds other advertising and marketing alternatives.