Measuring the ROI of Promotional Products

Have you ever considered measuring the ROI of Promotional Products?

As a modern-day marketer, we are trained to question & measure the return on all marketing activities. I was recently asked by a fellow marketer how would I measure or rate promotional products against other forms of marketing techniques?

It was a fair question but it surprised me nonetheless, so I decided to build an experimental promotional marketing campaign while bringing the focus to ROI.

For the sake of this campaign, let’s say you want to measure the return on promotional materials to be used as giveaways for an event.

ROI of Promotional Giveaways for Events

Let’s assume that the event is expected to receive 1000 participants and out of those you can reasonably estimate that 40% of the participants are your targeted audience.

In other words, you are basically looking at running a promotional marketing campaign for 400 participants at the cost of 1000 participants, since you can’t find out which participant is your targeted audience by simply looking at them.

Cost-Benefit Analysis

A popular event promotional giveaway, such as a custom keychain typically costs under $1 per piece. You will need 1000 keychains for all the participants in this particular campaign. So, your total estimated cost for this campaign would be $1000 (1000 keychains @ roughly $1 each + setup costs).

In other words, your direct cost of promotional marketing campaign would be: $1000 per 400 participants or $2.5 per participant (as you will end up wasting the remaining $600 worth of giveaways to the non-targeted audience)

The MATH behind the ROI of Reach

According to a research done by PPAI, an average promotional item kept over a year is seen by at least 2.5 additional targeted audiences by means of their original recipient. This is called as reach amplification, where your promotional product is exposed to other people intentionally or as a by-product of use.

In other words, if 400 participants used their promotional items for over a year, they will expose your brand name to 1000 more targeted audience. Simple speaking, by spending $1000 you managed to expose your brand name to at least 1400 targeted audience over the course of a year.

Therefore, the Cost per Impression (CPI) is $0.71 per targeted audience.

Now if you can just factor in your company conversion rates, it will give you a good idea on the ROI of this particular campaign.

FEW KEY TAKEAWAYS

Context of Use

The performance of a promotional item can be greatly affected by the context in which it is used. For example, a real estate agent giving away promotional keychains to his prospective clients can see an even better ROI as there will be very little waste.

Brand Resonance or Product Choice

It is vital to choose the right promotional product that connects with your brand & messaging. Just because a promotional product is exciting, it doesn’t mean it will necessarily drive home the intended message. You will need to find promotional products that resonate with your audience and carry your message through brand association.

For example, a moving company would benefit from giving away branded measuring tapes, a repair company may benefit from giving away branded repair tools and so on.

How Promotional Products Can Prove to Be a Good Marketing Strategy?

We all know the importance of advertising in the business industry. Promotional products are the best tools for advertisement if they are picked and used correctly. Their function is to inform, persuade, and influence the decision of a large number of audiences. For these reasons, they are the most powerful and cost-efficient way of advertising and branding your company. They are used by companies for various purposes like expanding their market, maintaining their current positions, and to present corporate viewpoints on public issues.

Although everyone loves freebies, giving away promotional gifts does not always guarantee a successful campaign and there is no exact single formula for it. There are, however, different strategies to be considered. One has to choose an approach and qualify/right-fit the promo product for each marketing event or type of business.

Lets discuss how promotional products are a good marketing strategy:

Promotional products are the most effective way to introduce your company to a large target market. It has a very low CPI (Cost-Per-Impression) and it relates your brand to the person carrying the product — The more people carrying your brand, the more “promoters” you have. These promoters are also significant in reaching out to your target market and convert would be detractors.

Promotional objectives are based on the principle of ‘Give and so shall you receive’. These items inform, convince and motivate the customers to buy. To be honest, I myself has been motivated by a GWP promotion (gift with purchase) as it adds value to my usual purchase. — Giving a Promotional item is an act of generosity that leaves a long lasting impression in the minds of the receivers.

They are a sincere way of showing your appreciation and gratitude to your clients and employees which results in building a stronger relationship between the giver and the receivers. Your reputation as a business and as an employer will get an extra boost.

When useful items are being given away, these items will help stamp your brand name in the minds of the recipients. They will be frequently in front of the customers’ eyes and they will remember your business every time the item is used. With this, other people will also come to know about your brand.

Every company has known the benefits of promotional products for their growth. They help in building a healthy business and provide an advantage over other competitors. They are also the only marketing strategy where people are appreciative of your advertising effort.

This article would like to make an additional important assertion. It is very important to choose a good promotional product supplier in order to be successful with your strategy. No matter how good your plans and ideas are or how smart you choose the product, you will need a good distributor that ensures quality product supply, prompt and safe delivery, marketing support, etc. APD Promotions is one such brand that takes your business to global level and assists you to establish yourself.

Reasons To Convince You Why You Should Opt For Promotional Products

There are many types of marketing ideas that you can use to promote your business and brand but if you are looking for an effective marketing strategy, then you should opt for promotional items. There are many reasons why you should use promotional giveaways to make your business known to your prospect clients fast and if you are one of the many people who are still apprehensive about using this strategy, then below are the reasons that may convince you to use promotional marketing.

Promotional Giveaways Send Your Messages Clearly

You do not beat around the bush when you use promotional giveaways. What you send to your clients are messages about what your products are as well as your intentions. Thus, it is important that you use the right product that will represent your company. Consider promotional products as your marketing team and if they do not look good, then they do not represent your business well.

Promotional Giveaways Are Cost Effective

The reason why many people are apprehensive about using promo items is that these products sometimes or most of the time cost more than conventional ads on TV or on the radio. If you run a very small business, then you might justify that using promotional giveaways will take up most of your financial resources. Although this might be partially true, promotional products are very cost-effective. One promotional product, when use properly, is equivalent to two or three promotional advertisements. The reason for this is passive advertising.

Promotional Giveaways Are Effective In Passive Advertising

Many marketing specialists value passive advertising. This kind of advertising does not require you to constantly make promotional ads or use other marketing ideas. All there is to it is for you to use a promotional product embedded with your company logo and contact information. Once other people see the information written on your promo item, they will be curious enough to find out what your business is all about. Thus to make them become effective passive advertising tools, make sure that your promo items are attractive and eye catchy. Examples of promotional items that are effective in passive advertising are promo bags, coffee mugs and pens.

If you are still apprehensive about using promotional products to promote your business, then you missing out on a lot of opportunities that can help your business succeed. If anything else, now is the time to take advantage of this marketing strategy.

How Do Promotional Products Work?

Promotional products are one of the most effective tools of advertising available today. When compared to other marketing tools, promotional products give your marketing initiative a tangible angle, one that can be highly targeted towards the intended audience. More importantly, its functional value also helps ensure that it delivers a high rate of brand recall and ROI.

How do they Work?

Promotional products essentially work on one fundamental idea – that all of us like to get free things (don’t we?). It is human nature.

To this extent, brands leverage this opportunity to lure members of an audience into buying the main offering – that is, by giving them another offering for free. In addition to increasing sales, these products are also effective tools when you need to raise brand awareness.

Also, many of your promotional items can be customized for your audience. For example, it is possible to send a customized compendium, desk clock or watch out to all your high-net worth clients. Customized promotional items that suit your audience, increase the likelihood of product retention thus enhancing the chances of brand recall.

Choosing the Right Promotional Products

The key to a successful promotional product campaign is selecting the right kind of promotional product to utilize. Selecting an item at random is probably the biggest faux pas your marketing manager can make.

Not only does selecting an inappropriate item reduce the chances of your audience putting the product to use, but it also puts your brand’s reputation at risk.

Different types of promotional items to choose from are-
If your brand is established, you can consider promoting newly launched item. For example, a sample of a shampoo that you may have just added to your range.

Consider giving away a product that is related to your core business or offering. For example, key chains if you are selling cars or computer accessories if you are in IT hardware.

You may prefer to select one of the thousands of varieties of promotional items that are available. Anything from mouse pads to pens, carry bags, coasters, pedometers, inflatables and coffee sets work effectively as long as they are relevant to your core offering and your audience.

Associating yourself with a reputed promotional items vendor is a great way to make sure you give away good quality and memorable promotional products to catch the attention of desired customers on your business or brand identity.