Marketing strategies come and go, but some stand strong through every industry shift. Promotional products are one of the oldest and most effective forms of advertising, and they continue to deliver results today.
Studies show that 90% of people remember a brand from a promotional product, and 73% are more likely to do business with that company. Despite the $1.2 trillion advertising industry, many businesses see little return on their marketing spend. With $20 billion spent annually on branded merchandise, promotional products remain a cost-effective way to boost long-term brand visibility.
So, do promotional products work? In this guide, you will find out whether promotional items truly deliver results, their return on investment (ROI), and We’ll also analyze the latest trends in promotional merchandise and provide insights on how to maximize their impact.
- Promotional products do work, with 90% of consumers remembering a brand and 73% being more likely to do business with that company.
- Branded giveaways provide long-term exposure, as 87% of recipients keep them for over a year, ensuring continued brand visibility.
- Promotional products drive engagement and referrals, generating 500% more referrals than traditional advertising while improving brand perception for 81% of customers.
Do promotional products work?
Yes, promotional products can be effective. They are cost-effective, boost brand recognition, enhance customer loyalty, and drive sales—all while being one of the most affordable forms of advertising.
According to a recent IBIS World report, even as businesses invest heavily in digital marketing, branded merchandise remains a valuable strategy for creating physical, lasting brand engagement.
Read more: How to Use Promotional Products Effectively
6 undisputed reasons promotional products work for your business
Promotional products are a proven way to boost brand visibility and connect with customers. They offer lasting impressions, encourage engagement, and drive business growth. Here are six undeniable reasons why they work.
Promotional merchandise enhances brand recognition & recall
Branded giveaways create a lasting impact by keeping a company’s logo and message in front of consumers for an extended period.
According to Promotional Products Association International (PPAI), 76.2% of recipients remember the advertiser and the message associated with the item even after two years. Unlike digital marketing, which requires constant reinvestment, promotional merchandise provides ongoing exposure without recurring costs.
Branded giveaways drive consumer engagement & sales
Offering free, high-quality products fosters a sense of reciprocity, a psychological principle that makes consumers more likely to engage with a brand that has given them something valuable.
Research shows that 52% of recipients went on to do business with the advertiser after receiving a promotional product. This method serves as a strategic way to convert potential leads into loyal customers.
Logo-printed products offer cost-effective, long-term marketing
Compared to traditional advertising methods like television commercials or print ads, promotional items deliver a lower cost per impression (CPI). The Advertising Specialty Institute (ASI) reports that 55% of recipients keep promotional products for over a year, leading to hundreds or even thousands of brand impressions without additional spending.
Promotional gifts strengthen emotional brand attachment & trust
A well-designed promotional item does more than increase brand awareness—it fosters a positive emotional connection with the recipient. Practical and high-quality branded merchandise signals trust, reliability, and goodwill, strengthening a consumer’s relationship with a business.
Branded merchandise expands brand visibility through social proof
When customers use promotional products in public settings, they inadvertently promote the brand to a wider audience. The social proof principle suggests that when people see others using a specific brand’s merchandise, they perceive the company as popular and reputable.
Promotional products outperform traditional business cards
While business cards remain a staple in networking, they are often misplaced or discarded. In contrast, branded promotional items offer greater retention and visibility. Research from MarketingSherpa reveals that 71.6% of people remember a company’s name after receiving a promotional product, compared to only 53.5% for print advertisements.
What is the ROI on promotional products for your business?
Measuring the return on investment (ROI) of promotional products reveals their true value as a marketing tool. Unlike digital ads that require ongoing spending, branded merchandise provides long-term exposure at a one-time cost. Research from the Advertising Specialty Institute (ASI) highlights that the average consumer keeps a promotional product for 8 to 16 months, ensuring prolonged brand visibility.
Beyond longevity, promotional products also deliver impressive brand impressions. On average, each branded item generates 3,400 impressions throughout its lifespan. This means a single promotional product can repeatedly showcase your brand without any additional investment.
For comparison, the average cost per thousand impressions (CPM) for online advertising was $6.37 in 2021. Instead of paying for fleeting digital ads, businesses can spend just a few dollars on a custom t-shirt, tote bag, or water bottle that continues to promote their brand for over a year at no extra cost.
More compelling stats on promotional products
These statistics are compiled from various industry research studies conducted by organizations such as the Promotional Products Association International (PPAI), the British Promotional Merchandise Association (BPMA), and Marketing Sherpa. Some data comes from company-led surveys and larger market research reports.)
- The U.S. promotional products industry is projected to reach $27.8 billion in annual revenue by 2025.
- The industry has maintained an average 2.8% annual growth rate over the past decade.
- Revenue rebounded from $19.6 billion in 2020 to $26.1 billion in 2023.
- 90% of consumers remember a brand after receiving a promotional product.
- 80% recall the brand’s message associated with the product.
- 85% of recipients remember brands on promotional apparel.
- 87% of people keep promotional products for over a year.
- 40% retain them for more than 10 years.
- 63% pass on promotional products they don’t need, extending brand exposure.
- Promotional products generate 500% more referrals than traditional advertising.
- 73% of consumers are more likely to purchase from a brand that provides a promotional product.
- 81% say their perception of a company improves after receiving a branded giveaway.
- 99% of consumers are willing to go out of their way to receive a promotional product.
- Promotional mugs generate 57% advertiser recall, compared to 28% for TV commercials.
- 96% of consumers prefer knowing in advance if a company is offering promotional products.
- 83% of customers remain loyal to brands that offer promotional giveaways.
- 46% of consumers prefer eco-friendly promotional products.
- 37% of Gen Z consumers consider climate change their top personal concern.
- 52.3% of consumers pick up promotional products from in-store displays, while 37.4% receive them at social events.
Promotional products work
Promotional products have stood the test of time as a powerful marketing tool. While advertising trends shift, branded merchandise continues to deliver strong results, making a lasting impression on consumers. Research consistently shows high brand recall, increased customer loyalty, and greater purchasing intent among recipients of promotional items.
With businesses investing billions annually in branded giveaways, it’s clear that promotional products remain a cost-effective and impactful way to enhance brand visibility and engagement.
