PPAI Report Shows Distributor Sales Reached $18.5 Billion in 2012
Promotional Products Association International (PPAI) has released its annual sales volume study for 2012, reporting U.S. promotional products industry revenues of $18.5 billion, up from $17.7 billion in 2011, an increase of 4.38 percent. Last year saw increases in revenue for both large and small distributor companies. Larger companies with sales of $2.5 million or more experienced a 7.88 percent increase over 2011, while smaller companies saw an increase of 1.06 percent.
"Our industry's 2012 annual results reflect three consecutive years of solid growth culminating in industry revenues that now exceed pre-recession sales," said Paul Bellantone, CAE, president and chief executive officer of PPAI. "We are encouraged by the continued growth and our strong position in the advertising industry arena."
Promotional products maintain a firm foothold as a top advertising medium among traditional and digital media-ranking eighth in growth and revenue out of 14 competitive media. Media buyers, advertisers and marketers, now more than ever, look to promotional products to deliver the highest rate of reach, recall and return on investment in the advertising industry, as the most cost-effective way to impact a targeted audience in a tangible, long-lasting and memorable manner. In fact, eight in 10 consumers own between one and 10 promotional products, six in 10 keep them for up to two years, and 53 percent use them at least once a week or more often.
PPAI ANNUAL SALES VOLUME STUDY INSIGHTS
The annual Promotional Products Association International study provides industry stakeholders with reliable and accurate information about a variety of promotional products and their uses, and serves as a guide for distributors and suppliers to meet the needs of buyers.
The wearables category, including T-shirts, golf shirts, aprons, uniforms, blazers, caps, headbands, jackets, neckwear, footwear and other items continues to dominate the rankings with a 28.9 percent of sales, down slightly from 29.64 percent in 2011. Bags and writing instruments exchange the number two and three spots with 8.73 and 8.63 percent of sales, respectively.
New this year are health and safety products, entering in ninth place with 2.62 percent of sales, and gift cards debuted at .62 percent.
Rising in the ranks are food gifts, gaining six places to take over the 13th spot, including candy, cookies, nuts, gourmet, meat, spices, bottled water and other drinks, and breaking into the top 10 are textiles at 2.48 percent of sales including flags, towels, umbrellas, pennants, throws and blankets.
Other emerging categories to watch are personal pocket-purse products which gained four places moving up to number 14 and buttons, badges and ribbons rising four places to number 16.
2012 Product Category Ranking (% Sales; +/- Last Year's Ranking)
1. Wearables (28.9; flat)
2. Bags (8.73; up 1)
3. Writing Instruments (8.63; down 1)
4. Drinkware (7.09; up 1)
5. Desk/Office/Business Accessories (4.35; up 1)
6. Recognition Awards/Trophies/Jewelry (4.12; up 3)
7. Computer Products & Accessories (3.87; flat)
8. Calendars/Dated Products (3.59; down 4)
9. Health & Safety Products (2.62; New)
10. Textiles (2.48; up 5)
11. Housewares/Tools (2.34; down 1)
12. Electronic Devices & Accessories (2.21; down 4)
13. Food Gifts (1.99; up 6)
14. Personal/Pocket-Purse Products (1.86; up 4)
15. Magnets (1.8; down 3)
16. Buttons/Badges/Ribbons (1.69; up 4)
17. Stickers & Decals (1.68; down 3)
18. Sporting Goods/Leisure/Travel Accessories (1.63; down 7)
19. Games/Toys/Playing Cards/Inflatables (1.34; down 2)
20. Automotive Accessories (1.33; down 4)
21. Clocks & Watches (.95; flat)
22. Gift Cards (.62; New)
23. Other (6.17)
*Note - Weight for 2012: 50.38 percent for companies with $2.5 million or more in sales and 49.62 percent for companies with less than $2.5 million in sales.
2012 Program Category Ranking (% Sales)
1. Business Gifts (10.8)
2. Brand Awareness (8.83)
3. Trade Shows (8.08)
4. Employee Relations & Events (7.72)
5. Not-For-Profit/Cause Marketing (5.6)
6. Dealer/Distributor Programs (5.43)
7. Internal Promotions (5.22)
8. Public Relations (5.06)
9. New Customer/Account Generation (4.92)
10. Employee Service Awards (4.59)
11. New Product/Service Introduction (3.71)
12. Safety Education (3.13)
13. Customer Referral (1.99)
14. Marketing Research (1.06)
15. Other (23.87)
The latest advertising industry expenditures illustrate overall recovery and growth among traditional and digital media. The promotional products industry maintained its rank in the top 10, ranking eight out of the 14 competitive media.