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Wednesday
November 9, 2011

Obama Attacks Fed Promo Product Spend

Filed under: Community, News About ASI

As you may have already seen, President Obama has announced a mandate to cut 20% from federal agency spending on “plaques, clothing, and other unnecessary promotional items.” The cuts are designed to trim the government’s “wasteful spending.”

We are undertaking an aggressive PR campaign to immediately educate the media and others to help the general public, as well as political leaders, understand the importance of our industry: job creation, promotional products’ incredible ROI and why our industry’s output and value shouldn’t be called “wasteful spending.”

We’re calling on everyone to reach out to their senators and congressmen – they need to hear from each of us, collectively and individually. I am sending a letter directly to President Obama. Below are talking points you might consider in a letter to the editor of your local paper and to your senator or your representative.

  • The promo products industry helps create jobs. The industry employs nearly 500,000 people throughout North America and includes thousands of small and women- and minority-owned businesses.
  •  Promotional products, which cost just half a penny per impression, beat out prime-time TV, radio and print advertising as the most cost-effective advertising medium available, meaning even smaller companies can pack the advertising punch of multimillion-dollar companies. ASI studies show 83% of ad specialty recipients in the U.S. say they can identify the advertiser on a promotional item they own.
  •  As more companies shift to lower-cost advertising like promo products, it’s helping the industry bounce back. A recent ASI Q3 industry survey found sales rose for the 7th straight quarter.
  •  Promo products save taxpayers money. The U.S. government used promotional items as reminders to mail back the U.S. census – instead of sending government representatives door-to-door – a move that may have saved taxpayers up to $85 million. The ensuing response rate surpassed that of the 2000 census.
  •  Obama himself knows promo products work – he relied heavily on them to get elected in 2008, and his reelection website today offers everything from logoed T-shirts to leather bracelets, bumper stickers, buttons and beyond.

You can find your senators here. Click here to find and write your U.S. representative.

We’ll provide additional information and guidance in coming days as we continue to learn more and evaluate ways to effectively respond.

Let me know what action you’re taking and if you have any other suggestions by posting a comment or e-mailing me here.

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Wednesday
November 9, 2011

What Do End-Users Really Want?

Filed under: Industry Initiatives, News About ASI, Research, Using Ad Specialties

This week, ASI released its latest study, which addresses the key question, “Are you delivering what end-users really want?” The answer may surprise you.

In the first industry study to tell suppliers and distributors if they’re delivering the right products, ASI documents the discrepancies in attitudes and opinions between buyers, sellers and end-users of the products fueling our $17 billion industry.

“Defining the Disconnect: An Analysis of Channel Beliefs vs. Customer Needs in the Advertising Specialty Industry” lays out a plain case for paying attention to customers’ wants and needs. At the same time, it points the way to new selling opportunities.

Significant findings of the study show:

  • Three-quarters of distributors and suppliers feel consumer-branded items are important for promo products, but just 32.3% of end-users and 41.3% of end-buyers agree, suggesting a major disconnect between their beliefs and those of industry members.
  • Contrary to what many suppliers and distributors think, end-users would take a survey (82.5%), go to a trade show booth (70.6%), take action on a social networking site (41.8%) or buy a gift with purchase (33.2%) to get freebies.
  • Newer forms of decoration, such as appliqué and garment printing, are much more popular among end-users than distributors think, presenting potential new sales opportunities for distributors and suppliers.

For a downloadable PDF of the study, click here. I suggest reading it in its entirety – and letting its findings help you improve the way you think about your products. It may help you boost your bottom line. To read our press release, click here. I encourage you to share the results any way you can: tweet about it, post the link on Facebook, email it to everyone in your company.

The study — authored by our executive director of research, Larry Basinait —  compares opinions about ad specialty preferences and usage patterns from suppliers through to end-users. The study also examines overall opinions about ad specialties as well as specific product types: shirts, caps/headwear, bags/totes, writing instruments, mugs/glasses, desk/office/business accessories and calendars.

Some key study takeaways include:

  • Suppliers with consumer brands should emphasize product quality over brand name. For suppliers without consumer brands, messaging to distributors can be more about product parity and lack of end-user and end-buyer interest in many branded items.
  • Distributors should showcase themselves as consultants, leading end-buyers to products preferred by end-users, such as students in the lucrative education market who prefer brighter colors.
  • Mugs and glassware items are used by end-buyers almost as much at home as at work. This means the design needs to withstand long-term use in an environment where decoration and style are key.

Please let me know what you think by posting a comment or e-mailing me here. I’m also on Twitter, LinkedIn and YouTube.