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Promotional Products Provide Cost-Effective Advertising Solution During Economic Downturn
Added: (Thu Oct 08 2009)
Atlanta, GA – October 8, 2009 – Although the economic recession has taken its toll across the global business and advertising arenas, one of the most successful companies in the promotional products industry, Pinnacle Promotions, Inc., is still seeing profitable returns.
While many assume than an industry constituting the use of “giveaway” products would fall victim to the turbulent economic times, sales are showing that the use of promotional products has maintained its place as a profitable advertising strategy over other methods as more companies begin to understand their value. In fact, a recent study conducted by the Advertising Specialty Institute showed that promotional products have an average cost-per-impression of $0.004, as opposed to $0.033 and $0.019 for print and TV advertising respectively. The reason for this lies in the amount of exposure a promotional product can garner for its advertiser. For example, on average, a promotional bag can provide 1,038 exposures per month!
Heather Peterson, Marketing Manager at Pinnacle, agrees with the low cost/ high impression value of marketing with promotional products. According to Mrs. Peterson, “People are still using promotional products in a recession because compared to more costly traditional alternatives such as print and television advertising, it is one of the most inexpensive ways to continue to create brand awareness and maximize your marketing investment.”
While the total profit margins of the promotional products industry have shown a slight decrease, they are not nearly as significant as the decline in other avenues of advertising. In a recent article published in The Economist titled “The recession in advertising: Nothing to Shout About,” it is reported that spending on advertising in magazines is projected to experience a decrease of 18.3%, radio advertising is expected to fall by 21.8% and newspaper advertising by 26.5%. As consumer spending typically declines in a recession, many companies believe that should save money by cutting their advertising budgets in these harsh economic times. However, a recession is a time to continue advertising, and by doing so with the use of promotional products, one is more likely to maintain and build their customer base by increasing customer loyalty and by attracting customers from competitors.
About Pinnacle Promotions, Inc.
Since 1994, the world's leading companies have trusted Pinnacle Promotions to provide them with customized solutions for their marketing and branding needs. The company’s agency approach to promotional marketing makes consumers’ jobs easier and provides them with an unprecedented array of exclusive services. With dedicated Account Teams and innovative technology, Pinnacle Promotions delivers new and unique promotional products faster than ever thought possible and with the quality expected from an industry leader. Please call 800.351.4226 for additional information.