Media Contact: Tina Filipski
972-258-3084
TinaF@ppa.org

FOR IMMEDIATE RELEASE

PROMOTIONAL PRODUCTS SALES TOP THE $18 BILLION MARK
While Traditional Advertising Media Dips, Promotional Advertising Rises To A Record High

Irving, Texas (April 25, 2006) A recent study conducted exclusively for Promotional Products Association International (PPAI) confirms that estimated sales of promotional products in 2005 increased 4.06 percent to $18,013,763,752, the largest sales figure in the history of the industry.

The study was conducted exclusively for PPAI by Richard A. Nelson, Ph.D., at the Manship School of Mass Communication at Louisiana State University and Rick Ebel, principal of Glenrich Business Studies in Corvallis, Oregon.

“Since 2000 the industry has rebounded significantly in step with the general economy,” says Steve Slagle, CAE, president/CEO for PPAI. “In 2000, industry sales were recorded at about $17.8 billion, the highest ever at that point, and our 2005 sales volume has topped that mark, signaling a healthy and growing industry. PPAI will continue its efforts to educate and motivate end buyers to consider promotional products as an integral advertising medium and a preferred choice for buyers making smart decisions about how to spend their promotional and advertising dollars.”

In comparison with traditional advertising media, sales of promotional products grew 4.06 percent in 2005 while other major mass media advertising is reported down or flat. Broadcast TV advertising* is down 2.4 percent and local TV advertising* is down 8.8 percent while newspaper advertising** is up only 1.5 percent.

Even more impressive is that at more than $18 billion, promotional products sales have surpassed local radio advertising*** ($15.6 billion), internet advertising+ ($12.5 billion), Yellow Pages advertising++ ($15.9 billion) and outdoor advertising+++ ($6.3 billion).

According to PPAI, promotional products include useful or decorative articles of merchandise that are used in marketing and communication programs. The items are usually imprinted with a company’s name, logo or message. Promotional products that are distributed free are called advertising specialties; imprinted items given as an incentive for a specific action are known as premiums. In addition, business gifts, awards and commemoratives are also considered promotional products.

Study Shows Increase In Promotional Consultant Companies

“I think it’s appropriate to break out the champagne,” says researcher Ebel. “In 2005, business overall was buoyant, and the industry recovered all the lost ground and then some from the recession. However, we might temper our jubilation somewhat because the rising river didn’t float all the boats. As in other industries, some promotional consultant companies continued to struggle. When we analyze our data, we may find that some specific categories, possibly by company size or service capability, are encountering impediments they couldn’t surmount. It’s all the more reason for using these statistics, making comparisons and asking why.”

In addition to the increase in annual sales, the study also showed that the number of small promotional consultant (formerly called distributor) companies—those with annual sales less than $2.5 million—grew from 20,249 to 20,350. Likewise, the number of companies with sales of $2.5 million or more also increased from 919 to 947. This puts the estimated number of promotional consultant companies in the industry at 21,297.

Larger promotional consultant companies with sales $2.5 million or more enjoyed a 7.66-percent increase in sales over 2004. Conversely, the smaller companies saw an increase of 1.02 percent over the previous year.

PPAI – The Industry’s Source For Comprehensive, Objective Industry Sales Research

PPAI’s annual report is the most comprehensive study of its kind in the industry and is conducted by independent researchers based on actual sales reported by promotional consultant companies. PPAI has researched and released industry sales data since 1965. Its figures are considered the most definitive and unbiased in the industry, employing time-tested research methodology and utilizing an objective outside source to conduct the research and compile the statistics.

To gather the data for the PPAI annual sales volume estimate, a survey was sent to a sample of 15,500 promotional consultant companies (PPAI members and nonmembers), drawing from an estimated total number of 21,297 firms. The lists are compiled from PPAI and UPIC (Universal Promotional Identification Code) databases as well as from four other industry organizations/firms. Promotional consultant companies were asked to report their promotional products sales for the 12-month calendar year ending December 31, 2005.

Companies are divided into two groups—those with sales of $2.5 million or more and those with sales less than $2.5 million. Because some companies have such a large volume of business and an omission of their numbers could distort the overall statistics, a census was conducted of all companies doing $2.5 million or more in promotional products sales. For smaller companies, a random sample of 12,500 firms was surveyed. Responses by mail, web, fax and phone produced 2,627 usable reports, for a response rate of 16.95 percent—highest in recent years. 

Click the link below for charts, graphs and statistics detailing various segments of the study, along with a look at sales trend information compiled by PPAI since 1991.

/NR/rdonlyres/8A3B98B5-F305-46BD-9985-56A0A9A325EB/0/2005SalesVolume.pdf

If you have questions or would like additional information about promotional products or PPAI, contact PPAI at 972-258-3084, e-mail TinaF@ppa.org or visit the PPAI website (www.ppa.org) for detailed statistics, research and case studies about the power of promotional products.

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PPAI—the promotional product industry’s only international not-for-profit trade association—offers education, mentoring, public relations, technology, tradeshows and legislative support to its more than 7,000 global member companies. PPAI created and maintains the UPIC (Universal Promotional Identification Code), the industry's only free identification system and universal company database.

*TNS Media Intelligence, ** Business Analysis and Research, Newspaper Association of America, ***Radio Advertising Bureau, ++Internet Advertising Bureau and PricewaterhouseCoopers, ++Simba Information, +++Outdoor Advertising Association of America.