Global Advertising Specialties Impressions Study V.4

GLOBALGLOBAL ADVERTISINGADVERTISING SPECIALTIESSPECIALTIES IMPRESSIONSIMPRESSIONS STUDY STUDYV.3 V.4 A cost analysis of promotional products versus other advertising media Released at the 2013 ASI Power Summit A PDF of this report (plus end buyer-friendly, downloadable charts) can be found at asicentral.com/study

This report may be reproduced and used in presentations by active supplier, distributor and decorator members of the Advertising Specialty Institute (ASI) to educate the public about advertising specialties. Such use must not alter the information and must set forth the following legend: “Research provided by the Advertising Specialty Institute, ©2013, All Rights Reserved.” No other use is permitted without the express written consent of ASI. GLOBAL ADVERTISING SPECIALTIES IMPRESSIONS STUDY V.4

Table of Contents

Introduction...... 3

Section One

Product Popularity...... 4 Product Spotlight: Writing Instruments...... 5 Product Spotlight: Shirts...... 6 Product Spotlight: Bags...... 7 Product Spotlight: Calendars...... 8 Product Spotlight: Desk Accessories...... 9 Product Spotlight: Caps/Headwear...... 10 Product Spotlight: Drinkware...... 11 Product Spotlight: USB Drives...... 12 Product Spotlight: Health & Safety Items...... 13 Product Spotlight: Outerwear...... 14 Staying Power...... 15 Promo Products are Passed Along — Usefulness is Key...... 16 How Many Items Do People Own? ...... 18

Section Two

Recipients’ Views on Advertisers...... 19 Swaying Opinions...... 20 Ad Specialties Generate New Business...... 21 Location of Promotional Products...... 22

Section Three

Promotional Products Make an Impression...... 23 The Cost-Effectiveness of Ad Specialties...... 25 Demographics...... 26

©2013 Advertising Specialty Institute®. All Rights Reserved. 2 he ASI Ad Impressions Study was first launched in 2006by ASI’s research team to give its members powerful data that proves ad specialties are one of T the most high-impact, cost-effective ad mediums available. Through thousands of live and online interviews with businesspeople and college students in key cities in the United States, Canada, Europe and Australia, the study gauges consumer perceptions of promotional products and how they influence buying decisions; highlights the popularity of key promo product categories by demographic group (such as age, race, sex and gender); reveals the cost-per-impression of top advertising specialty product categories; and shows the cost-per-impression of promotional products compared to other forms of advertising media, like radio, TV and Internet advertising. The study is conducted by ASI annually. Methodology ASI’s research This report contains results from the 2012 study and additional research which took place in 2013. For the 2013 phase of the study, conducted during May team polled 7,000+ through July of 2013, ASI’s research team and business partners interviewed consumers in 21 businesspeople in nine metro areas: Atlanta, Boston, Houston, Phoenix, San Francisco, Madrid, Rome, Berlin/Düsseldorf and Sydney. In Germany, ASI metro areas to partnered with PSI (Promotional Product Service Institute) to administer the prove the power surveys, while Pantheon Systems conducted the research in Sydney, Australia. Respondents in all regions were asked questions about the promotional products of promotional they had received, including how many they had, how they used them, why they products. kept them, and their impressions of the advertisers that gave them the items. Further, an online panel survey was conducted among recipients of advertising specialties in those same geographic areas to augment the sample from the man-on-the-street interviews. All respondents were at least 18 years old. Results from the 2012 ASI Ad Impressions Study have been incorporated here so that additional metro areas can be included in the analysis as well as providing a more robust view of the U.S. Last year there were 12 metro areas: New York, Chicago, Miami, Los Angeles, Seattle, Dallas, Philadelphia, London, Paris, Toronto, Vancouver and Montreal. This brings the total number of metro areas covered by the report over the two-year period to 21, eight of which took place outside of the U.S. There are responses from eight different countries in the report. The total combined number of interviews, both in person and online, for both waves of this study is 7,145. How This Report is Organized This report contains three sections: • “ Product Popularity” (Pages 4 to 18) highlights the most popular promotional products by category, and includes detailed demographic breakdowns by geography, gender, race, age, income and political affiliation. For example, on the “Product Spotlight: Writing Instruments” section on page 5, you’ll note that women are significantly more likely than men to own a logoed pen or pencil, and over one-half of Caucasians own branded writing instruments. This section will be a helpful tool for distributors to use in guiding their clients toward products that will be the most impactful in their marketing efforts. • “Recipients’ Views on Advertisers” (Pages 19 to 22) reveals important information showcasing how long businesspeople hold onto logoed items; what they do with items they don’t wish to keep; and how many total promotional items they own, broken out by a variety of demographic groups. This section provides hard data to combat objections from buyers who may think that promotional items are “throwaways” or “afterthoughts” in a marketing campaign, and may not understand their true value. • “Promo Products Make an Impression” (Pages 23 to 25) highlights the industry products that deliver the best cost-per-impression and compares the cost-per-impression of ad specialties to other forms of media, like Internet and radio advertising. This is a great tool distributors can use to convince end-buyers to allocate more of their marketing dollars to promotional products. While this report includes the study’s highlights, ASI members can go online at www.asicentral.com/study for a research tool that will allow them to gain access to the full study data. Note: All demographic breakdowns (age, race, gender, etc.) reflect U.S. consumers only. Respondents from other countries are represented in aggregate.

©2013 Advertising Specialty Institute®. All Rights Reserved. 3 Section One Product Popularity Key Takeaways For this section, respondents were asked to provide up to three promotional items they had received in the last 12 months. Promotional items were defined as items that include pens, T-shirts, mugs, calendars or any items that have a logo or message from an advertiser on them; they are usually given away for free to consumers in hopes of positively influencing their purchasing preferences or their attitudes toward the advertiser.

As the chart below reveals, writing instruments were most commonly cited, as one-half (50%) of promotional product recipients in the 12 cities in the U.S. reported getting at least one in the prior 12 months, similar to the 52% that reported getting them in Sydney. There are also significant differences in cities in other countries, such as 53% of study respondents in Rome who received a shirt, higher than any other metro area, or 66% that had writing instruments in Philadelphia.

WRITING INSTRUMENTS 48% SHIRTS 36% BAGS 25% CALENDARS 25% DESK/OFFICE ACCESSORIES 16%

CANADA CAPS/HEADWEAR 21% WRITING INSTRUMENTS 52% DRINKWARE 13% SHIRTS 35% USB DRIVES/FLASH DRIVES 12% BAGS 31% WRITING INSTRUMENTS 56% HEALTH & SAFETY PRODUCTS 11% CALENDARS 31% SHIRTS 34% OUTERWEAR 16% DESK/OFFICE ACCESSORIES 34% BAGS 23% SYDNEY CAPS/HEADWEAR 32% CALENDARS 25% DRINKWARE 15% DESK/OFFICE ACCESSORIES 17% USB DRIVES/FLASH DRIVES 25% LONDON WRITING INSTRUMENTS 50% CAPS/HEADWEAR 10% HEALTH & SAFETY PRODUCTS 13% DRINKWARE SHIRTS 44% 20% OUTERWEAR 9% USB DRIVES/FLASH DRIVES5.8 16% USA BAGS 31% HEALTH & SAFETY PRODUCTS 6% CALENDARS 22% OUTERWEAR 6% DESK/OFFICE ACCESSORIES 22% CAPS/HEADWEAR 19% DRINKWARE 21% ★ USB DRIVES/FLASH DRIVES 11% HEALTH & SAFETY PRODUCTS 9% ★ ★ OUTERWEAR 10% ★ ★ ★ ★

WRITING INSTRUMENTS 46% SHIRTS 43% BAGS 24% CALENDARS 21% PARIS DESK/OFFICE ACCESSORIES 12% CAPS/HEADWEAR 10% DRINKWARE 9% USB DRIVES/FLASH DRIVES 19% HEALTH & SAFETY PRODUCTS 8% OUTERWEAR 11% ★

WRITING INSTRUMENTS 45% WRITING INSTRUMENTS 40% SHIRTS 53% SHIRTS 44% WRITING INSTRUMENTS 39% BAGS 37% BAGS 31% SHIRTS 37% ROME CALENDARS 41% CALENDARS 31% BAGS 29% DESK/OFFICE ACCESSORIES 24% DESK/OFFICE ACCESSORIES 13% CALENDARS 31% CAPS/HEADWEAR 28% MADRID CAPS/HEADWEAR 19% BERLIN DESK/OFFICE ACCESSORIES 28% DRINKWARE 15% DRINKWARE 15% CAPS/HEADWEAR 14% USB DRIVES/FLASH DRIVES 24% USB DRIVES/FLASH DRIVES 34% DRINKWARE 17% HEALTH & SAFETY PRODUCTS 15% HEALTH & SAFETY PRODUCTS 15% USB DRIVES/FLASH DRIVES 18% OUTERWEAR 11% OUTERWEAR 17% HEALTH & SAFETY PRODUCTS 12% OUTERWEAR 17%

2013 Philadelphians continue to writing instruments Logoed pens and pencils the most. 66% say they tie bags for the lowest own a branded pen or cost-per-impression in pencil, vs. 50% in the the United States. U.S. overall.

56% 5,788 of Caucasian consumers own branded writing instruments – the highest percentage Rome generates the most product of any racial demographic. impressions of any European city.

DOWN UNDER Writing instruments are more popular than in the U.S. More Women than 52% of Men Own Promo Aussies own a branded Pens & Pencils writing 52% instrument.

53% 47%

Product Spotlight: Shirts

TEE IT UP! Although they’re 48% popular among all 21-34 age groups, younger consumers are most likely to own a 45% branded shirt. 35-44 44% 33% OF U.S. CONSUMERS 45-54 35% OWN A PROMOTIONAL SHIRT 55+ 46% say they own Viva ★ a promotional Atlanta shirt, vs. 44% Italia! in the U.S.

Romans love their gelato. . . and their promo tees. 53% of consumers in GEORGIA U.S. CONSUMERS Rome own branded shirts — the highest percentage of any of the 21 metro areas in the survey. 53% OWN A PROMOTIONAL SHIRT Of the 12 U.S. metro cities where people were polled, consumers in Atlanta lead the way.

40% Men Own More Independent 46% Promo Shirts Than Women 52% 41% of Latino consumers own a promotional The Vote Is In 45% T-shirt, the most of any racial 46% of independent voters report owning demographic. a promotional shirt. 40% of Democrats and 41% of Republicans make the same claim. 40%

Logoed bags tie with writing instruments as having the lowest cost- per-impression of any = promotional item in the 31% United States. th OF U.S. CONSUMERS 1/10 of a cent OWN A PROMOTIONAL BAG

33%

27% 27%

Independent 37% 5,983 The percentage of Bags generate African Americans more impressions who own promo Politically Speaking bags – the highest in the United States 33% of Democrats own than any other percentage of any logoed bags, compared to racial demographic. promotional item. 27% of Republicans and 27% of Independents.

Women are more likely than men to By the Bay own branded bags In the United States, San Franciscans are most likely to own a promotional bag. ★ 36% 24%

38% Income Gap of consumers there People who make have received one in less than $50,000 35% 33% 30% the last 12 months. are most likely to >$50,000 carry promo bags. $50,000 - $99,00 $100,000+

27%of consumers in Houston own promotional calendars. That’s ﬁve percentage points above the U.S. average. 26% ★ Independent The Votes are In Independent voters were most likely to report having calendars.

Staying Power Not surprisingly, calendars are held onto longer than all other promotional products — nine months on average, compared to seven months for the average ad specialty. 9 mo. 7 mo. 22% 21% OF U.S. CONSUMERS 22% OWN A PROMOTIONAL CALENDAR Northern Exposure 29% On 27% Of all the metro areas, consumers 24% in Montreal have the most branded Display calendars. Promotional calendars are 15% great branding tools.

55+ 45-54 35-44 21-34 37% HAVE ONE 76% Better With Age Branded calendars are IN THEIR 76% of consumers who own calendars especially popular say they display them prominently in among older consumers. their homes or ofﬁces. POSSESSION NOW

Go Blue! Trending Young Democrats are the most Younger consumers likely among the major are more likely to political parties to own have desk accessories desk accessories. 25% than older ones. The percentage of U.S. Asian consumers 25% 25% who own desk accessories, the most of any racial demographic group. 20%19% 19% 16% 18%

Independent 21-34 35-44 45-54 55+

OF U.S. CONSUMERS 44% 22% OWN A LOGOED DESK ACCESSORY Women Vs. Men Women are more likely than men OF SYDNEY RESIDENTS to own desk accessories. ADORN THEIR DESKS WITH Women Men 34% PEN SETS, LOGOED PHONE 24% 18% CHARGERS, BUSINESS CARD HOLDERS AND THE LIKE.

ABC Australians are the most likely to have a branded desk accessory.

32% Sydney 28% Rome 59% 20% Canada Why do people keep branded hats? A U.S. 19% majority do so because Madrid The Aussies Win! they’re useful, but 19% Consumers in Sydney, looks matter, too. 42% 14% Berlin Rome and Canada all say they also keep own more caps than caps because they are 12% Paris those in the U.S. attractive. London has the fewest 11% London cap-wearers. 20% > $50,000 25% $50,000 - $99,000 19% OF U.S. CONSUMERS 27% OWN A PROMOTIONAL CAP $100,000 + Men at Work Dollar Signs 23% Male consumers are far Looking to target high earners? A cap more likely than females to might do the trick. Those who earn 21% own a branded cap. $100,000+ are more likely to wear a branded hat.

Seeing Red 18% 22% of Republicans own 16% promotional hats, versus 20% of Independents and 18% of Dems.

HAVE ONE 21-34 35-44 45-54 55+ IN THEIR years years years years Hats off to Gen Xers POSSESION NOW Caps are most popular among the 24% 14% 35- to 44-year-old segment.

Product Spotlight: Drinkware Drinks in Of all of the metro areas surveyed, Phoenix residents 39% the Desert love their logoed mugs and glasses the most. Mugging It Up

Branded drinkware is just as likely to of consumers there own be kept in the ofﬁce as in the home. 36% promotional drinkware.

21-34 35-44 45-54 55+

Consumers under 35 own more drinkware than their 25% 20% older counterparts. 20% 19%

More women 24% 17% own branded 21% Vs. drinkware OF U.S. than men CONSUMERS OWN BRANDED Campaign Cups DRINKWARE Democrats report owning more drinkware than members of other political parties.

23% 21% 19%

Independent

13%

11% 8% 14% of Asian consumers in the U.S. own branded USB Drives, leading the 11% way among all racial OF U.S. CONSUMERS Independent demographic groups. OWN A LOGOED Democrat = Techie? 13% of democratic voters own branded USB drives; 8% of USB DRIVE Republicans own them and 11% of Independents have them on hand.

Deep Pockets Six-ﬁgure earners are ★ Men are More Likely more likely to own a Paris logoed USB drive than to Own a Branded those in other USB Drive Than economic groups. 27% Women Merci! Parisians are far more likely to 14% > $50,000 own promotional USB drives 10% than consumers in other cities: 27% own them vs. 11% of U.S. consumers. 8%

Trending Young $50,000 - $99,000 12% Younger consumers are more likely to own 13% 11% 8% 7% a promo USB drive than their older HAVE ONE counterparts. IN THEIR $100,000 + 18% 21-34 years 35-44 years 45-54 years 55+ years POSSESION NOW

IT’S A TIE!

17% 17% of Berlin residents 82% own promotional health of U.S. consumers and safety products, the can immediately most in Europe. remember the advertiser’s name 17% of San Franciscans on the safety product own promotional health they own. and safety items, the most in the United States.

★ GERMANY ★ UNITED STATES 9% OF U.S. CONSUMERS OWN PROMOTIONAL HEALTH & SAFETY PRODUCTS

11%

9% 14% YOUTHFUL of African American CHOICES consumers own branded Consumers between 7% 7% health and safety items, 21 and 34 were the the most of any racial most likely to own a demographic group. logoed health and safety product.

21-34 years 35-44 years 45-54 years 55+ years

©2013 Advertising Specialty Institute®. All Rights Reserved. 13 Product Spotlight: Outerwear In the Money Those with household incomes above $100,000 are slightly more likely to have branded outerwear than those with 9% lower incomes. OF U.S. CONSUMERS HAVE PROMOTIONAL OUTERWEAR 8% >$50,000

Bundle Up! Outerwear recipients think very favorably 95% about the advertiser — 10% $50,000 – Total Recall especially in Sydney, $99,000 Jackets have the best where 86% of advertiser recall of any consumers think more promotional product. A positively about an whopping 95% of those advertiser after who own logoed receiving a outerwear can recall promotional jacket. the advertiser’s name. 12% $100,000+

To the Left Democrats are more likely to have logoed jackets than members U.S.A. 10% of other political parties. 48% = 7% 6% HAVE ONE Business-Builder IN THEIR In the U.S., nearly half (48%) of all outerwear recipients say they were more likely to do business with an advertiser POSSESION NOW after they were given a logoed jacket.

©2013 Advertising Specialty Institute®. All Rights Reserved. 14 Staying Power In addition to identifying the logoed items they had kept, respondents were asked how long they kept the most recently-obtained item of each product type. On average, ad specialty items are kept for nearly seven months in the U.S. Overall, calendars are typically held the longest - about nine months on average. Writing instruments are held the shortest amount of time at just over five months.

Fun fact The longest time an item was kept was in Madrid, where calendars were kept nearly 13 months. The shortest was in Rome, where writing instruments were kept only 4.1 months.

Number of Months Promotional Items are Kept

CALENDARS 9.0 OUTERWEAR 7.3 DRINKWARE 7.1 USB DRIVES 6.9 BAGS 6.8 AVERAGE 6.6 CAPS 6.0 DESK/OFFICE ACC. 6.0 SHIRTS 5.8 HEALTH/SAFETY 5.5 WRITING INSTRUMENTS 5.3

0.0 2.0 4.0 6.0 8.0 10.0

Key Takeaways • One of the advantages promotional products have is that just one item can deliver a message for a far longer time period than other forms of advertising. Advertisers can reinforce their brand or a call to action for an average of seven months, and even longer on some products such as calendars and outerwear. • Perhaps not surprisingly, calendars are kept for a long period. This offers advertisers obvious advantages, but because of their longevity, steps should be taken to keep the product noticed. For example, a changing image each month is key; so is positioning an advertiser’s logo in a prominent spot on each page.

©2013 Advertising Specialty Institute®. All Rights Reserved. 15 Promo Products are Passed Along Since the study was first conducted in 2008, U.S. recipients of ad specialties are increasingly passing them along, extending the advertisers’ reach. In fact, 63% of respondents in the U.S. said that when they receive a logoed item they no longer wish to keep, they give it to someone else. Canadian and Australian respondents were more likely to give an item to someone else (64%) than any other group examined.

Fun fact Germans are the most likely to discard promotional products they no longer wish to keep; 28% disposed of them as compared to 17% in the U.S. Consumers in London are the least likely to throw away promotional products.

Areas United Canada London Paris Berlin Rome Madrid Sydney Interviewed States

Throw it away 17% 18% 15% 21% 28% 23% 22% 18%

File the item away 20% 18% 18% 21% 16% 29% 24% 18%

Give the item to 63% 64% 67% 59% 56% 48% 54% 64% someone else

In the United States, consumers in Dallas are the most likely to pass along the item to someone else: 75% pass along promotional items they don’t wish to keep.

Most Likely to Give an Item to Someone Else

★ Chicago Dallas★ ★Seattle 75% 71% 70% 68% Miami ★

Key Takeaways • Promotional products are not simply thrown away. Items are kept because they’re useful, or given to someone who can use them. Advertisers’ messages often go beyond the initial target. • As awareness of recycling in the U.S. has become more prevalent, so has the desire to pass along unwanted promotional products.

©2013 Advertising Specialty Institute®. All Rights Reserved. 16 Usefulness is Key Consumers will be much more likely to keep a promotional product that is useful, according to the survey. About eight in 10 (77%) of product recipients indicated that an item’s usefulness is the primary reason to keep it. In addition, 29% of recipients said they kept an item because it’s attractive, and 29% say they keep a promotional product simply because it’s “enjoyable to have.” Interestingly, it’s nearly as important for outerwear to be attractive (60%) and enjoyable to have (51%) as it is to be useful (70%). In addition to being useful, the need for caps to be both attractive (42%) and enjoyable to have (41%) is also high.

Reasons for Keeping Products: U.S.

Enjoyable Point of Useful Attractive to have reference Bags 83% 28% 23% 4%

Calendars 86% 33% 22% 12%

Caps 59% 42% 41% 5%

Desk/Office 83% 22% 25% 8%

Drinkware 80% 31% 29% 2%

Health/Safety 79% 17% 22% 7%

Outerwear 70% 60% 51% 7%

Shirts 64% 37% 36% 3%

USB Drives 90% 10% 18% 4% Writing Instruments 91% 19% 21% 8% Average 77% 29% 29% 5%

Fun fact In Rome, ad specialties were kept because they were attractive 35% of the time, the highest of any metro area.

Areas United Canada London Paris Berlin Rome Madrid Sydney Interviewed States

Useful 77% 82% 79% 70% 75% 70% 81% 80%

Attractive 29% 25% 33% 27% 31% 35% 32% 26%

Enjoyable 29% 20% 23% 25% 21% 27% 20% 22% to have

Point of reference 5% 6% 4% 4% 3% 11% 7% 5%

Hispanic African American Caucasian Asian Typically, people have about 10 ad specialties. Asians have more ad specialties than any other group. 8.2 9.1 10.0 10.7

Hispanic African American Caucasian Asian Typically, people have about 10 ad specialties. Residents of Dallas own Asians have more ad specialties than any other group. the most promo products.

8.2 9.1 10.0 10.7

Residents of Dallas own Hispanic African American Caucasian Asian the most promo products. London Seattle Dallas Miami Typically, people have about 10 ad specialties. Chicago Asians have more ad specialties than any other group. 67% 68% 70% 71% 75%

London Seattle Dallas Miami Chicago Residents of Dallas own 67% 68% 70%the most 71%promo products.75% Who owns the most ad specialties?

United States average number of items owned Spain 9.8 9.9 Italy United States 9.8 9.7

Canada Canada

London Seattle 9.3 9.6 Dallas Miami Who owns the most ad specialties? Chicago U.K Italy United States average number of items owned8.2 9.1Spain 10.0 10.7 9.1 9.1 9.8 67% 68% 70%9.9 71% 75% France France Italy United States 8.5 8.1

9.8 Spain U.K Hispanic8.2 African9.1 American9.7 Caucasian10.0 10.7Asian Canada Canada 8.3 7.7 9.3 Typically, people have9.6 about 10 ad specialties. Australia Australia U.K Hispanic Asians haveAfrican more Italy Americanad specialtiesCaucasian than any other group.Asian 7.9 7.4 9.1 9.1 Germany Germany Who owns the most ad specialties? France Typically, peopleFrance have about 10 ad specialties. 7.8 7.2 8.5 United AsiansStates have more adaverage specialties8.1 number of items owned than any other group.Spain How9.8 Many Items Do People9.9 Own?Females in Spain have the most ad specialties, Spain U.K while females in Germany have the least. 8.3 In the study,Italy respondents7.7 were asked how manyUnited States logoed items they currently had in their homes and/or offices. As Males aged 55+ own the greatest number of ad specialties . 9.8 9.7 Australia indicated in the accompanyingAustralia charts, people in the U.S. own an average of 9.8 promotional products. The number varies ResidentsCanada of Dallas own Canada 7.9 according9.3the most promoto U.S. products. city, country,7.4 gender, race, income,9.6 age and political affiliation. Germany Germany U.K Italy 7.8 9.1Residents of Dallas own 7.2 9.1 People who make: the most promo products. Females in Spain have the mostFrance ad specialties, France while females in Germany8.5 have the least. 8.1 Males aged 55+ own the greatest number of ad specialties . Spain U.K 8.3 7.7 Seattle LondonAustralia Australia Dallas Miami Chicago 7.9 7.4 $50,000 Germany Germany >$50,000 $100,000+ People who make: London67% 68%Seattle 70% 71% 75% - $99,999 Dallas Miami 7.8 Chicago 7.2

Females in Spain have the most ad specialties, Own 8.5 Own 10.0 Own 10.8 67% while68% females in 70%Germany have the71% least. 75% Promotional MalesPromotional aged 55+ ownPromotional the greatest number of ad specialties . Products Products Products $50,000 >$50,000 - $99,999 Who owns the$100,000+ most ad specialties? In the U.S., as income increases, so does the number of ad specialties owned. PeopleUnited States who make:average number of items owned Spain 9.8 9.9 Own 8.5 Own 10.0 Who owns Ownthe most 10.8 ad specialties? Promotional PromotionalItaly Promotional United States United States average number of items owned Products 9.8Products Products Spain 9.7 9.8 Canada Canada 9.9 9.3 Italy United States 9.6 9.8 Italy U.K $50,000 9.7 8.2 9.1 10.0 10.7 Canada>$50,000 Canada$100,000+ In the U.S., as income increases, so9.1 does the number of ad specialties- $99,999 owned. 9.1 11.2 9.3 France France 9.6 8.5 U.K Own 8.5 Own 10.0 ItalyOwn8.1 10.8 9.1 9.1 Hispanic10.7African American Caucasian Asian10.7 SpainPromotional Promotional PromotionalU.K 10.2 9.5 10.1 10.0 10.3 8.3 FranceProducts Products FranceProducts7.7 8.5 8.1 Typically, people have about 10 ad specialties.9.3 9.2 Australia Australia 8.7 7.9 Spain U.K 7.4 Asians have more ad specialties than any other group.

8.3 Germany Germany 7.7 In the U.S., as income increases, so does the number of ad specialties owned. 11.27.8 Australia Australia 7.2 7.9 7.4

Germany Females in Spain have 10.7the most ad specialties,Germany 10.7 while females in Germany have the least. 10.3 10.2 7.8 9.5 10.1 7.2 Males10.0 aged 55+ own the greatest number of ad specialties . 9.3 Republican Democrat 8.7 Females in Spain have the most ad specialties, 21-34 35-44 45-54 55+ 9.221-34 35-44 45-54 55+ Independent while females in Germany have the least. Residents of Dallas own Males aged 55+ own the greatest number of ad specialties . the most promo products. People who make: 11.2 U.S. Males U.S. Females Republicans have more ad specialties than Democrats or Independents. 10.7 10.7 Males aged 55+ own the greatest number of ad specialties. 10.3 People who make:10.2 9.5 10.1 10.0 9.3 9.2 Republican Democrat 21-34 35-44 45-54 55+ 8.7 21-34 35-44 45-54 55+ Independent $50,000 U.S. Males >$50,000 U.S. Females- $99,999 $100,000+ London Seattle Republicans have more ad specialties Dallas Miami than Democrats or Independents.Chicago + $50,000 Males aged 55 own the greatestOwn>$50,000 number8.5 of ad Ownspecialties 10.0 . Own$100,000+ 10.8 Promotional Promotional- $99,999 Promotional 67% 68% 70% 71% 75% Republican Democrat 21-34ProductsOwn35-44 8.5 45-54 55+ProductsOwn 10.0 21-34 35-44ProductsOwn 10.845-54 55+ Democrats reported having the most Independent Promotional Promotional Promotional promotional items in 2012 (10.5), a change ProductsU.S. Males Products ProductsU.S. Females from the prior year. Deeper supportRepublicans among have more ad specialties In the U.S., as income increases, so does the number of ad specialties owned. + Democrats for President Obama thanthan Democrats the or Independents. Males aged 55 own the greatest number of ad specialties. Republican challenger Mitt Romney could be In the U.S., as income increases, so does the number of ad specialties owned. Whopart owns of the the reason most ad why. specialties? Key Takeaway United States average number of items owned Spain 9.8 Knowing the target audience can help any marketing initiative be more successful. While promotional products are 9.9 Italy United States widely valued, some groups have more than others, either by interest or opportunity. 11.2 9.8 9.7 10.7 Canada Canada 10.7 ® 10.3 ©2013 Advertising Specialty10.2 Institute11.2. All Rights9.5 Reserved. 9.310.1 10.09.6 18 8.7 10.7 9.3 10.7 U.K Italy 9.2 10.2 9.5 9.110.1 10.0 9.1 10.3 9.3 France France 9.2 8.7 8.5 8.1

Spain U.K 8.3 7.7

Australia Australia Republican Democrat 21-34 35-44 45-54 55+ 21-34 35-44 45-54 55+ Independent 7.9 7.4

Germany Germany U.S. Males U.S. Females Republican Democrat 21-34 35-44 45-54 55+ 21-34 35-44 45-54 7.8 55+ Republicans 7.2have moreIndependent ad specialties than Democrats or Independents. Males aged 55+ own the greatest number of ad specialties. U.S. Males U.S. Females Females in Spain have the most ad specialties,Republicans have more ad specialties while females in Germany have the least. than Democrats or Independents. Males aged 55+ own the greatest number of ad specialties . Males aged 55+ own the greatest number of ad specialties.

People who make:

$50,000 >$50,000 - $99,999 $100,000+ Own 8.5 Own 10.0 Own 10.8 Promotional Promotional Promotional Products Products Products

In the U.S., as income increases, so does the number of ad specialties owned.

11.2 10.7 10.7 10.2 9.5 10.1 10.0 10.3 8.7 9.3 9.2 Republican Democrat 21-34 35-44 45-54 55+ 21-34 35-44 45-54 55+ Independent

U.S. Males U.S. Females Republicans have more ad specialties than Democrats or Independents. Males aged 55+ own the greatest number of ad specialties. Section Two: Recipients’ Views on Advertisers Recipients’ Views on Advertisers For this section, we asked respondents whether they could identify the advertisers on the promotional items they currently owned. The result: Nearly nine in 10 (86%) U.S. recipients of promotional merchandise can identify the advertiser on the item, the highest of any country in the study. As the graphic below reveals, of all major product categories, outerwear has the highest recognition of all promotional items: 95% of respondents who have logoed outerwear can name the advertiser on the items. Overall, wearables as a whole maintain a very high advertiser awareness rate, taking the top three spots.

On Average

86% Remember the Advertiser

Owners of ad specialties recall the advertiser 86% of the time.

Fun fact Advertiser awareness is high in other countries as well. In Canada, 85% of respondents can identify the advertiser. In all other countries in the study, recipients were able to recall the advertiser on a promotional item about 80% of the time.

Key Takeaways • Distributors who have clients looking to get their company or brand’s name in the marketplace have a compelling reason to suggest advertising specialties as a marketing solution: Promotional product recipients clearly remember the advertisers on the items they receive. • The more interaction recipients of promotional items have with the item, the higher the recognition of the advertiser. This explains in part why wearables lead the way with advertiser recall. Further, a higher perceived value of the product, such as that obtained with outerwear, increases advertiser recognition even more. Distributors looking to present clients with an item of high perceived value that has high advertiser recognition might consider higher-end wearables as an option.

©2013 Advertising Specialty Institute®. All Rights Reserved. 19 Swaying Opinions In this section, we also asked consumers their opinions of advertisers who gave them a logoed item. Over one-half (53%) of the time, ad specialties leave a more favorable impression of the advertiser. This trend was seen across all countries.

Outerwear leaves the most positive attitude about the advertiser, as three-quarters (75%) of branded outerwear recipients had a more favorable impression of the advertiser.

Positive attitudes about the advertiser are correlated with advertiser recall. Once again, the top three products generating positive feelings are also the most likely to have advertiser recall.

An exception to that rule is health and safety products, which have a lower advertiser recollection but generate favorable impressions about the advertiser.

Fun fact Italians were even more likely to feel favorable towards the advertiser, with nearly two-thirds (64%) of those in Rome citing a more positive view, by far the most of any group.

How Recipients Feel About the Advertiser: U.S.

OUTERWEAR 75% SHIRTS 61% CAPS/HEADWEAR 59% HEALTH/SAFETY PRODUCTS 54% BAGS 53% AVERAGE 53% USB DRIVES/FLASH DRIVES 52% DESK/OFFICE ACC. 50% CALENDARS 49% DRINKWARE 48% WRITING INSTRUMENTS 43%

0% 10% 20% 30% 40% 50% 60% 70% 80%

53% of recipients feel more favorable about the advertiser after receiving an item.

Key Takeaway All categories of promotional products generate favorable impressions of the advertisers as a whole. Steps should be taken when presenting recipients with items that are seen as more of a commodity (like writing instruments) to reinforce the advertiser connection with the item.

©2013 Advertising Specialty Institute®. All Rights Reserved. 20 Ad Specialties Generate New Business When consumers were asked how likely they were to do business with an advertiser they hadn’t previously done business with after receiving an item, over one-third (36%) said they were more likely to do business with them in the future.

Fun fact Perhaps in part because of the good will generated by ad specialties in Rome, Italians were also the most likely to cite a positive likelihood for doing new business, as nearly one-half (48%) thought they would be more likely to do business with the advertiser. Further, 17% thought it very likely, twice that of any other area.

Likelihood for New Business

OUTERWEAR 48% BAGS 43% USB DRIVES/FLASH DRIVES 39% SHIRTS 38% AVERAGE 36% DRINKWARE 31% CALENDARS 31% WRITING INSTRUMENTS 31% CAPS/HEADWEAR 29% DESK/OFFICE ACC. 28% HEALTH/SAFETY 23%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Some items generate even more goodwill from consumers: For example, about 48% of recipients of logoed outerwear said they’d be more likely to do business with an advertiser; recipients of bags were 43% more likely to do business with an advertiser; and USB recipients were 39% more likely.

Key Takeaway A goal of advertising is to get the prospect more likely to buy from the advertiser. This is often done in incremental amounts. Even the lowest-scoring ad specialty (health and safety) still manages to get nearly one-quarter of recipients to feel more likely to do business with the advertiser in the future.

©2013 Advertising Specialty Institute®. All Rights Reserved. 21 Location of Promotional Products Consumers were asked about the location of the logoed items they’d received. Overall, the office was cited most often (41%), but only marginally more than at home (36%). Wearables, bags and health and safety products were most likely to be at home, while desk accessories, calendars, writing instruments and USB drives were most likely in the office.

Location of Items in the U.S. . Home Office On Person

Shirts 47% 28% 25%

Caps/headwear 40% 35% 25%

Bags 40% 32% 28% Health and safety products 40% 30% 31% Drinkware 39% 39% 23%

Outerwear 35% 34% 31%

Calendars 35% 51% 14% USB drives/ flash drives 30% 50% 19% Writing instruments 27% 50% 23% Desk/office accessories 25% 59% 16% Overall 36% 41% 23%

Some geographic areas have a higher propensity to have items at home. For example, nearly one-half (48%) of recipients in Madrid reported the items were kept in the home.

People Keep Items at Home

48% 41% 39% 39%

Madrid Berlin Sydney Rome

Key Takeaway When choosing promotional products, the end-buyer needs to consider where the item will ultimately be used. The office isn’t necessarily a given, especially for items like shirts, caps and bags.

©2013 Advertising Specialty Institute®. All Rights Reserved. 22 Section Three The Most Impressions in the U.S. The Most Impressions in Berlin Promotional Products Make an 5,983 3,134 2,999 2,288 2,167 5,615 2,380 2,774 1,843 1,763 Impression Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions For this section, the average number of impressions each promotional product receives In the U.S., bags generate the most impressions by far. In Berlin, writing instruments generate the most impressions by far. was calculated. The number of impressions a product makes was derived from multiplying The Most Impressions in Canada The Most Impressions in Sydney how long a recipient has the product to how many people he comes into contact with each month while using it. In the U.S., we again saw 4,724 3,634 2,943 2,805 2,253 5,881 3,233 3,179 2,034 1,755 that bags generated the most Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions impressions (5,983) of any item in the study. That’s because bags are frequently used, often in public places where they can In Canada, bags also generate the most impressions. In Sydney, bags generate the most impressions. be seen by many people. Other items that deliver extremely The Most Impressions in London The Most Impressions in Madrid high numbers of impressions in the U.S. include writing instruments, caps, outerwear, calendars and shirts. November November The accompanying charts 5,125 4,066 3,449 2,323 1,852 4,280 3,729 2,505 2,260 1,344 illustrate the top five products, Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions by country, that deliver the most impressions:

Though the incidence of owning promotional outerwear items is low, they generate the most impressions. In the Madrid, writing instruments generate the most impressions.

The Most Impressions in Paris The Most Impressions in Rome

November November 3,473 2,665 2,372 1,700 1,204 6,260 2,125 1,447 1,966 1,421 Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions

Similar to London, the incidence of owning promotional outerwear is low, but a high number of impressions are generated. In Rome, writing instruments also generate the most impressions by far.

©2013 Advertising Specialty Institute®. All Rights Reserved. 23 The Most Impressions in the U.S. Key Takeaway The Most Impressions in Berlin While the exact ranking of impressions changes somewhat from location to location, the overall list of products generating the most 5,983 3,134 2,999 2,288 impressions2,167 is consistent. 5,615 2,380 2,774 1,843 1,763 Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Wearables consistently deliver a high number of impressions, and in the U.S., bags deliver the most impressions every year. In the U.S., bags generate the most impressions by far. In Berlin, writing instruments generate the most impressions by far. Items that create the fewest impressions tend to be those The Most Impressions in Canada intended mostly for one The Most Impressions in Sydney person, such as health and safety items and USB drives. The value of these items is more in the connection they 4,724 3,634 2,943 2,805 make with2,253 the user than 5,881 3,233 3,179 2,034 1,755 Impressions Impressions Impressions Impressions the totalImpressions number of Impressions Impressions Impressions Impressions Impressions impressions generated. Distributors should work with clients to determine the In Canada, bags also generate the most impressions. goals of their campaigns and In Sydney, bags generate the most impressions. the connection they want to establish with the intended The Most Impressions in London recipient before selecting the The Most Impressions in Madrid right vehicle to deliver their message. Taking into account the number and quality of November November the impressions generated, 5,125 4,066 3,449 2,323 in addition1,852 to some of the 4,280 3,729 2,505 2,260 1,344 Impressions Impressions Impressions Impressions demographicImpressions considerations Impressions Impressions Impressions Impressions Impressions shown earlier in the report, gives the distributor the opportunity to serve as a Though the incidence of owning promotional outerwear items is low, they generate the most impressions.consultant rather than an In the Madrid, writing instruments generate the most impressions. order taker.

The Most Impressions in Paris The Most Impressions in Rome

November November 3,473 2,665 2,372 1,700 1,204 6,260 2,125 1,447 1,966 1,421 Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions Impressions

Similar to London, the incidence of owning promotional outerwear is low, but a high number of impressions are generated. In Rome, writing instruments also generate the most impressions by far.

©2013 Advertising Specialty Institute®. All Rights Reserved. 24 The Cost-Effectiveness of Ad Specialties Advertising specialties are less expensive per impression than most other forms of media. The investment in ad specialties is modest, more targeted and more achievable for smaller businesses than other forms of advertising. As the chart on this page illustrates, promotional products have a lower cost-per-impression in the United States than prime-time television advertising, national magazine advertising and newspaper ads, and a similar CPI to spot radio and Internet advertising. However, a report published in October, 2012 by Forrester Research, “U.S. Online Ad specialties are highly cost-effective Display Ad Spend $12.7B in 2012,” sheds some light on Internet advertising. It points out that CPMs are actually on the rise. The average CPM — cost per thousand impressions — for 2012 was $3.17, but by 2017 that will rise to $6.64, largely because 1.8¢ of the shift to real-time bidding and away from portal buys where placement is not Prime-Time TV guaranteed. The rise, the analysts note, is also a supply and demand issue: marketers are competing for similar audience 1.8¢ segments and bid density is continuing to increase. National Magazines The cost of advertising specialties are not expected to increase markedly in the NEWS next four years, making them an even better comparison to other forms of media 0.7¢ advertising such as the Internet. Newspapers Key Takeaway Promotional products deliver the same or better ROI than most other forms of media, without the interruption inherent 0.6¢ with other forms of advertising. And when one considers the prohibitive cost of Ad Specialties producing radio or television commercials or the cash outlay to buy sufficient Internet advertising, promotional products offer the best value. Promotional 0.5¢ products can also be used to more closely Spot Radio target the intended message recipient than mass media. Further, even smaller companies can achieve as high an ROI as major 0.3¢ corporations by using advertising specialties because even a modest Internet investment delivers superior results. The cost per impression of an ad specialty is better For More Information than that of TV, magazines and newspapers. To gain access to the full study data, plus downloadable PDFs of the charts in this study, visit www.asicentral.com/study.

©2013 Advertising Specialty Institute®. All Rights Reserved. 25 Demographics The following is a breakdown of the demographics of all survey respondents who indicated they currently owned promotional products.

Gender % Count Male 47% 1,416

Female 53% 1,616

Total 3,032

Age

21 to 34 years 46% 1,482

35 to 44 years 23% 744

45 to 54 years 18% 576

55 to 64 years 10% 320

65 years and over 2% 79

Total 3,201

Ethnicity (U.S.)

Asian 11% 297

Black or African American 9% 245

Hispanic or Latino 8% 207

White 68% 1,779

Other 4% 101

Total 2,629

Political Affiliation (U.S.)

Democrat 42% 741

Republican 25% 438

Independent 19% 331

Other 3% 57

Not Registered 12% 217

Total 1,784

Country % Count United States 58% 1,874 Germany 5% 153 Australia 4% 144 Spain 5% 157 Italy 4% 131 Canada 14% 453 Great Britain 5% 152 France 4% 126 Other 1% 24 Total 3,214 U.S. Cities Atlanta 9% 165 Boston 9% 155 Chicago 7% 116 Dallas 8% 142 Houston 9% 153 Los Angeles 8% 141 Miami 9% 155 New York 9% 153 Philadelphia 7% 131 Phoenix 8% 151 San Francisco 8% 151 Seattle 10% 171 Total 1,784 Canadian Cities Montreal 33% 151 Toronto 32% 147 Vancouver 35% 160 Total 458 European Cities DÜsseldorf/Berlin 21% 153 London 21% 150 Madrid 22% 157 Paris 19% 135 Rome 18% 131 Total 726 Sydney 100% 144