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Why it Pays to Advertise in Tough Economic Times

McGraw-Hill Research analyzed 600 companies from 1980-1985 in a study of U.S. recessions. The results showed business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive advertisers during the recession had risen 256% over those that didn't keep up their advertising. (Source: McGraw-Hill Research)

Reach more people,with a more permanent message,for a fraction of the cost with promotional products. (Source: Integrated Resource Management)

Advantages of Promotional Products

Promotional Products are flexible, useful, long lasting and appreciated. They can have a measurable impact with a high perceived value and be used as acompliment with other advertising media.

In a 2005 comparative study on advertising mediums:

  • 52% of recipients did business with the advertiser after receiving apromotional product.
  • Of those who had not done business with the advertiser who gave them the product, more than half stated they were more likely to dobusiness with the company.
  • 71.6% of tradeshow attendees remembered the name of the company that gave them the product. (Source: L.J. Research)

Lasting Impressions

People are flooded with advertising every day. They tune outradio and television commercials, skip over ads in newspapers and magazines. When advertising comes in a medium that the customer can use they are more likely to appreciate andremember the message.

In a study on advertising recall rates 3 months after exposure,promotional products offered 3 times the message/brandretention compared to internet ads and 50% more than printand TV ads.

Recall Rate

  • Website Banner Ads       27    %
  • Print & TV ads                53.5 %
  • Promotional Products      76.1 %

(Source: Hope Hopkins, Research Analyst)
 

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