PPAI Study: Gradual 2010 Market Upturn

May 27, 2011

Promotional Products Association International (PPAI) recently released the results of its annual sales volume study, which reflects a 5.9% increase in distributor revenues compared to 2009.

This increase puts the promotional product industry’s revenues at about  $16.5 billion, up from $15.6 billion in 2009. The increase, coupled with favorable legislative action and trending market conditions — including signs of continued growth in the first quarter of 2011 — lead experts to express cautious optimism for 2011.

“Some market indicators are pointing toward an economic recovery, albeit slowly, for our nation and the promotional products industry as well,” says Steve Slagle, president and CEO of PPAI. “The growth is largely due to the smart business practices of distributors, suppliers and end buyers that have set in motion our industry’s recovery. However, the path forward is a challenged one. To take full advantage of the momentum we have in early 2011, it is essential that we all continue to tell the compelling reasons why our medium is the most powerful and effective choice of savvy marketers. Our research provides many clues about the superiority of promotional products in creating brand awareness and good will, as well as communicating important and often life-saving information.”   

Overall, advertising expenditures were up 6.5%, and spending on promotional products increased about 5.9%. Compared to 2009, TV, cable TV and Internet advertising spending increased 10.4%, 12% and 15%, respectively, while mobile phone advertising increased 22.2%, according to the study.

“It seems to me the industry hit the trifecta last year: low inventories, fewer job layoffs and customers willing to spend money,” says Rick Ebel, principal at Glenrich Business Studies in Corvallis, Ore. “The majority of distributors did pretty well as a result and industry sales performance matched the all media average. Even more encouraging is what we hear about this year’s first quarter business. Still there are a lot of “what ifs.” I think distributors are quietly confident rather than ebullient and their optimism is tempered by uncertainty.”

For more information, visit ppai.org. — S.G.



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