993 exhibitors had come to D?sseldorf for Europe’s largest trade show for the promotional products industry – more than ever before, an increase of more than 16 percent compared to the previous year (852). For that reason alone it was, according to PSI Director Michael Freter, a “golden anniversary” that the PSI Show – which started out in 1963 with a mere 56 exhibitors – celebrated this year. However, the PSI Director was probably also thinking of the “fireworks of innovations” which was set off especially in the completely restructured HALLE13. Here inventors, young entrepreneurs and first-time exhibitors presented premieres and novelties – such as, for instance, the first 3-D clock which fits into any corner of a room, a ballpoint pen that gives off fragrances and a cover for tablet PCs which does not only protect but also cleans the computer at the same time.
“Whether with total innovations or classic products in a new form: Every year the world of the promotional products industry reinvents itself for the PSI Show, this is what makes the entire industry flourish”, says Michael Freter whose ambitious goal to achieve a new anniversary record also in visitor numbers was not quite met. While posting one of the best figures in its 50-year history with 16,167 visitors the PSI Show remained below last year’s figure of 17,122. “A toll taken by the continuing low demand in some Euro countries which could not be compensated for by the leaders Germany and France alone”, says Michael Freter.
Promotional products market in Germany hits 3.46 billion euro mark
The German market, on the other hand, proves to be a tower of strength: 3.46 billion euro was the amount spent by advertisers in Germany on promotional products last year – an increase of one percent compared to last year, and of 16 percent compared to 2009. This was the result of the industry monitor which is presented at the PSI Show every year by the Gesamtverband der Werbeartikelwirtschaft (GWW). This puts expenditure for promotional products even ahead of spending on radio commercials and online advertising. Medium-sized companies with 50 to 250 employees, in particular, strongly relied on promotional products last year for spreading their advertising message among consumers. To GWW Chairman Patrick Politze this comes as no surprise: “Using promotional products strengthens customer loyalty, creates trust in the advertiser and generates high advertising recall.” They are, therefore, one of the most effective advertising media.
First study on effectiveness of promotional products in Europe
This is also the finding reached by the recent, and Europe’s first, empirical study on the effectiveness of promotional products produced by the Mannheim market research organisation DIMA and presented on the occasion of the PSI Show. Core issues in this study were the coverage achieved by promotional products, their communicative performance and the product requirements they have to fulfil. For the study, more than 2,000 subjects took part in an online survey.
94 percent of the representative sample of the population aged 14 and over said they own one or several promotional products. Three quarters of the promotional products have already been in the recipients’ possession for more than six months, more than one in three even for more than two years. Nine out of ten of the interviewees use the promotional products they received at least once a day. Promotional products therefore reach 88 percent of the population aged 14 and over. With this coverage, they rank far ahead of the coverage achieved by any form of advertising in the mass media, such as radio and television.
The study furthermore shows that 57 percent of the owners of promotional products remember the advertiser’s brand or name; this value is twice as high as that for television commercials which have an advertising recall of 28 percent, radio commercials are remembered at the rate of 32 percent. As a result, 73 percent of consumers say that promotional products they received influenced their decision to buy or place an order.
“The advertising effectiveness study proved that promotional products are among the most cost effective advertising media of all”, said Patrick Politze when presenting the study at the international PSI Press Conference. Detailed information on the study is available on www.gww.de
ZAW: “Eliminate political blockade of promotional products”
Against this background of the significance of promotional products, the Zentralverband der deutschen Werbewirtschaft (ZAW) likewise called for the elimination of the 35 Euro value limit for tax deductibility of promotional products in Germany. Its CEO Manfred Parteina said: “This constitutes an anarchistic blockade of a communication segment that is of major significance for companies. Let me say it quite clearly: this limit must be abolished.” He called for the elimination of “this containment created by armchair decisions”. This could also be realised in stages.
At the same time, the ZAW announced that the industry turnover figures of the promotional products industry will in future be incorporated in the ZAW statistics on the advertising market; until now, this turnover was not included. “The high volume of investment by the promotional product industry will be given the respective rank in that representation. We are working on the public launch of the statistics series in 2013”, said Manfred Parteina.
The 51st PSI Show will take place from 9 to 11 January 2013 in D?sseldorf.
Published on: January 18th, 2012
