Promotional Items in Times of a Recession.

The financial crisis and impending recession has been the number one story in the international business press for months now. Accordingly, many companies are braced for a gloomy outlook and seeking restraint and cost-savings, a strategy which is also being reflected in the area of marketing. Advertising budgets are being reduced and marketing expenditure reined in.

Profiting against the flow.

Anti-cyclical action is especially important during economic downturns. Such investments are a strategic step which will facilitate stronger future ROI (returns on investment). If the majority of competitors are in retreat, an economic downturn offers a particular opportunity to present yourself strongly and act astutely.
In the past, many companies who kept their advertising expenditure steady or even increased such spending when the economy was floundering also increased their sales and expanded market share.

Benefit now from favourable prices and greater attention.

Successful anti-cyclical action is no magic trick. While advertising expenditure is at its peak in almost every company during a boom phase, a certain advertising inflation also sets in at the same time. Thus, the more advertising to which the customer is exposed, the less notice he ends up paying the individual measures. At the same time, the price of all kinds of advertising is also at its highest during boom times due to high demand.

Consequently, you not only benefit from more favourable prices during a downturn, but also increased awareness of your individual marketing campaign as the competition is weaker. As a result of this, the return on investment with anti-cyclical advertising is greater than that with pro-cyclical. Recently, Warren Buffet invested several billion dollars in General Electric and Goldman Sachs despite the deep financial crisis, staying true to his maxim of making anti-cyclical investments

Promotional items are amongst the most effective forms of advertising

Compared with print, TV and other conventional means of advertising, promotional items not only have the highest acceptance value amongst customers, their undisputed advertising appeal is also impressive.

Studies attest to the higher-than-average attention paid to promotional items. Over 80 percent of customers who receive promotional gifts appreciate them and are reminded of them for a long time. It has also been shown that 73 percent believe that they receive far too few promotional items. And 70 percent see companies who use promotional items as likeable. Advertising which evokes a likeable feeling – the dream of any marketing decision-maker!

More than half of those surveyed in a public study said that they hang on to promotional items for more than a year and are regularly confronted with the advertising message.

Hot off the press is a recent investigation of the Advertising Speciality Institute which showed that promotional items have an average cost-per-impression of $0.004, as opposed to $0.033 and $0.019 for print and TV advertising respectively. The reason for the low exposure price not only lies in the promotional item’s regular exposure to the environment, but also in the favourable prices for promotional gifts. For example, an advertising bag has 1,038 exposures per month on average. SOURCE GmbH has numerous suitable and customisable promotional items in its range.

Why not see for yourself with the following products:

Calendars – All important dates available at a glance and your advertising message constantly on display.
Calendars have been quite rightly considered classics amongst promotional items for many years now.

Key rings – For the car, house or work. Personalised key rings help you to successfully tap your marketing potential.

Eco promotional items – Ecologically biodegradable, low-emission or bearing the Fair

By availing of these fantastic options in respect of promotional items, your advertising budget will be even more effective, not only helping your company to make it through these difficult economic times unscathed, but even strengthening it!

Author: Harald Mahlich

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