For small and medium-sized businesses, every marketing dollar counts - and it’s important to understand your options so that you can choose the right channel for your needs!

Promotional products are an important piece of the marketing puzzle, but are they the right choice for your current goals? In this article, we’re breaking down the costs and benefits of promotional gifting and comparing them with some other advertising methods, so that you can decide whether promotional products make sense for your strategy.

What are the Costs of Promo?

Product & Decoration Costs: You’ll need to pay for the products themselves, as well as the setup and decoration fees (at MLP, these are already included in our All In Prices*).

Design: If you don’t already have your design ready to go, you’ll need to create one. This can take up some of your time and resources, especially if you decide to work with an external artist to finalize your creatives.

(Psst.. If you’ve got a vision but are struggling to bring it to life, MLP offers complimentary design services. When placing your order, simply provide us with your logo and a description of the design you’re looking for - we will build out your design and send you a digital proof for approval!)

Shipping: Receiving your products likely means paying a shipping fee, which you’ll need to factor into your overall costs. (At Mapleleaf, we cover the shipping on all qualifying orders*, so no need to worry about this one either.)

Distribution & Logistics: Whether you’re mailing your promo products out, using them at a trade show, or directly handing them to your store visitors - you’ll need to consider the costs of delivery, booth space, staff time, and any other factors that go into the storage, transportation and distribution of your promo.

Risks:

• Overstocking on items

• Investing in products that become obsolete (e.g. tech accessories) or that don’t resonate with your audience

• Opportunity cost of not choosing an alternative marketing channel

• Limited reach: Very broad or widespread audiences may be better reached through digital channels.

What are the Benefits?

Long-Term Connections: Promotional products tend to stay with people. In fact, it is estimated that 8 in 10 consumers will keep a promotional product for longer than one year. This gives your branded items oodles of time to make strong impressions whenever and wherever they are used and worn!

High Visibility: Because of their longevity, products that are kept and used by your audience can generate thousands of impressions over a long period of time. The Advertising Specialty Institute found that branded drinkware items often produce over 3,000 impressions. And for items with even higher public visibility - like outerwear - this number soars as high as 7,800!

Strong brand recall & positive association: When it comes to advertising channels, promotional products are a consumer favourite. It feels good to receive a gift - especially a useful one - and these positive emotions carry over to your brand. This emotional connection may be a reason why brand recall is so high on promotional products: two-thirds of consumers are able to recall the advertiser that gave them a promotional product within the past 12 months.

Lower cost per impression (CPI): Because promotional products stay around, each item gives repeated exposures, which can make the cost per impression very low. In fact, ASI’s 2023 Ad Impressions Study shows that the average cost-per-impression on a $10 promotional travel mug is as low as ⅓ of a cent!

Emotional connection and loyalty: Giving is powerful: promotional gifts can generate goodwill, suggest quality, and show that you value customers, which can lead to repeat customers and word-of-mouth referrals. In a recent industry survey, 40% of consumers said they’d revisit a business after receiving promo from them, and one in three said they’d refer others to a business they received a promotional product from.

Long-tail value: Because items are kept or used over a long time, the “return” continues beyond the initial give-away window. Compared to a digital ad that disappears when the campaign ends or when budget stops, promotional gifts can continue working months or years after your initial investment.

How Promo Compares to Other Advertising Forms

When It Makes Sense – Key Factors

To maximize the benefits and ensure promotional gifting is “worth it,” be sure to:

• Pick the right item: Usefulness is rated by consumers as the most important factor when receiving a promotional product. Choose items that are relevant and useful to your specific audience.

• Focus on quality: 70% of consumers say that they equate the quality of a promotional product they receive with the reputation of the company that gave it to them.

• Distribute smartly: Strategic distribution to highly targeted groups (e.g. event attendees, loyal customers, or high-value prospects) will boost the impact of your promo while reducing waste.

• Measure thoughtfully: Track impressions if possible, conduct follow-ups and ask recipients whether they remember the brand, or whether your gifts influenced their feelings or behaviours.

• Blend with other channels: Promotional gifting can be combined with online campaigns or in-person events to increase reach, deepen connections, and have a strong impact for your brand.

In Summary….

Promotional gifting can be worth it — especially for small and medium-sized businesses aiming to build brand awareness, loyalty, and positive impressions over time. When done well, it often offers lower cost per impression and longer lifespan than many digital or traditional ads. But it isn’t a silver bullet. To get a good return, you need to choose quality items, target well, distribute smartly, and measure what you can.

If you’re operating on a tight budget, starting small (e.g. with a well-chosen giveaway at an event or for loyal customers) and comparing outcomes to your other marketing spend can help you assess whether it’s the right mix for your business.