Marketing Trends Could Favor Ad Specialty Industry

I saw this in an industry newsletter we receive and thought it was timely and reinforces
my feelings in the current enviroment.



As the recession deepens, more companies are planning to cut marketing costs, reduce 
travel expenditures and delay new projects, according to a new study by the 
Association of National Advertisers (ANA). About 37% of marketers expect to slash 
their budgets by more than 20% this year, a significant increase from prior surveys. 
With less money to spend, more businesses could look for value in campaigns based around promotional products. "In the current economic environment, there's a need for 
brand building that's right for the times-that acknowledges consumers' financial 
circumstances and offers them products, services and solutions that meet their 
needs," says Bob Liodice, ANA president and CEO. "For some marketers, that will mean 
skewing their media mix towards promotional spending."

Companies in the ad specialty industry may be able to take advantage of this 
marketing trend. A recent ASI study showed that the average cost-per-impression of a 
promotional product is now $0.004. By comparison, per impression, traditional forms 
of print and broadcast advertising are more expensive. Some distributors are 
cautiously optimistic that marketers will turn to promotional products for better 
value. "It may be too early to tell but we are seeing this trend as well with some of 
our major clients," says Fred Parker, CEO of Bluegrass Promotional Marketing. 
"It is trickling down and may just be temporary, but the conservative 
mindset is apparently there."