The most obvious form of advertising isn’t necessarily the most effective. A billboard or TV commercial might be the first thing that comes to mind, because you know for a fact that they are trying to sell you something. But Marketing 101 will tell you that great advertising is at least a little bit subliminal.
Branded merchandise certainly isn’t trying to obfuscate its marketing purposes, but the best promotional products can distract from the effect they’re having by offering the consumer a utility.
That’s the basis behind PPAI’s latest consumer research study, based on more than 3,400 participating U.S. consumers, which aimed to provide a look at how branded merch performs once it has reached the consumer. These responses – taken as a whole and interpreted as data – give a better sense of both merch’s initial impact and what’s required to make that impact continue well past the point of entering the consumer’s hands.
The dataset purports that the initial reaction to receiving branded merch is positive, so the medium works from a tremendous starting point – more than 80% of consumers express some level of excitement, and 33% categorize that as “very excited.” (See Figure 1.) The starting point, though, is not where branded merch holds the biggest advantage over other advertising mediums. It’s in the relationship with the product where merch can keep adding brand value with the consumer.
Exposure & Expectations
The data show that branded merch is becoming more ubiquitous, just by the sheer number of sources where consumers are receiving it. Workplaces, conferences and festivals, retail gifts with purchase and gifts are all leading sources where consumers claim to receive branded merch. They are a common and welcome part of culture, work and commerce. [See Figure 2.]
That growing range in sources creates a subtle shift in how merch is considered: Consumers are no longer evaluating merch in isolation. They are comparing it with products they already use and often purchase themselves. This changes the standard – merch is no longer judged as a free item.
You’ll see that reflected in the ranges of how it is perceived, with 28% of consumers saying it feels mostly premium and 31% saying it feels more premium than cheap. But 30% described it as average, and 11% are still associating it with lower quality. [See Figure 3].
The higher standard raises the degree of difficulty but presents obvious opportunity for the industry: Strong, positive associations by consumers create higher demand all the way down.
As Alok Bhat, PPAI’s market economist and research and public affairs lead, puts it, “The question is not whether merch works. It is how consistently it delivers value once it reaches the consumer.”
A Relevant Product Stays With A Consumer
Retention patterns show that most merch is not immediately discarded. Nearly 90% of consumers reported that they keep branded merch products either regularly or occasionally. [See Figure 4].
It’s the reasons behind those decisions that are ultimately most fruitful for branded merch firms. An overwhelming leader (55%) in reasoning is that recipients find it useful in daily life, which is followed (21%) by that the merch is of high quality, which of course is not mutually exclusive to being useful and may in fact be related.
These numbers line up as you would expect with the primary reasons why consumers would discard branded merch – the leading reason (38%) being that it is not useful, followed by poor quality (27%). [See Figures 5 and 6].
These results position usefulness not as a competitive advantage, but as a baseline requirement. Without relevance to daily life, products rarely move forward to create any impact.
“A product that sits in a drawer never builds a brand. Usefulness is the entry point for everything else,” Bhat says.
Kept Merch Leads To Measurable Outcomes
Past PPAI Research has indicated that suppliers and distributors sense that end buyers are wary of branded merch’s lack of clear ROI, at least in comparison to digital. On one hand, digital ads are often fleeting, so measuring that ROI might be helpful, but only so much as knowing something. The potential for branded merch to do more than that is still there, and this consumer study suggests that it is in fact measurable.
About 48% of respondents said merch led them to look up a brand, 42% said they visited a website, 39% said they made a purchase, and 38% said they talked about the brand with others. Only 13% reported taking no action. [See Figure 7].
Usefulness was again the most likely reason (40%) consumers claimed a product would trigger them to take action, showing a pattern that usefulness drives consumer behavior and desire. “A billboard disappears when the campaign ends,” Bhat says. “A well-made bag or jacket keeps showing up on the commute, at the gym, workplace, etc. That’s earned, tangible media in action.”
Quality Works For The Brand Out In The World
Usefulness keeps branded merch out of the trash, but quality of the product does wonders for the brand when people see it out in the world. That’s why the two factors work in tandem: 68% of consumers claim usefulness makes merch feel valuable, while 65% say high quality makes it feel valuable.
Case in point: A musician’s merch hoodie sold at a concert will remain in someone’s rotation if it is comfortable and durable (useful), but it might draw attention to the musician if it is stylish and soft (high quality). [See Figures 8 and 9].
This all leads to a reality that most people take for granted: Good branded merch improves how people perceive brands to a basically undeniable degree. Nearly 90% of consumers would agree that high-quality merch improves how they consider brands. [See Figure 10].
In other words, the product is not separate from the brand.
Functional Value Leads, Emotional Value Sustains
Merch firms are often trying to figure out a tricky line between offering functional value and emotional value. The data suggests they have to keep offering that balance to succeed.
Nearly 3 in 4 consumers (73%) do say clearly that, given the choice, they prioritize functional value over emotional value. That is perhaps unsurprising. Emotional value is not necessarily something you always seek out, but something you appreciate upon receiving. Nonetheless, 38% said an emotional connection strongly increases their connection to a brand, while 46% said it somewhat increases that connection. [See Figures 11 and 12].
This indicates that when a product is both useful and meaningful, it moves beyond utility. It becomes familiar, and in some cases, personal.
Usefulness, Quality, Resistiveness Influence Selectivity
What comes inherently with giving consumers branded merch for free is that they simply have every right to discard it. If they are traveling, they may have limited room in their carry-on. If they live in the city, they may have limited space in their apartment. The point is that consumers are increasingly being selective, even with free products.
According to the study, the reasons for rejecting merch are consistent. The three primary reasons are that the products aren’t useful, are of poor quality or the consumer already has too many similar items. [See Figure 6].
This reflects a saturated environment where repetition reduces impact. Consumers are exposed to multiple items, and only those that stand out through relevance and quality are retained.
The Shift For Fewer, Better Products
The notion that a lot of free stuff is exciting has begun to lose its shine. Consumers want the right free thing. Sustainability and practicality are both burdens, making consumers more thoughtful with their consumption.
Two-thirds (66%) said they prefer fewer, high-quality items, compared to 20% who prefer more, lower-cost products. [See Figure 13].
“Flooding a room with cheap pens isn’t a strategy anymore,” Bhat says. “Consumers have figured that out and so have the brands seeing real ROI from merch.”
Taken as a whole, this study begins to paint a picture that branded merchandise makes a greater impact when it threads the needle of fitting into a consumer’s life. Merch that is useful, well-made and relevant tends to stay. Merch that isn’t tends to disappear.
Auping is senior news editor at PPAI.
