Promotional Products Industry and President Obama Mandates

Today President Obama announced a mandate to cut 20% from federal agency spending on promotional items such as plaques, clothing, and what he categorized as unnecessary promotional items. He declared that these cuts are designed to trim the government’s “Wasteful Spending.”

As Americans living through these difficult times, we can understand the need to cut “wasteful spending”, but spending on promotional items is not a waste. The promotional products industry is a vibrate industry that helps build moral and businesses around the country.

Key Points:

The promo products industry helps create jobs. The industry employs nearly 500,000 people throughout North American and includes thousands of small and women and minority-owned businesses.

Promotional products, which cost just half a penny per impression, beat out prime-time TV, radio and print advertising as the most cost-effective advertising medium available. This means that even smaller companies can pack the advertisign punch of multimillion-dollar companies. ASI – The Advertising Specialties Institute studies show 83% of ad specialty recipients in the U.S. say they can identify the advertiser on a promotional item they own.

As more companies shift to lower-cost advertising like promo products, it’s helping the industry bounce back. A recent ASI Q3 industry survey found sales rose for the 7th straight quarter.

Promo products ave taxpayers money. The U.S. government used promotional items as reminders to mail back the U.S. census instead of sending government representatives door-to-door – a move that may have saved taxpayers up to $85 million. The U.S. government reported spending $22.7 million on Census-related promotional products, including mugs, T-shirts hats, water bottles and pencils. In total 62.5 million promotional items were gien away in the campaign, at an estimated cost of a quarter per product or nickel per person.

Obama knows how promo products work. He relied heavily on them to get elected in 2008, and his reelection website today offers everything from logoed T-shirts to leather bracelets, bumper stickers, buttons and beyond.

We felt compelled to bring this “mandate” to the attention of our readers. Promotional products are not unnecessary, but they are items that bring loyalty, recognition, and help further promote business and goodwill for government agencies, to fortune 500 companies, to the small business.

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