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2019 Promo Products Embrace USA-Made, Retail Quality

The “2019 Ad Impressions Study” by the Advertising Specialty Institute has many nuggets to help AccuList’s promotional products marketing clients woo targeted buyers. For example, promo products purveyors can point out how their items beat other ad media not only with high ROI, thanks to a cost per impression as low as a tenth of a cent, but also high impact, with consumers under age 55 preferring promo products over all other media for advertising, including newspapers, radio, magazines, television, internet and mobile. In fact, consumers are nearly 2.5 times more likely to have a positive opinion of promotional products compared with online advertising, per ASI.

Not All Promo Products Are Created Equal

When it comes to consumers’ favored promotional products, ASI’s study shows the highest ownership for writing instruments (89%), drink ware (88%) and T shirts (80%). Looking at numbers alone, outerwear is a big winner with the most impressions (6,100), the greatest memorability (85% of consumers remember the advertiser giving branded apparel), and the greatest staying power (outerwear is kept an average of 16 months compared with 9 months for writing implements, for example). But winning even with a popular category means keeping up with trends. Among the latest spotted by Promo Marketing Magazine at the 2019 Promotional Products Association International (PPAI) Expo is the boost in re-usable, environmentally friendly products now that cities and states are banning single-use plastic bags and straws. A return to natural and vintage is not surprising in this anti-plastic mode, with a rise in the popularity of wooden pieces, from cutting boards to awards. Plus, multi-function items continue to grow in popularity, with suppliers adding tech functions to classic promotional items, so that water bottles double as Bluetooth speakers and business card holders can be used to prop phones.

Design-wise, Think Retail Quality, Bundling, USA-Made

The marketers at Delta Marketing Group (DMG) get even more specific about trends in design affecting a range of product categories. As more retail brands become available as customizable promotional products, even non-brand items are starting to emulate the retail look and feel, the agency points out. Quality over brand-logo-blasting also is taking hold, for example with branded apparel using small embroidered patches, subtle custom tags, and understated tone-on-tone colors instead of large logo imprints. Creative materials and refined finishes are forecast to come to the fore in 2019, with bright colors, matte and soft-touch finishes, and heathered and burlap fabrics. DMG also predicts that gift sets packaging several cohesive promotional items together will peak in 2019. Watch for desktop accessories to gain popularity, such as branded mousepads, coasters and phone stands, etc., often bundled as a new-employee or a new-student welcome kit. Plus, with the advent of experiential marketing for events, promotional products are trending toward event-specific giveaways that complete the brand’s event experience. Finally, the made-in-the-USA trend stays strong, per ASI’s study. About 53% of consumers have a more favorable opinion of an advertiser if the promotional product is made in the U.S. versus elsewhere, and that sentiment is especially strong in New England, where 73% of consumers prefer buying made-in-the-USA items. For details from the ASI study, see https://www.asicentral.com/news/web-exclusive/january-2019/2019-ad-impressions-study/

U.S. Marketers in Europe Wrestle GDPR Data Compliance

AccuList USA supplies data and direct marketing services to organizations with international as well as domestic reach. Starting this May, any U.S. marketer targeting actual or potential customers in the European Union (EU) countries must navigate a changed data landscape thanks to the new General Data Protection Regulation (GDPR). It doesn’t matter if the brand, marketer or data processor is based in the U.S.; strict compliance is mandatory. And shrugging off new data rules is a very costly mistake. Noncompliance can mean a fine equal to 4% of global annual revenue!

GDPR Seeks to Protect Personal Data

The intended purpose of the regulation is protection of non-anonymized personal data, and compliance is required of any company (or organization) that stores or processes that personal information about individuals (“data subjects”), who are defined as European citizens residing in an EU state. The protected personal data includes:

  • Name, address, and phone number
  • IP address and cookies
  • Racial identity
  • Religion and religious affiliation
  • Health and genetic data
  • Biometric data
  • Sexual orientation and gender preference
Individuals Have New Data Rights

GDPR’s regulated “data controllers,” who determine data processing, or “data processors,” who handle data on behalf of data controllers, must respect key rights with regard to personal information. For example, there is an individual’s right to access, to knowing what personal data has been collected and how that data has been processed. There is a right to accuracy, and restriction of data processing in the case of inaccuracy. There is a right to “freely given” and “explicit” consent for processing and storage of personal data. Plus, consent may not be regarded as “freely given” where performance of a contract is made conditional on consent, or is unnecessary to performance of a contract. The data subject also has the right to data portability, meaning the ability to request and receive personal data in a format easily transferred to another data controller. Finally, there is erasure or “a right to be forgotten,” which allows individuals to withdraw their consent for data use or storage and demand that personal data be erased and no longer processed. Not sure it applies to you, direct marketer? Consider this GDPR wording: “Where personal data are processed for the purposes of direct marketing, the data subject should have the right to object to such processing, including profiling to the extent that it is related to such direct marketing, whether with regard to initial or further processing, at any time and free of charge.”

How Are U.S. Brands Handling GDPR?

Obviously, GDPR has big impacts on business strategies in the European market. For one thing, if you are handling personal data on a large scale or processing particularly sensitive data (such as health, race and religion), GDPR may require you to designate a specialized Data Protection Officer (DPO) to report to senior management. In terms of strategic response to the regulation, 64% of executives at U.S. corporations reported that their top strategy for reducing GDPR exposure is centralization of data centers in Europe, according to a report released by PricewaterhouseCoopers (PwC). Just over half (54%) told PwC they plan to anonymize European personal data to reduce exposure. A significant minority are even cutting European market efforts, with 32% of respondents planning to reduce their presence in Europe, and 26% intending to completely exit the EU market.

For a definitive guide to GDPR and explanations of key terms, see this Direct Marketing News article.

 

Growing Magazine Audiences Continue Shift Toward Mobile

The good news for publishers is that total audience—across print, Web, mobile and video—grew robustly in 2016, up 6.4% over the prior year, according to the 2016 Magazine Media 360° Brand Audience Report from the Association of Magazine Media (MPA). But there is a challenge for publications within the data: the continued shift to a mobile audience. Certainly, at AccuList USA®, we have seen mobile optimization and responsive design become a key consideration in the multi-channel marketing strategies offered to consumer publication and business publication clients.

Desktop/Laptop Viewing Loses Traction to Mobile

Although print and digital editions continued to garner the largest audience for magazine media last year, the mobile platform had the most rapid growth rate, per the MPA’s trend analysis. Nearly 80% of the brands reporting showed mobile growth, with 79% of those brands up by either double- or triple-digit percentages. More than a quarter of the brands in the report grew their mobile unique visitors by one million or more each. That mobile growth came at the expense of Web (desktop/laptop) users.  In fact, the Web audience represented the only magazine media platform to decline as consumers spent more time on portable devices than computers. Meanwhile, though video remained the smallest audience platform in 2016, it also recorded strong growth, per MPA, up by double-digit percentage rates.

Print’s Lead Role Endures

“The key takeaway from this most recent analysis is that print still makes up the biggest portion of magazine media audiences, yet continued growth in mobile web means that the total audience continues to get bigger overall and reflects the multi-platform preferences of today’s readers,” concluded Linda Thomas Brooks, president and CEO of MPA, in a press release.

And the Winners Are…

Meanwhile, even though 2016 was an election year, nonpolitical interests led the way to top spots for magazine brands. Per the 2016 analysis, the top five magazines with the most total audience—across print, Web, mobile and video—were (in descending order) ESPN The Magazine, People, Forbes, Allrecipes and Better Homes and Gardens. The top five magazine brands with the greatest percentage growth in total audience compared to a year ago were (in descending order) DominoThe New Yorker, Harper’s Bazaar, W and Esquire.

For more see http://www.magazine.org/industry-news/press-releases/mpa-press-releases/mpa/mpa-%E2%80%93-association-magazine-media-releases-2016

Creating Powerful Synergy With Paid, Owned & Earned Media

When budgets are tight, it’s tempting to focus on earned and owned media over paid media promotion. But marketers need to know the growth penalty of that strategy. Brands that use paid media typically grow three times faster than those that rely on owned and earned media alone, according to recent international research from the Institute of Practitioners in Advertising (IPA), as reported by The Drum.

Synergy From Paid, Owned & Earned Media

At the same time, paid media is more effective when coupled with earned and owned media. IPA research shows that owned media, which includes brand websites, blogs and social media sites, typically increases the effectiveness of a paid ad campaign by 13%. Meanwhile,  earned media, which includes online mentions, shares, re-posts and reviews, increases the effectiveness of a paid campaign by a larger 26%.

The Emotional Power of Video

The IPA examination of media marketing further finds that emotion is a vital ingredient to success, and that television advertising continues to be the most powerful in delivering emotional engagement. Researchers report that adding television advertising increases a promotional campaign’s effectiveness by 40% and is also the best for generating  the top-line growth that drives profit, with a 2.6% average market share point gained per year when using television advertising. The growing use of video-on-demand and online video has turbocharged video impact: IPA’s research shows a 54% increase in the average number of “very large” business effects from adding television and online video together, versus 32% for television only and 25% for online video only.

Finding the Golden 60:40 Balance

When it comes to the optimal combination of paid, earned and owned media, and the best balance of brand-building vs. targeted sales ads, IPA results show that the most profitable campaigns have a 60:40 ratio of long-term brand-building (broad reach, highly emotive) to short-term sales activation (tightly targeted and information rich). For help with media strategy tailored to your budget and market, don’t hesitate to call on AccuList USA’s multi-channel marketing expertise, from social engagement and online ads to e-mail and pay-for-performance TV. And for more on IPA research, see http://www.thedrum.com/news/2016/10/31/brands-use-paid-media-grow-three-times-faster-those-just-rely-earned-and-owned-finds