The Advertising Specialty Institute (ASI) today released its annual sales analysis for the promotional products industry, showing total distributor sales topped $21.5 billion for 2014, increasing revenues by 5.1% over 2013 and setting a new record for the second straight year.
Further, ASI research shows distributor sales grew 5.9% in the fourth quarter of 2014, year over year, with sales of promotional products now increasing for 20 straight quarters. Fueled by sales of branded items like T-shirts, caps and pens that companies typically give away to promote their business, brand or event, the promotional products industry is growing at over twice the rate of the U.S. economy.
“Everyone in our industry should be proud that demand for low-cost, high ROI ad specialties is once again at a record high,” said ASI CEO Timothy M. Andrews. “And, by all indications, the industry is heading for another solid year in sales in 2015, continuing a years-long positive trend that’s seen entrepreneurs and small business owners making more money selling ad specialties than ever before.”
ASI’s most recent Global Advertising Specialties Impressions Study on ROI shows promotional products consistently rank among the most influential, enduring and cost-effective ad mediums available.
Overall for 2014, U.S. gross domestic product, the value of the production of goods and services, adjusted for price changes, rose 2.4%, the highest in four years, according to the Commerce Department.
“I believe the economy is better, there is consumer confidence and clients feel it,” said Memo Kahan, president of PromoShop. “When we feel good, we tend to spend more. Couple all this with gas prices going down, a stronger dollar and steady GDP growth and things are good.”
According to ASI, nearly two-thirds of distributors reported a sales increase in 2014 over 2013, with larger revenue distributors with more than $1 million in annual revenues posting higher percentage sales increases than smaller revenue distributors.
In December 2014, ASI commissioned an exclusive survey to estimate industry sales for the fourth quarter as well as the end of year summary for 2014. Invitations went to ASI distributor members who had been in business at least one year.
