Promotional Giveaways vs. Paid Advertising: Which Has a Better ROI?

How many advertisements do you think the average consumer sees a day? 10? 100? 500? If you guessed even 1,000, you'd be wrong. Experts estimate that the average person is exposed to nearly 5,000 ads today, in various forms.

To cut through this clutter, you have to advertise more effectively than ever if you're a business owner. In this article, we'll break down which form of advertising has the best return on investment: paid advertising or promotional giveaways.

If you're thinking about launching a new marketing campaign, you'll want to check this out.

The ROI of Paid Advertising

When we talk about paid advertising, we'll be talking about traditional ads online and in print. These would be banner ads on websites, billboards on the highway, full-page ads in magazines and newspaper, as well as tv and radio commercials.

Because this arena is rather broad and nebulous, it can be difficult to determine the ROI on an ad campaign.

According to Nielsen, however, the average dollar spent on advertising brings in only 70 cents of profit. This isn't exactly a winning formula.

Of course, no two ad campaigns are built the same, and one has the potential to produce astronomical results. But it's a risk you have to take.

The ROI of Promotional Giveaways

The ROI of promotional giveaways are similarly difficult to determine, but we do have data about how effective they are for a variety of other reasons. A recent study by the Advertising Specialty Institute took a look at the effects branded giveaways have on consumers, and discovered some shocking results.

The study found that the average receiver of a branded product kept the item for an average of eight months. That' a long time to have what is essentially an advertisement for your business in front of a prospective customer.

These people also go on to become indirect brand ambassadors for your business as well. The study found that 63% of people in the U.S. that receive branded items go on to give them away once they've finished using them.

The majority of consumers that receive a free promotional item are also far more likely to have a positive view of the company they've received it from.

The promotional giveaway industry has also experienced a five-year growth rate of 15.1%, reaching $21.3 billion in total sales. This makes it the 7th largest marketing channel in the U.S.

The Bottom Line

With these benefits, it's easy to see why the promotional giveaway industry has exploded in value in recent years. Thanks to the inundation of more traditional advertisements, marketers have had to come up with new, interesting ways to sell their products.

Promotional giveaways are a good way to stand out.

Overall, it's hard to say which has the better return on investment, but we now know that the benefits of giving free stuff to consumers are uncontestable. If you're looking to create some branded products of your own, you may want to check out our line of customizable pens.

We've got all sorts of different styles you can integrate into your promotional marketing campaign.