Sales Promotion Services Industry Overview

Excerpt from Sales Promotion Services Report

Companies in this industry provide promotional products imprinted with the name, logo, or marketing message of clients. Major companies include subsidiaries of large marketing firms such as Carlson Marketing and subsidiaries of major advertising agencies such as Omnicom and WPP.

Competitive Landscape

Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The industry is fragmented: the top 50 companies account for about 40 percent of industry revenue.

Products, Operations & Technology

Major products are shirts, writing instruments, desk/office accessories, glassware, and caps/headgear, all customized with the customer’s name, logo, and/or message. Other products include sporting goods, bags, magnets, and stickers and decals. Many sales promotion products are imported, primarily from Asia.