Sales Promotion Services Industry Profile

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 Aimia and subsidiaries of major advertising agencies such as Omnicom and WPP.

The US sales promotion services industry includes about 8,000 companies with combined annual revenue of about $12 billion and is expected to grow at a moderate rate over the next two years. Key growth drivers include expanding product offerings and targeting start-up businesses.

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.

Sales promotion services companies have offices with showrooms to display the products and services offered. Companies process a large number of small custom-imprinted orders. Customers place an order with the sales promotion firm, which then orders the items ...