Why Promotional Products Work: The Power of Freebies

Promotional products, branded merchandise, swag, promo items, etc., all those terms mean the same thing...freebies. While freebies have been a powerful marketing tool for decades, we are often asked:

Why do promotional products work?

Promotional gifts work because people will always love getting free stuff. Furthermore, they get emotionally attached when receiving cool branded items that can be used daily, like coffee mugs, water bottles, or tote bags, to name a few.

A recent US market research by IBIS World states that despite businesses allocating more advertising dollars toward digital marketing, promotional items remain valuable for physical, memorable brand engagement.

That was the short answer. 

To help you understand why promotional merchandise can play a key role in an effective marketing strategy...we'll talk about how free merch works on a psychological level.

We discuss the purpose and benefits of promo products for your business in another article.

Reciprocity and Obligation

When we receive a gift, even a small one, we are naturally urged to return the favor. This is the principle of reciprocity at work. A good promotional item triggers this response, making potential customers more likely to support the brand that gave them something. 

Here is a nice quick story:

A startup developing HR software was attending a major tech expo in the spring of 2024. The lack of budget for a big, flashy booth has made them look for another solution to stand out.

They reached out, asking for help. 

Since the summer was coming, we offered them custom branded sunglasses, and they loved the idea. They ordered several models for people to choose from and displayed them on old wire hangers.

A week later, we received an email from the startup founder.

"Thank you very much for the great idea. People kept coming to our booth to try out shades. Halfway through the event, we had to reload our business card holders. We already have over thirty free trial signups and counting."

We've seen this play out over and over again. 

This feeling of obligation can be surprisingly strong. People feel guilty not supporting a brand that's been "nice" to them. It's a subtle but effective way to nudge customer behavior.

By the way, if you liked that promotional product idea, check out our promo sunglasses guide.

The Mere Exposure Effect 

The mere exposure effect is another psychological phenomenon that promotional products leverage brilliantly. In simple words, the more we see something, the more we tend to like it. 

When your logo is on an item people use regularly, they're exposed to your brand multiple times a day...without even realizing it. This repeated exposure increases their familiarity and good feelings towards your brand.

In that sense, promotional products like coffee mugs work great. 

We know that, so we wrote a blog post with 100+ coffee mug quotes to help businesses stand out with their advertising message.

If you think about it, every promotional item that can be used daily for months or years means hundreds of brand impressions...not just for the owner but for everyone who sees them using it. 

The beauty of the mere exposure effect is its subtlety. 

As opposed to aggressive traditional advertising, promotional products create positive brand associations without feeling intrusive. They become a natural part of people's lives, making your brand feel familiar and trustworthy.

The Social Proof Principle

Humans are inherently social creatures. We often look to others to guide our behavior. The social proof principle has been an effective advertising tactic for ages and works with promotional products, too.

When people see others using your swag, it creates a sense of social validation for your brand. It's a silent endorsement that can be incredibly powerful. 

If you go for a workout and spot several people with cool branded gym bags...it subconsciously tells you that the logo belongs to a popular and trustworthy company.

High-quality promotional products can create a sense of community among your customers. Branded items with cool designs can make people feel part of an exclusive club or group. 

Moreover, everyone wearing or carrying your swag influences others and expands your brand's reach in a way that feels natural and authentic.

Being in this business for years, we are certain that this sense of belonging can significantly boost brand loyalty, encourage repeat business, and, most importantly, result in word-of-mouth marketing.

Wrapping it Up

We hope you better understand how promotional products work by tapping into these fundamental psychological principles. 

They create reciprocity, foster emotional connections, increase familiarity through mere exposure, and harness the power of social proof. 

When used strategically, branded promotional products can be a cost-effective and powerful tool in your marketing arsenal. 

They create lasting impressions and have the potential to build a solid customer base in ways that traditional advertising simply can't match.

To take this even further...at PromoLeaf, we offer the opportunity to customize a product manufactured by a brand your target audience knows and loves.

If that sounds interesting, check out all the featured brands.