hoHOTo

We are super proud (and excited) to be on board as the swag/merchandise sponsor for hoHOTo, to be held Aug 18 at Wetbar & Suite 106 (106 Peter St ).

We are in the process of designing the hoHOTo merchandise that will be on sale at the event. All proceeds will be donated to the Daily Bread Food Bank.

Tickets to the event can be bought here

The power of alternative media in uncertain times.

The Globe and Mail published an article today on the marketing power of promotional products in uncertain times. The survey by the Advertising Specialty Institute (ASI) referenced in the article can be found here.

It's no surprise that marketers are taking a hard look at the ROI they get from expensive TV, radio and print ads (defined as traditional media). There is no question that there is a role for traditional media, but it is much easier to cut when it represents such a large part of a marketer's ad budget.

Compare this with an effective promotional campaign. The overall budget on a promotional campaign is typically a fraction compared to that of a traditional ad campaign (Superbowl ad prices, anyone?). Promo campaigns can be focused on the target client and, best of all, the recipient gets to keep the advertising message, something that is not possible with traditional media. Swag - when done well* - offers significant advantages over traditional media because the marketer is able to create an emotional connection with their target client. I will never forget the reaction one of our clients had after receiving a piece of underwear we gave away at a tech conference. Hardly forgettable. Cost per impression? About $10. ROI on the overall promotion was 900% in 12 months (though we still get value from this campaign, 2 years after it was launched).

*see my earlier post about the difference between a well planned out swag campaign vs a poorly planned campaign. I acknowledge that a bad promotional campaign, like a bad ad campaign, is akin to throwing money away.

Mark Cuban's view on swag is half right

Mark Cuban writes about the dubious value of promotional products in his Rules for Startups.

Mark Cuban's Rule #10 for Startups

NEVER EVER EVER buy swag. A sure sign of failure for a startup is when someone sends me logo polo shirts. If your people are at shows and in public, its ok to buy for your own folks, but if you really think someone is going to wear your Yobaby.com polo you sent them in public, you are mistaken and have no idea how to spend your money

An endorsement for our industry if I ever heard it!

However, he is (half) right.

My experience in this industry has taught me that a number of promotional product vendors are simply in it for the sale. And the easier the better. The client picks what they want from a catalog. The vendor asks no questions other than the size breakdown, and 2 weeks later polo shirts arrive at the client's office.

I don't know the circumstances behind this promotion, but I can comment on the suspect marketing value of sending a branded polo shirt to someone like Mark Cuban. Do you really think Mark Cuban - or any customer of Yobaby's - is going to wear your branded polo shirt?

This really strikes at the core problem with the promotional products industry. This industry is generally populated by vendors unwilling/unable to go the distance when it comes to truly understanding how to identify the right products (media) to satisfy a client's marketing objective. When this happens, the client is left to fend for themselves, often flipping through a range of supplier catalogs before honing in on something they like. This usually results in a lacklustre promotion and ends up on blogs like Mark Cuban's, a jaded recipient of junk over the years.

Imagine if Cuban (or any Yobaby target customer for that matter) received a relevant piece of merchandise that promoted Yobaby's brand promise. Yobaby is an organic yogurt line made for babies and toddlers. A polo shirt? Maybe for a staff uniform at a trade show. But for a client facing promotion? I don't blame Mark Cuban for his views on the value of promotional products and their ability to create excitement.

Let's look at this closer. Would the results be different if the promotional gift was a light yellow and lavender receiving blanket, coupled with an organic cotton baby one-sie and baby toque, each tastefully decorated with a subtle screen print? (not embroidered as this requires a rough pellon on the other side of the garment to hold the stitches - too rough for a baby/toddler). Such a promotion focuses on the brand's color palette and, more importantly, the needs of its target customer - parents with messy babies! You can never have enough baby clothing. I imagine most parents would line up to receive such a gift of high perceived value.

The cost of such a bundle would be approx $25. Imagine if this promotion helped create a loyal customer for years (Yobaby graduates to Yokids which graduates to Stonyfield's adult line of yogurt). What is the value of a lifelong customer? Certainly more than $25.

A branded polo shirt being sent to someone like Mark Cuban seems just silly to me. However, Cuban is also a parent (he has a toddler). Despite his billions, I am sure he would have a use for a tastefully designed baby gift package from the yogurt brand he uses to feed his child. Now there's an emotional connection between the marketer and the customer.

If I was to re-write Cuban's rule to startups, it would go something like this:

DON'T WASTE your money on swag that is ill-suited to your ultimate marketing objective. Think of promotional items like you would any other advertising medium (TV, outdoor, print, etc). If you were developing a TV ad campaign for Yobaby.com, you would not air the ads on the NASCAR channel. Oprah would be your better property. If you are going to spend money on promotional goods, be sure that the goods speak to your audience and will resonate with them in such a way that you build loyalty. If you have no intention of being strategic with the medium, NEVER EVER EVER buy swag!