Every few years, a piece of research lands that reframes the way an industry sees itself. This is one of those pieces.
The Australasian Promotional Products Association has just released its most comprehensive end-user research study since 2014 — and the findings cut through a narrative that has quietly held back our industry for too long: the idea that branded merchandise and digital marketing are somehow in competition.
They're not. The data proves the opposite.
Two studies were conducted simultaneously: one surveying promotional product recipients about their behaviour and attitudes, and one surveying end-users.
Together, they paint a detailed picture of a market that is more sophisticated, more discerning, and more strategically valuable than many in the industry have been given credit for.
| 399 Promotional product recipients (people who have received branded merchandise) across Australia and New Zealand | 228 End-users — buyers and decision-makers from mostly micro and small businesses who purchase promotional products for their business |
When 399 promotional product recipients — people who have received branded merchandise — across Australia and New Zealand receive something genuinely useful and well-made, they act on it. Not occasionally — consistently.
| 77% have purchased from a brand after receiving a promotional item | 81% can recall the brand on a promotional item they received — outperforming digital and print recall benchmarks | 84% have told someone else about the brand they received | 66% visit a brand's website or social media after receiving a physical gift |
The end-user picture among micro and small businesses is telling. Of the 228 buyers and decision-makers surveyed — predominantly from businesses with fewer than 100 employees — only 29.4% have a formal annual budget for promotional products, down from 57% in 2014. The majority spend less than $5,000 per year, and 63% expect that to stay flat.
For APPA members whose clients include mid-market or corporate organisations, these numbers will look conservative and they should be read that way. This data reflects the spending patterns of smaller businesses specifically, not the broader client base many members work with day-to-day.
What's notable about this segment, though, is that tighter budgets haven't lowered expectations. These buyers are more thoughtful than ever about what they choose, and more willing to reject items that fall short on quality, utility, and sustainability. When budgets are limited, every purchase decision carries more weight and that's exactly where the expertise of a trusted supplier becomes most valuable.
Four major themes emerged from the data, and they'll each be explored in depth across this blog series:
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The Core Paradox: Digital vs Personal Clients are demanding AI-speed technology from suppliers while simultaneously placing fierce value on personal, trusted relationships. |
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High Stakes Sustainability Sustainability has become a primary selection criteria, not a bonus feature. |
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The Phygital Experience There is surging demand for products that bridge the physical and digital worlds. |
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Retail Benchmarking (The Temu Effect) End-users are now comparing B2B suppliers to global B2C retail platforms on speed, price, and range. |
Across both studies, one truth emerges consistently: the quality and intentionality of branded merchandise communicates brand values — whether the brand intends it to or not. A poorly chosen item says something. A well-chosen, design-led, sustainably sourced item says something entirely different. The recipients in this study are making judgements about brands based on what they received — and those judgements are driving purchase decisions, advocacy, and digital engagement. This is not a peripheral marketing channel. When used with intention, it is one of the most effective tools available.
| 399 ANZ promotional product recipients (people who have received branded merchandise) |
| 228 ANZ end-user respondents (promotional product buyers and decision-makers from mostly micro and small businesses) |
| 77% purchase intent, 81% recall, 84% advocacy — consistent, high-performing results |
| 66% go digital after receiving a physical item — the physical-digital bridge |
| The four research themes: complementary partnership, sustainability, phygital, and the Temu Effect |
| Intentional, design-led merchandise reflects brand values — positively or negatively |
APPA members can access both complete studies, the shareable presentation deck, the member toolkit, and the full webinar recording in the research hub.
Not yet a member? Download your free APPA Research Fact Sheet — no membership required.
If you would like to learn more about APPA Membership click here.
