Irving, Texas (April 26, 2005) Based on a recent study conducted exclusively for Promotional Products Association International (PPAI), estimated sales of promotional products in 2004 increased 5.94 percent to $17,311,730,376, the second largest sales figure in the history of the industry.  This increase puts 2004 figures close to the record of $17.8 billion in 2000.  Sales in 2001 and 2002 saw the first decline in more than 20 years, and in 2003, sales rebounded to $16.3 billion.

The study was conducted exclusively for PPAI by Alan D. Fletcher, Ph.D. at the Manship School of Mass Communication at Louisiana State University and Rick Ebel, former marketing communications director of PPAI, and principal of Glenrich Business Studies in Corvallis, Oregon.

"I think this significant increase, coupled with the increase last year is an indication of an optimistic business environment," says researcher Rick Ebel.  "Many of those we surveyed pointed to the economy as a primary reason.  Businesses are ready to grow.  Most other advertising mediums also saw an increase last year, so it's apparent that business leaders want to do what's necessary to get their names out to their potential clients and to their current customer base.  And obviously, that includes the tried and true advertising medium of promotional products."

According to PPAI, promotional products include useful or decorative articles of merchandise that are used in marketing and communication programs.  The items are usually imprinted with the company's name, logo or message.  Promotional products that are distributed free are called advertising specialties; imprinted items given as an incentive for a specific action are known as premiums.  In addition, business gifts, awards and commemoratives are also considered promotional products.

Study Reveals Rise in Distributor Companies; Large Companies See Greatest Sales Increase

In addition to the increase in annual sales, the study also showed that the number of small distributor companies--those with annual sales under $2.5 million--grew from 20,150 to 20,249.  Likewise, the number of companies with sales of $2.5 million or more also increased from 815 to 919.

"Because the economy has improved, we are seeing new people enter the promotional products industry," says Ebel, who has been conducting this study for PPAI since 2000.  "It's a very attractive business because there's little initial costs and a huge potential for profit.  Those who have an entrepreneurial passion, the skill to sell and are willing to work can build a solid business in this industry.  With the rise of technology, particularly the Internet, local promotional products distributors can increase their sales with a national reach."

In what is almost a total turnaround from the 2003 figures, large distributor companies enjoyed a 12.7 percent increase in sales over the 2003 increase of only 1.7 percent.  Conversely, the small distributor company only saw a .9 percent rise in sales, compared to 7.1 percent the previous year.

PPAI - The Industry's Source for Comprehensive, Objective Industry Sales Research

PPAI's annual Estimate of Promotional Products Distributors Sales is the most comprehensive study of its kind in the industry and is conducted by independent researchers based on actual sales reported by promotional products distributors.  PPAI has been researching and releasing industry sales data since 1965 and is still considered the most definitive and unbiased figures in the industry, employing time-tested research methodology and utilizing an objective outside source to conduct the research and compile the statistics.

To gather the data for PPAI annual sales volume estimate, a survey is sent to a sample of 15,500 distributors (PPAI members and nonmembers), drawing from an estimated total number of 21,168.  The lists are compiled from PPAI database as well as from four other industry organizations/firms.  Distributors were asked to report their promotional products sales for the 12-month calendar year ending December 31, 2004.

Distributor companies are divided into two groups--those with sales of $2.5 million or more and those with sales less than $2.5 million.  Because some distributors have such a large volume of business, and an omission of their numbers could distort the overall statistics, a census was conducted of all companies doing $2.5 million or more in promotional products sales.  For smaller distributors, a random sample of 12,500 firms was surveyed.  Responses by mail, web, fax and phone produced 2,611 usable reports, for a response rate of 16.8 percent--highest in recent years.  http://www.ppai.org/