As straightforward marketing seems to the audience, it is the marketers and the people behind it who face the constant scrutiny over unmanageable marketing expenses. Today, marketing investments need to be even more diverse and inclusive due to rising algorithmic targets, short-lived viral campaigns, and influencer fatigue.
Against this backdrop, promotional products, say, branded merchandise and physical giveaways, are increasingly being reassessed. The main concern is whether these marketing strategies will still deliver a positive return on investment in 2025 and going forward.
With that, let’s dive into the figures, comparisons, and strategic data, especially for companies partnering with Fresh Promotions Australia globally.
Promotional products: Honest ROI Statistics
Recently, much industry research has revealed some compelling evidence associated with ROI on marketing swag:
- 90% of consumers likely recall a brand after receiving a promotional product, and 80% remember the brand’s message (as per Print to Brand).
- 87% of swag recipients keep and use the merch for at least a year, where 40% retain items for over 10 years, boosting impressions (as per Print to Brand).
- Brands using promotional items experienced up to a 22% increase in repeat business with an average ROI of $5 to $6 per dollar spent (i.e., 500% to 600% return) (as per Gitnux reports).
- 83% of audiences are likely to become a brand’s customer after receiving promo products, and 79% keep them for over a year. Cost-per-impression (CPI) is often as low as $0.004, drastically cheaper than digital ads (June 2025 ProphecyPrint).
- Another 2025 Gitnux report backs these figures:
- 85–89% brand recall
- 77% keep items for over a year
- Average 5,000 impressions per item
- ROI estimated at $6.12 per dollar spent.
ROI on digital vs. physical promotional strategy
While digital channels offer fast, measurable results, they serve distinct roles in your marketing mix:
| Dimension | Promotional items | Digital marketing channels |
| Cost per Impression (CPI) | Estimated $0.004 (very low CPI) | $1 to $3+ per click or CPM |
| Brand recall | An estimated 85–90% recall rate via physical merch | Varies; often <50% without repeat exposure |
| Longevity of exposure | Months to years (especially for useful items) | Days to campaign duration |
| Sales and loyalty impact | 20-25% lift, high repurchase intent (about 60–80%) | Depends on campaign and conversion mechanics |
| Emotional and physical value | High; tangible connection | Low; digital ads are short-term |
It is figuratively visible that digital marketing strategies such as SEO, email marketing, pay‑per‑click, and social ads produce excellent measurable ROI; for instance, email marketing alone can deliver over 3,000% ROI. Despite such impressive outcomes, these digital channels lack the physical resonance that emotionally connects with consumers and the staying power that promotional products deliver.
In short, promotional items should be leveraged to yield sustained brand exposure and emotional connection, while digital channels are ideal to achieve immediate conversions and precise targeting.
How to maximize value
Promotional merchandise has the biggest impact when aligning product quality, utility, audience, and campaign goals. So, what you should strategise is:
- Focus on usefulness and design of promo items: Consider tech gadgets or accessories (power banks, USBs), drinkware, and apparel that deliver the highest retention rates. A Gitnux research shows that tech-integrated products yield a 33% higher retention rate than generic items.
- Include personalization or digital layers: Embed QR codes or NFC tags on your promo merch that will potentially drive recipients to online engagement channels, enforcing omnichannel value.
- Emphasis on eco‑friendly products: At least 50% of modern consumers now favor sustainable promo merchandise, with their usage growing annually. This growth in demand for sustainability boosts perception and retention of branded promo items.
- Integrate with events and campaigns: At trade shows, offering freebies or promo bundles can boost organic traffic by up to 40%, and promotional integration accelerates digital lead capture.
Final verdict
Yes, promotional merchandise is still extremely effective in 2025. Its impact is directly visible as it influences loyalty among consumers, a high recall rate, ultra-low CPI, and long-term exposure. However, digital marketing is also producing impressive results when it comes to speed, targeting, and trackable conversions.
Therefore, working with FreshPromotions Australia will allow your business to harness the best of both worlds; integrating data-driven strategy, quality execution, and measurable outcomes.
Promo products shouldn’t be viewed as fleeting giveaways; rather, they should be considered as strategic assets in a smart, integrated marketing playbook to maximize ROI across both physical and digital touchpoints.
Source: Understanding ROI: Are promotional products still effective in 2025?
