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Why are premiums and giveaways so effective?
Every company sometimes wonders: what’s the best way to allocate my marketing budget? You’re not alone. Nowadays there are so many ways of communicating that you can spend your budget on, that it can become hard to use the right mechanism. To make your choice easier, we’d love to show you what the impact of a premium or giveaway can be.
A giveaway is a gift or a token to show appreciation to the receiver, whether it’s a consumer or a business relation. Here the price or value doesn’t matter that much, it is the gesture and message that counts. A premium however, is a product for which you expect something in return. Gifting a luxurious set of kitchen knives when customers request a quotation for a newly built kitchen is an example of this. Making use of premiums and giveaways doesn’t take much effort, whilst it brings about two important effects. Not only do you create goodwill, you also make sure that your company and message are top of mind with the receiver.
Promotional items are available in all shapes and sizes. As a company you can choose to work with a giveaway or a premium (or both). A premium is a good choice when you are for example selling a new kitchen. Consumers are willing to put in more effort with these kind of purchases because its an important expense. The more the consumer is involved with a purchase, the more sense it makes to offer a bigger premium in return. This is a way in which you can ensure that your company’s name will stick to the consumer’s mind just a bit better than that of your competitor.
A giveaway is perfect when you are promoting items that are used daily, for example many of the products sold in supermarkets. In this case there is low involvement with the product and then it’s important that consumer receives a benefit quickly. What this means is that the consumer either needs to receive the benefit, a giveaway or discount, right away or within a reasonable amount of time. Due to the higher involvement with premiums, the time frame plays a smaller role because the consumer is willing to put in more effort for the product that they are buying. 
Research done by the British Promotional Merchandise Association shows that respondents keep their received gifts approximately 2,91 years, in comparison an advertisement in a daily paper lasts approximately one day in the mind of the reader. Results also show that 57 procent of all respondents that receive premiums or giveaways remember the name of the brand they got it from. This is a doubled percentage compared to a brand or company name being remembered after an advertisements on TV.
In short, if you decide to allocate a part of your marketing budget to premiums or giveaways, make sure that the item of your choice fits with your company, brand or target audience. If you choose the right item , this can result in many benefits. Additionally a premium or giveaway is much more effective than an ad on TV or in a paper. If you’d like to know more about the results you can achieve by using premiums or giveaways, please do not hesitate to contact us.
