Part 3: Logo Clothing versus Traditional Advertising methods

good use of advertising Image source: adweek.com

Over the past few weeks, we’ve detailed how giving company logo clothing to Employees and Customers can deliver many benefits to a business. Now we’re going to jump into some important comparisons between Logo Clothing vs. Traditional Advertising channels in regards to the return on your investment.  

The average American see’s over 5,000 Ad’s per day… and they’re not working

Sounds like a lot but it’s actually a conservative estimate, some indicators show closer to 15,000 a day. Consider what you see every day and it starts to add up. Labeling, Packaging, Billboards, TV, Radio, Web Ad’s, Email, Phone Solicitations, Coupons, Catalogs, Mailings, Branded Clothing, on and on… We’re bombarded each day. Keep in mind, this number (ad’s we see each day) has grown over 10x since 1983 when Americans solicited 500 ad’s per day on average.   So, with all these ad’s, the human mind does what it naturally does when saturated with information, it ignores it.   Businesses spend 7 times more money trying to attract new Customers than trying to keep existing ones. Internet users clicked on 32% of on-line ad’s in 2007, that has now cut in ½ to less than 16%. When a popular TV show had a finale in the 1960’s and 70’s, it could draw up to 60% of American households, compare that with the American Idol finale in 2011, which was the #1 network show, with 22% viewership.   Even with lower ratings, ad’s cost more than 5 times today than the glory days of the 60’s and 70’s. A 30 second prime-time spot is $106k! This doesn’t factor the cost of production and which can cost upwards of $300k.   No matter the price, advertisers are HOOKED! Spending increased over 120% in the past 20 years, from 200 billion to 500 billion.   With companies fighting for market share in a world of comparison shopping, product saturation and mass marketing, these companies bid up advertising rates even though there is less attention from the Consumer.  

Logo Clothing by the Numbers

embroidered polos Image source: greatrated.com

People wearing a promotional apparel item will come into contact with over 100 new people per month. Bags, including backpacks, laptop cases, luggage, messengers and totes, lead all possible promotional items with an average of 187 new views per month. Take a scenario where a Company gives away 500 logo polo shirts to its Employees. We can determine with some accuracy how many people will see our logo. Depending on what industry the business, you could attach a conversion rate to forecast potential sales.  

First, let’s assume the cost was $25 per embroidered polo shirt for a $12,500 order total. Depending on what shirt is chosen, this number could be lower or higher.   - 500 Company Logo Polo Shirts * 100 new people viewing the logo per month = 50,000 people each month - The average Company Logo Polo Shirt will be kept for 2 years. This comes out to 50,000 people per month * 24 Months = 1,200,000 total unique views. - The company is paying roughly a penny, 0.0104 to be exact, per viewer - Depending on your conversion rate, which fluctuates based on the industry, you could plug that into these numbers. If a conversion rate is at the low end, say 1%, this investment could yield 12,000 new prospects / customers.   When you compare these numbers to traditional ad’s, the major benefit is the ad duration. TV, Radio and Internet Ad’s are one-time exposure that end in seconds, at best minutes. This is the power of logo clothing, you pay a lower cost for the Advertising and you get years of re-marketing.    

Premium Brands with your Logo greatly add to the effect

The frequency and length depends on the brand and quality you buy. The example above is showing results with a non-branded item; you can greatly extend the length of exposure by giving premium items. For instance, a Nike or Lacoste polo shirt will be kept 4 years (up to 8 years in many cases) by a recipient.  This is twice as long as a generic polo shirt.  Selecting a premium brand can yield much higher returns.

You can use this metric when considering other items as well.  Think if your Recipients would hold on to a Tumi backpack or briefcase with your logo longer than they would a non-branded item?

Would your Employees prefer an Eddie Bauer Jacket versus a non-branded?

Let us know if you’d like to get started with a Company Logo Clothing Order

Lead Apparel offers many options with your company logo; embroidered polo shirts, logo hats, custom logo luggage. Visit www.leadapparel.com to view products and pricing.

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