Sales Promotion & Specialized Marketing Services Industry Trends

Growth Through Acquisitions

Large sales promotion services companies have grown through acquisitions, buying companies with complementary products or companies in different geographies. Acquisitions were common in the late 1990s and have increased again since 2005. Since the barriers to entry in the industry are minimal, many companies are created and then go out of business, grow, or become acquisition candidates.

Emergence of Internet

Until a few years ago, flyers were the major way that companies communicated new products and services. The Internet is now preferred for prospect and customer communication, and a common means to place orders. The Internet allows companies to create “virtual showrooms,” and email blasts allow businesses to efficiently reach a targeted audience. Color in online communication allows more effective presentation of product than black and white.

Decreasing Major Media Effectiveness

Falling TV ratings and problems in major media have opened the door for increased spending on promotional products. As the public becomes more in control of the marketing messages they see and hear via the Internet, advertisers look for additional ways to promote their brands. Specialty items and direct marketing become more attractive as alternatives or supplements to mass media advertising.