Promotional Products Sales off 10.9% in Third Quarter

ASI research shows optimism rising as decline slows

TREVOSE, PA – October 22, 2009 – Advertising Specialty Institute^®, the largest media and marketing organization serving the advertising specialty industry, announced today that promotional products sales in the third quarter of 2009 were off 10.9% versus third quarter 2008. 

The exclusive ASI third quarter sales survey showed that the year-over-year sales decline among distributors represented a decrease of about $551 million in ad specialty sales compared to the same quarter last year, but also indicated that the 10.9% decline is less than the 13.9% decline in the second quarter and the 18.0% decline in the first quarter.  This is the fifth consecutive quarter that industry revenue has declined; the decline began in the third quarter of 2008, when sales dipped by 1.6%.

Nearly 30% of respondents reported an increase in sales, up 11 percentage points from 19% in the second quarter.  Larger distributors ($1 million or greater in revenue annually) showed the smallest decline in sales, off 8.1% versus 12.8% in the second quarter. 

“This exclusive study indicates that perhaps the economic climate is improving for the advertising specialty industry,” said Timothy M. Andrews, president and chief executive officer of ASI.  “Almost every distributor and supplier I’ve had conversations with over the last two months has told me that their sales are up this year versus last year.”   

About two-thirds, or 65%, of distributor firms are anticipating an average increase in sales of 13.5% for all of 2010 versus all of 2009.  Among those expecting lower sales, the average decrease is 16.5%.

Total 2009 sales will be reported in the first quarter of next year.  For 2008, overall promotional products sales were $19.8 billion, up 1.2 percent over 2007.

The ASI third quarter sales study is an additional resource among a comprehensive set of educational and statistical research from ASI, including the annual State of the Industry™ report, the Advertising Specialties Impressions Study and the ASI Social Networking Study.