{"id":2331,"date":"2016-06-06T13:38:07","date_gmt":"2016-06-06T13:38:07","guid":{"rendered":"https:\/\/asi2.wpenginepowered.com\/uncategorized\/first-quarter-2009-sales-off-17-6-industry-sales-flat-for-2008\/"},"modified":"2025-06-26T15:47:54","modified_gmt":"2025-06-26T19:47:54","slug":"first-quarter-2009-sales-off-17-6-industry-sales-flat-for-2008","status":"publish","type":"post","link":"https:\/\/asicentral.com\/press-releases\/first-quarter-2009-sales-off-17-6-industry-sales-flat-for-2008\/","title":{"rendered":"First Quarter 2009 Sales Off 17.6%; Industry Sales Flat for 2008"},"content":{"rendered":"<p><em><br \/>\n<\/em><span style=\"font-family: Trebuchet MS;\"><strong><span style=\"font-family: Trebuchet MS; font-size: small;\">TREVOSE, PA \u2013 April 24, 2009 &#8211;<\/span><\/strong>\u00a0<span style=\"font-size: small;\">The Advertising Specialty Institute\u00ae, the largest media and marketing organization serving the advertising specialty industry, announced today that first quarter 2009 sales were off 17.6%.<\/span><\/span><\/p>\n<p><span style=\"font-family: Trebuchet MS, arial, helvetica, sans-serif; font-size: small;\">In 2008, overall advertising specialty industry sales reached $19.8 billion, up 1.2 percent over 2007, as estimated in the January 20, 2009 edition of PromoGram from <em>Counselor<\/em> magazine.<\/span><\/p>\n<p><span style=\"font-family: Trebuchet MS, arial, helvetica, sans-serif; font-size: small;\">In addition, the exclusive ASI first quarter sales report showed that the year-over-year decline represented a decrease of $700 million in ad specialty sales compared to first quarter 2008. Less than a quarter of distributors (24%) reported an increase in sales in the early months of 2009. Only two quarters ago, 40% had reported an increase in sales.<\/span><\/p>\n<p>For the full year 2008, spending on advertising specialties, or promotional products \u2013 items and incentives branded with a company logo or marketing message \u2013 was 3% greater than radio advertising*, $12.8 billion greater than outdoor display ads** and ahead of the 2.6% estimated decline in overall U.S. advertising for 2008***. The industry increase also matched the 1.1 percent growth rate for the United States GDP for the same period.<\/p>\n<p>\u201cIn this time of economic challenges, the estimate for advertising specialty sales in 2008 indicates a better year than what 2009 is shaping up to be,\u201d said Timothy M. Andrews, president and chief executive officer of ASI. \u201cWe\u2019re cautiously optimistic for 2009, but one of the smartest things businesses can do right now is increase their marketing and advertising to grab market share.\u201d<\/p>\n<p><span style=\"font-family: Trebuchet MS, arial, helvetica, sans-serif; font-size: small;\"><br \/>\n\u201cASI invests $1.3 million each year to educate suppliers and distributors on how to market themselves more efficiently, network more effectively and reach qualified business partners,\u201d Andrews said. \u201cAn exclusive ASI impressions<span style=\"color: #990000;\">\u00a0study<\/span> is also available that provides ROI figures that prove the value of advertising specialties in marketing campaigns.\u201d<\/span><\/p>\n<p><strong>Reactions from industry distributors included ideas for growth and improving operations.<\/strong><\/p>\n<p>\u201cYou will lose business if you are not actively selling the idea that promotional products help customers get new business,\u201d said Dan Welborne, vice president of promotional marketing for Top 40 firm WorkflowOne (asi\/333647). \u201cCompanies need to align operating expense to their contribution line. For many companies in 2009, this may represent a significant decrease in operational expense.\u201d<\/p>\n<p>\u201cOrganic and green products are trending up,\u201d said Anna Johnson, president, Super Embroidery Inc. (asi\/339634). \u201cAlthough many people say companies are spending less, they are still spending. Some companies are starting to buy more giveaways for their employees and customers to lighten the mood. We\u2019re also finding customers prefer to use the Internet more and are purchasing products that have bright and cheery colors.\u201d<\/p>\n<p>\u201c2008 started off strong for us, but turned into a challenge by the end of the year,\u201d said Gary Tuchler, MAS, region vice president of Top 40 Distributor firm Brown &amp; Bigelow (asi\/148500). \u201cRecent activity and order levels would indicate, however, that businesses are starting to shed some concerns and are realizing their business will go on and that a quality promotional products campaign is an investment in their future.\u201d<\/p>\n<p><strong>Industry suppliers also voiced their opinions and advice for moving forward.<\/strong><\/p>\n<p>\u201c2008 was a dynamite year for SnugZ USA and the best in our 20 year history,\u201d said Brandon Mackay, <em>Counselor<\/em> Power 50 leader and chief executive officer of SnugZ USA (asi\/88060). \u201cWith that said, lean and mean is the key to survival. We\u2019ve found the glass-half-full approach to run and navigate our business through this economic storm and have become infinitely better at understanding our business.\u201d<\/p>\n<p>\u201cThe overall ad specialty market is relatively huge,\u201d said Tom O\u2019Boyle, president, Journalbooks\/Timeplanner Calendars (asi\/91340). \u201cCompanies with the right products, price and promotions are doing well. The trick in this economy is that all three of those cylinders must be firing. Most suppliers are focusing on only one of them, pricing, and if they were honest they would tell you that they are doing poorly.\u201d<\/p>\n<p>\u201cIn some respects, these are good times,\u201d said Leigh Somers, owner, Say Thank You With Coffee (asi\/85155). \u201cThe larger sizes of our individually personalized coffee packages, the 8-ounce and 4-ounce sizes in particular, were strong sellers in 2008. This year a year for evolution and we are working to build our brand in anticipation of 2010 and to take advantage of the economy as it improves.\u201d<\/p>\n<p><strong>Outlook<\/strong><\/p>\n<p>Industry companies are optimistic about 2009, but continue to watch several factors impacting the industry:<\/p>\n<p>1) Volatile economic conditions in North America.<br \/>\n2) Increasing demand for \u201cgreen\u201d products, despite the recession.<br \/>\n3) Continuing fluctuations of prices for materials used in manufacturing.<\/p>\n<p align=\"center\">\n","protected":false},"excerpt":{"rendered":"<p>TREVOSE, PA \u2013 April 24, 2009 &#8211;\u00a0The Advertising Specialty Institute\u00ae, the largest media and marketing organization serving the advertising specialty&#8230;<\/p>\n","protected":false},"author":7,"featured_media":1482,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>First Quarter 2009 Sales Off 17.6%; 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