They discussed the outcome of the current Promotional Products Monitor during the GWW-Trend in Cologne (f.t.l.): Steven Baumgaertner, Chairman of the GWW, the tax law expert, Prof. Dr. Johanna Hey, Oliver Spitzer from the market research institute, september Strategie & Forschung, and Daniel Jeschonowski, among others Managing Partner of the porcelain manufacturer, Kahla.
D – As is the case in many branches of industry, the promotional products sector was characterised by turnover losses for the past three years. Whereas the industry turned over around 3.7 billion Euros in the success year 2019, according to the German Promotional Product Association (GWW) the turnover plummeted down to 2.65 billion Euros in 2021. The current figures of the Promotional Products Monitor were published during the Press Conference of the spring edition of the GWW-Trend that was held in Cologne on February 8 and 9, 2023. According to the GWW, The German industry sold promotional products to the value of 2.8 billion Euros in the fiscal year 2022. Although this corresponds to 25% less than in 2019, the figures have indeed increased compared to 2021. The slight recovery is above all due to the fact that concerts, trade shows and events, which traditionally constitute a strong sales market, were allowed to be staged again in 2022.
The value threshold of 35 Euros per promotional product per year and per recipient that companies can claim a tax deduction for remains to be a problematic issue. No adjustment has been made yet either to compensate for inflation. The record-keeping requirement, which depending on the finance department, also foresees the documentation of the name of the recipient of promotional products worth more than ten Euros, is also obstructive for the industry. The Chairman of the GWW, Steven Baumgaertner, also criticised this at the Press Conference: “In dubio pro cheap – that can’t be the solution or the political aim long-term, especially not in the international comparison. What we are demanding, is simply the recognition as a fully-fledged advertising medium unconditionally.”
The power of haptic advertising was highlighted once again during the Press Conference: After online advertising (5.12 billion – 2021) and TV advertising (4.34 billion – 2021), the promotional product is the preferred form of advertising media especially for small and medium-sized companies. In spite of the still lower turnover, complications due to the increased energy prices and despite the high inflation, the promotional products industry is experiencing an upswing and hopes to achieve further growth in turnover in 2023.
