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How Much Budget Will You Allocate for Branded Promotional Products

Coastal Direct Promo
Promotional Merchandise

One of the crucial aspects of business success is marketing. While it does happen to small businesses to blow up without any promotions, these instances are scarce. And their success will only last until the next hype comes along. However, if you launch a marketing campaign, you will eventually run into budget issues. For instance, how much must you allocate for each component of your marketing strategy? Among the essential parts include your branded promotional products and peripherals.

How Much of Your Budget Goes to branded Promotional Products?

First, we need to define branded promotional products.

These marketing peripherals will drum up attention for a business or an event. They are different from traditional ads, which typically do not offer a face-to-face connection with your brand. In contrast, giveaways with your logo or name will etch into the memory of the target audience who receives them.

Among the examples of promotional merchandise Australia style includes:

  • Pens
  • Pencils
  • Mugs
  • Flash drives & Power banks
  • Totes
  • Bags
  • Umbrellas
  • Beer glasses
  • Hand sanitiser sticks
  • Bamboo lanyards
  • Pet collars
  • Spyro footballs
  • Silicone wrist bands
  • Face masks
  • T-shirts and jackets

Only your imagination binds you to the kind of product you want to give away to promote your brand. Coastal Direct can also customise food items into personalised freebies.

Let’s Talk About Money

For new companies, you must have a bigger budget earmarked for marketing—including traditional and digital ads and promotional merchandise Australia made—as you start to establish your brand. While there’s no written rule, spending between 12% and 20% of your annual projected revenue on marketing is widely accepted.

You may think it’s too much, but the budget will gradually decrease once you increase your market share, gain brand traction, and build customer loyalty.

For instance, established brands can get away with allocating about five per cent to ten per cent of their projected revenue to marketing. However, there are no clear-cut guidelines on how much you should spend on branded promotional products. It depends on your goals or the events you want to hype up.

Nevertheless, a good rule is to spend no less than 20% of your total budget on branded promotional products.

Budgeting for Promotional Merchandise in Australia

While advertising has shifted from the traditional to digital platforms, promotional merchandise is still a valid and tested way of spreading the word about your brand.

For one, you are essentially creating brand ambassadors from your target audience as they carry your freebies while they go about their day.

If it’s your first time strategising your marketing campaign, you need to ask yourself the following:

  • Which demographics am I trying to reach?
  • How can I best reach out to my target audience?
  • Where should I contact them?
  • Who would be our competition, and what are they doing on branded promotions?
  • What are our sales goals?

For example, if your desired market is young adults or teens, they would be more inclined to appreciate power banks and flash drives. In addition, since they use these gadgets daily, you get more value for your money through brand recognition and recall.

Of course, pens and pencils also have the same reach and are also the cheaper option. The downside is that they only last as long as their intended purpose. If the pen no longer writes, the user tends to throw it away, which means the end of your promotional lifecycle.

Finally, you must create a buffer of at least 10% once you finalise your peripherals budget to cover inflation and other costs.

Should You Budget for Branded Promotional Products?

The primary question is: would investing in promotional merchandise Australia made be worth it?

Australian marketers know the power of branded promotional products, especially when it comes to item cost per impression. A brand impression is calculated as the time anyone views your ad.

A billboard or a TV spot may have a wider simultaneous reach, but their brand impression is poor since the exposure only lasts seconds or minutes. In contrast, more than half of the people who received freebies have a generally good image of the company.

According to the Australian Promotional Products Association, among the benefits of investing in branded promotional products include:

  • Brand recall as nearly 8 in 10 of the users typically memorise the logo or name on the product
  • More traction as almost 6 in 10 keep the product for over a year
  • More reach as half of the recipients use the company giveaway every day

There’s a good reason why companies spend a total of AU$1.34 billion on promotional merchandise in Australia annually.


The beauty of promotional merchandise Australia made is the ability to manage your marketing budgets better. You do not have to go out immediately by investing in power banks. Instead, you can start small such as pens, shirts, and face masks, especially when your business is only beginning. Coastal Direct will work with you to find the most valuable items that would convert recipients into your very own brand ambassadors.

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Coastal Direct Promo is one of the most trusted names in Australia for promotional products, promotional merchandise, quality apparel, personalised logo branding solutions and personalised products for corporate and small business who want to build strong brand connections.
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