When a client asks you whether their branded merchandise spend is worth it, here's the number to reach for: 77%.
Of 399 people surveyed across Australia and New Zealand who had received branded merchandise, more than three in four went on to make a purchase from the brand. Not a website visit. Not a consideration. A real transaction.
But here's what makes this finding genuinely useful and what separates it from a feel-good stat: the research is clear that this result is not automatic. It doesn't happen because a logo appears on an object. It happens because the right object was chosen with the right intention.
The research identifies a clear set of factors that determine whether a branded item drives conversion or ends up in landfill.
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Usefulness is non-negotiable |
| 86% of recipients say usefulness is the #1 factor in whether they keep and use a branded item |
This is the most important finding in the recipient study. Not novelty. Not how prominently the logo appears. Not how much was spent. Usefulness.
Recipients keep things that serve a genuine purpose in their daily lives. They discard things that don't. And the items they keep are the items that build brand familiarity, trigger recall, and eventually drive purchase decisions.
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Quality signals brand values |
The research makes clear that recipients assess a brand's values based on what they receive. A cheap item communicates a cheap brand. A well-made item communicates a brand that cares about quality.
This has direct implications for how clients should be thinking about their merch budget. Spending less per item doesn't save money if the item actively undermines brand perception.
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Subtle branding outperforms overt branding |
Over-branded items feel like advertising. Recipients know they're being used as a walking billboard, and they respond accordingly — by not using the item in public, or not using it at all.
Well-considered, subtly branded items feel like gifts. Recipients use them, carry them, and display them — which is exactly when the brand building happens.
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Sustainability is now a purchase factor |
Recipients are increasingly making decisions about branded items based on their environmental footprint. Items wrapped in single-use plastic, or items perceived as throwaway, are being actively rejected before they even have the chance to build brand associations.
The 77% purchase intent figure is significant on its own. But it becomes even more significant when you understand what happens in the lead-up to that purchase.
This is the physical-to-digital bridge and it's one of the most important findings in the entire study.
When a recipient holds a branded item, their natural next step is to find out more about the brand. They reach for their phone. They search. They visit. They follow. And then, in 77% of cases, they eventually buy.
Branded merchandise doesn't replace a digital strategy. It activates one. The physical item creates the curiosity; the digital ecosystem answers it. Together, they complete the conversion journey.
For APPA members, this data is a gift because it reframes the entire conversation with clients who are questioning their branded merchandise spend.
The question is no longer 'can we justify this cost?' It's 'what would happen to our conversion rate if we chose items with more intentionality?'
The answer, according 399 people surveyed across Australia and New Zealand who had received branded merchandise, is: a lot.
The right promotional product doesn't end up in the bin — it keeps your brand in hand, on desk, and top of mind. Quality signals brand values. And when the right object is chosen with the right intention, 77% of the time it converts.
| 77% of recipients purchase from a brand after receiving a branded item — but only when the item earns it |
| Usefulness (86%) is the single biggest driver of whether an item creates brand impact |
| Quality signals brand values — The right promotional product doesn't end up in the bin, it keeps your brand in hand, on desk, and top of mind. |
| 66% go digital — merch activates the digital strategy, it doesn't replace it |
| The conversation to have with clients: not 'can we afford this?' but 'what happens if we choose better?' |
The shareable member deck includes this data formatted for client presentations. Download it, add your logo, and take this conversation into your next client meeting.
APPA members can access it via the APPA Member Research Hub.
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