PREVIEW IN THIS ISSUE AI In Promo p. 22 and p. 30 A Legend's Final Trade Show p. 52 Expo Success Stories p. 58 MEDIA.PPAI.ORG 12.24 pg. 44
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PREVIEW 4 From PPAI Experience Possibilities 9 Creative Calendar Essentials 12 In Style Loungewear For Every Lifestyle 16 Use Case ‘Tech’ It Up A Notch Voices 22 Innovation AI In The Promotional Products Industry: Balancing Benefits And Risks 24 Responsibility Turning Over A New Leaf Must Read 30 Promo's AI Challenges And Opportunities 38 Promotional Products Work Promo: The Holy Grail Of Connection Community 68 Buzzworthy 72 Book Club 74 PPPC Communiqué 77 Inside PPAI 83 New Members 87 Datebook 92 Perfect Promo CONTENTS 12.24 VOLUME 48, ISSUE 10 52 Inside The Final Trade Show Of A Promo Legend Paul Kiewiet took MiPPA from near ruins to a thriving regional association. While recently overseeing an event at an NFL stadium, he went out on his own terms. 52 The PPAI Expo 2025 Preview The industry’s largest and longest-running trade show returns to Las Vegas on January 13 with new features and favorite attractions. 44 Success Stories From The PPAI Expo Attendees and exhibitors share how the products they discovered and the relationships they made at promo’s grandest event have improved their business. 58 44 58 PPAI • DECEMBER 2024 • 3
Cody Laine / Shutterstock.com From PPAI Andrew Spellman, CAS Chair of the Board 12.24 Experience Possibilities The PPAI Expo returns next month. What will you discover? THE PPAI EXPO 2025 Is where you go to . That’s the theme of this year’s event – the biggest and best in our industry – and it perfectly describes the endless possibilities available to you and your business during that special week in Las Vegas. You can fill in the blank for yourself, but from my own experience, I can tell you that year after year, the promo world descends on The PPAI Expo to … network, discover new products, learn, meet customers, forge partnerships, plan for the year ahead and just have a good time surrounded by people who are passionate about this work that we all do together. And this year’s show promises to be the best yet. (After all, it’s my Chair year!) All indicators, from registrations and hotel bookings to the number of exhibiting companies, are tracking ahead of 2024. And a host of new experiences and improved activations are set to make for a memorable, rewarding trip for the more than 16,000 industry pros expected to attend. When our industry takes over Mandalay Bay Convention Center come January 13-16, you will find more networking events, from a new meetup just for promo’s emerging leaders to the opportunity to connect with your regional association. When you need a break from browsing the aisles, there will be additional lounges throughout the show floor for improved comfort and deeper conversations. Everyone in our industry will feel at home at The PPAI Expo. We’re making more room for visitors from across the world with an expanded international reception, and we hope you join us for the Monday evening welcome festivities in swanky new digs at the Skyfall Lounge atop the W Hotel (formerly Delano). That’s the perfect place to wind down from a busy day of education at The PPAI Expo Conference, which this year will bring fun new interactive features to the second level lobby, keeping you energized between sessions. The show floor will again be buzzing with activity from Tuesday through Thursday. Look for a bigger and better setup for the on-site pickleball court in its second year, and take advantage of the chance to unwind at Promo & Pints. Of course, Las Vegas wouldn’t be the entertainment capital of the world if all the fun ended at sundown. Each night brings new restaurants and clubs for celebrating as you reconnect with friends and business partners. And the new venue for The PPAI Expo Party on Wednesday night, Swingers, will bring an immersive experience in an easyto-reach location, right off the Mandalay Bay casino floor: Imagine yourself stepping into the world of a 19th-century English countryside estate for crazy golf, carnival games, music, great food and superb cocktails. Be sure to get your tickets before the party sells out. Along with all that will be new and different at The PPAI Expo 2025, the things that make the show a can’t-miss year after year are back. Distributors can count on discovering new products that will drive sales, and suppliers will uncover business leads that prove to be breakthroughs. More than ever before, The PPAI Expo is the place to begin your successful business year ahead. I’ll see you there! 4 • DECEMBER 2024 • PPAI
PPAI® PUBLISHER & EDITOR-IN-CHIEF Josh Ellis JoshE@ppai.org MANAGER, CONTENT & SPECIAL MEDIA PROJECTS James Khattak JamesK@ppai.org DEPUTY EDITOR John Corrigan JohnC@ppai.org NEWS EDITORS Jonny Auping JonnyA@ppai.org Arianna Johnson AriannaJ@ppai.org MARKET ECONOMIST & SENIOR MANAGER, RESEARCH Alok Bhat AlokB@ppai.org PUBLIC AFFAIRS & RESEARCH EDITOR Rachel Zoch RachelZ@ppai.org RESEARCH COORDINATOR Shiella Aparis ShiellaA@ppai.org GRAPHIC DESIGNER Rowel Cristobal RowelC@ppai.org ART DIRECTION SPARK Publications SPARKpublications.com 704-844-6080 ADVERTISING MANAGEMENT ACCOUNT MANAGERS Connie Brazil Taylor Coward Heather Mangold Sandy Mendoza Mark Rykojc PPAI.org/account-managers ADVERTISING CONTACT Amy Weisman 972-258-3080 AmyW@ppai.org INTERIM PRESIDENT & CEO Dawn Olds, MAS 888-I-AM-PPAI DIRECTOR OF SALES & PROFESSIONAL DEVELOPMENT Lindsey Davis, MAS VICE PRESIDENT, REVENUE AND EXPOSITIONS Ellen Tucker, MAS, CAE DIRECTOR OF FINANCE Renae Ward CHIEF FINANCIAL OFFICER Troy Naef DIRECTOR OF HUMAN RESOURCES Nicole Rhooms DIRECTOR OF CORPORATE RESPONSIBILITY & SUSTAINABILITY Elizabeth Wimbush BOARD OFFICERS CHAIR OF THE BOARD Andrew Spellman, CAS Therabody IMMEDIATE PAST CHAIR Kevin Walsh, CAS Showdown Displays CHAIR-ELECT OF THE BOARD Denise Taschereau Fairware VICE CHAIR, FINANCE SERVICES Chris Anderson HPG BOARD MEMBERS TERMS EXPIRING 2025 Karie Cowden, MAS Connect the Dots Promotions REGIONAL RELATIONS COMMITTEE DELEGATE TERM EXPIRING 2026 Kara Keister, MAS Social Good Promotions TERMS EXPIRING 2026 Chris Anderson HPG AT LARGE DIRECTOR Lori Bauer iPROMOTEu TERMS EXPIRING 2027 Dan Pantano alphabroder TERMS EXPIRING 2028 Zack Ottenstein The Image Group Erin Reilly Pop! Promos Danny Rosin, CAS BRAND Fuel PPAI HEADQUARTERS 3125 Skyway Circle North, Irving, Texas 75038-3526 Phone: 888-IAM-PPAI (426-7724) www.ppai.org, pubs.ppai.org READER RESOURCES SUBSCRIBE TO PPAI MAGAZINE: Subscribe online at pubs.ppai.org or send your name, title, company name and mailing address, along with phone and fax, to PPB Subscriptions, 3125 Skyway Circle North, Irving, Texas 75038. Or phone in your subscription to 972-258-3019. Include payment with your order. Visa, MasterCard and American Express are accepted, along with checks. Additional member subscriptions are $58 for PPAI member companies (U.S.), $70 (Canada and Mexico) and $75 (international). Nonmember subscriptions are $72 (U.S.), $82 (Canada and Mexico) and $92 (international). Please allow four to six weeks for start of subscription. ADVERTISE IN PPAI MAGAZINE: Download a media kit with rates and specs for all PPAI print and digital publications at media.ppai.org, or call 972-258-3019 or email mediasales@ppai.org. WRITE FOR PPAI MAGAZINE: The magazine regularly accepts articles from both professional writers and industry experts – like yourself. Find out everything you need to know about submitting an article or an idea by reading PPAI’s Writer’s Guidelines available at media.ppai.org/submit-content. Promotional Products Association International 6 • DECEMBER 2024 • PPAI
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If this calendar is helpful or if you have ideas for ways that we can better provide this information, email the editors at magazine@ppai.org JANUARY 8 NATIONAL BUBBLE BATH DAY 13 NATIONAL STICKER DAY 24 NATIONAL COMPLIMENT DAY FEBRUARY 10 NATIONAL UMBRELLA DAY 20 NATIONAL LOVE YOUR PET DAY 27 NATIONAL RETRO DAY MARCH 7 NATIONAL EMPLOYEE APPRECIATION DAY 12 NATIONAL PLANT A FLOWER DAY 26 NATIONAL EPILEPSY AWARENESS DAY Exceptional Promotions SPECIAL OBSERVANCES CALL FOR NATIONAL WOMEN’S HISTORY MONTH Product idea: Wrap your client’s brand around the Grow Your Own Garden of Hope, a charming kit that includes three seed packages, starter soil and wooden plant stakes, all neatly packed inside a recycled six-count egg carton. Plant sunflowers, poppies and impatiens directly in the carton, then use the stakes to label each compartment in your cheerful desk or countertop garden. Jornik / PPAI 111065, Silver / jornik.com Use these special occasions to ignite your imagination for relevant – and distinct – client promotions. Compiled by Rachel Zoch NATIONAL HOT TEA MONTH Product idea: Sip back and rejuvenate with the ultimate tea lover’s kit: a tumbler, a tea bag, honey to sweeten the deal and a dose of vitamin C. The Promo Revolution 20-oz. Vacuum Sealed Straight Tumbler Gift Set with Immunity Booster Kit is a standout way to elevate your client’s brand, showcasing a large logo on a tumbler that keeps beverages hot or cold for hours. This thoughtful gift set, which includes an English breakfast tea bag, honey sweetener and Emergen-C packet, is elegantly packaged and tied with a raffia ribbon bow. Midnite Snax / PPAI 113793, Standard-Plus / midnitesnax.com NATIONAL BLACK HISTORY MONTH Product idea: Flip your rainy day game! The Blue Sky & Clouds Inverted Umbrella is designed to protect you not only from the rain, but also from a rain-soaked umbrella. With a 48-inch arc, double-layer canopy and all-fiberglass construction, this windproof umbrella closes in reversible fashion, keeping the wet side of the umbrella contained. The intelligent design also makes it easier to open and close from doorways and cars so you stay dry from start to finish. Plus, your client’s logo will stand out, making every rainy day a branding opportunity. Arch Promo Group / PPAI 820951, Gold archpromogroup.com/stromberg-brand-umbrellas PPAI • DECEMBER 2024 • 9
PROMOTIONAL PRODUCTS TO BE UNIVERSALLY VALUED Essentials 12.24 IN STYLE p. 12 ‘TECH’ IT UP A NOTCH Check out distributors’ tech promo picks that combine functionality and brand visibility, along with insights on eco-friendly choices and packaging. page 16 USE CASE PPAI • DECEMBER 2024 • 11
ViDI Studio/ Vjom / Shutterstock.com LOUNGEWEAR IS NO LONGER just for lazy days at home – it’s become a universal fashion trend. From toddlers to active 70-year-olds, everyone is embracing this cozy yet stylish apparel. “Pajamas and lounge sets, inspired by J.Crew, Ralph Lauren and Skims, are showing up everywhere, from retail and travel and resort to colleges,” says Tori Novosel, director of marketing at Bella+Canvas, adding that pajama sets and silky fabrics are standouts in home loungewear. “They’re comfortable but carry an air of luxury.” Pajamas and loungewear took off after COVID-19, with more people working from home and leaning into comfortable, laid-back styles. “This trend remains, with versatile, comfortable pieces in high demand across multiple sectors,” says Andrew (AJ) Dickson, senior category director at PCNA, PPAI 100’s No. 3 supplier. He notes that media, IT and educational institutions particularly favor these relaxed styles, appealing to modern preferences over traditional professional attire. The key to pajama or loungewear looks is versatility, from layering to oversized elements. “These styles can be dressed up or down,” says Stephanie Bennett, senior merchandising manager at Charles River Apparel, PPAI 100’s No. 37 supplier. Loungewear should meet the ideal intersection of oversized while Loungewear For Every Lifestyle The desire for comfort has transcended age groups and industries, becoming a go-to choice for everyone from toddlers to retirees, with versatile styles that balance coziness and fashion. By Nicole Rollender 12 • DECEMBER 2024 • PPAI Essentials | In Style
still looking stylish, she adds. “While everyone has a different way of styling loungewear, we see people wearing it while working from home, traveling or running errands.” Loungewear has become a staple in Gen Z and millennial wardrobes, and Novosel predicts continued growth in the coming years. “Many people mix blazers or trench coats with sweat sets and sneakers, whether at home or on the go,” she says. “The unisex category is the fastest growing at retail, and as awareness of gender neutrality increases, brands and retailers increasingly seek versatile, unisex designs.” End buyers are drawn to features that provide comfort and durability. “Key elements, such as elasticized waistbands, drawstrings and sueded fleece in loungewear pants, are trendy for their balance of comfort and function,” Dickson adds. Color-wise, he sees neutrals remaining popular, complemented by modern accents like navy, gray, white and earth tones. HXD decoration, a technique combining embroidery and digital transfers to create a durable emblem, is also gaining popularity in loungewear. “You can deliver a premium product without adding weight or bulk, ensuring comfort against the skin,” Dickson says. “HXD adds a 3D texture and dimension to logos, creating a bold, high-impact appearance. Applying HXD in non-traditional locations such as the shoulder, hip or sleeve enhances elevated, cozy styles with a sophisticated touch without compromising comfort.” And while people of all ages care about sustainability, Gen Z and millennials are especially inclined to prioritize eco-friendly practices and giveback programs. “The use of ecofriendly materials such as BCI cotton, recycled polyesters and bluesigncertified are important factors,” Dickson says. The Crosswind Quarter Zip Sweatshirt is an oversized, unisex style for lounging at home, wearing on company trips or for adventures. This comfortable sweatshirt, made of soft ring-spun cotton-poly yarn, includes details like on-seam pockets and dyed-to-match knit-trim design details on the neckline, hem and cuff. The women’s companion style offers a fitted silhouette. Charles River Apparel PPAI 111644, Gold charlesriverapparel.com No two Camden Crew Neck Sweatshirts are alike, thanks to a dyeing and snow-wash process that gives each piece a one-of-a-kind, lived-in look. Made of 100% corded cotton sweatshirt fabric, these relaxed styles for men and women fade over time for a vintage look. Charles River Apparel PPAI 111644, Gold charlesriverapparel.com PPAI • DECEMBER 2024 • 13 In Style | Essentials
The midweight, unisex Nantucket Crewneck Sweatshirt (shown in Ice Purple and Latte, left) Nantucket Pullover Hoodie (shown in Terra Brown and Navy, right) are “the softest sweatshirts you’ll wear,” says Alexis Shubin, marketing director at Lane Seven Apparel. “I’m obsessed – they’re incredibly cozy and warm without being too thick, making them perfect for year-round wear.” The classic crewneck is crafted from a plush, textured knit and features ribbed cuffs and waistband. “This style looks like a sweater, so you can step out without feeling or looking like you’ve been lounging all day,” Shubin says. The hoodie features a lined fleece hood, a kangaroo pocket, ribbed cuffs and waistband and flat dyed-to-match drawcords. Lane Seven Apparel / PPAI 630869, Standard-Base / lanesevenapparel.com The Unisex Roots73 Canmore Eco French Terry Hoodie, with modern dropped shoulders, a kangaroo pocket and a hidden interior phone pocket, is comfy, stylish and ecofriendly. “This hoodie is made with a blend of soft organic cotton and recycled polyester French terry in a bluesignapproved facility and certified by Global Recycled Standard,” Dickson says. “We donate 1% of sales from our sustainable collections to support environmental nonprofits through a partnership with 1% For The Planet.” PCNA / PPAI 113079, Platinum / pcna.com The Maplegrove Roots73 Fleece Hoody, available in men’s and women’s styles, provides the perfect layer on a cool day. “This is a standout piece with its plush, low-shrink jersey-lined design for staying cozy yet stylish,” Dickson says. The Maplegrove features a hidden security pocket to keep your valuables safe. With shaped seams and a tapered waist, the women’s hoodie offers a sleek, feminine fit. PCNA / PPAI 113079, Platinum / pcna.com 14 • DECEMBER 2024 • PPAI Essentials | In Style
Nothing says “comfort” like the Paddlecreek Roots73 Fleece Sweatpants, made from sueded fleece, in men’s and women’s cuts. These stylish, cozy sweats feature an elasticized waistband with a drawstring and side welt pockets. PCNA / PPAI 113079, Platinum / pcna.com The Unisex Sponge Fleece Drop Shoulder Sweatshirt (shown in Vintage Brown and Kelly) is a classic pullover crewneck sweatshirt in comfy, super-soft sponge fleece designed for warmth and breathability. This classic loungewear piece features a unisex retail fit, an on-trend drop-shoulder seam and ribbed cuffs and waistband. Bella+Canvas / PPAI 304892, Silver / bellacanvas.com The Unisex Sponge Fleece DTM Full Zip Hoodie, made from cotton/poly fleece, is a go-to comfort piece for any situation, with features like relaxed set-in sleeves with cuffs, an easy waistband and a roomy kangaroo pocket. Dyed-tomatch drawcords, zipper and zipper tape keep this look on point. Bella+Canvas PPAI 304892, Silver bellacanvas.com The Unisex Sponge Fleece Straight Leg Sweatpants, made from lightweight, ultra-soft sponge fleece, is a relaxed, wear-on-repeat essential with an elastic waistband and dyed-to-match internal drawcord. A straight-leg fit gives this look major street appeal, whether lounging at home or heading out. Bella+Canvas PPAI 304892, Silver bellacanvas.com Rollender heads up New Jersey-based STRANDWriting Services.com. PPAI • DECEMBER 2024 • 15 In Style | Essentials
‘Tech’ It Up A Notch Check out distributors’ tech promo picks that combine functionality and brand visibility, along with insights on eco-friendly choices and packaging. By Nicole Rollender SYDNEY STEIN Senior Account Manager Whitestone PPAI 666851, Silver Austin, Texas Tech gifts consistently rank as one of Whitestone’s most-requested promotional items. “They resonate with a diverse range of demographics, so recipients always feel excited about the gift they’re receiving,” Stein says. “A major reason for tech items’ appeal is their practicality, since they easily fit into everyday life, such as power banks for travel or headphones for calls in the office.” If your clients want more brand exposure, tech gifts offer lots opportunities. “Since recipients frequently use these items in public, they naturally promote a brand to a wider audience,” Stein says. “Tech gifts also often carry a higher perceived value, making recipients feel appreciated and valued. This combination of practicality, visibility and perceived value makes tech gifts a sold choice for any gifting opportunity.” Stein’s standout tech gift for an education client’s guest speakers is the Chi-Charge Stack Foldable 3-in-1 Fast Charge Mat With Sleeve. After spotting this viral sensation on TikTok, she quickly recognized its potential appeal. The ChiCharge Stack quickly became a favorite, blending functionality with trendiness, making it an instant hit among recipients. This super-compact, fold-up device wirelessly charges a compatible phone, watch and earbud case at the same time. “I was thrilled that the Chi-Charge Stack was trending at retail and also available in the promo space,” says Stein, who’s passionate about researching retail trends and introducing them to her clients so they can stay ahead with their gifting selections. “This mat was a perfect example of that vision. Plus, I love that the supplier offers a branded packaging upgrade with the sleeve. Presentation is everything!” Twintech Industry / PPAI 261545, Silver / twintechpromo.com Stein’s go-to tech promo gift is the Thomas Eco Multicable, made with a biodegradable plastic top and cable housing made with 100% recyclable, food-grade material. “This item consistently resonates with our clients because of its sustainable composition, affordability and practicality,” she says. “We as salespeople must promote eco-friendly tech options, especially for clients who may not have considered them before. This tech item exemplifies this commitment, combining everyday utility with a focus on environmental responsibility.” Acehigh Tech / PPAI 161597, Standard-Base / acehighpromo.com 16 • DECEMBER 2024 • PPAI Essentials | Use Case
She can’t wait to try the NFC Scribe Pen, which merges everyday functionality with near field communication technology, a wireless communication technology that allows devices like smartphones and tablets to exchange data over short distances. Featuring a comfortable oval barrel and eye-catching finishes, this sleek tech-enabled pen is a standout accessory that combines practicality and style. “What excites me about NFC is its potential for advertising beyond the physical item,” Stein says. “It creates an interactive experience for the end user, guiding them directly to a website or additional content. The NFC Scribe Pen goes beyond being a simple writing tool. It’s a dynamic promotional asset that can significantly boost user engagement.” HPG Brands / PPAI 110772, Platinum / hpgbrands.com KARIE COWDEN President Connect The Dots Promotions PPAI 368415, Standard-Plus Phoenix, Arizona The best tech gift Cowden has selected for a client was a drone, which was mailed out close to July 4. “A consulting firm client wanted to drop-ship a gift ahead of the holiday where they could record fireworks, along with a coloring book all about Independence Day,” she says. “The end clients sent videos back to the consulting firm, who was thrilled with the result.” The lightweight Soarington Drone offers a flight time of up to 20 minutes and features a built-in camera with live video feed accessible via its app. With its folding design and compact size, it also includes smart photo technology that captures images with a hand signal. HPG Brands / PPAI 110772, Platinum / hpgbrands.com Cowden doesn’t have a single go-to tech gift. Instead, she focuses on finding the right fit for each client. “Power banks can work for some accounts but may not make sense for others,” she says. “If a power bank is a good option for the client, I love the SCX Design Full-Color Illuminated Power Bank Slim 5000 mAh for the way it can illuminate the image and power your phone.” This compact power bank offers versatility with both full-color and laser-engraved imprints, all while featuring a soft-touch rubber finish for a sleek feel. Complete with a 3-in-1 rPET charging cable and a premium gift box, it’s a practical accessory that fits easily into any bag. Koozie Group / PPAI 114187, Platinum / kooziegroup.com PPAI • DECEMBER 2024 • 17 Use Case | Essentials
Cowden appreciates when a promotional product, like the Neoskin Hard Cover Journal, serves multiple marketing purposes, especially with a tech element like a QR code. “The beauty of QR codes is that you can print them on any item,” she says. “This journal I received has a tip-in page with a QR code for mentoring. It’s a great call to action.” This best-selling hardcover journal also features a hidden gusseted interior pocket for storing business cards or small documents. With 192 lined, acid-free ivory pages, along with a ribbon bookmark and an elastic closure for convenience, it’s a stylish and practical companion that incorporates a tech component. Spector & Co. / PPAI 168328, Gold spectorandco.com Rollender heads up New Jersey-based STRANDWritingServices.com. Leadership Development Conference October 27-29 Dallas, TX North American Leadership Conference May 12-14 Chicago, IL Women’s Leadership Conference June 23-25 San Diego, CA 18 • DECEMBER 2024 • PPAI Essentials | Use Case
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IDEAS TO ADVANCE THE MARKETPLACE Voices 12.24 INNOVATION p. 22 TURNING OVER A NEW LEAF Switching to FSC-certified paper for PPAI Magazine represents another aspect of the Association’s sustainability commitment. page 24 RESPONSIBILITY PPAI • DECEMBER 2024 • 21
AI In The Promotional Products Industry: Balancing Benefits And Risks While AI can increase efficiency, personalization and marketing effectiveness, it must be adopted thoughtfully to avoid pitfalls. By Staff A RECENT REPORT published by PPAI Research determined that 87% of distributors and 92% of suppliers among PPAI 100 companies are on board with AI. And for good reason – AI promises significant transformation for the industry. However, as promo adapts to AI, there are legitimate risks to consider. Understanding those risks, as well as the benefits, is all part of the journey to usher our industry into a new reality. Let’s go over both. Benefits of AI in Promo Enhanced Product Personalization: AI takes product personalization to a new level by analyzing customer data and tailoring offerings to individual preferences, purchasing history and market trends. With AI, companies can recommend products that align more closely with clients’ unique tastes, strengthening customer loyalty and satisfaction. Efficient Inventory Management: Predictive analytics provide a smarter approach to inventory management. By analyzing historical data, seasonal patterns and other variables, AI helps companies anticipate which products will be in demand, reducing overstock or stockouts. This not only cuts costs but also ensures that customers receive their orders quickly, enhancing customer experience and trust. Automated Customer Service: AI-powered chatbots and virtual assistants streamline customer service by handling routine inquiries, tracking orders and recommending products without human intervention. This automation reduces costs, improves response times and supports 24/7 customer service, allowing clients to interact whenever they choose, which increases satisfaction and loyalty. Improved Marketing Strategies: AI insights help companies refine their marketing efforts by analyzing customer behavior, preferences and purchasing patterns. This allows for targeted campaigns, optimized timing and personalized content, which can lead to higher engagement and conversion rates. By tailoring marketing efforts with AI, businesses can reach audiences more effectively, enhancing their competitive edge. 22 • DECEMBER 2024 • PPAI Voices | Innovation
Innovation | Voices Risks of AI in Promo Data Privacy Concerns: AI’s reliance on data analysis raises privacy issues, as customer data is continuously collected and processed. While this data is essential for personalization and marketing, it must be safeguarded to prevent misuse or breaches. Strong data security measures are crucial for maintaining customer trust and avoiding privacy issues that could damage client relationships. Loss of Human Creativity: While AI can generate designs and marketing copy based on past trends, over-reliance on AI could stifle the human creativity central to this industry. The promotional products sector thrives on unique, memorable concepts that connect with customers emotionally. Balancing AI efficiency with human creativity is essential for ensuring that products remain distinctive and impactful. Bias and Fairness Issues: AI systems can unintentionally reinforce biases present in their training data, limiting diversity in marketing and product recommendations. For instance, if specific demographics have historically purchased certain products, AI might continue targeting only similar groups. Regular review of AI algorithms can help mitigate this risk, promoting inclusivity and ensuring broader audience reach. Job Displacement in Traditional Roles: As AI manages inventory, customer service and design, some roles may become obsolete. Automation may streamline processes, leading to a reduction in the workforce needed for data-heavy or repetitive tasks. Industry leaders can address this by investing in upskilling programs, allowing employees to transition into complementary roles like strategy, client relations and creative work. Striking a Balance in AI Adoption For the promotional products industry, AI offers both opportunities and responsibilities. While it can increase efficiency, personalization and marketing effectiveness, it must be adopted thoughtfully to avoid pitfalls. A balance between AI’s capabilities and human ingenuity is crucial in a sector built on personal connection and creative impact. Industry professionals can manage these complexities by prioritizing data transparency and ensuring that clients understand how their information is used. Additionally, investing in AI training for employees can empower them to work alongside AI systems effectively. By complementing AI’s strengths with human expertise, businesses can avoid potential downsides and better adapt to an evolving job landscape. Krot_Studio / Shutterstock.com Want More On AI In Promo? Flip to page 30 for data on its usage from PPAI Research. PPAI • DECEMBER 2024 • 23
Voices | Responsibility Turning Over A New Leaf Switching to FSCcertified paper for PPAI Magazine represents another aspect of the Association’s sustainability commitment. By Elizabeth Wimbush AT PPAI, sustainability isn’t just a buzzword – it’s a commitment to reducing our environmental impact and supporting responsible practices throughout our industry. One of the recent steps we’ve taken toward this goal is the switch to FSC-certified paper for PPAI Magazine. With 147,000 copies printed each year, this change is more than symbolic. It reflects our dedication to making mindful choices that contribute to the health of our planet and align with broader global sustainability efforts. What’s In A Name? The Forest Stewardship Council certification is the gold standard for responsible forest management. When you see the FSC logo, it means the paper comes from forests managed in ways that preserve biodiversity, benefit local communities and ensure long-term environmental sustainability. In other words, choosing FSC-certified paper means we’re supporting practices that prevent deforestation, protect wildlife and reduce the harmful effects of irresponsible forest exploitation. By opting for FSC-certified paper, we’re not only ensuring that our print materials come from responsibly managed forests, but also contributing to the achievement of several UN Sustainable Development Goals. For example: • SDG 12: Responsible Consumption and Production – Our use of FSC-certified paper aligns with the goal to reduce waste and promote sustainable resource use. By choosing sustainably sourced paper, we’re Frogella / Market Vector / T. Schneider / Shutterstock.com 24 • DECEMBER 2024 • PPAI
Responsibility | Voices encouraging responsible production practices. • SDG 15: Life on Land – FSC certification helps preserve ecosystems and biodiversity, contributing to the protection, restoration and promotion of sustainable use of terrestrial ecosystems. This is critical in combating desertification, halting deforestation and preserving biodiversity. • SDG 13: Climate Action – FSC-certified forests act as carbon sinks, absorbing CO2 and playing a vital role in mitigating climate change. By choosing paper from these forests, we’re supporting global efforts to reduce carbon emissions and promote a healthier climate. Connecting To Our Broader Sustainability Goals Switching to FSC-certified paper is just one part of our broader sustainability strategy. Every year, The PPAI Expo at Mandalay Bay in Las Vegas is a cornerstone event for our industry, and we work hard to ensure it aligns with our sustainability vision. MGM Resorts, the parent company of Mandalay Bay, has its own robust sustainability initiatives that support our efforts during Expo. MGM’s commitment to reducing energy and water consumption, waste diversion and sourcing sustainable products ties into how we create an environmentally conscious event. Our 2024 event saw 119,051 pounds of waste diverted from landfill through an enhanced sorting process, donations, recycling and composting programs. That number accounted for 88% of the waste generated, meaning only 12% was ultimately sent to landfills. By drawing energy from a mega solar array, MGM properties are powered by renewable energy during daylight hours, with plans to continue to decrease their reliance on traditional power sources. MGM has committed to reducing greenhouse gas emissions 50% by 2030, aligning with global climate goals. From reducing the number of printed materials to providing digital alternatives and encouraging exhibitors to adopt environmentally responsible practices, The PPAI Expo has become a platform for demonstrating how our industry can be more sustainable. What Can You Do? We know that many of our members are passionate about sustainability and may be looking for more ways to incorporate it into their events. That’s why we’ve created a short survey to help you get the sustainability conversation started with any gathering, small or large. The QR code included on the right links to a five-question survey designed to spark ideas and provide practical steps for incorporating sustainability in your event planning. Teamwork Makes The Dream Work While FSC certification isn’t without its challenges, it’s an When you see the FSC logo, it means the paper comes from forests managed in ways that preserve biodiversity, benefit local communities and ensure long-term environmental sustainability. Green Opportunities Are All Around Us Scan the QR code for a PPAI guide to sustainable event management. PPAI • DECEMBER 2024 • 25
important step in the right direction. We recognize that no certification system is perfect – ensuring full transparency and enforcing consistent standards can be difficult. However, choosing FSCcertified paper is part of our broader sustainability strategy, where progress takes precedence over perfection. At PPAI, we believe meaningful change comes through steady, incremental improvements. Every decision, whether it’s switching to FSC-certified paper or selecting event venues that share your sustainability values, contributes to the larger goal of promoting responsible practices across our industry. We’re committed to taking these steps forward and encouraging others to do the same, knowing that thoughtful, intentional actions drive real progress, even if they aren’t flawless. Looking ahead, we’ll continue refining our sustainability efforts, learning from experience and focusing on areas where we can make the most difference. It’s about making ongoing adjustments that lead to meaningful change rather than waiting for a perfect solution. By aligning our use of FSC-certified paper with global sustainability initiatives, collaborating with partners like MGM that share our vision and equipping our members with the tools to make sustainable choices, we’re making tangible strides toward a greener, more responsible future. Every action we take matters, and together, we can drive real change for our industry and the planet. Wimbush is the director of sustainability and responsibility at PPAI. At PPAI, we believe meaningful change comes through steady, incremental improvements. 26 • DECEMBER 2024 • PPAI Voices | Responsibility
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STORIES TO KEEP AND USE Must Read 12.24 page 38 THE HOLY GRAIL OF CONNECTION How places of worship can use promo to enhance outreach and engagement. PROMOTIONAL PRODUCTS WORK! ENGAGING WITH AI p. 30 THE PPAI EXPO 2025 PREVIEW p. 44 PAUL KIEWIET PROFILE p. 52 PPAI EXPO SUCCESS STORIES p. 58 PPAI • DECEMBER 2024 • 29
Must Read | Engaging with AI Promo’s AI Challenges And Opportunities PPAI Research shows that while most PPAI 100 firms are engaging with AI in their business operations, some common hurdles are preventing widespread adoption. By John Corrigan & Jonny Auping Most PPAI 100 companies are exploring artificial intelligence tools, signifying a new chapter in the promotional products industry’s digital transformation. According to the latest data from PPAI Research, 92% of PPAI 100 suppliers and 87% of PPAI 100 distributors are engaging with AI in their business operations. • Suppliers report that AI is driving significant gains in marketing (74%), enhancing customer service (37%) and optimizing sales processes (28%). • Distributors are also benefitting from using AI for marketing purposes (88%), followed by sales processes (36%) and customer service support (21%). “Promo firms are betting big on AI to streamline operations and elevate customer experiences, with cost savings and revenue growth following close behind,” says Alok Bhat, market economist and research lead at PPAI. Challenges In AI Implementation The majority of PPAI 100 suppliers (69%) and PPAI 100 distributors (65%) report that a lack of internal expertise is their most significant barrier to AI adoption. “You won’t always find AI expertise within your technology team,” says Phil Gergen, chief information officer at Koozie Group, PPAI 100’s No. 9 supplier. “Talk to your team members to find out who is already using these tools on their own and how they are using them. If used correctly, AI can help any role in your organization be more efficient and successful.” Smile Studio AP / Shutterstock.com Alok Bhat Phil Gergen 30 • DECEMBER 2024 • PPAI
Engaging with AI | Must Read PPAI • DECEMBER 2024 • 31
Must Read | Engaging with AI Josh Gerads, brand manager at Crystal D, PPAI 100’s No. 88 supplier, compares AI to the California Gold Rush – everybody wants to get in on it. “At the same time, everyone has a slightly different definition of what AI is, few organizations really know everything it can do and many lack the time or resources to learn how to use it for their benefit,” Gerads says. Crystal D’s teams who focus on the customer experience, including sales and marketing, are currently exploring how technology like AI can make it easier to serve more customers. However, Gerads stresses that the St. Paul, Minnesota-based firm never wants to lose sight of the human aspect in the customer experience. “AI can increase job satisfaction and reduce turnover by creating efficiencies, but it can’t fully replace the human connection made between our Memory Makers and their customers,” Gerads says. “We take pride in the relationships we have with our customers, knowing them and their businesses well, and it’s something technology just can’t reproduce.” Ken Leslie, president of IMAGEN, says that PPAI 100’s No. 84 distributor primarily uses AI to support content creation for marketing, including writing and editing emails, social media posts and creating outlines for presentations. “There’s more that we could be doing to utilize AI tools, but while there are lots of resources available, the time it takes to both learn and implement them is a hindrance for our team,” Leslie says. “There are a couple of us on the IMAGEN team that are spending time each week keeping tabs on what is going on in the AI world, but internal expertise is a definite challenge for us.” With limited bandwidth to dedicate to researching options, Michael Wolaver, founder and captain of Magellan Promotions, says that PPAI 100’s No. 94 distributor will be taking a pragmatic approach to implementing AI. “What we grapple with is, beyond using ChatGPT to help edit content, what are the areas that AI can help create efficiencies for our business? After all, AI will only really help our business if it helps solve challenges with real results,” Wolaver says. • Half of suppliers report difficulties in integrating AI with existing systems, 31% express data privacy concerns, 22% claim employee resistance and 19% cite the high cost of AI technologies as other barriers to AI adoption. • System integration issues (35%), employee resistance (27%) and data privacy concerns (27%) are also challenges for distributors. “AI’s potential is undeniable, but firms are hitting roadblocks,” Bhat says. “Internal expertise and system integration stand out as the biggest hurdles to widespread adoption.” Raul Rodriguez, CEO of Merch.ai, a startup business service provider aiming to help promo companies incorporate AI into their specific needs, feels that these growing pains will require a consolidated perspective on the clearest ways the technology can help the industry. “We think AI will change the way everyone works, our industry included,” Rodriguez says. “However, there needs to be more AI tools built that are specific for the industry, easy to use with not much training required and actually efficient. A tool that meets that criteria will get mass adoption.” Potential AI Benefits For Suppliers Over the next three years, 83% of PPAI 100 suppliers aim to use AI to increase operational efficiency and improve customer experience. “As business costs continue to increase and labor becomes more challenging and expensive to secure, AI solutions are growing in importance,” says Matt Wagner, vice president of sales at Fields Manufacturing, PPAI 100’s No. 80 supplier. “They not only help improve efficiency and manage operational expenses, but also allow businesses to maintain the speed demanded in today’s marketplace. “As more early adopters emerge as experts and share their experiences,” Wagner adds, “it will become easier for those approaching AI with caution or limited expertise to understand and adopt these technologies.” Ken Leslie Matt Wagner Smile Studio AP / Shutterstock.com 32 • DECEMBER 2024 • PPAI
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Engaging with AI | Must Read • Other goals for AI implementation amongst suppliers are cost reduction (58%), revenue growth (42%) and innovating new products or services (22%). According to Chris Alfano, chief digital officer at Vantage Apparel – PPAI 100’s No. 12 supplier – AI’s biggest impact may have less to do with output and more about information gathering. “The real potential lies in AI’s ability to provide powerful insights—whether it’s analyzing distributor behavior, understanding end-customer needs or identifying product and seasonal trends that can drive smarter decision-making,” says Alfano. “By not adopting AI-driven strategies, suppliers may fall behind competitors who are using these tools to enhance efficiency and customer understanding, which could eventually impact long-term profitability and market positioning.” Whatever the use, an intentional approach must be taken for such a broad technology, according to Gergen. “Each team will use AI differently,” Gergen says. “The first step in integrating it into current systems is to consider practical problems that need fixing and then determine if AI is one of the tools that will allow for innovation and solutions to those challenges.” More than three quarters (76%) of suppliers say AI has had no significant change in their workforce structure and nearly a quarter (24%) say they’re still assessing its long-term impact. Furthermore, while AI is starting to improve personalization, most suppliers (59%) have yet to see significant benefits. Alfano was surprised to see that more than three-quarters of suppliers claimed the technology had not changed their workforce. “It’s concerning that 75.7% of promotional product suppliers report no significant change in their workforce due to AI,” Alfano says. “This suggests a missed opportunity to leverage a tool that can transform efficiency and decision-making at every level.” Still, Gergen does not see it as a tool to cut down on the workforce. “I don’t see AI reducing the number of employees in our organizations,” Gergen says. “I believe it can create a more agile workforce that will expand our capabilities and offerings to our customers.” BoxUp, PPAI 100’s No. 84 supplier, is part of the roughly 8% of supplier respondents who said AI isn’t currently a focus. “We don’t use AI for anything and don’t have a plan to in the near future,” says Jake Kitchell, enterprise sales manager at BoxUp. “We may potentially in 2025, but it would be a huge learning curve for us as a fairly small company.” California’s AI Legislation: What It Means For Promo California recently enacted a series of laws designed to safeguard consumers, promote transparency and set standards for ethical AI usage. This unprecedented package addresses everything from data privacy and deepfake misuse to AI’s role in healthcare and political advertising. As AI continues to influence how businesses operate, these laws set new benchmarks that could impact the promotional products industry. With AI’s transformative potential for digital content and marketing, suppliers and distributors need to understand how California’s rules may shape compliance standards, transparency practices and data management strategies. “California’s new AI laws set a crucial standard for transparency and data ethics,” Bhat says. “For the promotional products industry, aligning with these rules is key to building trust and staying ahead as AI regulations expand nationwide.” For promo firms using AI tools to generate content or to gain customer insights, California’s laws could require new disclosures about AI content origins and data practices – making transparency a priority in client engagement – and highlight the need for rigorous data protection practices, especially as data use regulations tighten. AI tools using likeness or identity data must be designed to respect user privacy and avoid unauthorized use, making responsible digital identity management critical for promo firms. Furthermore, the move toward AI literacy and a clear regulatory framework underscores the importance of AI education within companies. Firms that invest in training employees on ethical AI use will be better positioned to meet future regulatory tandards. As California pioneers AI regulation, other states are expected to follow, potentially resulting in a patchwork of AI laws across the U.S. Firms working across state lines may need to adjust their AI practices and privacy policies to meet a diverse set of requirements, preparing for potential federal standards. As similar standards emerge nationwide, firms in the promotional products industry can benefit by adopting these best practices, enhancing consumer trust and staying ahead in a complex regulatory environment. Chris Alfano PPAI • DECEMBER 2024 • 35
Must Read | Engaging with AI Potential AI Benefits For Distributors Like their supplier counterparts, 81% of PPAI 100 distributors are prioritizing AI to increase operational efficiency, and 78% aim to use AI to improve customer experience. “In terms of operational support, we have already used AI tools to help write API integrations and manipulate data sets,” Leslie says. “These have been one-off uses, though, and I look forward to continuing to learn more and explore how AI tools will be able to integrate into our regular workflow and streamline daily tasks.” Johanna Gottlieb, vice president of business development at Genumark, PPAI 100’s No. 35 distributor, sees the technology as a matter of making it a practice to continue to meet clients where they’re at, even as those clients become part of a generation that expects things that previous generations succeeded without. “Our buyers are living in the AI world,” Gottlieb says. “Many of us grew up in a Google era and AI is enhancing that times 100. Younger audiences will be the decision makers before we know it. We have to lean in to what they are doing and using so we can be better prepared to support them.” • Other goals for AI implementation amongst distributors are revenue growth (54%), cost reduction (43%) and innovating new products or services (19%). “These statistics align very closely with our AI perspective,” says Carolina Junghans, CEO of Blink Marketing, PPAI 100’s No. 88 distributor. “Our executive team is actually reading a couple books on AI in the workplace this quarter.” Nearly three quarters (74%) of distributors say AI has had no significant change in their workforce structure and nearly one-third (32%) say they’re still assessing its long-term impact. Furthermore, 44% have yet to see significant benefits from AI in terms of personalization. Gottlieb is skeptical of the report that so many distributors claim little change to their workforce as a result. “I would love to speak to the 73% of distributors that say AI has not led to any significant changes in workforce,” Gottlieb says. “I am curious how much this number will change over the next 2-5 years.” Corrigan is deputy editor and Auping is a news editor at PPAI. Johanna Gottlieb Layer on the Antwerp www.antwerpdiamondsincentives.com 36 • DECEMBER 2024 • PPAI
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