Merchandise Wire
Industry Trends & Stats · 7 min read

What the Research Actually Says About Custom Merchandise and Brand Awareness

Explore the latest research on custom merchandise's brand awareness impact and what it means for Australian businesses in 2026.

Maya Petrov

Written by

Maya Petrov

Industry Trends & Stats

Close-up of hand holding a 'Shop Small Help Big' tag against a red background, promoting small businesses.
Photo by RDNE Stock project via Pexels

When it comes to marketing spend, most Australian businesses are under pressure to prove that every dollar is working hard. Digital advertising, social media campaigns, and email marketing all come with dashboards full of metrics — but what about branded merchandise? The brand awareness impact of custom merchandise research tells a surprisingly compelling story, and it’s one that continues to influence how organisations from Cairns to Hobart allocate their promotional budgets. If you’ve ever wondered whether custom merch actually moves the needle, the evidence is stronger than you might expect.

What the Research Says About Custom Merchandise and Brand Awareness

Over the past decade, a growing body of independent research has consistently demonstrated that promotional products outperform many traditional advertising channels when it comes to recall, impression frequency, and positive brand sentiment. Unlike a digital ad that disappears in seconds, a well-chosen branded item stays in front of the recipient — often for months or even years.

Studies from the Promotional Products Association International (PPAI) and the British Promotional Merchandise Association (BPMA) have found that:

  • Over 80% of recipients can recall the brand on a promotional product they received in the last two years
  • More than 50% of people who receive a promotional item go on to do business with the advertiser
  • Nearly 90% of consumers keep a promotional product if they find it useful

That last point is critical. Usefulness is the single biggest driver of retention. A branded item that solves a daily problem — a keep cup on someone’s desk in a Melbourne office, a tote bag used weekly by a Brisbane mum, or a quality pen sitting in a Sydney professional’s top drawer — generates repeated brand impressions without any ongoing media spend.

The brand awareness impact of custom merchandise research also highlights what’s often called the “cost per impression” advantage. When you divide the cost of a quality branded product by the number of times it’s seen or used over its lifetime, the per-impression cost is frequently lower than television, radio, or digital advertising. For budget-conscious organisations like councils, charities, and schools, this is a genuinely important finding.

Why Branded Merchandise Outperforms Other Channels in Recall

There’s a neurological reason why physical objects are so effective at creating brand memory. Tactile experiences engage more of the brain than visual-only encounters. When someone holds a product, uses it, and associates it with a positive experience — receiving it as a conference gift, for example — the brand attached to it benefits from that emotional context.

This is why the product category matters enormously. Research shows that wearable items, drinkware, and bags consistently rank among the highest for both recall and extended use. Consider branded tote bags for women — a well-made bag used during weekly grocery runs generates visible brand impressions in public spaces, extending your reach far beyond the original recipient.

Similarly, custom embroidered polo shirts with no minimum order requirement allow smaller businesses and sporting clubs to invest in branded apparel without overcommitting to stock — and staff or members wearing those shirts in public become walking brand ambassadors.

Research into apparel specifically shows that branded clothing is kept significantly longer than non-wearable items. Understanding how branding clothing works — including decoration methods, fabric choices, and print durability — is essential if you want your investment to last as long as possible.

The Role of Relevance and Perceived Value

One of the most consistent findings across merchandise research is that perceived value dramatically influences whether a recipient keeps and uses a product. Cheap, throwaway items can actually damage brand perception — particularly in professional or corporate contexts. A flimsy pen or a poorly printed keyring signals low effort, and that association transfers to the brand.

This is why organisations investing in promotional keyrings for real estate settlement gifts or custom screen cleaners for client appreciation tend to focus on quality and functionality over volume. A settlement gift in particular is a high-emotion moment, and the item received at that time will carry long-term brand memory.

For events and conferences, the research also supports investing in items that are directly relevant to the context. Custom protein bars for conference delegate packs in Australia are a great example of this — they’re consumed during the event, but the wrapper and the brand memory linger. Likewise, custom lanyards for ID badges are worn throughout an entire event, giving your branding continuous visibility across hundreds of attendees.

Sector-Specific Insights From the Research

The brand awareness impact of custom merchandise research doesn’t look the same across all industries. Different sectors have different touchpoints, different audiences, and different expectations around gifting and branding. Here’s how the findings apply across some key Australian sectors.

Corporate and B2B

In corporate environments, merchandise tends to function as a relationship-building tool rather than a pure awareness play. The research shows that branded gifts strengthen existing relationships and increase client retention rates. Looking at corporate gifting market trends reveals a clear shift toward premium, useful items over novelty products — a trend that aligns with the quality-equals-retention finding in the broader research.

For industrial and trade businesses, sector-appropriate items drive higher engagement. Promotional items for south-east Melbourne industrial businesses, for instance, might include branded safety gear, workwear, or durable tools — items that are used daily on-site and carry the brand into working environments where other advertising simply can’t reach.

Events, Conferences, and Expos

Event merchandise generates some of the highest recall scores in the research because recipients associate the item with a specific experience. The decoration method and quality of the item become especially important here, since attendees are comparing your merch with that of dozens of other exhibitors. Understanding turnaround times for screen printing versus digital printing is essential for event planners managing tight deadlines — getting your items delivered on time is just as important as getting them right.

At trade shows, visibility during the event matters as much as retention afterwards. Items like branded cups and drinkware are used on the floor throughout the day. Custom plastic cups and branded drinkware are consistently cited in research as high-visibility items in event settings.

Retail, Hospitality, and Food & Beverage

For customer-facing businesses, branded merchandise serves a dual purpose: it rewards loyal customers and creates organic word-of-mouth exposure. In Perth and Adelaide’s competitive hospitality scenes, items like custom stubby holders or promotional sunscreen in Perth tap into local lifestyle relevance — a factor that the research highlights as a key driver of product retention in warmer climate markets.

Eco-Conscious Organisations and Not-for-Profits

The research increasingly shows that recipients respond more positively to eco-friendly merchandise — particularly among younger demographics and environmentally conscious communities. Organisations using recycled PET marketing giveaways or bamboo-based products are reporting stronger brand sentiment from their target audiences. For charities and not-for-profits, this aligns with their values proposition and strengthens the credibility of their brand message.

Applying the Research to Your Merchandise Strategy

So, what does all of this mean in practice? Here are the key principles that emerge from the brand awareness impact of custom merchandise research — and how to apply them when planning your next order.

Choose useful over novel. The data is clear: utility drives retention. If a product solves a daily problem for your target audience, it will be kept and used far longer than something clever but impractical. Think about your recipient’s daily routine — their desk, their commute, their home.

Invest in quality. Perceived value affects brand perception. A higher per-unit cost on a quality item is almost always a better investment than a large order of cheap products that end up in the bin.

Match product to context. Conference delegates, real estate clients, school families, and industrial workers all have different needs. The research consistently shows that relevance is the second-biggest driver of retention after usefulness.

Consider decoration durability. A faded logo on a t-shirt or a worn embroidery on a cap reflects poorly on your brand. Understanding options like rotary engraving for promotional products or embroidery versus screen printing helps ensure your branding lasts as long as the product does.

Think beyond the obvious categories. The research supports unconventional branded items when they’re right for the context. Items like branded fridge magnets, promotional picture hanging kits for hardware businesses, and even branded pet weight charts for veterinary clinics demonstrate that when a product is perfectly matched to its audience, it generates remarkable ongoing visibility.

Plan for proximity. Items distributed near the point of decision-making — at a trade show, in a welcome pack, at a settlement meeting — have higher recall because of the emotional and contextual associations formed at that moment. Timing and context of distribution matter almost as much as the product itself.

Conclusion

The evidence is compelling, consistent, and growing. Custom merchandise remains one of the most cost-effective brand awareness tools available to Australian businesses, organisations, and event planners — particularly when product selection, quality, and distribution strategy are aligned with research-backed principles. The brand awareness impact of custom merchandise research tells us that physical, useful, high-quality branded items generate recall, foster positive sentiment, and build relationships in ways that digital-only strategies simply cannot replicate.

Key takeaways:

  • Recipients retain useful, high-quality branded products for months or years, generating repeated impressions at a low cost per view
  • Perceived value directly influences brand sentiment — investing in better products reflects better on your brand
  • Relevance to the recipient’s lifestyle and context is a primary driver of product retention and recall
  • Eco-friendly and sustainable merchandise is increasingly driving positive brand association, especially with younger audiences
  • Timing and context of distribution — at events, gifting moments, and high-emotion touchpoints — significantly amplify the brand awareness impact of any merchandise campaign