Branded Merchandise As a Strategic Growth Tool.

2018/19 was a big ecosystem time for me. Fresh from leaving radio and running a digital magazine focused on telling the stories from underserved communities, my role as communications lead at FourthCanvas meant I needed to know and meet many people.

So I did frequent trips from Akure to Lagos, Ibadan to Lagos when we moved, and many more—building connections, and reaching out to as many founders as I could. I also slid into a lot of DMs offering my thoughts on what comms and storytelling in the ecosystem could be. Made many friends, and that meant many startup branding items in my house—bottles, shirts, notepads (I was a collector at some point. Some were of better quality than others, and I could tell. Paper smell was also a thing. Still is. And the texture for writing, cos I love to take notes). By 2020, tote bags had started making an entrance, too. 

I enjoyed representing the brands I loved. For a long time, I had a Cowrywise pop socket behind my phone, and later on, a card holder from Fundall. And many more. My comms background meant I understood how to use simple, relatable ways to answer the questions: “What does this brand do?” whenever I was asked.

The Business Value of Corporate Gifting

I share all this to say: from personal experience, I understand the connection that comes with getting branded items and giving them out. But don’t take my word for it. According to a 2019 case study conducted by ASI (Advertising Speciality Institute), customers are 2.5 times more likely to think positively about branded merchandise compared to digital Ads. Another study conducted among 300 corporate gift buyers showed that 80% of respondents claimed that gifts have improved relationships with coworkers and clients. 48% of the said companies mentioned gifting delivered substantial benefits, as it made recipients feel valued—which results in long term improvement in both customer loyalty and employee retention.

Even without data, think about how you feel when you get a piece of a brand you have built connections with—whether by using their products or admiring the equity they confer. Have you ever gone to speak somewhere, opened the package, and subconsciously started praying for the people who invited you, cos the gifts were so thoughtful?

And you know what? It goes beyond just emotional connections for the recipients or people who get it. Companies report ROI advantages from branded merchandise.

Promotional items outperform digital ads in recall and engagement with longer lifespans (months or years of use) compared to fleeting impressions online. Unlocking usage by an ideal customer profile (ICP) makes it even stronger.

In B2B contexts, giveaways at trade shows or conferences have been shown to increase lead conversion rates, making them financially justifiable marketing investments. Although branded merchandise may have started as a simple promotional tactic centuries ago, it has evolved into a strategic brand equity tool that boosts recognition and delivers financial benefits through direct sales and enhanced ROI. 

In today’s marketing landscape, defined by digital saturation, thoughtful corporate gifting items have emerged as a highly effective channel for both marketing and relationship building. It should not be seen as a cost centre, but as a critical investment in sustaining relationship equity, leveraging psychological principles to deliver superior, long-term returns. For me, this is all things being equal, that you are also holding down the business side. 

Branded merchandise provides a sustained stream of exposure: a single upfront investment can generate thousands of impressions over months or years. This results in a Cost Per Impression (CPI) that is substantially lower—often sub-cent—compared to prevailing digital advertising costs, such as Instagram’s typical Cost Per Mille (CPM) of $8.96

This is why quality matters. I was so pained by one poor experience recently that I wrote about it in my daily newsletter. My focus here is to expand on how important it is to go for quality, especially when you are clear on your target audience and know the value of things they already experience. Instead of you going to buy lesser quality in bulk, why don’t you go for something unique and inexpensive that you can share with many people if budget is a concern?

Because the quality of items that can carry your branding should mean something to you. 

Why Companies Should Leverage Branded Merchandise

1. Boosts Brand Visibility & Recall

Branded items act as walking billboards — every time a customer wears a T‑shirt or uses a mug, the brand gains exposure. Unlike digital ads that vanish in seconds, merchandise stays in circulation for months or years, reinforcing recall.

2. Strengthens Customer Loyalty

Receiving a branded gift creates a sense of appreciation and belonging. Customers often perceive merchandise as a thank‑you gesture, which deepens emotional ties and encourages repeat business. Also, gifting has a psychological impact that taps into the principle of reciprocity—when people receive a gift, they feel more positively towards the giver. 

3. Creates Community & Identity

Merchandise transforms customers into proud brand ambassadors, building a sense of community identity as they wear or use branded items to signal membership—an especially powerful tool for startups and niche brands; and when, for high-net-worth individuals, gift items evolve into symbols of belonging to an exclusive circle, you’ve unlocked something compelling.

4. Cost‑Effective Marketing Tool

Research shows promotional products deliver a lower cost per impression compared to traditional advertising. A single item can generate thousands of impressions over its lifespan, making it highly efficient for startups with limited budgets.

5. Enhances Brand Communication

Merchandise can carry slogans, values, or cultural references that communicate what the brand stands for. It’s a storytelling medium, and every item is a chance to reinforce brand identity and mission.

6. Drives Employee Engagement & Pride

Internally, branded items (like apparel or accessories) foster unity and pride among employees. Staff wearing company gear often feel more connected to the mission, which boosts morale and retention. A study by Sapience & University Brussels with the Belgian National Railway Company found that branded merchandise significantly improved employee engagement, customer loyalty, and brand image. Employees felt more connected to the company, and customers perceived the brand as more approachable and trustworthy

7. Generates Direct Revenue Streams

For consumer‑facing brands, merchandise can be sold as limited editions or collectables. Fashion startups, music artists, or sports clubs often monetise branded items while simultaneously promoting their brand.

8. Improves Lead Conversion at Events

At trade shows or community gatherings, giveaways increase booth traffic and lead conversion rates. People are more likely to engage with a brand that offers something tangible and valuable.

What can you possibly do in the coming weeks(as we get into the end of the year)?

To convert the inherent potential of branded gifting into quantifiable ROI, companies must adopt strategic frameworks for budgeting, execution, and measuring internal returns across the enterprise.

A Tiered Budget Allocation Strategy

Corporate gifting budgets should be viewed as strategic investments, with many companies allocating 0.5% to 2% of their annual revenue to these programs. To optimise ROI, allocation must be tiered based on the relationship value and strategic impact of the recipient:

• Tier 1 (High Priority): This tier should command 40–50% of the total budget. It is focused exclusively on high-value clients, key stakeholders, and C-suite executives. The goal is to maximise personalisation and premium quality to secure high customer lifetime value (CLV) and retention. Investments here should focus on items known for maximum longevity and perceived quality, such as high-end outerwear.   
• Tier 2 (Medium Priority): Allocating 30–35% of the budget, this tier targets regular clients, senior employees, and important partners. The focus remains on branded items with proven, high utility and daily use, such as high-end drinkware or customised tech accessories.   
• Tier 3 (General Appreciation): The remaining 20–25% of the budget is allocated to prospects and event attendees. This segment focuses on high-volume, low-CPI items, such as quality writing instruments or mass-distributed apparel, designed to generate broad brand awareness economically.

In the end, branded merchandise is not just about swag or giveaways—it is about building lasting equity in relationships, visibility, and trust. When thoughtfully executed, it becomes a bridge between emotional connection and measurable ROI, turning customers, employees, and partners into living ambassadors of your brand. As we approach the gifting season, the challenge is not whether to invest in merchandise, but how to do it with intentionality—choosing quality, aligning with audience values, and treating every item as a story that carries your brand forward.