Marketing lives in a strange moment. The more digital our world becomes and the more our choices are guided by algorithms, the harder it is to feel anything real.

Emotional connection is that real feeling, and marketers know its importance for brand loyalty. The quest for joy is the central question of every campaign.

This year, US advertising spend is expected to top $422.84 billion, and 81.7% of that total will go toward digital channels, per EMARKETER’s forecast. But one medium—far older, with nothing artificial about it—keeps proving its worth: promotional products. You might call it swag or merch, but these are the branded, physical items people keep. Promotional Products Association International (PPAI) research shows they outperform other channels in recall and likability, at 72% and 89%, respectively.

That shouldn’t be a surprise. No one says thank you for a mobile ad, but they do appreciate a thoughtful gift they can keep and use. It’s human nature to remember what we hold in our hands, wear on our bodies, write with or drink from every day. When viewed as centerpieces of an integrated campaign rather than an afterthought, these touchpoint opportunities become a brand's best chance for storytelling, creating advocates, and hitting KPIs.

Digital ads can flood a feed, but they disappear quickly. A good product lingers, it travels with the recipient and preserves their relationship with the brand. It becomes a conversation starter. When someone keeps and uses a product from your company or your client, they become an influencer, offering an implied endorsement.

That presence builds trust and recall. In PPAI consumer research, over half (52%) said they keep promotional items for sentimental reasons.

It’s really simple: We value things that show up in our lives, not just on our screens.

Measuring what you can feel

Marketers must discuss merch like we discuss media.

Here, measurement and ROI matter. Cost per thousand impressions still applies. When you divide the cost of a good hoodie or bottle by the hundreds or thousands of views, the effective CPM can be competitive. But CPM is only one lens.

Depending on the campaign, merch can be measured on leads generated, revenue booked, event attendance, or loyalty lift, just like any other medium.

The algorithm of our subconscious

If you work in marketing analytics, here’s the analog version of your dashboard: design, quality, and personalization.

PPAI’s recent “5-Second Impact” study showed how first impressions of promotional products drive brand value. Nine out of 10 consumers (89%) told PPAI that design determines whether they’ll keep a product. Nearly seven in 10 (68%) value quality materials, and almost half (48%) say a small personal touch—a name, a note, a message—makes it more memorable.

The real optimization engine is combining those elements. When a product feels premium and personal, it doesn’t get thrown away. It gets adopted. It becomes part of someone’s daily life, strengthening the user-brand relationship.

The key is to be thoughtful and intentional. In a recent award-winning promotion, a Coca-Cola bottler equipped 250 leaders with custom digital Rocketbook notebooks sourced by a merch distributor for its internal conference. With laptops banned, engagement surged thanks to the specialty notebooks. Participation rose 90%, productivity 20%, and 85% of attendees said the notebooks improved strategy implementation. The reusable notebooks became a keepsake and reference point for the conference, and aligned with the company’s sustainability goals by cutting paper waste.

Merch should be front and center in any campaign, and never an afterthought. A low-quality, thoughtless giveaway doesn’t just get tossed—it sends the opposite message of what you intended.

It’s not just about giving the warm and fuzzies. Merch creates conversions.

• 61% of consumers remember the brand from the promotional product they received.
• 77% look up the brand afterward.
• 72% make a purchase because of it.

The future is tangible

Marketers in the digital world sometimes forget that real life drives most behavior. The smartest ones are starting to bring those worlds together.

Promotional products give digital strategy a physical shape. They remind people there’s something—someone—behind the brand.

That’s the difference between advertising and connection. Between a fleeting impression and a lasting one. Between a click and a keepsake.

This is the touchstone medium that unlocks people’s imagination and fond memories.

When done right, merch isn’t an afterthought; it’s the campaign.