Despite these studies in swag success, some marketers say swag has lost its overall sexiness. David Libby, president of Two Pins Public Relations, which represents interactive clients, says there was a time several years ago when having the best swag was something to which all tech companies aspired. He says the goal was to have swag so cool it wouldn't really matter that the brand name was on it because a person would remember the company name based on the uniqueness of the gift.
Libby has noticed a recent shift away from tchotchkes and toward clothes, such as branded jackets and hats. With those items, the key becomes quality. "It comes down to the lasting impression: How does this piece of swag really speak to my brand?" he says.
ePromos' Mark Yokoyama says swag given out by tech companies tends to cast a wider net than swag from brick-and-mortar businesses. Yokoyama says interactive companies usually focus on simply getting attention from their peers at tradeshows and other events. For startups still struggling to define their business models, it may be important for a brand to get more recognition or more popularity among people who could evangelize or promote the service.
After all, he points out, startups need to spend their venture capital somewhere, and initially success is whether you're going to generate PR among the right group of people, either among the press or in the blogosphere, Yokoyama says.
By contrast, David J. Reibstein, a marketing professor at the University of Pennsylvania's Wharton School, says simply seeking attention through swag is a misguided goal. Reibstein argues that "The only reason you're interested in building the brand is because that's going to help you generate sales or a higher price over time."
To help achieve that end, Reibstein suggests focusing energy on developing creative campaigns and also doing test runs. "See what the particular reaction [to your campaign] is and what the repeat purchase rate is, and that will allow you to determine whether or not it is good and worthwhile," Reibstein says.
Online media sales company Gorilla Nation Senior Vice President of Marketing and Corporate Communications Frank Simonelli offers a cautionary tale about swag. Two years ago, Gorilla Nation embarked on a press campaign in which it sent gorilla bedroom slippers to 50 editors at various publications.
"We figured it was unique, endemically branded merchandise," Simonelli says.
Perhaps, but the gift also made several editors uncomfortable enough to call and lecture Simonelli not to send future gifts. Most publications have company policies that prevent them from accepting gifts from clients they may write about, to avoid conflicts of interest or the appearance thereof. But Simonelli, who previously worked for such PR giants as Burston-Marsteller, says 10 years ago the climate was different and editors rarely refused gifts. Now, he says, the line on ethics keeps moving.
Moral of the story? Make sure you know your audience, Simonelli says.
Leah Messinger is a freelance writer.