In a world of AI, VR, and AR, where does merch fit?
In this post, we’ll explore how:
For marketers trying to decide on the best way to build their brand within their budget, it's hard to ignore all the chatter around the endless possibilities that AI can bring.
AI is new. It’s shiny. It’s the solution to all our industry woes, right?
Right?
We’re here to delve in and compare both AI and promotional merchandise’s capabilities as long-term brand-building tools, to see which one you should really spend your marketing budget on.
Is it time for merch to pack up its branded bag and leave?
Replace it with the robots?
Spoiler: it might not be as clear-cut as you think.
If you’re already decided and are #TeamMerch, then you’ll definitely want to explore our range of trending, bestselling products.
From B2B basics to Gen Z favourites, it’s never been easier to share your brand with your audience through brilliant branded products.
Are there jobs on your to-do list that you never want to do? The ones that you could probably do in 5 minutes, but they take you all week to complete?
How would you feel if we told you AI could do them all for you, in an instant?
One of the perks of AI is its ability to perfectly automate repetitive tasks, taking them off your workload so you have the freedom for the fun, creative stuff.
It’s annihilating those time-sucking to-do lists by ensuring your brand strategy is way more efficient than it was before.
And one way that it's making your strategy more effective is through granular audience segmentation.
By accurately segmenting your audience to a level of hyper-personalisation, AI segmentation guarantees that tailored campaigns are delivered to the most receptive audiences.
There’ll be no second-guessing whether you should have included your entire audience in a campaign, or whether to just batch-email all your marketable contacts - because the results speak for themselves.
Campaigns that have used AI segmentation receive, on average, a 38% higher engagement rate than those that use traditional methods, with a 32% higher ROI. Plus, companies are 2.5x likely to experience higher client retention.
AI is dynamic marketing on its 5th coffee of the day, and it’s only 10 am.
Not only will brand strategies have impeccable audience segmentation, but they’ll also be hyper-personalised.
AI has a deeper understanding of consumer behaviour (thanks to superior segmentation), so it’s able to personalise your brand strategy to each audience demographic, without breaking a sweat.
And this heightened personalisation is what consumers are looking for - with 91% of consumers saying they are more likely to shop with brands that offer personalised experiences.
AI-powered personalisation has led to a 35% increase in purchase frequency and a 21% boost in average order value.
AI is a pro at tailoring all facets of your brand’s messaging to individuals, making it the most impactful it’s ever been.
This includes product suggestions and personalised interactions (especially effective in email marketing or sales assistance) with each new conversation helping AI to learn what your clients like, and don’t like, over time.
It’s the difference between a generic, off-the-cuff sales pitch and a personal assistant.
One of the most amazing things about AI is its limitless (or, at least, we just haven’t discovered its limits yet).
From creative ideas that are infinitely scalable, to campaigns you couldn’t imagine in your wildest dreams - AI can source inspiration from all the corners of human existence to formulate a strategy that’s sure to succeed.
Plus, in comparison to merchandise, no warehouse is needed, there’s no risk of unsold inventory, and no shipping fees.
Whereas promotional merchandise is limited to the physical realm, AI is an adaptive and interactive experience that’ll expand your brand far beyond just pen and paper.
AI doesn’t need to sleep. It doesn’t need a lunch break. It doesn’t need to take holidays. It doesn’t clock off at 5pm, and it certainly won’t sneak off for cookie-breaks in the canteen (we know it’s you, Sandra).
AI is immediate and continuous. From offering 24/7 online assistance via chatbots on your website to AI-driven campaigns that are adaptable in real time.
You can interact, interpret, and evolve your brand strategy instantly to meet the needs of your customers.
In the words of Ross Geller, “Pivot!”
And, once learned, AI can give you predictable recommendations for future brand success.
And AI doesn’t just work on a whim, plucking out a strategy from thin air, basing it on a hunch.
It’s able to track behaviour, measure engagement, and provide data-driven insights that’ll give you the knowledge to confidently scale and adapt your strategy.
A great example of this is using AI to combat supply chain issues. It’s able to predict more accurately the amount of stock that’ll be needed, reducing forecasting errors by up to 50%, leading to better inventory management and cost reductions.
And because of this, AI is actually helping brands become more sustainable. It’s able to note where a company can improve, giving actionable solutions that fit seamlessly into the brand’s already established playbook.
Because promotional merchandise is tangible, real, and shareable, it creates a lasting brand connection beyond the initial, “Hello”.
A piece of merch has the potential to become an integral part of your audience’s everyday lives.
Branded products spark conversations - whether it be a favourite pen, a beloved bag, or a stylish hat - merch builds enthusiasm around a brand like nothing else.
Our love of merchandise is fuelled by emotions, and promotional products can strengthen a loyal, lasting emotional connection between your brand and audience for years to come.
And it’s all thanks to Return on Emotion.
Return on Emotion is all about turning every activation into an unforgettable, brand-defining moment fueled by powerful, emotional connections.
With 95% of purchase decisions driven by emotion, merchandise harnesses this insight to build meaningful connections that inspire loyalty and engagement.
You can read more about Return on Emotion over at Brand Revolution.
Read more: How Aperol’s viral bucket hat became a summer success
Even though AI seems to be everywhere nowadays, there’s still a very small proportion of people who can access and use it to its full potential.
In comparison to a branded pen, mug, or T-shirt, a higher proportion of the general population will know how to use these - because no tech skills are required.
And that’s because AI is intimidating. It’s knowledge locked behind a wall of privileged education.
AI may be adaptable, but if your audience cannot comprehend or adapt to it - or they just prefer offline interactions - then AI and all its flounce are redundant.
What’s great about branded merchandise is that it isn’t just limited to the eyes of whoever you’re gifting it to.
Depending on the product, your brand impressions are set to skyrocket.
Just think, say your branded tote becomes their favourite bag - your logo will be seen by commuters, friends, family, colleagues, and more - and that’s just on a regular Tuesday.
Each one of those interactions could be with someone new, a potential client, a future revenue stream.
The brand reach possibilities are endless with promotional merchandise.
As more and more of marketing becomes AI-generated, physical, 'legacy' forms of marketing/promotion are going to cut through the noise more effectively.
Read more: Maximise your marketing budget with this foolproof ROI strategy
Promotional merchandise is often given as a gift, a physical touchpoint between brand and consumer. There’s usually a familiarity between the brand and audience prior to gifting, that data having been supplied by the consumer themselves as a legitimate interest. Merchandise, therefore, feels like a treat, an exclusive luxury.
AI never feels like this. It hardly ever creates an emotional reaction, and if it does, it’s usually negative - it feels invasive, creepy, it gives you the ‘ick’ thanks to it being overly personalised, or relying on too much trackable data.
At the moment, however amazing AI sounds, it isn’t human - and there are just some things that it can’t mimic, even if it’s getting scarily close.
There are now platforms like WPP Open that include features such as “Unspoken Truths” and “Shower Thoughts” - some innately human quirks that put us above that of AI.
And, have you ever thought about dating your AI chatbot? What about even marrying them? You may not have, but many, whether due to curiosity or out of loneliness, are exploring relationships beyond the usual, “ChatGPT, can you rewrite this for me, please?”
So, with the lines between what it means to be ‘human’ and ‘AI’, do we even need to do an AI vs. merch comparison?
Surely, the best solution would be a combination of both?
The future of the promotional merchandise industry, like a lot of industries, is AI - but that doesn’t mean you should throw out all your physical products - the opposite, in fact.
Because together, AI and branded merch can create a dynamic fusion of innovation, sustainability and personalisation, the like of which has yet to exist in marketing.
One of the pros of merchandise is its ability to travel, and one of the limitations of AI is its inability to step out of the screen.
By combining them, promotional merchandise can soon be the vessel that AI has been dreaming of.
Think about it: near-field communication (NFC) technology is being embedded into items like coasters and keychains, enabling interactive experiences and seamless digital engagement.
And in the meantime, what about QR codes on merch? These are the starting blocks of adapting the physical and virtual together into something new.
By combining AI and merch, you’ll be able to build upon those authentic brand connections like never before. Through insane sensory experiences that turn your brand into a positivity powerhouse, to exclusive limited-edition product experiences that’ll boost your brand’s desirability.
Collaboration will be the keyword of the future. Branded products will most likely work more closely with artists and influencers to create one-of-a-kind offerings, using AI as a strategic ideation tool.
With ‘humanity’ being the new USP, AI will handle all the ‘boring’ bits, leaving you and your team to focus on that 1:1 human connection.
Read more: Unboxing influencer merch packs: Exploring online social activation with branded merchandise
AI will also help to improve the behind-the-scenes of the promo industry. From quicker and more accurate printing methods to workflows that have been audited to peak performance,
AI will find solutions for all those areas where delays and ‘human error’ can occur.
AI might seem counterintuitive and go against everything promotional merchandise stands for - and in some ways, this is true.
However, AI actually opens this industry up to a whole new world of possibilities, taking products digital, levelling up personalisation like never before (an area in which merch already thrives), and streamlining those processes that sometimes cause friction.
But, at the crux of it, promotional merchandise will always be better at brand building than AI, because to merch is human.
And by that, we mean realising it isn’t company names that create a brand.
Sure, a legacy brand will always have that weight in its name - but brands are not a sum of good font, a killer mission statement, or a pleasing social feed (those things help, but aren’t essential).
What is essential is people. Your team. Your customers. Your cheerleaders. And those people are who your brand is - they are your brand-building strategy.
And promotional merchandise is how you build everlasting relationships with them.
So, when it comes down to AI vs merch, our simple answer is: it’s a balance.
AI is a godsend for some aspects of brand building, but it doesn’t hold up on its own for legitimate, authentic interactions.
Only people can do that.
All the logic in the world can’t negotiate on an emotional level where we truly connect.
It’s empathy, emotions, and creativity that will forever be indispensable, all of which merch creates.
If that’s motivated you to reacquaint yourself with your promo merch strategy, explore our range of trending, bestselling products now, and get ready to feel emotions.