Is Obama's Efficient Spending Order Anti-SWAG?

The promotional products industry is in an uproar. On November 9, 2011, President Barak Obama announced his “Promoting Efficient Spending” Executive Order which states:

Sec. 7. Extraneous Promotional Items. Agencies should limit the purchase of promotional items (e.g., plaques, clothing, and commemorative items), in particular where they are not cost-effective.

Because it specifically targets “promotional items,” you can see why the industry is concerned. According to the Advertising Specialty Institute State of the Industry Report 2011, the government makes up about 3.8% of the total market revenue for promotional products. That’s certainly one of the smaller market segments overall. But the fear is that it will create a ripple effect that will spread to other market segments. The specter of the collapse of the pharmaceutical market for promotional goods in 2009 when new PhRMA (Pharmaceutical Research and Manufacturers of America) guidelines went into effect looms all too large.

So, is Obama’s Executive Order on limiting the purchase of promotional items anti-SWAG? In theory, I say no. Why?

It Says “Limit,” Not “Eliminate” – Unlike the PhRMA guidelines which prohibit even using or offering imprinted giveaways for ethics issues, this order merely limits purchases.
It Targets “Extraneous” Spending – Those of you who follow me know that I hammer home the concept of Promo With Purpose. If the government can’t tie a promotion to the accomplishment of a specific objective, they shouldn’t buy it, with or without an Executive Order.
It Focuses on “Cost-Effective” – If a government agency can find another way to accomplish a particular outreach objective without promotional products or with lower cost alternatives, they should do it, again, with or without this Executive Order.

I see this order as a call to more conscientious marketing within the ranks of the government… as well as to all of us in the marketing arena. Also, it calls upon promotional product sellers and consultants to help show their government customers the importance of using these products and how to use them more effectively.

However…

This Executive Order takes a negative spin in a follow-up press release where it details a “Stop Swag” program. Wonder if this administration will have a similar attitude when it comes to reelection time next year. I’m sure that at that time, promotional signs, bumper stickers, and buttons will then cease to be viewed as “non-essential.”

Agree? Disagree? Discuss in Comments below. Or, if you’re in the promotional products industry, give your Congressman or Senator a piece of your mind. I did.

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