IMA Global Study Finds General Growth, But Some Headwinds for Merchandise

An executive summary of this global study of incentive, merchandise, gift card, and related programs is available to the public. Access to the full report is available to Incentive Marketing Association members only.

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A study of 650 incentive and recognition industry professionals worldwide conducted by the Incentive Marketing Association and Loyalty Chiefs, Gorinchem, the Netherlands, before the inauguration of the Trump administration, finds general worldwide optimism but also heightened competition and regulatory risks.

Click here for access to the executive summary if you are not an Incentive Marketing Association member. Members should contact IMA for the full copy.

The research involved a survey of 650 executives and leaders across the globe, representing companies active in incentive marketing. The survey consisted of 68 in-depth questions covering 12 key market topics, including incentive types, themes, mechanisms, challenges, trends, market dynamics, provider performance, and future strategies.

The study finds that 57% of executives agree that most of their clients are evaluating and measuring the effectiveness of incentive marketing. The study did not share specifically how such effectiveness is measured.

The survey finds that overall sentiment in the incentive marketing industry is positive, with 86% of executives reporting optimism.

61% of executives anticipate increased usage of gift cards in the coming years
Only 26% of executives expect growth in merchandise, with 51% anticipating usage parity, and 23% expecting a decline.
52% of executives expect growth in incentive travel, with 3% anticipating a decrease.
46% anticipate growth in peer-to-peer rewards; 47%, for points-based rewards.
47% say that most of their clients are launching new incentive marketing initiatives.
58% consider their organization to be performing strongly in winning new clients.
40% state their organization faces intense market competition.
83% expect macro-economic developments to have a major or moderate impact on their future business.
72% experience major or moderate business impact from government regulations.
34% expect client budgets for incentive marketing initiatives to increase, with 58% expecting budget parity.

Here are more details by region:

North America. There were generally positive market sentiments reported in the fall. Significant growth is anticipated in incentive travel, with increasing use of peer-to-peer and point-based rewards expected.

Europe. The survey finds mixed market sentiments, with a focus on regulatory impact and macro-economic developments. Usage parity in merchandise and peer-to-peer rewards and moderate growth in incentive travel are expected.

Latin America (LATAM). Respondents report a positive outlook, with a strong focus on winning new clients and launching new initiatives. Gift cards are expected to grow, with increased use of points programs and significant growth in incentive travel anticipated.

MEAPAC (Middle East, Africa, Asia Pacific). A generally positive outlook is indicated, with a focus on macro-economic impact and regulatory influences. Incentive merchandise usage parity is expected, along with increased use of peer-to-peer rewards and significant growth in incentive travel.

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