Promotional Advertising With Physical Products

Last Updated: 19 August 2026

Key Points:

• IBM and other brands use physical products in ads to make campaigns more engaging.
• One example of this is IBM’s “smart cities,” which uses real-world objects in public spaces.
• This shows a move towards more interactive ads that get people’s attention more easily.

Most advertising asks people to stop and pay attention. Some of the most interesting campaigns take a different approach: they give people a reason to interact with the advertisement itself.

This is often described as ambient advertising, where marketers use objects, signs and features within the physical environment as part of the communication. For businesses that use merchandise, there is a useful lesson here. A physical product can do more than carry your logo.

IBM’s billboard became part of the city

An advertisement billboard by nrdg.org highlighting the dangers of pollution.

What does this have to do with promotional merchandise?

Custom merchandise can use the same principle on a smaller and more practical scale.

Instead of asking: “What product can we put our logo on?”

Start with: “What will people be doing when they receive it?”

For example:

• Give attendees a notebook before a workshop so they can use it during the session.
• Hand out branded drink bottles at a fun run or outdoor event.
• Provide tote bags when visitors arrive at an expo so they can carry brochures and samples.
• Supply picnic blankets at an outdoor cinema or community event.
• Give travel accessories to employees before a corporate trip.
• Provide branded umbrellas at an outdoor activation when wet weather is expected.

Make the product solve a small problem

IBM’s campaign was effective because the advertising had a practical second function. Contemporary coverage of the project highlighted that its billboards doubled as a bench, shelter, and ramp.

Businesses can use a similar approach without building anything unusual. Look for a small problem your audience is likely to encounter. These are some ideas our account manager, Alice Borja, suggests:

• At a conference, attendees need somewhere to take notes and carry materials.
• At an outdoor event, they may need water, shade, or something to sit on.
• At a product launch, they might need a sample, demonstration tool, or takeaway reference.

Physical advertising still needs a clear idea

An oversized object or unusual display may attract attention, but attention alone does not make a strong campaign. The connection between the object, audience, and message needs to make sense. Before approving an idea, ask:

• Why would someone use this product?
• Does it relate to what they are doing at that moment?
• Does it reinforce our campaign message?
• Will people understand the connection without a long explanation?
• Is the item useful enough to keep afterwards?
• Can our logo be added without overwhelming the design?

Turn your campaign into something people can use

IBM’s campaign showed how a physical object can communicate an idea through its function, not just through words. The project was recognised within the advertising industry for its outdoor and ambient execution. The same thinking can improve promotional merchandise. Start with the experience you want to create. Then choose a product that naturally belongs in it.