How to Set Your Merch Budget in 2026

Partner with Showpony for strategic and impactful merchandise.

In 2026, the way brands approach their promotional merchandise budgets is evolving, blending the enduring power of branded goods with best practices from both digital and traditional marketing. The old view that merch is merely an obligatory line item beneath “event swag” is fading. As Michael Scott Cohen and other industry voices affirm, the most progressive organizations now treat branded merchandise as a high-impact media channel, worthy of the same strategic planning as paid digital, social, or broadcast campaigns.

Why does this matter?

The data is clear. Salesforce and HubSpot both report that top-performing companies are budgeting, on average, 7.7% of their overall revenue for marketing, with B2B firms generally in the 2-5% range and B2C closer to 5-10%. Within that budget, CMO reports and industry case studies suggest allocating an intentional share to branded merchandise, and tracking not just the spend, but CPM (cost per 1000 impressions), ROI, and brand lift over months and years, not just days. A well-selected, high-quality hoodie or tumbler delivers thousands of impressions over its lifespan at a cost that can rival or undercut digital media. Merch, Cohen argues, should be measured by the impressions it generates, the longevity in the market, and its power to spark conversations and referrals.​

Smart budgeters take heed 

Don’t wait until Q3 to squeeze merch out of leftover dollars. Instead, integrate promotional marketing into early planning cycles and partner with Showpony to formulate your merch strategy.

Set concrete goals: Will your branded merch drive retention? Referrals? Client acquisition? Then allocate a percentage to those goals; for example, those aiming for major expansion may dedicate 20% of their marketing efforts (and corresponding budget) to welcome kits or referral gifts, versus more modest amounts for awareness-only goals. Industry research shows that 83% of consumers are more likely to do business with a brand after receiving a promotional product, and nearly 80% retain those items for over a year.​ Your merch should be strategic, just like Showpony. 

Track your Merch Investment

The best-performing organizations blend benchmarks with bespoke analysis. Regularly review your spend and its impact on achieving your goals. It will be essential to leverage analytics to differentiate merch impressions from other media, as well as reframe internal conversations so that your CFO understands merch as an investment, not a cost sink. When you align merch with strategic goals and track creative integrations, by using QR codes, campaign tie-ins, or influencer delivery, you will see the power that curated and well-designed branded products have within your marketing budget.

Merch Budget=Brand Equity

Ultimately, setting your merch budget in 2026 will require both rigor and imagination. When promotional products are woven into the year’s marketing fabric, rather than a late-game scramble, they help your brand not just stay visible, but become unforgettable. Merch that tells your story, aligns with your objectives, and makes clients feel valued? That’s how you turn budget into brand equity and see measurable results, year after year.