Ad specialties have three key elements. They carry an advertising or promotional message. They are given with no strings attached. Like subtle billboards, ad specialties constantly suggest businesses, brand names, and slogans. If you received your pens, coffee mugs, desk caddies, and other items without obligation, they are ad specialties.
Premiums are useful items provided with some strings attached.
In other words, a premium is a promotional product that's offered as an incentive for a specific action. If a fan buys a ticket, attends a sporting event and receives a free baseball cap, he's also responding to a premium offer. When the amount paid covers the entire cost of the item and handling, it is called a self-liquidating premium. When the funds cover only part of these costs, it is called a partial self-liquidator. Business gifts are given by companies to their customers as well as employees, influentials, and sometimes suppliers.