New Incentive Marketing Association research sponsored by Blackhawk Network (BHN) spotlights gift cards as powerful incentives across use cases as applications and demand continue to grow

As organizations are sharpening their incentive strategies to retain customers, engage employees, and build brand equity, new research spotlights the most effective options. Sponsored by Blackhawk Network (BHN), a global leader in branded payments and reward solutions, and conducted by Loyalty Chiefs on behalf of the Incentive Marketing Association (IMA), a nonprofit trade association, the research reveals where the most meaningful growth opportunities lie—starting with gift cards.

According to the IMA’s 2025 Incentive & Recognition Insights report, gift cards are viewed as the leading reward format in incentive programs, with 60% of executives expecting growth for gift card incentives, outpacing travel (51%) and merchandise (26%) incentives. The flexibility of gift cards makes them well-suited for a range of initiatives, including customer acquisition and employee rewards. BHN’s Global Gifting research further supports this trend, showing that 70% of consumers plan to purchase the same amount or more gift cards in 2025, signaling consistent demand across both B2C and B2B channels.

“This research highlights what we’re seeing across our network: gift cards are the top reward format for driving engagement and loyalty,” said Jeff Haughton, senior vice president of Incentives, Corporate Development & Strategy at BHN. “As businesses face increased pressure to deliver measurable results, incentives are becoming essential strategic levers for growth amidst macroeconomic challenges. The future is bright for businesses that leverage gift cards in fresh ways as the industry and technology continue to advance.”

According to the research, 83% of executives globally foresee only minor to moderate changes in incentive recipient preferences in the coming years, with just 17% anticipating any major shifts, emphasizing the staying power of established formats like gift cards.

“Our research reflects the priorities and momentum we’re seeing across the incentive landscape,” said Jeffrey Brenner, president of the Incentive Marketing Association. “A significant number of organizations report experiencing intense marketing competition, and are looking for partners that can deliver innovative, scalable solutions. BHN is a strong example of how providers are stepping up to meet that demand across industries, especially as more than a third of survey respondents report opportunities to invest in innovation. From the continued strength of gift cards to the evolution of incentive delivery, the data offers a clear view of what’s gaining traction and where companies are investing to drive better outcomes.”

Additional findings from the North America report include:

• Digital is in demand. Only 17% of executives expect major changes in how reward recipients want to receive incentives, suggesting that features like mobile wallet integration and SMS delivery are increasingly expected as part of modern incentive programs. As organizations scale, digital gift cards offer globally relevant, cost-effective solutions. By eliminating packaging, shipping and inventory, they reduce operational complexity and unlock meaningful cost savings—including across borders. They also enable branded customization, making them ideal for B2B, B2C and internal programs like peer-to-peer recognition.
• Budgets and initiatives are growing. The study also found that 47% of executives say their clients are launching new incentive marketing initiatives and more than one-third expect client budgets for incentives marketing to increase in the coming year, highlighting growing demand for partners that deliver both scale and ROI. At the same time, companies are shifting how they evaluate providers: price competitiveness, product innovation and reputation now outrank speed or ease of use, reflecting a more strategic approach to program design.
• People can also reward each other. While the IMA study primarily focuses on client-facing programs, it also notes rising interest in employee rewards and recognition programs—particularly peer-to-peer rewards, with 46% of executives forecasting increased usage. BHN's Employee Engagement Study found that 85% of employees want to recognize their colleagues, and many also value acknowledgment from their boss or leadership team. The IMA’s research found nearly half of executives forecast increased use of gift cards as peer-to-peer rewards.

The full IMA Incentive & Recognition Insights 2025 report is exclusively available to IMA members, while the Executive Summary is publicly available here.

To explore how gift cards can power your rewards and recognition programs, visit BHN.com.

About Blackhawk Network (BHN)

Today, through BHN’s single global platform, businesses of all kinds can tap into the world’s largest network of branded payment solutions. BHN helps businesses grow revenue, increase loyalty, motivate and reward their teams, disburse funds and engage consumers. Branded payment solutions include the issuance and distribution of gift cards, eGifts, corporate payouts and rewards, along with the technology to deliver these products in seamless, integrated ways. BHN’s network spans the globe with more than 400,000 consumer touchpoints. Learn more at BHN.com.

About Incentive Marketing Association (IMA)

The Incentive Marketing Association (IMA) connects members around the world from leading companies across the marketplace to create a unified voice and growth for the incentive industry. IMA is the umbrella organization for the Incentive & Engagement Solution Providers (IESP), Incentive Gift Card Coalition (IGCC), Incentive Merchandise To Reward & Appreciate (IMRA), Incentive Travel Council (ITC), Recognition Professionals International (RPI), IMA Europe, IMA LATAM and IMA Middle East, Africa & Asia Pacific (IMA MEAPAC). Members have the expertise, leading brands, and services to help companies improve their business with reward, recognition, loyalty, and engagement programs.

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