Advertisements vs. Promotion

by Debbie Donner
Advertisements are non-direct and subtle, versus promotion, which is direct in approach.


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Advertising your business is a long-term, ongoing process meant to strengthen customer loyalty, inform consumers about new products or services and build your company's brand. Advertisements are a one-way form of communication that ideally appeal to consumers' emotions and persuade them to purchase your product or service. Promotion is typically a short-term marketing strategy, meant to increase sales through the use of immediate customer incentives (motivations).


Advertisements and promotion are both used as marketing strategies to get product information out to consumers. Advertising is most commonly done by medium to large companies, as it can be quite costly. However, small businesses can find creative ways to advertise for less, especially by learning how to use the Internet. When you pay to place advertisements in your local newspaper, a magazine or other advertising vehicle, the assumption is that your efforts will lead to sales. Advertisements can have a positive effect on overall sales with increased profits, but it takes longer to achieve results. A primary goal of advertisements is brand building.


A promotion is typically used by a company to raise sales quickly or induce a trial purchase or service by consumers. The appeals made to consumers with a promotion tend to be more rational and less emotional in nature. Promotional sales are designed to offer incentives to consumers, motivating them to buy your product or service immediately. Promotions generally result in lower profits, but they have instant effects. Promotion is more focused on building sales in the short term, rather than brand building. Types of promotion can include discount coupons, special events, rebates and free samples.

Advertisements & Promotion Methods

Promotion can typically be placed in one of two categories: above-the-line promotion or below-the-line promotion. Above-the-line promotion is carried out through the use of mass media, such as television, newspapers or radio. Below-the-line promotion typically uses non-media methods to reach consumers, including direct mail, email, sales promotions and public relations. Advertisements often use commercial media, such as television, radio, Internet pop-ups, billboards and cell phone screens to reach consumers. When a product or brand is embedded into entertainment media, such as a feature film, it is known as covert advertising. An example would be an actor who wears one brand of clothing throughout an entire movie.

Cost Efficiency

Often, promotion is a more cost-efficient method for increasing sales for smaller businesses. Advertising through the traditional media channels can be rather costly. Many medium to large companies may use special promotions as part of large advertising campaigns. Smaller companies can easily organize several short-term promotions to increase sales and consumer awareness, often resulting in favorable and immediate gains. Successful advertising campaigns often require a long-term financial commitment as well, which is another reason it may be beneficial to use promotion to build sales in your small business.

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