Advertising is the attempt to influence the buying behavior of customers or clients with a persuasive selling message about products and/or services. In other words, advertising is a form of marketing that is used to create awareness about a product or service. It is usually done through paid media, such as television, radio, print, social media and paid search.
Advertising has as its goal not only an increase in sales in the short- to mid-term, but also a strengthening of the brand and image of the company and products, to build long-term sales and consumer loyalty. Advertising is a costly endeavor, and it can be months or even years before results are seen from a successful ad campaign.
Promotion is defined as a set or collection of activities that convey the merits of a product or service to persuade the target market or customer to purchase it. Promoting a product is a form of marketing that is used to generate interest in a product or service. It is usually done through personal selling, such as face-to-face interactions or online marketing.
Promotion is a short term event and the primary objectives are to present information regarding the company or a project, to increase demand for a particular project as well as differentiate the product from similar products that are produced by other companies. Examples include coupons; sales; celebrity endorsements; event, team or league sponsorships; contests; rebates; free samples; catalogs; social media; donations; and direct mail.
Advertising vs Promotion: Key Differences
| Aspect | Advertising | Promotion |
|---|---|---|
| Definition | A paid, non-personal communication of ideas or products by an identified sponsor through various media channels. | A broader term that encompasses all the communication strategies and activities used to market a product, service, or brand. |
| Nature | Typically a subset of promotion. | A broader concept that includes advertising as one of its components. |
| Cost | Usually involves a significant cost, as it often requires media purchases and creative production. | Can vary widely in cost, depending on the specific promotional activities employed. |
| Reach | Has the potential to reach a larger and more diverse audience, especially through mass media like TV and radio. | May have a more targeted reach, depending on the promotional tactics used, such as sales promotions or direct marketing. |
| Mediums | Utilizes various media channels, including television, radio, print, online, social media, and more. | Can use a wide range of mediums, including advertising, personal selling, public relations, and sales promotions. |
| Control | Advertisers have more control over the content, message, and timing of their communications. | Promotion efforts may involve less control, especially when relying on word-of-mouth or customer-generated content. |
| Duration | Advertising campaigns are often ongoing and long-term. | Promotion efforts can vary in duration, from short-term sales promotions to ongoing brand-building activities. |
| Personal Interaction | Typically non-personal and one-way communication from the advertiser to the audience. | Can involve personal interactions, such as face-to-face sales presentations or customer service interactions. |
| Goals | Primarily focused on creating brand awareness and delivering a consistent message to a broad audience. | Can have diverse goals, such as increasing sales, encouraging trial, or building customer loyalty. |
| Examples | TV commercials, online display ads, billboards, magazine ads, and sponsored social media posts. | Coupons, discounts, contests, product demonstrations, public relations, and personal selling. |
Advertising vs Promotion: Key Takeaways
- Advertising is done to build brand image and increase sales, whereas Promotion is used to push short-term sales.
- Advertising is one of the elements of promotion while the promotion is the variable of the marketing mix.
- Advertising has a long term effect but at the same time promotion has short term effects.
- Examples of the promotion of sales are short lived lower prices,coupons with a few cents off, and “buy an item, get another one free” offers. Advertising is used to make the identity of a brand as well as the value of a brand more visible to create an emotional tie to a future customer.
- Advertising is for everybody including kids, young and old. It is done using various media types, with different techniques and methods most suited. Promotion is for a targeted segment of population.
- Types of promotion can include discount coupons, special events, rebates, free samples etc.
- Promotion is a more cost-efficient method for increasing sales for smaller businesses. Advertising is more often costly and thus suitable for medium to large businesses.
- Advertisements can have a positive effect on overall sales with increased profits, but it takes longer to achieve results.
- Advertising generally refers to controlled, paid messages in the media, while promotion includes paid and free marketing activities, such as sales or sponsorships.
- 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.