Promotions vs Advertising: What Actually Drives Sales (Without Destroying Your Brand)

Mateo Velasquez

1 min read

Do your sales depend on constant discounts?

Are you stuck in a loop where promos keep your business afloat — but don’t build it?

A five-year study tracked the impact of promotions vs advertising on a single brand’s sales, and the results are crystal clear:

Too many discounts erode your brand’s value — and your long-term profitability.

The experiment: 5 years, one brand, changing strategies

Over 250 weeks, researchers monitored:

  • Sales volume

  • Discount depth

  • Advertising spending

  • Distribution reach

  • Product line length

They discovered a direct connection between the brand’s communication strategy and its business outcomes.

Phase 1: Promotions + advertising = high sales

In the early stages, the brand was running both advertising and promotional campaigns.

The result? Sales soared to over 250 tons of product.

Phase 2: Promos alone, no advertising

Then the brand stopped advertising and continued pushing promotions.

What happened?

Sales gradually declined — all the way down to 50 tons.

Promotions couldn’t sustain the momentum.

Phase 3: Advertising returns, discounts scale back

After hitting bottom, the brand reduced discounts and reactivated advertising.

Sales bounced back — climbing to nearly 150 tons, without excessive discounting.

What this study teaches us:
  • Promotions can boost sales in the short term, but they create dependency.

  • Advertising builds brand equity, preference, and long-term growth.

  • The best strategy combines consistent advertising with controlled, occasional promos.

Why too many promotions are dangerous

Because they train your customer to think:

“That brand is only worth it when it’s on sale.”

And just like that, you lose brand loyalty and become just another convenient choice.

Be honest: do you only buy certain brands when they’re discounted?

Then you already know how this plays out.

Don’t let your own brand fall into the same trap.

Final Thoughts

Promotions are a tactic, not a strategy.

When overused, they lead to:

  • Margin erosion

  • Brand devaluation

  • Unstable revenue cycles

Advertising, on the other hand, builds preference, trust, and long-term value.

Stay visible. Stay relevant.

And don’t let your brand become addicted to discounts.