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.