Advertising vs Promotion: the fine differences every business must know

Your company is offering an exciting range of services. You are hopeful that it will attract a large number of customers. You decide to go in for promotion by setting up billboards, creating a website and marketing it on social media. Is this advertising? Wait, didn’t we just refer to it as promotion? 

While engaging with others, businesses usually focus on the exact methods being employed. Does PPC bring in more clients compared to organic search? How much should one invest in Facebook Ads? Innumerable people ponder over these questions. Yet, when asked about the difference between ad making and promotion, one will only receive blank stares.

Both refer to a wide range of activities. Let us begin with ads.

Most of us first experienced advertising through newspaper columns and billboards. Elaborately designed and easy to create, they have nevertheless been superseded by advances in technology. Digital methods have taken over; now we come across ads whenever we open Google. Social media is also awash with ads-some exciting, others worthy of being ignored. Put very simply, advertising includes putting paid messages on various channels to let people know about a company/individual’s activities. 

There is one thing common to all forms of ad creation however-they are part of the greater process of “promotion”.

If promotion is the dad, then advertising is the son(though not the only son). The Oxford English Dictionary(here’s the link; not everything about the Dictionary is intimidating) states that promotion is the “the publicizing of a product, organization or venture so as to increase  sales or public awareness”.

Don’t ads provide publicity for the increase of sales as well? Thus, it becomes clear that ads form part of the general umbrella that is promotion. If you are involved in ad making, then you are certainly promoting a person(it could be you, so good luck) or a company.

If you want to promote, you will have to hit upon a SPECIFIC method. Advertising is one. Hosting seminars is another. One could also provide free samples of products for brand marketing.  For instance, all toffees might have the same shape and size, but you wouldn’t really know which one you should buy unless you’ve tasted them, would you? Other methods of promotion include handing out catalogues, direct emailing and the hosting of contests.

Here are a few more ways in which advertising is distinct from other forms of promotion:

• Cost: Ads are almost never free. It is a big source of revenue for the various ad channels, after all. Posting ads on newspapers, billboards, social media and blogging websites always costs a certain amount.
  On the other hand, handing out a free sample or conducting an opinion poll doesn’t cost anything. Thus, there are modes of promotion which are almost completely free.

           Bottom Line: Some methods of promotion are free, others aren’t. Ads are never free.

• Response time: You are probably familiar with the seemingly never-ending wait for the responses to ads by leads. Not all methods of promotion have long response times. Direct emailing often leads to quick responses. Seminars and contests have real-time participation with instantaneous responses.
  Bottom Line: Not all promotional methods have the same response time. Some do see quicker responses compared to ads.

• Ultimate purpose: Ads are ultimately aimed at ensuring sales. Leads show interest, and are further enticed to become long-term customers so that the end-result is a transaction.
  On the other hand, a promotional football match organised by a company will not result in a transaction. However, it will enhance the brand image and strengthen loyalty.
  Bottom Line: Both ads and promotion deals with sales, but the latter centres around brand loyalty as well.

Understanding the subtle differences between promotion and advertising is key to bringing in customers. At Eclipse Technoconsulting Global (P) Ltd., we have used a variety of methods to contribute to our clients’ holistic growth. Their success stories include both brand image enhancement through all-round promotion, as well as an increase in sales through specific ad campaigns methods. To join this success story, follow us today at #eclipseindia or Eclipsetech12.