Examples of promotional advertising include sweepstakes, in-store demonstrations, and loyalty reward programs. Promotional advertising is any advertising that promotes a product using benefits or rewards, according to the Western Australia Small Business Development Center's (WASBDC) website.
Short-term incentives are an essential element of promotional advertising. Promotional advertising strategies differ depending on the target customer. WASBDC breaks promotional advertising activities into four types:
- Consumers Promotions: Point of purchase displays, coupons, product sampling or celebrity appearances increase retail sales.
- Business Promotions: Workshops, trade show displays, event sponsorship or direct marketing attract new and repeat clients.
- Trade Promotions: Reseller incentives, bonus stock, corporate entertainment or rewards linked to sales increase business and product awareness.
- Sales Force Promotions: Commissions, employee recognition with awards, sales competitions with prizes or bonuses motivate sales performance.