Advertising builds awareness and demand over time. A sales promotion does something narrower and more immediate. It gives a specific reason to act before a deadline, which is why promotions are measured in spikes, sign-ups and redemptions rather than impressions.
What a sales promotion is for
The obvious goal is a short-term lift: more sales, more sign-ups, a bigger launch week. The more valuable goal, and the one most brands miss, is what happens after. A promotion customers simply receive is forgotten the moment it ends. A promotion customers take part in gives them a reason to come back. The first builds a spike. The second builds a habit.
The main types of sales promotion
Most promotions fall into a few families.
A percentage off, a bundle, a limited-time price. Effective for a quick lift, but easy to copy and quick to forget.
Extra value for acting: a free gift, bonus points, a members-only perk. Rewards the action without discounting the product.
The customer takes part for a chance to win. On the right platform, this is the family that creates return, not just a one-off spike.
Where prize-based promotions fit
A prize draw or an instant win is a sales promotion built on participation. Instead of handing every customer the same discount, it invites them to take part, and the taking part is the point. That is what turns a promotion from a cost into a reason to keep showing up. It is also where Sota fits: the compliant platform and infrastructure that brands run prize promotions on, while they run the promotion and own all of their first-party data.
When a promotion has to be compliant
The moment a promotion offers a prize, it becomes a trade promotion and carries rules: how winners are drawn, what has to be disclosed, and in some markets a permit. Those rules vary by country. In Australia, for example, some states require an authority or permit above a set prize value, and there is no single national permit. The prize pool is set and published before a single entry, the draw method is certified, and entries are earned through a purchase or an action. Good infrastructure builds these mechanics in across Australian jurisdictions and on a global scale, so the brand can focus on the promotion itself.
If you are planning one, the practical detail on running prize draws and trade promotions sits on the Sales Promotions page.