“Sales promotions often benefit from the ‘use it or lose it’ mindset that emerges as brands head towards the end of their financial years – and we see this reflected in Q1’s upward revisions.
“As well as being quicker and easier to activate than campaigns across other marketing channels, and promotions also offer a way to hit end of year targets and clear excess stock.
“This year, brands have also faced the challenge of low consumer confidence and restricted spending against a backdrop of geopolitical uncertainty. At times like this, brands often lean on sales promotions as a way to retain customers as they compete for a larger piece of a small pie.
“Economic challenges also underpin lower spending intentions throughout 2026/27, as promotions actively undermine efforts to increase average selling prices, whilst running the risk of devaluing the brand through persistent discounting.
“As sales promotions take a back seat, events continue to flourish as marketers focus on building brand equity. Creating experiences that resonate with consumers – particularly Gen Z – and make them feel valued is increasingly seen as the best way to foster loyalty, trust and long-term advocacy – showing the focus on long-term investment over short-term gain.”
To read the published comment by Daniel Todaro, CEO, please visit Mediashotz
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