Which type of promotion involves companies paying to advertise their goods or services?

The correct answer is advertising, which involves companies paying to promote their goods or services through various media channels such as television, radio, print, digital platforms, and more. Advertising is a strategic approach where businesses invest resources to communicate directly with potential customers about their offerings, highlighting features, benefits, and special promotions to drive sales and brand awareness.

Advertising differs from public relations, which focuses more on managing a company's image and building relationships with the public and the media, often through unpaid channels. While direct marketing involves targeting specific consumers with tailored messages, it can also use a paid approach, but it specifically focuses on direct outreach to customers. Sponsorship, on the other hand, involves companies providing financial support to events or individuals in exchange for publicity and brand recognition, rather than directly advertising their products or services. Therefore, advertising is the most straightforward form of paid promotion aimed at increasing visibility and sales.