Yes, you can deduct promotional give aways as advertising expense of the business.
It meets the definition of IRC 162, ordinary and necessary business expense.
Now, say for example you run an ice cream shop and your promotion is an extra scoop of ice cream. That ice cream is already included in the purchases that goes into the Cost of Goods Sold (COGS), so while it can be deducted, it already is.
Now if the same ice cream shop gives away a $5 card to a hardware store, that is deductible and can be deducted as it not already in the COGS.
