Summary: This paper analyzes dynamic pricing and advertising policies in a dual-channel supply chain composed of a manufacturer and a retailer. We employ differential game theory to analyze the feedback equilibrium outcomes in the Stackelberg game and cooperative game. And then comparative results are presented. Analysis shows that the manufacturer’s direct channel prices in the two games are same, while the retail price in the cooperative game is less than that in the Stackelberg game. We also find that the manufacturer’s national advertising expenditure in the cooperative game is more than that in the Stackelberg game, while the retailer’s local advertising expenditure in the two games is related to the advertising and pricing competition coefficients. Additionally, the system’s profits in the two games depend on the parameters of the supply chain system.