Online contests are a dynamic method for businesses to expand their reach and foster audience interaction. A well-planned giveaway can increase brand visibility, generate new leads, and build a more engaged community. These promotions offer a fun way to connect with potential customers that feels less like traditional advertising. With a clear strategy, an online contest becomes a powerful tool for achieving specific business objectives and driving measurable growth.
Define Your Contest Goals
Before launching a contest, you must establish a clear business objective. This primary goal will guide every subsequent decision in the planning process, from the contest type to the prize. Defining what you want to achieve is the first step toward a campaign that produces a measurable return on investment.
Common goals for online contests include:
- Growing an email subscriber list to nurture long-term customer relationships.
- Increasing social media followers or boosting audience engagement.
- Generating user-generated content (UGC), like photos or stories, for future marketing.
- Driving traffic to a specific website page or creating buzz around a new product.
- Increasing overall brand awareness.
The chosen goal directly influences the entire structure of the promotion. For instance, a goal of collecting user-generated content requires a different approach than one focused on rapidly expanding an email list. By aligning the contest mechanics with the primary business goal, companies can ensure they are attracting the right kind of participants and moving closer to their desired outcomes.
Choose Your Contest Type and Prize
After setting your goals, select a contest format that directly supports your primary objective. For example, sweepstakes, where winners are chosen at random, are effective for quickly generating a large number of leads or email sign-ups because they have a low barrier to entry. Participants often only need to provide their contact information for a chance to win.
Skill-based contests, on the other hand, require participants to submit something for judgment, such as a photo, video, or essay. These are ideal for collecting user-generated content and fostering deeper engagement, as they require more effort from the entrant. Another popular format is a social media contest that asks users to like, comment, or share a post to enter, which is well-suited for increasing social media metrics.
The prize you offer is a significant motivator for participation. To attract qualified leads who are genuinely interested in your brand, the prize must be relevant to your products or services. Offering a generic, high-value item like an iPad might attract many entrants, but they may not be your target customers. A better approach is to offer your own products, a gift card to your store, or an exclusive brand-related experience to ensure entrants are likely to become future customers.
Understand the Legal Requirements
Understanding the legal landscape of online promotions is a key step to protect your business. A primary legal distinction is between a “sweepstakes” and a “contest.” A sweepstakes is a game of chance where winners are selected randomly, while a contest is a game of skill where winners are chosen based on merit. This distinction is important because it carries different legal implications, particularly regarding entry fees.
For a promotion to be a legal sweepstakes in the United States, it cannot contain all three elements of a lottery: prize, chance, and consideration. “Consideration” is a legal term for something of value given by the entrant, such as a purchase or payment. To avoid being classified as an illegal lottery, sweepstakes must offer a free method of entry, which is why the phrase “no purchase necessary” is standard. In contrast, skill-based contests can sometimes require an entry fee, as the element of chance is removed, though some states prohibit this.
It is also important to be aware of geographical restrictions. The phrase “void where prohibited” is used to provide blanket protection against violating laws in specific states or countries where such promotions may be illegal. For example, states like Arizona and Rhode Island have specific registration requirements for contests that exceed certain prize values. Failing to comply with these federal and state regulations can lead to significant penalties.
Create Your Contest Rules
After understanding the legal framework, you must create a comprehensive “Official Rules” document. This document protects your business by clearly outlining the promotion’s terms for all participants. It translates legal requirements into an accessible format and acts as a binding agreement between your company and each entrant, leaving no room for misinterpretation.
The rules must include:
- The contest’s start and end dates, including the time zone.
- Eligibility requirements, such as age and geographic location, while complying with regulations like COPPA.
- A clear explanation of how to enter, including entry limits and winner selection methods.
- A detailed description of the prize(s) and how winners will be notified.
- A liability release statement to protect your company and associated platforms like Instagram or Facebook.
Promote Your Contest
With the structure and rules in place, the focus shifts to marketing your contest. A dedicated landing page is an effective tool, serving as the central hub for all contest information and entries. This page should be visually appealing and clearly communicate the prize and how to enter. Promoting this landing page across various channels is how you will drive traffic and maximize entries.
Email marketing is a powerful channel for promotion, as your existing subscribers are often your most engaged audience. Send an announcement at launch and a follow-up reminder before the deadline to create a sense of urgency. Social media is another primary channel for outreach. Share the contest on all relevant platforms, using eye-catching graphics, videos, and relevant hashtags to expand your reach.
To reach a broader, more targeted audience, consider using paid social media ads. Platforms like Facebook and Instagram allow you to target users based on specific demographics, interests, and behaviors. This ensures your promotional efforts are seen by people most likely to be interested in your brand and prize. Collaborating with influencers or complementary brands can also help you tap into new audiences.
Conclude the Contest and Analyze Results
The first step in concluding your contest is to select a winner according to the process in your official rules. For a sweepstakes, use a random number generator or a trusted third-party tool for a fair drawing. It is important to notify the winner privately first to confirm their eligibility and acceptance of the prize before making any public announcements.
After the winner is confirmed, announce them publicly on your social media channels and email newsletter. This celebrates the winner and demonstrates to all participants that the contest was legitimate, building trust with your audience. Thanking everyone for their participation and hinting at future promotions can help keep your audience engaged.
The last step is to analyze the contest’s results by comparing them against the initial goals you set. If your goal was to grow your email list, measure how many new subscribers you gained. If you aimed to increase brand awareness, look at metrics like social media reach and follower growth. Calculating the return on investment (ROI) by comparing the value generated to the contest’s cost will help you determine its overall success and inform future campaigns.