2013 revealed some interesting trends in how sweepstakes are used and how they are implemented.
Who ran sweepstakes promotions?
The easy answer is everyone. From mass market products such as soft drinks and fast food to niche products such as commercial cleaning supplies marketers of all varieties have embraced this tactic because of several core benefits. Relative ease to implement and quick to market are of course important but the largest benefit is consumer understanding and preference of sweepstakes as a tactic. People just love to win stuff!
What types of sweepstakes were used?
There are two primary types of sweepstakes. Auto entry and registration based. It is kind of self- explanatory, but quickly, an auto entry sweepstakes is just that. You get an automatic entry just for doing something you already do, nothing required on your part. Think Discover Card’s current holiday promotion. Registration sweepstakes are the other variety where you must go to a promotional microsite, Facebook page etc., and fill out a form. Simon Malls is a good example. Benefits to registration are obvious; you collect data that can be used in a variety of different ways. Small downside is this additional step may impact total response negatively. The auto entry versus registration is a decision that is driven by the strategic objectives of the promotion.
Where did sweepstakes promotions run?
Sweepstakes promotions are being added to every conceivable media platform. Broadcast which in some media circles now includes online display advertising, plus earned media (A.K.A. Public Relations), and old school places like point of sale and printed materials all received an additional kicker in the form of “Chance to Win” variations on copy.
When was the highest level of activity during the year?
Seasonality is non-existent in the planning and implementation of sweepstakes promotions. In the past marketers ran a limited number of large promotions usually in support of major media campaigns. The addition of social media channels has fundamentally changed the media calendar. Opportunistic planning has replaced advance planning as the primary driver of sweepstakes timing.
How were sweepstakes promotions executed?
A scary story is developing in the industry. A review of approximately 500 online promotions revealed that nearly 2/3 had insufficient legal and/or administrative resource behind them. Problems ranged from lack of proper rules, misinterpretation of CAN-SPAM laws and improper collection and management of PII (Personally Identifiable Information). It is important to execute a sweepstakes in compliance with federal, state and local lottery laws. In addition there are peripheral laws statutes and policies to adhere to as well. There are just too many specific things to credibly list and then define here. Point being; work with a resource that understands the complexities so it is easy for you to implement safely. The FTC has been monitoring and so far has favored self-regulation. That is likely to change. And your product or service does not want to be a target when it does.
Summary
Clearly the tactic works otherwise it wouldn’t be so ubiquitous in marketing planning. To get a sense of how this will work for your product or service reach out to us at expert@mardenkane.com and we’ll be happy to provide some commentary on the performance you can expect to what you might be planning.