Sweepstakes as a marketing tool

Companies are increasingly investing considerable budgets in operating their social media channels. The various social networks must be constantly supplied with new and high-quality contributions in order to offer users added value. It is no longer enough to address the target group exclusively through the organic reach of the posts. That is why a large number of companies are increasingly investing in their online marketing budget. Sweepstakes generate a high level of customer attention and are therefore a very popular solution for companies and are very attractive as a marketing tool.

Benefits of sweepstakes:

Companies can benefit greatly from competitions if they are also well planned and implemented. Through a competition, for example, the contact details of the participants can be recorded without great effort if participation in the competition requires that the data be provided. With the user's consent, the data may also be used for newsletters and other campaigns in the future.

From a customer's point of view, a competition naturally offers great added value. In the best case scenario, it makes the customer visit the company's website or social networks regularly. The big advantage of a competition is that the customer does not associate it as advertising, but as an opportunity to win great prizes. As a result, competition content is shared more often, such as general advertising content. In particular, this strengthens the presence within social networks and increases brand awareness. If the competition is properly planned and promoted in advance, it is possible to achieve a viral effect. This significantly increases reach on social networks.

Our tip: Use various social media channels for your competition

What do you have to consider?

In order to use a competition as a marketing tool, there are a few guidelines that must be followed. It is particularly important that the participation conditions are compatible with German law. Participants must also be aware of which prize categories there are and what value they have. An example of this would be advertising with a “modern computer” as a profit, but which is at the same level of technology as five years ago. Furthermore, it is forbidden to advertise with high profits and to conceal the fact that low-value profits are also distributed. Since it is when organising a competition many more points to consider There is, it is recommended to seek legal advice. This protects you from costly warnings and other consequences.

conclusion

In summary, it should be noted that correctly conducted competitions lead to an increase in awareness and customer satisfaction. As a result, market share or sales can be temporarily increased. Sweepstakes are therefore a good way to draw attention to products or events. Human greed is addressed in the form of the expectation of getting a lot for little effort. The promise of benefit makes the user an advertising medium.

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