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Home»Blog»Contest Marketing: What is it? How Does It Work? Is It Effective? Let’s Find Out!
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Contest Marketing: What is it? How Does It Work? Is It Effective? Let’s Find Out!

Milton MiltonBy Milton MiltonOctober 3, 2023Updated:October 3, 2023No Comments4 Mins Read
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Exploring the Ins and Outs of Contest Marketing
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Table of Contents

  • What Is Contest Marketing?
  • The Attraction
  • Ensuring Success

In today’s fiercely competive society, companies are always searching for creative ways to grab people’s attention. Whether it’s teaming up with influencers or staging a viral activation, there are many effective strategies out there. But when it comes to really getting consumers’ attention, few can beat contest marketing.

And can you blame them? Let’s face it; who doesn’t love the opportunity to win fantastic prizes? It is indeed an effective strategy which according to NoDepositWorld – a leading affiliate marketing site – is one which not only drives brand awareness, but also increases audience engagement. While your brand might not generate the same level of enthusiasm as The Price is Right, if executed effectively, contest marketing can be your key to success.

What Is Contest Marketing?

Contest marketing is a popular promotional strategy in which businesses create giveaways, contests, lotteries, or sweepstakes, offering enticing prizes to attract new customers and gain more exposure. It is an excellent way for companies to gamify promotions, creating unique engagement opportunities and calls to action. Over the years, this undeniable force has evolved significantly, becoming even more effective with the advent of social media.

In fact, some of the most popular contest marketing techniques take place on social media platforms, encouraging participants to like and share the competition posts to boost engagement and get as many eyes on the brand as possible. Email and SMS-based contests have also proven to be successful, gathering customer information through email marketing or text messages, although this form of contest marketing is limited to customers already in your database.

Businesses with brick-and-mortar locations can also set up competitions in their stores. However, it’s important to keep in mind your target audience when selecting your choice of mechanics, determining whether they are tech-savvy and willing to try new things or if they belong to an older generation who would prefer straightforward, in-person competitions with a minimal amount of effort required.

The Attraction

The desire for freebies among consumers is not a new phenomenon; it is deeply ingrained in psychology. Experts reveal that people are more inclined to assign a higher value to something that is free as opposed to something that they paid for. In his book ‘Predictably Irrational,’ Dan Ariely explains that “free” is not just an indicator of price; it is also a powerful emotional trigger known as the ‘Zero Price Effect.’

When customers pay for a service or product, they typically engage in in-depth research to ensure they are making the right purchasing decision. However, when something is offered for free, such as a prize, they have no specific expectations, creating a positive association with the brand. Shoppers are also drawn to the thrill and excitement of winning a contest, which can be nearly as enticing as the prize itself.

Research even suggests that consumers respond better to lower-value prizes with more chances of winning rather than extravagant gifts that seem almost impossible to attain. So, you might want to consider swapping out a trip to the Bahamas for a collection of takeaway vouchers for a more significant impact.

Ensuring Success

Contest marketing, if executed effectively, can be a fantastic tool in every business’s marketing arsenal to break up their mundane content marketing efforts and give consumers something to be excited about. However, while hosting a competition might seem straightforward, it can be far more complex than people would care to admit. As previously discussed, while there are several avenues for businesses to host their competitions, in order to maximize its impact, it’s important to promote it using both traditional and digital marketing, integrating it into your overall marketing strategy.

Cross-marketing your brand’s competition, rather than running it in isolation from your other marketing efforts, will also increase its overall exposure, making a bigger impact. This could mean coinciding the competition with a new product launch, pairing it with your business’s anniversary, or even a fun holiday like Halloween. However, before you even structure the competition and decide on the platform for hosting it, you need to clearly outline your goals and objectives in order to adequately assess the competition’s success.

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