Questions about Running a Successful Contest

By: Sync Marketing | In: Ask Sync, Ask Sync Marketing, Best Practices, Contests, Marketing, User Generated Content

So you’ve decided to add running a sweepstakes or contest to your marketing plans this year, but you are not really sure where to start or which one will work best for you to reach your goals. Below are a few questions about running a successful contest from fellow marketers.

What are the benefits of running a contest?

We are always upfront when someone comes to us who is considering running a contest. The truth is, in most cases, you will not receive as many entries as you would if you chose to run a sweepstakes. The reason being is that with a contest, you are typically asking people to complete an extra step beyond just filling out a simple entry form. When running a contest for example, you might ask people to upload a photo or video of themselves completing a particular outlined task, or to write an essay, or even name your new product. If you want to run a buzz-worthy campaign, make sure you are reaching your true customers and collect fun user-generated content, a contest is the way to go. A contest will provide you with much more QUALITY entries. Here is a helpful article touching on the differences between sweepstakes and contests.

Are there any legal parameters to consider when running a contest?

Yes, and they change frequently, especially on social media platforms. That is why we always recommend that you consult an expert like Sync Marketing, when putting together any contest or sweepstakes. One of the most crucial elements is to make sure that you clearly outline the contest criteria and judging parameters in the official rules.  Here is an article that was written to give advice for contest entrants that might help give you additional insight.

Does one contest theme attract more entries than another?

Theme is certainly one of the factors for consumers when deciding if they want to enter a contest. Although it isn’t the only thing that might pique their interest. You will almost guarantee that you will have a good amount of entries if the contest is offering a new or fun twist or has a “cool” factor, but we find that prizing is what really drives entries. If you offer a fun experiential prize, or something that the consumer can’t obtain on their own, they will take the extra steps to enter. Another great option is build a contest around a philanthropic cause that is close to your company’s heart. Here is a case study of a contest campaign that Walmart and some of its vendors partnered together to run to a contest to support the cause to fight world hunger.

If done right, contests are a fun way to create positive interaction with your consumers and possibly create some exciting buzz for your company online and beyond. If you have any additional questions about running a successful contest contact us today at 323-596-7962 or info@syncmarketing.net.

Sync Marketing – The Sweepstakes and Contest Experts

Why hire an administrator to create your sweepstakes Official Rules and Winner Release Forms

By: Julie Link | In: Ask Sync, Ask Sync Marketing, Best Practices, Legal and Prize Fulfillment

In this month’s Ask Sync Marketing, we answer the question, “Why should you hire an administrator to create your sweepstakes Official Rules and Winner Release Forms?”

Why can’t we just use our in-house counsel to draft our rules?

It’s not to say that they can’t, but if your in-house legal counsel does not specifically specialize in promotion law, chances are they are not up-to-date on all of the latest legal actions and changes in the field. Our advice is to keep them focused on what they do best and ask them to review the rules we create for you. Our legal team specializes in promotion law and are the top in the field. We will provide you with a comprehensive set of official rules that include the current promotion laws.

We want to run a promotion on Facebook and they offer Promotion Guidelines, isn’t this enough?

Reviewing Facebook’s latest promotion guidelines is helpful, but it’s definitely not enough to have full insight on all of the required language needed for a fully-compliant set of official rules. There are many eligibility, publicity, and state and local laws that should be considered when running a sweepstakes or contest. Hiring an agency like Sync to create the rules for you will allow you to rest assured that your official rules will meet these laws.

We found a similar promotion that ran last year, can’t we just use those rules for our sweepstakes?

Absolutely not. First, they’re not your rules to take and second you cannot be sure that these are up-to-date or were even legally compliant in the first place. Not to mention, it’s highly unlikely your promotion will be running identically to the rules you see online.

What if we don’t have time to vet out a new agency to handle our rules?

Even more reason to hire an outside agency! There is nothing more time consuming than dealing with legal ramifications when you don’t follow the law when running a promotion. There is so much that is required when running a sweepstakes or contest, which is why hiring an agency like Sync Marketing to take care of all of this for you, will take a ton off of your plate. Not only do we draft legally complaint official rules, we can also provide the following services when we handle legal:

• Legal counsel
• Abbreviated rules
• Legal disclaimers
• Winner affidavit of eligibility and release forms
• Travel companion forms
• Trademark search of campaign title
• Patent negotiations
• Partnership negotiations
• Client indemnification
• Letter of opinion
• Fraud mitigation of promotion offers
• Fraud mitigation of consumer entrants
• Bond and register campaign per state and federal guidelines
• Legal compliance review of all promotional materials and social media posts

Do I even need Official Rules?

We are often asked this by our current clients when they are wanting to run a sweepstakes with a shorter entry period or for sweepstakes or contests with a small prize. Our answer is always, yes. If there is a time frame to enter, you’ll be promoting the sweepstakes in any way, or you’re requiring your entrants to complete certain tasks to enter, then you need to have official rules. Keep in mind that Official Rules are your friend – they protect you and your consumers.

If you’re still on the fence about hiring an outside agency to handle your sweepstakes official rules and winner release forms, give us a call. We would be happy to ease any concerns and talk you through the process in more details. Contact us today. 

Official Rules and Winner Release Forms

Common Mistakes Companies Make When Running an Online Sweepstakes

By: Jennifer French | In: Best Practices, Legal and Prize Fulfillment, Marketing, Sweepstakes

Running an online sweepstakes can be an easy and effective way to promote your company’s services and/or products, when it’s done correctly. By omitting important key components in your sweepstakes campaign, you not only run the risk of upsetting your loyal customers and potential new customers, but also open up your company to potential legal ramifications. Below are a few common mistakes companies make when running an online sweepstakes.

No Official Rules Posted

This is a big mistake to make as this is one of the most important elements of a campaign. You must always create official rules that are easily accessible to the public throughout the sweepstakes entry period. The official rules should outline the sweepstakes eligibility, start and end dates, prize values and winner selection date. Not only do the official rules add legitimacy to your sweepstakes, it holds you accountable to run the promotion as stated.

Requiring a Purchase to Enter or Win

There are instances when a promotion awards an entry to a consumer for making a purchase, but in most cases, this is not an acceptable practice. If you do decide to add a purchase for entry, in most cases you must have a “free” method of entry that is clearly disclosed in all of your marketing materials and advertising. Also, payment should be for an actual legitimate product or service, and not just for an entry. Click here for more information on that subject.

Didn’t Bond or Register Promotion

If the promotion is open to residents of Florida or New York and the total ARV of all prizing is over $5,000, you will need to bond and register the sweepstakes in these states. Here is a link to Florida’s statute. Here is one to New York’s statute. Also, if you are a retailer and the promotion is open to residents of Rhode Island, you will need to register the sweepstakes in this state as well. For additional information click here.

There are many elements to consider when running a sweepstakes, which is why its best to hire an agency who specializes in sweepstakes. If you have any doubt about how to proceed with setting up your next sweepstakes and have legal questions, be sure to reach out to Sync. Here is a blog article with additional reasons why you should hire an agency like Sync for your legal and prize fulfillment needs.

Common Mistakes Companies Make When Running an Online Sweepstakes

Questions Regarding Taxes on Sweepstakes Prizing

By: Sync Marketing | In: Ask Sync, Ask Sync Marketing, Best Practices, Sweepstakes

February is the beginning of tax season so we thought it fitting to address some questions that we’ve received from winners and clients alike regarding paying taxes on sweepstakes prizing.

How will I know if I will have to pay taxes on a prize?

Any prizing that you win that totals over $600 in value will be reported to the IRS, and you will receive a 1099 for the tax year in which you accepted the prize. During the process of accepting a sweepstakes prize, you will be asked to fill out and sign a W9 form, so this will be your first indication that you will have to pay taxes on your prize. The amount of taxes that is paid is based on the individual, so it is recommended that you speak with a tax professional to determine what your taxes will be before you accept the prize.  Here is a good article about prizing and paying taxes: http://www.marketwatch.com/story/you-win-and-now-you-owe-taxes-2014-03-12

How do I determine the ARV on a prize for tax purposes when running a sweepstakes? 

We are often asked by our clients to determine the approximate retail value (ARV) of a prize for a sweepstakes. If the prize is an item that is sold by our client, that is the manufacturer’s suggested retail price, which we use to determine the ARV. If, however the prize is a service or trip, we do our due diligence to research the average price of the trip elements to ensure that the ARV is on target.  For more information, see our previous blog article about ARVs here.

What if I accept a prize such as a trip but end up canceling at the last minute? Do I still have to pay taxes on the prize?

Ultimately this is up to the sponsor of the sweepstakes. If the trip elements were already booked and paid for by the sponsor, they will submit a 1099 to the IRS for the advertised ARV.  However, if there are elements of the trip such as food or ground transportation at your destination that wasn’t pre-paid, you could dispute the ARV since those elements were never purchased by the sponsor. Here is an article about taxes on vacation prizes.  http://contests.about.com/od/vacationsweepstakes/f/Which-Taxes-Do-You-Pay-On-Vacation-Prizes.htm

If you are a client thinking of running a sweepstakes or if you have additional tax questions, please contact us at info@syncmarketing.net.   

How Long Should I run a Sweepstakes?

By: Julie Link | In: Best Practices, Contests, Instagram, Marketing, Sweepstakes, User Generated Content

How long should I run a sweepstakes? Once a client determines the benefits of adding a sweepstakes or contest to their marketing plan, this if often the most common question they ask. There are a few important factors when determining the length of time that your sweepstakes or contest should run, so let’s get started.

1. What type of prize are you providing? If you want to provide smaller weekly prizes and a large grand prize, then running your sweepstakes or contest for a month to six weeks is a good amount of time. This way, consumers feel like they may have a chance to win a weekly prize and you will receive many entries because there is a large grand prize tied to the promotion.

2. What is your goal? If your goal is to create hype for a new product or service, then a really exciting short term sweepstakes before the launch of the product or service is the way to go. This way there are a couple weeks of build up (the sweepstakes), then the grand prize is selected on the day the product or service is launched leading to good PR opportunities along the way. The same goes for seasonal sweepstakes. If it’s a Valentine’s day sweepstakes, try to launch it towards the end of January so there is some build up. Then, close the sweepstakes a week before Valentine’s day so that hopefully the winner receives their prize in time for the big day.

3. Who is your target demographic? If you’re running a summer sweepstakes and your prize is a cruise, you want to obtain many email opt-ins, and are gearing it to an older demo, a longer sweepstakes should do the trick. If you’re targeting millennials or younger and are running a user- generated Instagram sweepstakes where you ask entrants to upload photos, then the shorter the better.

To sum it up, most sweepstakes run between 2-6 week, with four weeks being the sweet spot. This allows consumers to get excited and not feel like it’s so long that they don’t have a chance. There are always exceptions to this rule, so if you have any additional questions, please don’t hesitate to reach out to us.

How do I maximize ROI when running an online sweepstakes?

By: Sync Marketing | In: Advertising, Ask Sync, Ask Sync Marketing, Best Practices, Contests, Facebook, Instagram, Legal and Prize Fulfillment, Sweepstakes, Twitter

To answer this question, I am going to first ask you to image that you have agreed to volunteer to bake a cake for your child’s school bake sale to raise money for their upcoming class trip. Your goal with this task is to make the most appealing product that will fetch the most money possible, doing so all within a set budget for purchasing your ingredients. Why this exercise, you may ask? Because this scenario is very similar to the process of trying to maximize ROI when running an online sweepstakes.  Below is the “recipe” for a successful sweepstakes campaign:

Identify your goals:  The goal of the bake sale is to raise as much money with as little financial investment as possible. It’s a challenge because you don’t want to invest too much money towards creating the cake, but the product must still be appealing to fetch a decent price.  Does that sound familiar?  You want to run an online sweepstakes to reward your consumers and get your name out to the masses, but you have a limited budget.  If money is an issue, you may want to consider running a simple social media initiative on Instagram or Twitter for example.  These types of promotions are a cost-effective way to engage your consumers all while promoting your company and/or product.  Here is an article on the benefits of running an Instagram sweepstakes: https://www.syncmarketing.net/benefits-runnings-instagram-promotion/#.VoR5y_9Iios

Know your Audience:  It’s a bake sale that will be attended by other parents at the school who will be most likely be buying the cake to serve to their family that evening. A rum raisin cake might be your baking specialty, but based on the audience, it most likely will be passed up.  The same goes for your online sweepstakes.  If your core consumers are not on social media, it would make much more sense to host the sweepstakes on an iFrame on your website, or on a dedicated sweepstakes microsite.  It may cost a bit more money, but the investment will pay off when you receive entries and email opt-ins. Identifying your audience and their habits is very important to maximizing your investment.

Quality of the Product:  So you signed up to participate in the bake sale knowing that baking is not your forte and now you are nervous.  Since you are not one to shirk responsibility, you whip up your best attempt at a chocolate cake, but it looks more like a hockey puck with frosting.  You certainly get an “A” for effort, but unfortunately, no one is buying your cake.  The same goes for a sweepstakes.  The overall quality of a sweepstakes consists of many ingredients, so to speak.  The design, value of the prizing, and overall user experience are very important to its success.  The icing on the cake is having clearly outlined official rules.  This is something a consumer really values because it’s the basic recipe to the promotion; it outlines the entry period, eligibility requirements, prize description and how they will be contacted if they win to, name a few. It also allows you to rest assured that you are running a legally compliant promotion.  Here is an article outlining the benefits of hiring an agency like Sync to handle your legal needs for running a sweepstake or contest:  https://www.syncmarketing.net/2014/07/#.VoVbSP9Iios

Product Display:  You made the most perfectly delicious cake and you are so excited to bring it to the bake sale to hopefully fetch a handsome price.  The problem is, you wrapped it in cellophane and it’s sitting on the back end of the table in the cold auditorium and it’s completely passed up.  Don’t make the mistake of letting your perfectly constructed sweepstakes go unnoticed by hiding it in the clutter of the online world. Even with a small budget, you can promote your sweepstakes or contest on social media channels, by writing a blog post, or by calling it out on your website’s home page.  You should also consider sending emails to your current subscribers.  The more traffic, the more entries and the higher return on your investment.    

For more information on building the perfect sweepstakes check out this article:  https://www.syncmarketing.net/steps-take-run-successful-sweepstakes-contest/#.VoVhF_9Iios

Sweepstakes Trends in 2015 and looking ahead towards 2016

By: Julie Link | In: Best Practices, Contests, Facebook, Instagram, Legal and Prize Fulfillment, Marketing, Sweepstakes, User Generated Content

As 2015 comes to a close, Sync Marketing discusses sweepstakes trends in 2015 and what to be on the lookout for in 2016.

Biggest Sweepstakes Trend in 2015

When talking sweepstakes trends, Mobile-optimization was definitely one of the biggest in 2015. Our clients either asked to have it included or when we suggested adding a mobile version for the sweepstakes, they were much more receptive than in years past. As mobile devices and tablets become more and more relied upon by consumers, it is imperative that companies make the shift to spending extra dollars on creating mobile and tablet-optimized sweepstakes and contests. To take a closer look at our services, including mobile-optimization, click here.

What will be the biggest marketing trend of 2016?

Consumer Engagement Marketing will be the biggest marketing trend of 2016. As social media and experiential marketing categories grow, we foresee companies making even more of a shift to engage their consumers directly in this medium, rather than spending big dollars on traditional advertising mediums such as media buys and direct mail. When companies run a simple social engagement sweepstakes on Twitter or a photo contest on Instagram, they engage consumers and establish a positive interaction with consumers. Not only does this method of marketing allow companies to interact with their consumers, but if they run an Instagram photo contest, for example, they will receive user-generated content and will be able to reward their consumers with prizes as part of their participation, creating a feel-good situation for all.

What was the best sweepstakes marketing effort of 2015? 

The #Hashtag. Whether a hashtag started because of a celebrity tweet or a presidential debate, hashtags took over the internet in 2015. And, the companies and marketers who acted on it, received amazing exposure. From #picoftheday social engagements to asking users to share their #TBT photos, companies increased their reach by interacting with the most popular hashtags, all while gathering user-generated content along the way. And with regards to sweepstakes, companies using hashtags for their sweepstakes, created their own trending hashtags as part of their promotion. Take a look at some of our social sweepstakes, here.

What was the biggest sweepstakes faux pas of 2015?

Not running social media sweepstakes correctly. Don’t make the mistake of overlooking this important element and be sure to entrust its care to an experienced team who specializes in sweepstakes and contests. The FTC implemented many new rules with regards to social media sweepstakes and it’s important to make sure to hire an agency like Sync Marketing to make sure you run a legally compliant sweepstakes or contest.

As we enter into 2016, sweepstakes trends are as important as ever. Consider hiring Sync marketing for you future sweepstakes and contest needs. To learn a little more about Sync and what we’ve been up to, click here or call us at 323.596.7962.

Online Sweepstakes and Contests – Questions on Cyber Monday

By: Sync Marketing | In: Ask Sync, Ask Sync Marketing, Best Practices, Contests, Facebook, Instagram, Sweepstakes

On this Cyber Monday, we thought it would be fitting to feature some questions that we’ve recently received about online sweepstakes and contests since these promotions live in the cyber world so to speak. 

What are the benefits of running an online sweepstakes vs. running one in a retail store location?

There are many benefits to running an online sweepstakes vs. asking entrants to visit your store to fill out an entry form as the entry method. In fact, brick and mortar store sweepstakes have become increasing less common over recent years because of the convenience and popularity of online sweepstakes. With an online sweepstakes, not only can you give your entrants an easy and seamless way to participate, you can also highlight specific merchandise or messaging that you want to get across during the entry process.  Below are a few other reasons why you should consider running an online sweepstakes:

Easily collect email opt-ins. With a manual entry, if you get entrants permission to send them future communications from your company, you will need to physically enter the entrant’s information, which can be a very time consuming process.

More exposure.  With an instore-only sweepstakes, you are limiting yourself to people that will be already visiting your store location. If you run an online sweepstakes and offer enticing prizes, you have the chance of attracting people that may not have known about your company to check out your site and subsequently your merchandise while they are entering your sweepstakes.

Where should I run my online sweepstakes?

This question really depends on what your goals are for running a sweepstakes. If you want to capture email opt-ins, you should consider running your online sweepstakes on a dedicated microsite or an iFrame on your company’s website. If you want user generated content, you might want to consider a sweepstakes that is featured on social media channels like Instagram or Twitter. Here is a blog article that touches on running social media sweepstakes:

How do I maximize my online sweepstakes to ensure the best possible ROI?

One thing to keep in mind is that marketing your online sweepstakes is as important as creating the concept. It is also very important to know who your target audience is before you run your sweepstakes to ensure that you are promoting the sweepstakes on the right channels. A sweepstakes can be a very powerful tool and can provide a strong ROI if used correctly.  Here is a blog article that touches on the benefits of running an online sweepstakes and why you should consider adding one to your marketing plans. 

If you have additional online sweepstakes and contests questions for this upcoming Cyber Monday, feel free to send them to inquiries@syncmarketing.net or you can reach out to us here, and your question may be featured in an upcoming blog post.

Adding a Sweepstakes or Contest to your Marketing Plan

By: Sync Marketing | In: Advertising, Best Practices, Contests, Marketing, Sweepstakes, User Generated Content

This is about the time of year when companies start thinking about their marketing budgets for the upcoming year. They analyze the current year’s successes and misses, and start the conversation about what might work to their advantage in the next year. Does your upcoming marketing strategy include an online sweepstakes or contest? If not, we think it’s something you should consider. Below we list the benefits of adding a sweepstakes or contest to your marketing plan. It could be a win for your company.

Sweepstakes are a very cost effective marketing tool

Unlike traditional media, sweepstakes are a low cost way of getting your company’s name or products in front of the masses. By putting the word out on your company’s social media sites, it will engage conversation about your company and the free buzz will organically occur.  It’s also a great way to build your SEO. Here is a case study showing how Star Fine Foods increased their website visits by 288% from the previous year due to running an online sweepstakes.

Sweepstakes are a good medium to build your email database

Your online sweepstakes may just have been the catalyst that brought a new customer to your site. Once there, hopefully you have impressed them enough to want to keep in touch so to speak by signing up for future communications from your company. Here is an article that outlines sweepstakes best practices and ways to build your email database.

Sweepstakes offer insight into who is interested in your company

You are in control of the information you collect from entrants so if you’re looking to obtain demographics on your consumers, the sky can be the limit on what you can collect. One word of caution, however, is the more difficult you make the entry process, the higher chance you have of drop-offs. Make sure you are only requiring information that is important to you and perhaps make the other information optional for entry.

Sweepstakes and Contests can produce unforgettable UGC and PR

One instance that comes to mind is the annual Doritos contest. I can’t image watching the “big game” without the anticipation of seeing the winning commercial from the Doritos contest. This is an example of a fun promotion that has garnered a lot of free advertising through blogs and social media sites over the years. When companies ask their consumers to upload photos or videos, those companies have unique user generated content directly from their consumers that can benefit them in the future. Check out the 2016 contest here. 

Sweepstakes build a good relationship between the company and the consumer

The common thing that all sweepstakes share is that they give away a prize. Whether it’s thousands of instant win prizes, an unforgettable family trip, or a brand new car, rewarding your consumers with prizing will always leave them with a good feeling about you that will hopefully translate into future sales.

If you are sold and would like to consider adding a sweepstakes or contest to your marketing plans, be sure to consult the experts at Sync to get started. We will formulate a plan to make sure you have the most successful campaign and ROI.

Do I Really Have a Chance to Win a Sweepstakes?

By: Jennifer French | In: Best Practices, Contests, Marketing, Sweepstakes

Picture the scene…you have a five minute break from your busy day and decide to order a new pair of shoes online from your favorite retailer. While on their website you notice that they are running a sweepstakes and the grand prize is a luxury trip for two to Italy. Your mind immediately flashes back to the time one summer in college that you back packed (on a tight budget) across Europe and how you swore you would return some day to this magical place. Could this be your chance? But, then reality sets in and the adult you, who has limited time and lots of skepticism abound thinks, “What are the Odds? Do I Really Have a Chance to Win a Sweepstakes?”

Believe me, I’ve been there as well. On many occasions in the past I’ve seen random sweepstakes that have piqued my interest, but before entering, I stopped for a moment and thought, “Why bother, what are the chances?” Now that I’m on the other side and actually see the inner workings of a sweepstakes, I can say, “Sometimes, the chances can be pretty good!” So good in fact, that there are many people, aka “Sweepers,” as referred to in industry terms, who make entering sweepstakes a full-time job. Here is one example of a site that lists new sweepstakes every day to aid people involved in this very hobby.

But for the average person who may only enter here and there, below are some helpful tips to determine if you should take a shot at entering for your chance to win.

What are the odds of winning? 

Obviously, this is a big factor in your chances of winning. Typically the odds are based on the number of eligible entries received during the sweepstakes entry period. As a good rule of thumb it is always good to check the official rules to see how the odds are outlined. In some instances, companies choose to limit the number of entries or only open the eligibility up to people who are subscribers to their email notifications or to people within a certain age range. You typically have a better chance of winning if it’s a contest vs. a sweepstakes as entrants have to complete a task in order to enter a contest, which often lessens the number of entries received. Also, look for local sweepstakes to enter. There will be less entries than a national promotion so you will have a higher chance of winning.

How often are you allowed to enter?

Building on the odds of winning, another thing to consider is that if it is only one entry per person total you will have a much greater chance of winning than a sweepstakes that allows people to enter daily, unless you plan to enter on a daily basis yourself.  Be sure to read the official rules to see if there are restrictions on the number of entries in order to make sure you have the best chance.

How many prizes are being awarded?

If a sweepstakes sponsor is only offering one grand prize, your chances of winning will be less than if they offered more than one grand prize, or if they are offering several first prizes.  Obviously, the more prizes a company is offering, the better chance you have of winning. You may not win the trip to Italy, but it might be fun to win some of the other prizes they are offering.

Enter a sweepstakes that has a mail-in entry

Because most sweepstakes have been moving online, you have a better chance of winning one that is strictly a mail-in entry since less people tend to enter these sweepstakes.

Now if you do win, additional questions may arise such as, “How do I know this isn’t a scam?  Here is a blog article that may be helpful in this instance.

Want some additional tips? The sweepstakes pros share their tips to winning here.

Whether you take the time to enter or not, of course it is ultimately up to you, but one thing rings true…you can’t win if you don’t play.