Sweepstakes vs. Contests; What Produces the Best ROI?
ROI is definitely a major consideration when running sweepstakes vs. contests… but did you know that the majority of people don’t know the difference between sweepstakes vs. contests and think that the words are interchangeable. In most cases, companies are looking to run a “sweepstakes,” but are referring to it as a “contest.” Here is a good reference to differentiate between the two. Below I will take it a step further and discuss Sweepstakes vs. Contests: What produces the Best ROI?
So for those who are not familiar with the acronym, ROI is Return On Investment, which is a major factor when running any type of marketing campaign. Although I would love to be able to tell you which of the two would give you the best ROI, there are a lot of factors to consider. For arguments sake, let’s treat this as a boxing match, the main event; Sweepstakes vs. Contests.
In this corner, Sweepstakes. Here are the stats:
- Obtain large quantities of entries; Entering a sweepstakes is typically easy breezy, so that’s why the entry count is typically higher than with a contest.
- Inexpensively promote your product or service; You can run sweepstakes with very little investment, but make sure that your budget covers the legal components as well as the design. Here is a good reference to the importance of legal guidance on a sweepstakes. Even more affordable sweepstakes options can be found in the form of a social media sweepstakes or turnkey sweepstakes.
- Collect consumer data; A sweepstakes is a great vehicle to collect basic consumer data, preferences, and email opt-ins, but be careful, the more information you require from an entrant, the greater the chance of losing them before entry.
Here are a few tips to improve your ROI when running an online sweepstakes: http://www.syncmarketing.net/ask-sync-marketing-maximize-roi-running-online-sweepstakes/
In this corner, Contests. Here are the stats:
- Gain quality entries vs. quantity; People who enter contests are asked to take an extra step vs. entering a sweepstakes so you are getting people who are really interested in your product and/or the prize you are offering.
- Gather user-generated content; Your contest can require people to upload a photo which shows them enjoying your product. You can’t ask for better promotion than organic promotion.
- Reach people who are interested in your company; When a contest entrant opt-ins in to receive emails, you typically have a better email open rate than by someone who provided their email address thorough a sweepstakes.
- Create PR Buzz; Contests seem to excite the media a bit more than a basic sweepstakes because it’s a challenge and people love a good challenge.
Here are a few tips on running a successful contest: http://www.syncmarketing.net/ask-sync-marketing-questions-running-successful-contest/#.V2L0MI-cHyQ
In the end, you need to be your own “referee” when deciding on running sweepstakes vs. contests. They really are in different weight classes so to speak. Ultimately your goals (and budget) will determine which one you run and a sweepstakes administrator can help you decide. The results will show if your ROI was strong for you. For any questions, contact Sync Marketing at 323-596-7962.