Words like sweepstakes, contests, giveaways, or promotions are often used interchangeably. However, there are a few distinct differences between sweepstakes and contests. Let’s go through the differences in this article.
To begin, the word “promotion” may be used to describe many different marketing tactics including Contests, Sweepstakes, Instant Win Games, Continuity and Loyalty Programs. Two of the most common and popular promotions are Contests (games of skill) and Sweepstakes (games of chance). The biggest difference between contest and sweepstakes is that contest winners are picked by judges using a set of criteria while sweepstake winners are randomly selected.
Sweepstakes are mainly used to create awareness or to grow a company’s client database. Normal online sweepstakes might ask a consumer to enter in their personal information (name, address, email) for a chance to win a prize. With a legally compliant sweepstake, there’ll also be places for the consumer to confirm that they’re within the eligible age range and that they have read through and agree to the promotion’s Official Rules. Many smart marketers also add an opt-in for consent to email these consumers with company news, promotions, and more.
If Sweepstakes are created and managed efficiently, the outcome could be threefold: the consumer is excited at the thought of potentially winning an awesome prize and shares the opportunity with their friends, they may be more likely to visit the sponsors online or retail shop to continue the experience with a purchase. The key takeaway when it comes to sweepstakes is that the winners are chosen randomly and impact short-term behavior.
Contests are used to engage a fan or consumer with a product or service. Most simple contests will advertise a call-to-action that asks consumers or fans to create a piece of content in order to stand a chance to be selected as a winner. The user-generated-content may be a video, photo, essay, poem, or an answer to a question. The entry that they create would then be scored and judged against a set of criteria that is outlined in the sponsors' Official Rules. This ensures that the judging process is fair for all entries. The content created by the consumer can be invaluable to the sponsor. This content could also help them gain insights and market research first-hand, based on the company’s brand loyalists.
