Contest marketing – discover contest marketing and how it works

What is contest marketing?

Such competitions are designed to attract customers’ attention, interest in a given product or service and increase their involvement and loyalty to the brand.

A contest could be anything from a straightforward lottery to a creative challenge. They can be planned via websites, social media, retail locations, events, and gatherings.

Adapting the contest to the characteristics of the product or service, as well as the preferences and interests of the target audience, is a crucial component of contest marketing. A well-designed contest can increase brand awareness, customer engagement and generate positive brand emotions.

One of the purposes of contest marketing is also to obtain contact details of potential customers, which can later be used for marketing activities.

Contest marketing – is it worth using?

Here are some benefits  of well implemented contest marketing:

• contests attract clients – attracting and encouraging clients to participate participate in your contest promotes the development of strong brand relationships;
• enhancing brand awareness – contest marketing can draw in more potential clients, increasing the likelihood that they will get interested in the brand and learn about its offerings;
• gaining new clients – competitions frequently call for email subscriptions, which helps the business attract new, potential customers;
• building customer loyalty – accolades and recognition can persuade buyers to keep patronizing  you brand;
• creating happy feelings – competitions are frequently linked to positive feelings and the reputation of the organizing business outfit.

It is worth remembering, however, that contest marketing does not always bring the expected results and their organization requires proper planning and preparation. They should be tailored to the needs and preferences of the target group and should not violate ethical principles and the law.

How to effectively (and legally) run a marketing contest?

Here are a few steps to follow to organize an effective marketing contest:

• establishing the goals of the contest – before beginning to organize the competition, you should establish the objectives you hope to accomplish. They might have to do with advertising a new product, gaining more customers, raising brand awareness, etc.;
• defining a target audience – the audience that the competition is intended for needs to be carefully identified. This will let you modify it to fit her preferences and needs;
• choosing the competition type – there are numerous competition types that can be held, including creative, quizzes, and lotteries. It’s critical to select the kind that complements your objectives and target market;;
• Prize selection –  Prizes play a significant role in the competition and deserve careful consideration. They ought to grab participants’ interest and inspire participation in the tournament;
• creation of promotional materials – You should create promotional materials, such as graphics, films, social media postings, etc., to draw participants’ attention.
• publishing the rules & regulations – the rules must include comprehensive information on the contest’s guidelines, deadlines, awards, and participation requirements;
• advertising the contest – the contest should be advertised to the target audience utilizing a variety of channels, such as the website, social media, points of sale, etc.;
• evaluation and selection of winners – following the conclusion of the competition, the works should be appraised, and the winners should be chosen. Maintaining impartiality and transparency in the selection process is important at the same time;
• rewarding the winners – the winners should be rewarded with prizes in a way suited to the competition’s type;
• analysis of the results – following the conclusion of the competition, an analysis of the outcomes and goals attained should be done. We will be able to learn from this and tweak how future tournaments are run as a result.

Legitimate contest marketing – what you need to know?

Here are the steps you need to take to make legalize your contest marketing process:

• compliance with the law – depending on the country where the campaign takes place, there are different laws to be followed. Make sure your campaign complies with your country’s laws and data protection and privacy laws;
• clear definition of the rules of the competition – the rules of the competition should be clearly defined and easy for participants to understand. They should contain information on the duration of the competition, the method of participation, prizes and criteria for evaluating works;
• independent jury –  if there are prizes in the competition, it is worth appointing an independent jury to evaluate the entries of the participants. The jury should be composed of people who have knowledge and experience in the field and should not be affiliated with the competition organizer;
• establishing the rules for selecting the winners – before the competition is held, it is worth establishing the rules for selecting the winners. The decision should be based on objective criteria and fair;
• protection of personal data – participants should be informed about what personal data will be collected and how it will be used. It should also be ensured that they will be stored in accordance with the provisions on the protection of personal data;
• accessibility of contest rules – contest rules should be easily accessible to participants. They can be placed on the website of the organizer or in promotional materials;
• communication with participants – the competition organizer should maintain regular contact with participants, provide information on progress and inform about changes to the schedule or rules of the competition.

Contest marketing campaigns are an effective form of promotion, but they require compliance with various laws and ethical principles. It is worth remembering the above-mentioned points in order to conduct the competition in a legal and safe way for the participants.

An example of a successful contest marketing campaign

Pepsi Challenge is a marketing campaign that was first carried out by Pepsi in 1975. Its purpose was to test the taste preferences of consumers in comparison to the company’s main competitor, i.e. Coca-Cola.

During the Pepsi Taste Challenge, customers received cups with two drinks – one containing Pepsi and the other Coca-Cola – without labels or hints as to their brand. They were then asked to taste both drinks and indicate which one they liked better. In this way, it was tested which drink better suited the taste preferences of consumers.

The Pepsi Taste Challenge campaign was a huge success and contributed to the growing popularity of the brand. Studies have shown that among those taking part in the test, the majority indicated that they prefer the taste of Pepsi compared to Coca-Cola. The Pepsi Taste Challenge was repeated many times in the following years, and also inspired similar campaigns by other companies.

Pepsi stopped experimenting with flavorings in recent years and has instead concentrated on enhancing its brand image through advertising and sports sponsorship. Even so, Pepsi’s Taste Challenge is still among the most well-known instances of a contest marketing strategy that was effective in capturing consumer interest and raising brand awareness by capitalizing on human curiosity and the desire for comparison.