More and more businesses are using online competitions as a means of attracting interest in their branded websites or Facebook fan pages.
There are more than 2,000 competitions in the Australian market at any time, and that's just the ones that get reported.
But, with so much competition in competitions, what separates the great from the boring?
According to Competitions Consultant and editor of http://www.CompetitionsGuide.com.au, Craig Seitam, the prize pool is the determining factor.
Listing and tracking over 5,000 competitions each year, Craig believes promoters should spend more time thinking about the type of prize offered.
He says "Competitions are dominated by women, and my estimates are up to 90%. Prizes targeting holidays, fashion, perfume, cosmetics and premium kitchen items have a good uptake."
There are, however, popular product types that should be considered carefully. Craig says "2010 was the year of the iPad. It's a hot product, but it can be overdone. Page after page offering iPads as prizes can produce a blur. I wouldn't be turning my back on technology products, but it's important to find a point of difference with your competitors."
Prize mistakes can be costly. Craig says "wild and crazy concepts sound good on paper, but not everyone wants to host a barbeque with a celebrity chef. Offering a kitchen makeover is okay for people who own kitchens, but you immediately cut out the market of renters. It's always important to shoot for the mass population."
Craig suggests looking to retail catalogues for inspiration. "If in doubt, branded shopping vouchers always work well. But, try to lift slightly above the $500 mark. CompetitionsGuide.com.au members often sort by prize value, so that extra one to two hundred dollars can make a big difference."
Craig Seitam is a Director of Competitions Consultancy, Promotion Space, and editor of CompetitionsGuide.com.au, with over 64,000 members.
Craig appears frequently in the media discussing issues relating to competitions and general marketing topics. Craig is a regular guest on Channel 7's 'The Morning Show'
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