Good question. Why do companies run sweepstakes and contests?
As I discussed in my blog post Where Do “Sweepers” Come From?, companies find them to be a great marketing tool. Sponsoring sweepstakes and contests has gone from being a $15,000 annual industry to almost a $2 billion industry in 100 years. No wonder more and more people are partaking in the hobby.
We know what we get out of it. Prizes! So what do the companies get for all their promotional marketing dollars? Many things, including:
- attracting attention to the brand, product or service;
- increased sales;
- maintain or increase customer loyalty;
- increase their customer and prospect databases;
- and to begin permission marketing.
It is important to support the sponsors in all ways. Buy their products, visit their websites, sign-up for their newsletters and tell your friends about them. When companies deem their promotions to be successful, they will run more.
It’s a win-win situation, and who doesn’t like that?!