Are Giveaway’s Beneficial to My Brand in the Long Run?
Giveaways have been a popular marketing concept for decades. The theory is simple- by giving away a small prize, you attract hundreds or thousands of new customers to your business. But in this digital age, are giveaways still worth the time and energy? Is it going to be beneficial to your brand? In this article, we're going to discuss those questions, and more.
The best way to figure out if something is worthwhile, is to take a look at the pros and cons.
The Pros of a Giveaway
Grow your network: Giveaways allow you to collect emails, follows, or other contact information on consumers.
Less expensive than running an advertising campaign: When you do a giveaway, unless you run advertisements announcing the contest, the only expense will be the prize itself. It's a low and predictable expense.
Gain exposure: People love to share giveaways, and that means your product may land in front of someone who otherwise wouldn't have seen your product.
The Cons of a Giveaway
Attracts freebie seekers: There are many people out there that seek out freebies and giveaways. In fact, there are entire websites and blogs dedicated to finding new giveaways to enter. That means a huge number of your entries may be people who never intend to buy your product. You may get a lot of new email addresses, but if they're from freebie seekers, your emails will never even get opened, and after the contest you'll likely have a high unsubscribe rate.
Some will hold off purchasing "in case they win.": Someone who's interested in your product may hold off on making an actual purchase if they think they have a chance of getting it for free instead.
The wrong prize can send the wrong message: If you don't consider your prize very carefully, you may accidentally send a message that's completely wrong for your company. For instance, a cheap prize for a luxury brand can cheapen the consumer's perception of your brand. Or, it may just be a prize that no one really wants.
It's All About How it's Done
As you can see from our list of pros and cons, a giveaway can be beneficial, but it's all about how it's done. There are some big pitfalls that can completely derail your goals for the giveaway. Luckily, we have a list of tips to help you run the most efficient giveaway possible.
Tips for Running a Giveaway
To discourage freebie seekers, create a barrier to entry. You'll want it to be something that only people interested in your product will want to complete, but don't make it too hard or you'll drive away your real customers as well. A great barrier could be asking entries to share something on social media. Most people carefully guard their social media profiles and won't promote anything that doesn't reflect the image they're trying to create. This means that if they do share your product, it's likely something they'd actually buy, and something their friends would be interested in as well.
Send a follow-up email. After the contest, email everyone who didn't win, just to let them know the contest is over and someone else was picked. This reminds people who were waiting to purchase of your product. Offer a special offer to the "losers," like a discount to encourage more sales.
Choose the perfect prize. Carefully consider the image you're trying to project and make sure the giveaway prize reflects that image. It works especially well if the prize is related to your products or services. So, don't give away a free iPhone if you sell organic soaps. It just doesn't relate and you won't attract entries that are actually interested in your product.
By following these tips, and carefully considering the list of pros and cons, you can make a giveaway work for your brand- instead of the other way around. For more marketing help, contact us at Media Hounds. We can spread the word about your brand, and create memorable visual messages that attract.