Online competitions and raffles have surged in popularity in recent years. There are some companies making huge amounts of money from these competitions. One particular type of competition that is now very popular is a sweepstake. You might be wandering, what is a sweepstake? What types of sweepstakes are there and do all sweepstakes have equal chances? Sweepstakes have been around for a long time, giving exciting opportunities for people to win prizes by entering competitions. They are often used by brands as a popular form of promotion to engage their audience and drive awareness. From classic giveaways to interactive digital campaigns, the varieties are endless meaning there is something for everyone.
Sweepstakes differ from contests as they are based on chance and chance alone, requiring no skills or initial purchase. The distinction between the two is critical for legality and fair play but also means there are many more creative and engaging types of sweepstakes on offer.
Instant Win Sweepstakes
Possibly one of the most exciting forms of sweepstakes is instant win, whereby unlike traditional forms winners would be announced at the end of the campaign, instant win means exactly that – immediate gratification. Entrants will find out straight away if they’ve won a prize, usually by spinning a virtual wheel, scratching a digital card or engaging with similar gamified activities.
They are particularly effective when brands want to create a real buzz and quickly. Prizes often include smaller, high volume items like gift cards or branded merch.
Social Media Sweepstakes
With millions of users daily, social media sweepstakes have become very popular, often asking participants to complete a simple task such as liking a post or sharing the content. This allows the brand to increase their following and create organic engagements through user-generated content, and importantly costing them very little. Common prizes typically involve exclusive experiences, products or cash.
Survey or Feedback Sweepstakes
Consumer insights are a valuable tool for brands so they use survey sweepstakes in exchange for entrants being entered into a prize draw. These types of campaigns are win-win: the company gains data to improve its products or services and participants get a chance to win something exciting.
These types of sweepstakes appeal to those who enjoy sharing their opinions and prizes range from cash rewards to high-value electronics or holidays.
Subscription-based Sweepstakes
With subscription-based sweepstakes participants must sign up to a newsletter or service to enter, these campaigns help businesses grow their email list or encourage trial subscriptions to a product or service.
Whilst some who enter may then unsubscribe at a later date after the sweepstake has been drawn, many remain engaged if the brand continues to provide value to the customer.
Event-driven sweepstakes
This form of sweepstakes align typically with specific seasonal or major events, for example some themed around Christmas offering festive prizes. Similarly, event-driven sweepstakes might tie into popular events such as the Euros or music festival and therefore the prize might be tickets.
This type of sweepstake is particularly exciting as it links to wider occasions, making the campaign feel timely and relevant.
Loyalty Sweepstakes
There are not many sweepstakes that like to reward loyal customers but it could be argued that these are the people that should most likely be rewarded. Typically through loyalty programs, customers might earn sweepstake entries based on how much they spend on the number of visits they take.
This form of sweepstake aims to enhance customer retention and prizes are often aspirational and luxurious, such as holidays or exclusive access to a product or service before others.
Online-only Sweepstakes
These are the simplest and most common. Participants will fill out an online form, provide some of their details like their name and email, and that is their entry. Again this is an opportunity for businesses to grow their database and prizes usually range from small gadgets to significant cash sums.
Charity Sweepstakes
Charity sweepstakes combine the thrill of winning with the satisfaction that you’re also giving something back. Entrants typically make a donation to the cause hosting the sweepstake in exchange for entries, though no purchase is required to comply with sweepstakes laws.
These campaigns attract those more socially conscious and are particularly effective for raising funds and awareness.
Sweepstakes remain a very versatile and powerful tool for businesses and whether you’re drawn to a simple online entry sweepstake or something more creative such as entering a funny photo, there is a sweepstake that will likely appeal to everyone.
