When promoting a contest, what tactics work best?

Not all contest promotions are created equal, according to research firm IMI, which found that certain tactics resonate best with consumers.

New research by the consultancy revealed that 73% of Canadians purchased a product because of a promotion over the last 12 months, and that 66% of North American consumers have searched for products thanks to a promotion during the same period.

The data shows that 82% of Gen Z purchased a new product, while 60% purchased a higher priced product, in exchange for the chance to win something. It’s also worth noting that 59% of participants mentioned a brand’s contest to family and friends, while 41% purchased a specific product through a promotion they knew their family would love.

An IMI survey of 10,000 North American consumers in September, revealed that submitting online pins or QR codes for an on-pack, in-pack, tear or scratch promotion doesn’t deter or sway Gen Z consumers. In fact, these two entry requirements cause a 27% contest entry decline intent (when brands use a pin), and a 37% decline intent (when brands use a QR code) among Millennials. The negative effect is stronger still for Gen X at -30% and Boomers at -42%.

Proof of purchase receipts are a solid deterrent across all demos, while Instagram contest entries cause an approximately 75% drop off in entry intent for Gen X and Boomers, compared with only 52% for Gen Z. A big generational gap is found in app downloads: Gen Z are 25% less likely to enter a contest, while Millennials, Gen X and Boomers are around 75% less likely to engage.

The entry mechanic that causes the most precipitous drop-off is also the most demanding: sending in a video of why you love the brand. For Canada, specifically, a video submission as a contest requirement causes an 88% drop-off in intent to enter.

Making contest promotions easy to understand, and easy to participate in, is key, says Steve Bucovetsky, VP of consumer insights for IMI. He adds that the difference between the enticement of a $100,000 prize versus a $1,000,000 prize is negligible, as skepticism about winning positively correlates with dollar values.

When dangling travel prizes, Bucovetsky warns brands that most entrants cannot take the required time off for destinations such as New Zealand or Australia. “They want something easy, stress free and simple,” he says.

Specificity is also a deterrent, he says. For example, a brand offering a trip to the popular tourist destination of Los Angeles is 2.5 times more enticing than a trip to Los Angeles to walk the red carpet at the Oscars, as there is less agency for the contest winner to do as they please.

Finally, he says, don’t focus on odds of winning if chances are less than one in 10. Rather, he says, make sure the prize is compelling.