Sweepstakes on the Web

Getting people to visit your Web site is the first step in making the Internet pay off. But that's easier said than done: Web surfers need a reason to visit. Today, more and more marketers are turning to online sweepstakes to supply that reason.

OVERVIEW

A few short years ago, Web-based sweepstakes were new. Now, it seems, they're everywhere. In fact, using the word sweepstakes at search engine http://www.google.com/ returns more than 1,700,000 hits. Sweepstakes have ridden a wave of popularity for one reason: People love them.

Anne Rickert, a former analyst at comScore Media Metrix (http://www.comscore.com/metrix), which tracks Web usage, says about 38 percent of people on the Web visit one or more incentive sites in an average month. "Nearly 30 million people visited incentive sites in August of 2000," she says. That's good news for marketers looking for a simple way to attract customers and build relationships with them.

DOING IT RIGHT

There are thousands of sweepstakes running on the Net at any given time. Here are a few sites to check out to see how they operate:

• iWon.com (http://www.iwon.com). This is one of the biggest sweepstakes on the Internet and one of the busiest sites. It gives away $10,000 a day, thousand-dollar weekly prizes, and a $1-million monthly prize. In July of 2000, it was the 25th most-visited Web site, according to Media Metrix. The concept is simple: The more often a surfer uses the site, which offers news, sports, weather, and other information, the more often he or she is entered in the giveaways. A large part of the site's revenue is generated through advertising.
  
  
• Saks Fifth Avenue (http://www.saksfifthavenue.com). This example is interesting because the prize, a $500 "Body Beautiful" giveaway, appeals to a large segment of Saks' target market: discerning upscale women. Additionally, many of those who visit the site are already customers, which makes them less hesitant to supply personal information. The relatively modest value of the prize enables the store to award more prizes.
  
  
• PC World. The magazine's site (http://www.pcworld.com) enables visitors to win a variety of high-tech products as well as subscribe to the magazine. No purchase is necessary to win. The purpose of the site is to introduce visitors to the site as well as to the magazine. Clearly, those who compete are interested in technology and therefore good prospects for PC World.

As you can see, online sweepstakes can be elaborate—or simple—depending on what you want to accomplish. Readers are encouraged to check out the above sites as well as search for others to see how this technique has evolved over the last two or three years.

WINNERS AND LOSERS

Lisa Manhart, executive vice president, sales and marketing at Ventura Associates Inc., a New York City marketing and sales promotion firm, suggests that marketers who want to attract visitors to their Web sites through sweepstakes review the following points carefully. To contact Manhart, call 212-302-8277, ext. 3009; fax 212-302-2587.

• Web sweepstakes work best when they encourage people to interact with your site. Take advantage of the interactive nature of the Web with games and contests that require visitors to explore your site and learn about your products and services.
  
  
• They don't work when they demand little from the visitor. Just type the word sweepstakes into any search engine, and you'll see the problem. These sweeps are far too easy to enter, so the value they return to the marketer is slight.

CRITICAL ISSUES

• Determine what you want the sweepstakes to accomplish. Are you simply trying to attract visitors? Are you promoting a product or service? Do you want to build a mailing list?
  
  
• Make it interactive! You can do more with the Web than with any promotional medium—if you use the technology to its fullest. In addition to games and other traditional ploys, you can incorporate everything from video and sound clips to Web treasure hunts.
  
  
• Short-term sweepstakes work best. The Web is a very fast medium, and sweepstakes that offer a payoff in the distant future aren't compatible with it. Besides, you want to encourage repeat visits. Conduct regular sweepstakes that pay off within a month.
  
  
• You don't need to offer a Porsche. Some of the more successful continuing programs give away modest prizes every two weeks or so.
  
  
• Save money by taking advantage of co-op sweepstakes on the Web (for an example, call Manhart of Ventura Associates at 212-302-8277, ext. 3009).
  
  
• Limit the number of entries that can be made from a single address. Prohibiting people from playing more than once a week discourages hackers from clogging your site with repeat entries.
  
  
• Take advantage of hyperlinks and other methods of cross-promotion. Hyperlinks, which allow someone simply to click on an icon to jump from one Web site to another, make the Web an ideal promotional medium. Many sites will sell you advertising, and strategic tie-ins are becoming increasingly common.
  
  
• Make sure your site tells the right marketing story and does it in an engaging manner. If your Web site isn't any good, sweepstakes can't help much.
  
  

ADDITIONAL CONSIDERATIONS

Marcia Yudkin, author of Internet Marketing for Less than $500/Year, agrees that sweepstakes will increase traffic to your Web site. However, it may not automatically be the kind of traffic you want. Her solution: Offer a prize that only people who fit your customer profile would be interested in winning (the Saks Fifth Avenue example, cited above, illustrates this idea).

Some more ideas:

• What are your competitors doing in the sweepstakes arena? Check out their Web sites to find out.
  
  
• List your rules—and your privacy policy—prominently. Is your sweepstakes only open to U.S. residents? If so, say so. But, as Yudkin points out, some site owners are vexed that either legal or practical factors may lead you to restrict eligibility by geography or by some other criterion. Given that your site is open to the entire world, this can create a backlash from those excluded.
  
  
• Give your promotion a name or title. This is just a good merchandising technique.
  
  
• Be careful about asking for too much information. People are worried about their privacy on the Internet, but they will give you their name and address in exchange for a chance to win a prize. They are less likely to part with information that's more personal, such as income level.
  
  
• Promote your sweepstakes. Mention your sweepstakes in your newsletter, billing statements, catalog, and e-mail.
  
  
• List previous winners on your Web site. This helps convince people that your sweepstakes is legitimate.
  
  

As with any sweepstakes, follow state and federal rules closely. The best advice for running a sweepstakes is to consult with an attorney who knows your business before you announce the sweepstakes on your Web site. Additional advice can be obtained from suppliers well versed in running sweepstakes. Here are two quick rules to keep in mind:

• On your site, provide for an alternate means of entry, such as a postcard.
  
  
• Include language that allows you to abort the sweepstakes in the event of data corruption or a virus.

More information about the legalities of running a sweepstakes can be found on the Internet at http://www.office.com or http://www.business-law.freeadvice.com.

Be careful in selecting a company to help you launch a sweepstakes on the Web. There are hundreds of Web marketing "experts" dotting the landscape, including computer nerds who have scant marketing experience and marketing veterans who know little about Web technology. If possible, find a supplier with a track record in both areas. To find a supplier, go to #9520, Supplier Finder.