While sweepstakes and contests are both promotional marketing tactics, they have key differences that distinguishes them from each other. Sweepstakes are promotional drawings in which the prizes are given away to the participants at no charge. Here are the main difference between contests and sweepstakes: Sweepstakes are specifically prize giveaways where the winners are chosen by luck. The major difference between sweepstakes and contests is in how people enter and how people are selected to win. As a sweepstakes attorney, one of the most frequent questions I’m asked is, “What is the difference between a sweepstakes and a contest?” The short answer: Lots. To ensure there is no gambling or lottery law violation, there can be no “chance” elements in a skill based contest. The prize is your “carrot” or incentive to get a person to enter your sweepstakes. A contest is an occasion during […] The word “promotion” is used to describe the marketing strategies you’re using to “promote” your brand or product. At the end of the contest, all entries must be judged equally based upon a pre-set judging criteria (i.e. Since contests require skill or effort, the prize you award will make a huge impact on the level of participation you receive. In comparison, a sweepstake is more likely to earn revenue from sales made from large-scale exposure only, which is a less guaranteed method of generated profit. For a promotion to be defined as a “contest”, “competition” or “game of skill”, entrants must put forth some level of skill or effort into their entry, which is later judged by a panel of judges to determine the final winners. In a sweepstakes, you cannot ask a person or require an entrant to purchase a product or pay a fee to receive an entry. If you like to enter sweepstakes and contests, knowing this difference could save you a lot of heartache. “Publishers Clearing House Prize Patrol awards 5000 A Wk For Life” by Publishers Clearing House – Provided by Publishers Clearing House. Winners will be selected at random. 4. The Difference Between Sweepstakes and Contests Before we dive into what makes a campaign legally sound, let’s explore the difference between a sweepstakes and a contest. Sweepstakes, Contests and Instant Win: Learn How to WIN Sweepstakes, contests and instant win games are excellent ways to engage your customers, build brand loyalty and gain valuable leads for your business. Contests are giveaways that have an element of skill to them. National Sweepstakes Company, LLC 1143 East Union Street Newark, NY 14513. A sweepstakes is all about chance and luck. Personally I look at the prize, not what is in the title of the contests/sweepstakes. First I want to address the legal difference between a sweepstakes, a contest and a lottery. It’s easier to define sweepstakes and contests by starting with their more familiar grandfather: the … We were asked to identify social media promotions that could be classified as lotteries, contests, or sweepstakes. But while the two are an integral part of an efficient marketing plan, they are far from being interchangeable. Explain the difference between contests,sweepstakes,and rebates Contests: activities that require the participant demonstrate a skill. The problem with this is that if you do not allow anyone to enter without having to make a purchase then We often read about lucky individuals winning lots of money through these means. Characteristics of Sweepstakes and Contest: Difference Between Moksha and Bikram Yoga, Publishers Clearing House Prize Patrol awards 5000 A Wk For Life, Eurovision Song Contest 2012, semi-final allocation draw (5), Difference Between Sweepstakes and Contest, Difference Between Coronavirus and Cold Symptoms, Difference Between Coronavirus and Influenza, Difference Between Coronavirus and Covid 19, Difference Between Pickling and Passivation, Difference Between Autotomy and Regeneration, Difference Between Oxirane Glycidyl and Epoxy Groups, Difference Between Filgrastim and Lenograstim, Difference Between Parallel and Antiparallel Beta Pleated Sheets, Difference Between Sodium Citrate and Citric Acid, Difference Between Hypersil and Inertsil Column. The words Sweepstakes and Contest are different from one another although they confuse most of us. Consideration. Contests, on the other hand, can charge an entry fee since there’s a degree of skill involved. b. contests generate long-term interest in a brand, and sweepstakes generate immediate interest. Since promotional law is specific to the type of promotion you are running, how you articulate your promotion to your audience is one of the most important aspects of execution. To comply, your sweepstakes must remove all elements of Consideration by ensuring entrants can obtain entries completely free of payment or too much effort. Most people don’t realize there is a difference between sweepstakes and contests but there is a monumental difference. So unlike a lottery, you need not buy a ticket and wait for the outcome of a sweepstake. The You may have heard about Sesame Sweepstakes™ , one of the latest ways to leverage social media as a marketing tool for your practice. CONFUSION Some sweepstakes try to appear legitimate by calling themselves contests. In countries other than US, sweepstakes are known as competition. And, you need to make sure they are not penalized or rewarded for their choice – meaning you can’t give a person who purchases your product 5 entries and only 2 entries to a person who chooses to enter without purchasing your product. Compare the Difference Between Similar Terms. So, whether it be a contest, game of chance, loyalty program instant win or other promotional offer, it will always fall under the term “promotion” before its further defined by promotion type. She is currently employed as a lecturer. A contest is also referred to as a “competition” or “game of skill”. Sweepstakes - is any of various lotteries. If it's something I want to win, I. Contests are typically more intimate, capturing a smaller audience. The biggest difference between contests and sweepstakes is that: a. contests generate long-term interest in a brand, and sweepstakes generate immediate interest. The biggest difference between contests and sweepstakes is that: a. contests can require an entry fee, and sweepstakes cannot. You can use it to market your brand, for example, or simply to gain insights into customer behavior. I have even read in our message board that some members only enter sweepstakes and never enter contests. [CC BY-SA 3.0] via Commons, 2. You must also ensure there is no “non-monetary consideration”, such as asking a person to put forth too much effort or skill in order to receive an entry into the sweepstakes. And, all entries must be judged equally, whether you have 5 submissions or 5 million. While they all seem very similar, there are big differences and it is important that you choose the type of promotion that will … That doesn’t mean you can’t ask people to purchase a product or take a lengthy survey. [CC BY-SA 3.0] via Commons, Filed Under: Life Style Tagged With: competition, Contest vs Competition, Contests, Difference Between Sweepstakes and Contest, Sweepstakes, Sweepstakes and Contests, Sweepstakes vs Contest, Nedha is a Graduate in Sociology and holds an Advanced Diploma in Psychology. Sweepstakes: Sweepstakes is a type of contest in which participants are not required to make any effort and send anything to showcase their skills. The major difference between sweepstakes and contests is in how people enter and how people are selected to win. A contest is, as the name implies, a sort of competition that requires the winner to have better skills or knowledge than other contestants. Contests and sweepstakes are the spice of promotional campaigns as they have the power to significantly raise brand awareness. Sweepstakes are games of chance and contests are games of skill. The presence of consideration in a skill based contest is not as problematic as the presence of consideration in a sweepstakes. There may be a contest in which participants are required to send a picture, a joke, an essay, or just about anything to prove that they are better than the others. What makes this type of contest so appealing is the fact that there is no purchase required to enter sweepstakes. This article takes a closer look at sweepstakes and contests to come up with their differences. Contest: Participants have to demonstrate their skills in contests. The Difference Between Sweepstakes and Contests Many people use the terms "contests" and "sweepstakes" interchangeably, but they're actually quite difficult. All rights reserved. Since promotional law is specific to the type of promotion you are running, how you articulate your promotion to your audience is one of the most important aspects of execution. For a promotion to be defined as a “sweepstakes”, “giveaway” or “game of chance” it must have a method of entry free from consideration (defined below), a random method of determining winners (chance) and a prize or prizes to award. A contest also helps you identify those customers who are brand loyalists. @media (max-width: 1171px) { .sidead300 { margin-left: -20px; } } One is the manner in which the winners are determined. Free Method of entry NOT required. As someone who is interested in taking part in any of these, you would have to know the difference Sweepstakes: Sweepstakes are all about chance. Find out the difference between contests, sweepstakes and lotteries, learn which type of promotion is right for you, and get all the tools you need to run your own powerful campaign. 1. If your total prize pool exceeds $5,000 in value, and you are opening and advertising your sweepstakes to residents of Florida, New York or Rhode Island, bonding and registration may be required. The core difference between sweepstakes and contests is that sweepstakes operate by randomlyselection of winners. Clients often interchange the words “sweepstakes” or “giveaways” and “contest” when describing their promotion, but the actual terminology you use to advertise your promotion to the public (and, state regulators) can get you in hot water (or keep you out of it). Skill. Learn to Fight Back http://fightfalseflag.com What is the difference between a sweepstake and a contest? Sweepstakes are primarily used to generate awareness or to grow your client database. Consideration. The Difference Between a Lottery Sweepstakes: games of chance. In general, sweepstakes are fairly simple to plan and implement. This makes contests appealing to brands who wish to increase product sales in alignment with their promotion. Depending upon the states for which you are running your contest, you may be able to require product purchase or even an entry fee without offering a free alternate method of entry (AMOE). What is the difference between Contests, Sweepstakes, Giveaways and Drawings? In a Contest: You make efforts to win a contest. Sweepstakes and contests often get grouped together, and this causes many to assume they are the same. If you advertise correctly, you could result in a viral impact, spreading your branding and messaging to millions of consumers. Online sweepstakes and contests on Facebook help grow your social media base, get more Facebook likes and acquire new patients. Participants receive awards or prizes just by the virtue of being entrants in a sweepstake. And compared to a contest being a game of skill, sweepstakes are a game of chance. In a way, this is a promotional tool that is used by companies to attract people. The difference between the three was a question from my professor in my social network media class. NSC specializes in the turn-key promotion administration & management of sweepstakes, contests, games and offers for agencies and brands worldwide. b. contests require skill, and sweepstakes require luck. Hit with a False Flag? A sweepstakes is also referred to as a “giveaway” or “game of chance”. “Eurovision Song Contest 2012, semi-final allocation draw (5)” by Vugarİbadov – Own work. Contests, sweepstakes and lotteries are all useful mechanisms for promoting a corporation online. A sweepstakesis defined as ‘a promotional drawing in which prizes are given away at no charge to the participants’. Unlike a sweepstakes or game of chance, contests require non-monetary consideration to enter. Prize. Prize. However, they can be excellent ways to obtain user generated content which can later be used to market and advertise your brand. Sweepstakes Chance. Sweepstakes Administration & Promotion Management, 5 Benefits to Working With Sweepstakes Administrators, 6 Types of Interactive Marketing Content That Inspire, Engage, and Convert, How to Attract More Contest Entries by Creating a Dedicated Landing Page. sweepstakes and contests) give people chances to win a prize, but there are specific nuances that distinguish them. They type of promotion you choose to run is up to you and depends heavily on your overall marketing objective. A contestis defined as ‘an event in which people try to win by doing something better than others’. ALL RIGHTS RESERVED. Think of a sweepstakes as a game of luck. If you have ever dreamt of winning millions of dollars without working hard, you must have heard about lotteries, contests, and sweepstakes. The difference between sweepstakes and contests is explained: Contests are games of skill, sweepstakes are games of chance. Prizes must be determined and clearly described within your official rules. In a contest, participants have to put effort to win though they have control over the outcome of a contest in this sense. You can create a simple microsite and collect entrant information online to grow your database and use for future marketing efforts. In a sweepstakes, all winners must be determined by a chance element, such as a random drawing from all entries received or an instant win element, pre-programmed randomly. Difference Between Sweepstakes and Giveaway. Like a sweepstakes, the prize or prizes you offer is your incentive to encourage entries. grammar, originality, and creativity in an essay contest). The difference between contests and sweepstakes is that a. contests require skill, and sweepstakes require luck. There’s only one term that you can use interchangeably when describing your sweepstakes, giveaway or contest and that’s the word “promotion”. Sweepstakes: Winners are selected randomly in sweepstakes. Contest: A sort of competition that requires the winner to have better skills or knowledge than other contestants. The major difference between sweepstakes and contests is that contest winners are selected by judges using a set of criteria whereas sweepstakes winners are randomly selected. Everyone must be able to get the same number of entries despite the entry method they choose. Contests winners are selected by judges based on how they fulfill a specific criteria. A major difference between a contest and a sweepstakes is that contests are mostly used to get your customers to create content that can be used in various ways. The major difference between free online contests and sweepstakes is that contest winners are selected by judges using a set of criteria whereas sweepstakes winners are randomly selected.Two of the most common promotions are Sweepstakes (games of chance) and Contests (games of skill). This difference can be summarized as follows. The difference between giveaways and lotteries Lotteries and giveaways (i.e. COPYRIGHT 2020 NATIONAL SWEEPSTAKES COMPANY, LLC. Free Method of Entry / Equal Opportunity. In a contest, all winners must be determined based upon the skill they put forth. The prizes can range from anything small to extremely extravagant prizes like vacations, cars, shirts or gift cards to your favorite store. Sweepstakes, contests, and lotteries all offer people the chance to win prizes. Terms of Use and Privacy Policy: Legal. It is all by chance and participants do not have to make any purchases or do something to increase their chances of winning. Contests vs. sweepstakes: What’s the difference? As always, a contest marketing agency is a great asset here. However, they are not the same thing—a sweepstake isn’t a contest, a contest isn’t a lottery, and a lottery is certainly not any of the two. A sweepstake is a type of contest in which participants are not required to make any effort and send anything to showcase their skills. We’re happy to help you decide which promotion is best to meet your marketing objectives. Before we begin, it’s important to define the difference between a legal promotion and an illegal lottery. But do you know the differences between sweepstakes and contest? The winner must be selected at random – for example, using a … Contests typically require more administration in qualifying submissions and judging entries, but you can hone in closer on your audience and use the creativity of contestants to grow your brand down the road. Indeed there are some differences between sweepstakes and contests which you would have to be aware of before choosing one. Because contests offer a much more niche prize, they are likely to bring in an audience of incredibly dedicated entrants. When planning your sweepstakes or contests, be sure to include your official rules (see more below) to cover your brand in this way. Rebates: discounts offered by the manufacturer. Definitions of Sweepstakes and Contest: Sweepstakes: Sweepstakes is a type of contest in which participants are not required to make any effort and send anything to showcase their skills. Sweepstakes: Sweepstakes are always free. Contact us to get the ball rolling! However, they remain confused between sweepstakes and contests. There are many contests and sweepstakes that may imply or require that you make a purchase of a product in order to enter. Unlike the giveaway, sweepstakes are run like contests. Lotteries are so common that people know they have to buy a ticket and wait for the result, to know they have won the jackpot or not. There may be an entry fee in a contest, or it may be free for all. The article b. contests are used to generate long-term interest in a brand, and sweepstakes are used to generate immediate interest. According to the dictionary this is how they are defined: Contests - is a competition in which each contestant performs without direct contact with or interference from competitors. Contestants must put forth a certain level of effort, such as writing an essay, creating something artistic, or physically challenging other contestants. How are Her research interests are mainly in the fields of Sociology, Applied linguistics, Sociolinguistics, and Linguistic anthropology. You just need to make sure they have the choice. Popular sporting events like Wimbledon, Olympics, involve contests between participants. Any purchases or do something to increase their chances of winning can be. Have better skills or knowledge than other contestants offers for agencies and brands worldwide legal and! 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