Promotions & Competitions in Australia

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Competitions & PromotionsMarch 2012


PromotionsPromotions in Australia is a $5 billion industry

In the past year, more than 75% of Australian consumers have purchased a product because of a promotional offer, and almost 44% have done so in the past 30 days

A non-promoted brand can lose market share, effective promotions can drive market share. At worst, a promotion will defend its position against strong competitors.

Consumers participate in promotions directly as a result of the prizing

Ensure the mechanic compliments the offer and does not provide a barrier to entry

*IMI International


Promotional DNASIMPLE

RELEVANT

COMPELLING


The Australian Psyche Australians are skeptical of competitions appearing too good to be true, we generally believe that they are rigged, regardless of the tight terms and conditions & legislative hoops promoters must jump through.

Promotions which speak to the consumer and are relative to their products produce the best results – it’s all about horses for courses.

The current financial climate of our nation influences competition entry and the desire to seek out competitions. Since the 2000 September 11 attack, the Bali bombings and the Thai tsunami, Australians are “cocooning” - increasingly looking within their country’s borders for entertainment & travel. There is a preference for South Pacific based holidays (Australia, New Zealand, New Caledonia, Vanuatu, Cooke Islands, Fiji etc) so we stay close to home and feel some security for our families.

Coupled with the recent GFC, increased electricity costs, natural disasters in QLD, VIC and WA plus the incoming Carbon Tax, Australians are increasingly feeling the squeeze on their back pocket and are looking for ways to subsidise their lifestyle dollar. Prizes are often used as gifts by winners which can ultimately stretch their disposable income further.


Games of Chance

Games of Chance refer to a barrel / computer generated draw, where each entrant has an equal chance of winning.

Asking a question with only 1 correct answer is still a game of chance, as all correct answers will be included in a draw.

Games of Chance require approval by individual state permit authorities, with fees included for application.

Games of Chance generate more entries than a game of skill as consumers do not have to “think” to enter. Keep it simple stupid.

A Blanket Permit will make most competitions available quickly and without individual approval.

The instant win mechanic is considered a Game of Chance.

Games of Skill

A Game of Skill is where the outcome / winners are determined by the merit of their answer / skill, based on set criteria.

Skill competitions require all entries to be judged against the criteria, which can be time consuming.

An example is to ask a consumer to “tell us in 25 words or less what you enjoy most about our product”.

Judging criteria must be included in terms and conditions. “Best answer” is not criteria as you haven’t determined what makes one answer better than another, it should be something that is measurable – funny, heart felt, original etc.

Run Skill based competitions to gain insight into a brand, or if you have limited time to obtain legal approval.

Games of Chance -v- Games of Skill


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(Dark Background)Promotions on Facebook

• must be administered within Apps on Facebook.com, either on a Canvas Page or an app on a Page Tab

• Terms & Conditions must provide an indemnity release

• must not use Facebook features or functionality as a promotion’s registration or entry mechanism liking a Page or checking in to a Place cannot automatically register an entry

• not condition registration or entry upon the user taking any action using any Facebook features or functionality other than liking a Page, checking in to a Place, or connecting to your app. Eg liking a Wall post, or commenting or uploading a photo on a Wall.

• must not use Facebook features or functionality, such as the Like button, as a voting mechanism for a promotion

• must not notify winners through Facebook

Guidelines constantly change, make sure you review them each time:https://www.facebook.com/promotions_guidelines.php

https://developers.facebook.com/docs/guides/canvas/


Promotional Strategic Recommendations• KISS – Keep it Simple Stupid

• Communicate the offer - in prominent positions, in a large, bold print, above the fold, on homepages etc. Clearly indicate there is a chance to WIN.

• Position your offer - "Your chance to win a iPad" vs "An iPad to be won instantly every hour". It’s about PERCEPTION rather than the actual odds.

• To generate a database quickly, offer Games of Chance as a preference

• Innovative entry (ie small interactive games) will make your competitions memorable and enjoyable

• Instant Win mechanics generate high volumes of entries as it plays on the gambling mentality of entrants (ie perhaps one more entry will mean I’m a winner).

• Theme-related promotions generate large responses – such as Christmas, Birthdays, Anniversaries, Festivals, Events, Mother’s Day etc

• Always include relevant links to:• the website• more information• share with a friend / refer a friend• “Like” on Facebook• “Tweet” on Twitter• Sign up to newsletter• Incentives for an action (ie bonus

entry)

• Limit user generated content uploads as an entry mechanic until a large and interactive database is established. Only a small % of consumers participate in UGC.

• Promote the winners – First Initial, Surname and State. Include photos where you can

• Give consumers choice, but not too much choice, ie offer more than 1 entry mechanic.


High Volume, Low Value Prizing

• Consumers feel they have a greater chance of winning a competition where there are a high volume of prizes to win as opposed to a single high value prize.

• Consumers feel a tangible prize is more achievable, for example, Australians would prefer to win $10,000 a year for 10 years rather than win $1 million.

V ✔✗


Prize OfferingsThe top prize categories for consumers are:

Tier 1

Tier 2


Frequency of Promotions

• Segmenting competitions by interest categories will provide your database with relevant content.

• Offer up to 4 competitions concurrently per audience segmentation. More than 4 will dilute the offerings and reduce entries.

• Keeping a bank of promotions rolling will retain your audience, keep them returning and engaging with your brand – don’t allow a lull in promotional activity to appear.

• Frequency includes the draws. Weekly draws attract more interest than 1 major draw at the end of an extended period.


Discounts & Special Offers Recommendations

• Offering a Cash Value ($20 off your next purchase) generally generates a greater return on redemption than a % off your purchase. Consumers feel the tangible value of $20 rather than a % discount

• Offer discounts on category interests including 1 x cross promotion to another product or category

• Ensure there is a deadline for the offer. Australians react to an immediate call to action with a short expiry (as evidenced further by group buying sites such as Cudo, LivingSocial, Scoopon and Groupon etc)

• Make sure the offers are exclusive to the audience, where applicable

• Special Offers and Discounts can include:• Gift with purchase (free gift)• Discounted additional item with purchase• Buy One Get One Free (BOGOF)• Samples (poster with CD purchase)• Happy Hour• Discount off next purchase


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Awesome Promotions


BE AWARE OF THE PRIZE PIGS

Promotions & Competitions in Australia

Business

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