Cold hard cash.More and more sponsors are offering cash as the draw to lure consumers to their product and enter their sweepstakes. It is a trend during these economic times.
This article references multiple sweepstakes offering cash prizes -prizes ranging from $125 gift cards to a $9 million annuity. The 2010 Dream Home sweepstakes, sponsored by HGTV earlier this year, attracted more than 40 million entries. The prize was $500,000 cash, a home in NM, and a SUV.
One interesting point noted in this article is that there may be a limit to the amount of cash needed to attract consumers. “We even experimented at the end of last year with a million-dollar giveaway,” said Mr. Wilkes, VP of Hearst Magazines, “but the response wasn’t as much as we thought.” Consumers apparently had to “pause and think” more about the implications of winning $1 million than of winning $250,000, he added, and some believed it would be harder to win the bigger prize than the smaller one.
This also holds true with the number of prizes offered. Do consumers feel they have a good chance of winning 5,0000 prizes when 2500 prizes might offer the same response? It's worth considering the idea of testing ideas ideas prior to just spending money unnecessarily.
http://www.nytimes.com/2010/04/22/business/media/22adco.html?_r=1&ref=media
