What is a Sweepstakes Agency?

Learn about what Sweepstakes Agencies do, what strategies they employ, different types of sweepstakes and examples of actual campaigns.

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    Sweepstakes are great ways to engage your customers or prospects. It’s an exciting promotion that includes one or more grand prizes, but sweeps can also be part of a layered promotion that includes a small instant reward along with the bigger prizes at the end. Sweepstakes agencies help brand, company or organization with what is sometimes called sweepstakes marketing and to run a smooth promotion to meet your goals in terms of engagement, compliance, and business results. 

    What are Sweepstakes?

    Chosen at random. Unlike a contest, where winners are typically selected based on skill or merit, sweepstakes winners are chosen by chance through a random drawing or selection process. 

    Sweepstakes can be purchase or non-purchase based. Purchase-based sweeps can include receipt validation, allowing you to get insights into their shopping habits, favorite stores, competitive products, etc. For non-purchase based sweepstakes, consumers can be rewarded for doing simple actions like registering or completing a form, posting a social media image, taking a survey, or doing a product review. 

    Key elements of a sweepstakes include:
    • Prizes: There must be prizes or rewards offered to participants. These can range from goods, cash, trips, or other valuable items.
    • Chance: Winners are chosen randomly, usually through a drawing or random selection process. Participants don't compete based on skill or merit.
    • No Purchase Necessary: Sweepstakes must often allow “Alternative Means of Entry” without requiring a purchase or payment, as this can violate gambling laws in many jurisdictions.
    • Official Rules: Clear and comprehensive rules governing the sweepstakes must be provided to participants, detailing eligibility, entry methods, prize details, and other important information.

    Sweepstakes are subject to legal regulations and must comply with various laws, including those related to gambling, consumer protection, and marketing. Sweepstakes laws can vary by region, so it's essential for businesses or organizations running sweepstakes to ensure compliance with relevant regulations. 

    What does a Sweepstakes Agency do?

    A sweepstakes agency typically offers a range of services to businesses or organizations looking to run a successful sweepstakes or contest. Some key services include:
    1. Consultation: Providing expert advice on the structure, format, and execution of the sweepstakes to maximize engagement.
    2. Legal Compliance: Ensuring that the sweepstakes adhere to local, state, and federal laws governing sweepstakes, including drafting official rules and regulations.
    3. Prize Procurement: Assisting in acquiring and securing prizes, which may involve negotiating with vendors or sponsors.
    4. Program build: Develop the microsite and forms for entry submission.
    5. Entry Management: Handling the logistics of entries, whether it's through online platforms, mail, or other entry methods.
    6. Winner Selection and Notification: Conducting fair and random selection processes for winners and managing the communication process.
    7. Prize Fulfillment: Managing the distribution of prizes to winners, including handling paperwork, taxes, and shipping logistics.
    8. Promotion and Marketing: Assisting in creating marketing strategies to promote the sweepstakes and increase participation.
    9. Post-Sweepstakes Analysis: Analyzing the results and providing insights to the client for future improvement.
    10. Customer Support: Offering support services to entrants, addressing inquiries, and providing assistance throughout the sweepstakes period. 

    What Are Some Examples of Sweepstakes?

    Below are some case studies. Find more sweepstakes examples here as well.

    CASE 1: Purchase-based – Weekly and Grand Prize 

    Nestle Purina wanted to acquire and maintain pet households along with capturing first-party data to include them in their eCRM programs. Purina also aimed to generate enthusiasm and raise awareness about their Puppy and Kitten portfolio, drive sales and educate consumers. Learn more about this sweepstakes here

    CASE 2: Non-purchase – Engagement + First Party Data

    Beam Suntory's Basil Hayden wanted to drive brand awareness at airports in New York and Los Angeles through their partnership with Michelin Guide. They also wanted to drive first party data acquisition into their CRM. Read more this sweeps example here

    CASE 3: Layered – Instant Win + Sweeps 

    Nescafe was looking to create an exciting promotion to help consumers "capture important moments" and reward them with crazy cash prizes! Learn more about this sweepstakes example here

    Sweepstakes agency services can vary

    Remember, the specific services offered can vary among agencies, and some may provide additional or specialized services based on their expertise and client needs. To learn about Snipp’s Sweepstakes Management solution, click here or contact us

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