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Q: Sweepstakes Research ( Answered,   0 Comments )
Subject: Sweepstakes Research
Category: Business and Money > Advertising and Marketing
Asked by: sweepsguy-ga
List Price: $40.00
Posted: 16 Jan 2004 15:02 PST
Expires: 15 Feb 2004 15:02 PST
Question ID: 297250
I am looking for research on the following questions relating to
sweepstakes. The answers must contain detailed statistics to be
1. What is the overall effectiveness of sweepstakes on sales and profits?
2. What affect does sthe size of the grand prize and the overall
amount of prizes have on the success or failure of the sweepstakes to
generate profits?
3. How effective, specifically is the "McDonald's Monopoly
Sweepstakes"? Cite actual statistics if possible.
4. How effective are sweepstkes in a) bringing in new customers 2)
retianing cusotmers and 3) Upselling cusomers to more profitable
lines? Especially the McDonald's Monopoly Sweepstkes if possble.

Clarification of Question by sweepsguy-ga on 16 Jan 2004 15:05 PST
Please cite all resoureces used and any and all articles, books,
websites or other related to sweepstakes that are of value.
Subject: Re: Sweepstakes Research
Answered By: belindalevez-ga on 24 Jan 2004 10:40 PST
<A study by Cooperative Data Products in cooperation with the
Promotion Marketing Association found the effect of a sweepstake on a
consumer?s likelihood to purchase a product. 39% were more likely to
buy a product, 51.9% had no effect and 9% were less likely to buy.

When compared to other promotional techniques, sweepstakes fared worse
than coupons for free products, money off coupons, free gift with
purchase, free samples, cash rebates and contests.

Only 9.7% of consumers strongly agreed that the prizes are awarded,
leading to the hypothesis that there is some doubt regarding the
legitimacy of contests and sweepstakes.
The full study can be read here:

A Quris survey found that sweepstakes are the No.1 motivating factor
in getting consumers to participate in an e-mail marketing campaign.
Sweepstakes got a 41% response rate.

A study by Double Click found that permission email resulted in 85% of
respondents register in a sweepstakes.

A survey conducted for Promo found that 46% of online respondents  and
17% of telephone respondents spent time looking for special offers,
contests and sweepstakes.

A poll of marketers by Forrester Research found that 53% of
respondents ran sweepstakes and that 20% found them most effective.

The effect on sales in various sweepstakes promotions.

A Power Rangers promotion included a sweepstakes. It was entered by
over 92,000 people. Bandai?s sales rose by more than 400 percent and
sales of other Power Rangers products rose by 40 percent at each

American Airlines, ?Thanks a Million? sweepstakes offered $1 million
in prizes and three ways to win. Sales increased by 30% from the
previous year.

Toohey?s New, $1 million sweepstake resulted in 45,000 people
registering with the website and 47% opting for email or SMS contact.

Caltex ?Win a Year on Easy Street? sweepstake received 1 million
entries and resulted in an 9.8% increase in sales. There were 80
different prizes, discounts and sponsor offers.

Export Gold ran a sweepstakes offering 50 trips to Export Gold Party
Island in Fiji. Sales increased by 14%.

Visa used a sweepstakes which resulted in sales that were 400 times
greater than the marketing investment.

St Petersburg Times a newspaper partnered with a grocey store for a
Great Grocey Giveaway sweepstakes. The prizes were $500 shopping
sprees. Daily sales of the newspaper increased by 39 percent and
Sunday sales by 21.7%.

Size of prizes.

Consumer Value-Maximising Sweepstakes & Contests: A Theoretical and
Experimental Investigation. Authors: Ajay Kalra and Mengze Shi.

According to this report, the sweepstakes reward structure should be
based on three factors: the objectives of the firm, the risk aversion
of the customers, and the level of sub-additivity of probability
weighting. To target current users, the number of prizes awarded
should be lower than in the case where the targets are switchers. If
the current users are risk neutral, then the consumer value-maximizing
award is a single grand prize. If the current users are risk averse,
then the award should consist of multiple ?large? prizes.To draw sales
away from competitors, the value-maximizing strategy is to distribute
the award money over more prizes. If the non-current user segment is
risk neutral with respect to gains but sufficiently risk averse in the
domain of losses, then the prescribed reward structure is to have a
single grand prize but also include several small prizes which ideally
should be close to the opportunity cost of the customers. If the
non-loyal customers are risk averse in gain and loss averse, then the
best prize allocation is to have both multiple large prizes as well as
several small prizes. Another recommendation from the model analysis
is that the firm should minimize the number of prizes at each level.

The full report can be read at

According to research company Envoy, a cash sweepstake is most
effective when the prize is over $1,000 and a fair number of secondary
prizes are included.

The effect of the odds of winning.
The effect of the odds of winning are discussed in an article from
IMI. Odds of 1:3 were recommended.

McDonald?s Monopoly Sweepstakes.

McDonald?s reported that its sales rose15.1% at its restaurant open
for more than a year over the previous October. The increase was
boosted by the McDonald?s Monopoly game promotion, its ?I?m Lovin It?
advertising campaign and Madame Alexander Happy Meal.

According to USA today a hot promotion can increase sales and store traffic by 5%.


McDonalds Winning Time promotion

Monopoly Best Chance game will run from 14 October 2003 to Monday November 10 2003.

McDonald?s October 2003 sales up 15%.
McDonald?s November 2003 sales up 14.9%

Several case studies, illustrate the effectiveness of sweepstakes in
gaining new customers.

Ewanted?s sweepstake campaign had a conversion rate of 10%. Previously
the conversion rate was just 0.5%.
During the six weeks the sweepstakes ran, 38,184 users registered to at an average cost of $0.71 per visitor and $2.84 per
registered user. 95,000 users visited the site. Email with the
sweepstake had a click-through rate of 25% whilst email without the
sweepstake had a click-through rate of 16%.

NetBank 5th Anniversary Sweepstakes.
The prize was a $5,000 NetBank CD. The promotion generated 141,000
unique visitors in a six-week time frame. 42% of entrants referred
their friends to the sweepstakes. Over 3% of sweepstakes entrants
applied for a NetBank account. Email advertising to current customers
received a 33% click through rate.

Prize $5,000 home office computer system. 312,000 entries 25,000
converted to customers.,4621,299714,00.html

A provider of office forms to the automotive industry used a
sweepstake and gained a 17% conversion rate. The first prize of  a
Hawaiian holiday was the most successful.

Customer retention.
The case of iwin demonstrates how sweepstakes can be used to retain
customers. Iwon is a combination of an internet portal and a
sweepstakes. It gives away $27 million in prizes a week. According to
Media Matrix iwon users visit the site more often than other portal
users. The average iwon user spends 11 minutes per visit.,15278,421,00.html

Despite an extensive search, I could find no case studies where
sweepstakes have been used to upsell. They tend to be mainly used as a
means of generating new customers and retaining existing customers.>

<Additional links:>

<Promotion marketing industry report.>

Top ten destinations for promotion prizes.

<Search strategy:>

<"sweepstakes case study">

<sweepstake "sales increased by">

<sweepstakes  "sales increased by">

<Hope this helps.>

Request for Answer Clarification by sweepsguy-ga on 29 Jan 2004 15:16 PST
Any more specifics on the McDonald's game? That is what I most care
about. All this stuff is anecdotal. You never saw anything that went
in to specifics about that contest, did you?

Clarification of Answer by belindalevez-ga on 30 Jan 2004 23:21 PST
<The only statistics I could find about the McDonald's sweepstakes was
the 15% rise in sales. However more than one promotion was running at
that time so the level of increase in sales due to the sweepstakes is
There are no comments at this time.

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