Indeed there are some differences between sweepstakes and contests which you would have to be aware of before choosing one. The difference between contests and sweepstakes is that a. contests require skill, and sweepstakes require luck. 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. 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. If you like to enter sweepstakes and contests, knowing this difference could save you a lot of heartache. How are Sweepstakes: Sweepstakes is a type of contest in which participants are not required to make any effort and send anything to showcase their skills. Everyone must be able to get the same number of entries despite the entry method they choose. Difference Between Sweepstakes and Giveaway. Contest: Participants have to demonstrate their skills in contests. This would be viewed as “monetary consideration” and is not legal in a game of chance. Contests winners are selected by judges based on how they fulfill a specific criteria. 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. The words Sweepstakes and Contest are different from one another although they confuse most of us. 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. While they all seem very similar, there are big differences and it is important that you choose the type of promotion that will … A sweepstakes is all about chance and luck. Sweepstakes are promotional drawings in which the prizes are given away to the participants at no charge. Because contests offer a much more niche prize, they are likely to bring in an audience of incredibly dedicated entrants. The biggest difference between contests and sweepstakes is that: a. contests can require an entry fee, and sweepstakes cannot. The prizes can range from anything small to extremely extravagant prizes like vacations, cars, shirts or gift cards to your favorite store. There are many contests and sweepstakes that may imply or require that you make a purchase of a product in order to enter. [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. Contest: A sort of competition that requires the winner to have better skills or knowledge than other contestants. What is the difference between Contests, Sweepstakes, Giveaways and Drawings? Winners will be selected at random. 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. A contest is also referred to as a “competition” or “game of skill”. NSC specializes in the turn-key promotion administration & management of sweepstakes, contests, games and offers for agencies and brands worldwide. Contest: A sort of competition that requires the winner to have better skills or … 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 difference between giveaways and lotteries Lotteries and giveaways (i.e. So you can notice that there is a clear difference between Sweepstakes and Contests. A contest is, as the name implies, a sort of competition that requires the winner to have better skills or knowledge than other contestants. The difference between the three was a question from my professor in my social network media class. Unlike a sweepstakes or game of chance, contests require non-monetary consideration to enter. But do you know the differences between sweepstakes and contest? 4. The presence of consideration in a skill based contest is not as problematic as the presence of consideration in a sweepstakes. Sweepstakes, contests, and lotteries all offer people the chance to win prizes. Sweepstakes - is any of various lotteries. 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. 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). Since contests require skill or effort, the prize you award will make a huge impact on the level of participation you receive. The major difference between sweepstakes and contests is in how people enter and how people are selected to win. 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 prize is your “carrot” or incentive to get a person to enter your sweepstakes. She is currently employed as a lecturer. Sweepstakes are primarily used to generate awareness or to grow your client database. This difference can be summarized as follows. 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. 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. Sweepstakes and contests often get grouped together, and this causes many to assume they are the same. Personally I look at the prize, not what is in the title of the contests/sweepstakes. Sweepstakes: Winners are selected randomly in sweepstakes. Contests, sweepstakes and lotteries are all useful mechanisms for promoting a corporation online. However, they remain confused between sweepstakes and contests. In a 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. Online sweepstakes and contests on Facebook help grow your social media base, get more Facebook likes and acquire new patients. And compared to a contest being a game of skill, sweepstakes are a game of chance. But just some are often done legally, so businesses got to know the difference between them, however, if they’re getting to use one as a marketing tool or offer a giveaway for his or her business. The Difference Between a Lottery A contest also helps you identify those customers who are brand loyalists. This makes contests appealing to brands who wish to increase product sales in alignment with their promotion. If you advertise correctly, you could result in a viral impact, spreading your branding and messaging to millions of consumers. Most people don’t realize there is a difference between sweepstakes and contests but there is a monumental difference. Prize. We were asked to identify social media promotions that could be classified as lotteries, contests, or sweepstakes. National Sweepstakes Company, LLC 1143 East Union Street Newark, NY 14513. If you have ever dreamt of winning millions of dollars without working hard, you must have heard about lotteries, contests, and sweepstakes. There may be an entry fee in a contest, or it may be free for all. The First I want to address the legal difference between a sweepstakes, a contest and a lottery. At the end of the contest, all entries must be judged equally based upon a pre-set judging criteria (i.e. “Eurovision Song Contest 2012, semi-final allocation draw (5)” by Vugarİbadov – Own work. Sweepstakes: Sweepstakes are all about chance. Contest: You make efforts to win a contest. The winner must be selected at random – for example, using a … 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. In countries other than US, sweepstakes are known as competition. You just need to make sure they have the choice. CONFUSION Some sweepstakes try to appear legitimate by calling themselves contests. Chance. Sweepstakes: games of chance. The Difference Between Sweepstakes and Contests Many people use the terms "contests" and "sweepstakes" interchangeably, but they're actually quite difficult. [CC BY-SA 3.0] via Commons, 2. Like a sweepstakes, the prize or prizes you offer is your incentive to encourage entries. Contests are giveaways that have an element of skill to them. One is the manner in which the winners are determined. In a way, this is a promotional tool that is used by companies to attract people. However, they can be excellent ways to obtain user generated content which can later be used to market and advertise your brand. 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. A contestis defined as ‘an event in which people try to win by doing something better than others’. As always, a contest marketing agency is a great asset here. 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. Before we begin, it’s important to define the difference between a legal promotion and an illegal lottery. Sweepstakes: Sweepstakes are always free. The problem with this is that if you do not allow anyone to enter without having to make a purchase then 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. Here are the main difference between contests and sweepstakes: Sweepstakes are specifically prize giveaways where the winners are chosen by luck. 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. Explain the difference between contests,sweepstakes,and rebates Contests: activities that require the participant demonstrate a skill. We often read about lucky individuals winning lots of money through these means. 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