Competitions, sweepstakes and contests have been around for a long time. However with the progression of social media online, there is the potential for having huge success. Below are a few key benefits of having an online competition. 

Building fan base

No matter the number of likes or followers you have, a contest will increase likes in a short period of time during which the contest is run. For businesses just starting out or with a lower fan base, a basic enter-to-win competition with a low barrier to entry is optimal. Remember these likes do not necessarily convert to sales but it does definitely increase exposure and followers.

Engaging your audience

A competition provides the opportunity to connect to your audience and deepen the relationship. User-generated content (UGC) is a great way to do this. By asking people to share their photos/videos, it gives them motivation to enter and to experience their 15 minutes of fame. After sharing their personal content, they are more invested in your brand as it feels they are more a part of it.

Great data source

With the opportunity of winning a prize, people are prepared to share information about themselves to enter the competition. It is a balance of not including too many barriers to entry while finding out a bit about your consumers. You can ask survey questions such as 'What is your favourite product of ours?'. During the contest it will also be beneficial to read the interactions and conversations between participants to see how they feel about your business and the competition.

Using consumers to market your business

A great way to get consumers sharing and spreading word of your campaign is to include a voting component. This way participants are motivated to share through their social accounts, asking their friends and family to support their entry. This is made easier through present social media, having the ability to share through multiple channels. 

Online competitions can be extremely effective when it is used with a well planned and thought out social media strategy. Business to business enterprises along with consumer businesses can easily take advantage of the benefits listed. Have a look at our own online competition that is currently running.