Youth Contesting Strategy: Prize Value vs Prize Frequency
As marketers, we know the value of sweepstakes and incentives. If designed and executed correctly, they can gamify interactions and spark meaningful brand relationships.
The recurring question that arises in the boardroom is, “Do we go with the one big prize or more smaller prizes?”
Based on our research and past campaign performance, prize frequency wins, every time.
Amongst the top list of youth core values, instant gratification consistently ranks in the top 3. This theme is as apparent within contesting and sweepstakes as it is within HR recruitment and retention strategies. Youth have grown up digital, where life is “on-demand”. This need for immediacy is a defining characteristic of today’s youth.
As prize values increase, believability decreases. Youth are the prime targets for 5,000+ marketing impressions daily. They’ve developed a level of desensitization to contesting. Our recommendation – don’t exceed $10,000 for a single prize package. Regardless of the actual odds, perceived odds of winning sharply declines for prize packages above $10,000 in value.
Odds of Winning.
Youth are constantly crunching the numbers to determine their odds of winning. Their contest pro’s – respect their intelligence and communicate their odds. For optimal participation, odds of winning should be 1 in 10 at a minimum. To balance optimal configuration with the reality of budget constraints, tiered prizing structures allow you to satisfy both prize value and prize frequency expectations.