Online Promotion Mania
Have you noticed the growing wave of promotions (contests and sweepstakes) that are all over the internet these days?
Start looking around and you’ll see tons of TV ads that drive people to an online promotion. You’ll also see all sorts of banner ads on sites throughout the Internet trying to get you to click through.
Heck! You’ve seen them a number of times right here on StartupNation!
So why are promotions becoming so popular with advertisers? Well, it’s because, when done right, they work… for everyone.
For the sponsor, they provide a way to get a message out with SIZZLE! And in the process, they get you to register and they get to learn a little about you demographically and psychographically. They can also get registrants’ permission to send emails in the future.
For the registrant (or, "contestant"), these online promotions work because THEY’RE FUN! People actually enjoy "chance" and the creativity of some of the creative activities and games included in the promotions.
Just take a look at the "I’m Going Places" promo Microsoft Office Live! is running (and promoting here at our site through banner ads). It’s a great example. Who wouldn’t want a private jet at their disposal for a few hours?!
So, what’s the takeaway? Maybe it’s a business practice you can check out and consider for your business. In fact, there’s a cool new service afoot that will allow even the smallest business to run its own online promotion. It’s called "Caffiene."
March 6th, 2007 at 11:49 pm
I think we’re seeing a trend where any form of media on the internet that’s interactive is going to be a big draw for businesses. They get people’s attention with the prospect of winning something or putting their skills to work.
March 8th, 2007 at 12:36 pm
Entrants would be wise to take into account the taxes they’re liable for if they win. Any prize over $600 will cause the sponsor to send the IRS notification of the transaction. Prize winnings are taxed as income.
The referred-to Microsoft promotion prize above has an estimated retail value of $50,000. Taxes could be as high as $15,000 for the winner. It’s likely a winner may not be able to afford the "free" prize.
March 8th, 2007 at 2:06 pm
My partner and I have been talking about selling ad space on our web site. Does anyone have any ideas on how to get started?
Our site is http://www.redhatsbyyou.com
March 9th, 2007 at 12:58 am
Good topic, but online promo media is nothing new.
Personally, I think this post is just a way to get us to click on your Microsoft "plug" and your Caffeine "plug".
But hey, it worked like a charm!
Love StartupNation, but guys… c’mon, be upfront about it.