Promotions & Competitions in Australia

Competitions & Promotions
March 2012
© 2010 Zuni | All Rights Reserved | Confidential

Promotions
Promotions in Australia is a $5 billion industry
In the past year, more than 75% of Australian consumers have purchased a product
because of a promotional offer, and almost 44% have done so in the past 30 days
A non-promoted brand can lose market share, effective promotions can drive market
share. At worst, a promotion will defend its position against strong competitors.
Consumers participate in promotions directly as a result of the prizing
Ensure the mechanic compliments the offer and does not provide a barrier to entry
*IMI International

Promotional DNA
SIMPLE
RELEVANT
COMPELLING

The Australian Psyche
Australians are skeptical of competitions appearing too good to be true, we generally
believe that they are rigged, regardless of the tight terms and conditions & legislative
hoops promoters must jump through.
Promotions which speak to the consumer and are relative to their products produce the
best results – it’s all about horses for courses.
The current financial climate of our nation influences competition entry and the desire
to seek out competitions. Since the 2000 September 11 attack, the Bali bombings and
the Thai tsunami, Australians are “cocooning” - increasingly looking within their
country’s borders for entertainment & travel. There is a preference for South Pacific
based holidays (Australia, New Zealand, New Caledonia, Vanuatu, Cooke Islands, Fiji etc)
so we stay close to home and feel some security for our families.
Coupled with the recent GFC, increased electricity costs, natural disasters in QLD, VIC
and WA plus the incoming Carbon Tax, Australians are increasingly feeling the squeeze
on their back pocket and are looking for ways to subsidise their lifestyle dollar. Prizes are
often used as gifts by winners which can ultimately stretch their disposable income
further.

Games of Chance -v- Games of Skill
Games of Chance
Games of Chance refer to a barrel / computer
generated draw, where each entrant has an equal
chance of winning.
Asking a question with only 1 correct answer is
still a game of chance, as all correct answers will
be included in a draw.
Games of Chance require approval by individual
state permit authorities, with fees included for
application.
Games of Chance generate more entries than a
game of skill as consumers do not have to “think”
to enter. Keep it simple stupid.
A Blanket Permit will make most competitions
available quickly and without individual approval.
The instant win mechanic is considered a Game
of Chance.
Games of Skill
A Game of Skill is where the outcome / winners
are determined by the merit of their answer / skill,
based on set criteria.
Skill competitions require all entries to be judged
against the criteria, which can be time
consuming.
An example is to ask a consumer to “tell us in 25
words or less what you enjoy most about our
product”.
Judging criteria must be included in terms and
conditions. “Best answer” is not criteria as you
haven’t determined what makes one answer
better than another, it should be something that is
measurable – funny, heart felt, original etc.
Run Skill based competitions to gain insight into a
brand, or if you have limited time to obtain legal
approval.

Promotions on Facebook
• must be administered within Apps on
Facebook.com, either on a Canvas Page
or an app on a Page Tab
• Terms & Conditions must provide an
indemnity release
• must not use Facebook features or
functionality as a promotion’s registration
or entry mechanism liking a Page or
checking in to a Place cannot
automatically register an entry
• not condition registration or entry upon the
user taking any action using any
Facebook features or functionality other
than liking a Page, checking in to a Place,
or connecting to your app. Eg liking a Wall
post, or commenting or uploading a photo
on a Wall.
• must not use Facebook features or
functionality, such as the Like button, as a
voting mechanism for a promotion
• must not notify winners through Facebook
Guidelines constantly change, make sure you review them each time:
https://www.facebook.com/promotions_guidelines.php

Promotional Strategic
• KRISSe– Kceeop imt Simmple Setupnid dations
• Communicate the offer - in prominent positions,
in a large, bold print, above the fold, on
homepages etc. Clearly indicate there is a
chance to WIN.
• Position your offer - "Your chance to win a iPad"
vs "An iPad to be won instantly every hour". It’s
about PERCEPTION rather than the actual
odds.
• To generate a database quickly, offer Games of
Chance as a preference
• Innovative entry (ie small interactive games) will
make your competitions memorable and
enjoyable
• Instant Win mechanics generate high volumes of
entries as it plays on the gambling mentality of
entrants (ie perhaps one more entry will mean
I’m a winner).
• Theme-related promotions generate large
responses – such as Christmas, Birthdays,
Anniversaries, Festivals, Events, Mother’s Day
etc
• Always include relevant links to:
• the website
• more information
• share with a friend / refer a friend
• “Like” on Facebook
• “Tweet” on Twitter
• Sign up to newsletter
• Incentives for an action (ie bonus
entry)
• Limit user generated content uploads as an
entry mechanic until a large and interactive
database is established. Only a small % of
consumers participate in UGC.
• Promote the winners – First Initial, Surname and
State. Include photos where you can
• Give consumers choice, but not too much
choice, ie offer more than 1 entry mechanic.

High Volume, Low Value Prizing
• Consumers feel they have a greater chance of winning a competition where
there are a high volume of prizes to win as opposed to a single high value prize.
• Consumers feel a tangible prize is more achievable, for example, Australians
would prefer to win $10,000 a year for 10 years rather than win $1 million.
✗ V ✔

Prize Offerings
The top prize categories for consumers are:
Tier 1
Tier 2

Frequency of Promotions
• Segmenting competitions by interest categories will provide your database with
relevant content.
• Offer up to 4 competitions concurrently per audience segmentation. More than
4 will dilute the offerings and reduce entries.
• Keeping a bank of promotions rolling will retain your audience, keep them
returning and engaging with your brand – don’t allow a lull in promotional
activity to appear.
• Frequency includes the draws. Weekly draws attract more interest than 1 major
draw at the end of an extended period.

Discounts & Special Offers Recommendations
• Offering a Cash Value ($20 off your next purchase) generally generates a greater
return on redemption than a % off your purchase. Consumers feel the tangible value of
$20 rather than a % discount
• Offer discounts on category interests including 1 x cross promotion to another product
or category
• Ensure there is a deadline for the offer. Australians react to an immediate call to action
with a short expiry (as evidenced further by group buying sites such as Cudo,
LivingSocial, Scoopon and Groupon etc)
• Make sure the offers are exclusive to the audience, where applicable
• Special Offers and Discounts can include:
• Gift with purchase (free gift)
• Discounted additional item with purchase
• Buy One Get One Free (BOGOF)
• Samples (poster with CD purchase)
• Happy Hour
• Discount off next purchase

Awesome
Promotions

BE AWARE OF THE PRIZE
PIGS

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