Archive for the ‘General’ Category

What’s the Difference Between an Online Game, Contest and Sweepstakes?

Tuesday, December 14th, 2010
The 60-Second Marketer  asked our COO, Hector Pages, to share some of the pertinent issues surrounding online games, contest, and sweepstakes.  Plus, why it is so important to work with a reputable partner.
 http://www.60secondmarketer.com/60SecondArticles/Interactive/onlinegames,cont.html

 

 By Hector Pages, Chief Operating Officer, Brandmovers, Inc. 
In this article, you will learn: 

1) How online Games, Contests and Sweepstakes can be used to generate a positive ROI for your brand; 

2) The important distinctions between online Games, Contests and Sweepstakes; 

3) The legal considerations you should be aware of prior to structuring an online promotion 

The Web 2.0 explosion has created unprecedented opportunities for brands to engage consumers in the digital spaces where they work and play. Brand marketing budgets increasingly reflect this trend as dollars continue to shift away from ‘traditional’ advertising into new media. 

Web-based interactive promotions — particularly contests, games, and sweepstakes — are a key component of this movement because they can target broad-ranging demographic segments, cross diverse brand categories easily, and — most importantly — provide a measurable return on investment while opening up an ongoing dialogue with consumers. 

There are, however, subtle differences between online “Sweepstakes,” “Games” and “Contests” so care must be taken by Marketers to ensure that their online promotion is structured properly to comply with various laws surrounding games of chance and to ensure that it meets the programs objectives. 

Online Sweepstakes: These programs generally have two principal components: (1) a registration component and (2) a drawing element for prizes (daily, weekly, monthly or at the end of the program). Interactive elements can be incorporated into the Sweepstakes to create rich user experiences with branded elements but no skill is required by the Entrant 

Online Games: Online games are generally a variation of a sweepstakes; however, require a perceived element of skill to engage participants at a deeper level. Viral elements are often integrated to spread the reach of the promotion. They are sometimes referred to by Marketers as “Instant Win Games”. 

Online Contests: Contests are not games of chance. Unlike a Sweepstakes or a Game, they require entrants to exhibit a degree of skill (make a video, submit a photo, write an essay, etc.) that must be graded by a panel of judges using an established criteria set forth in the Official Rules. Contests typically require a deep level of brand engagement. 

When developing an online promotion make sure your promotional objectives are clear. A promotion designed to generate trial of a new product, for instance, is not necessarily the right promotion for long term loyalty, while a program to drive opt-in email registrations may require yet a different set of parameters. Regardless of the method chosen, baseline metrics should be established so that performance can be quantified. 

Online promotions should always attract and engage visitors with content that immerses participants in branded experiences that resonate and should be more than just a blatant prize pitch. While prizes are an important component of any online promotion, they should be incorporated in a way that supports the overarching brand objective while appealing to the target demographic and involving visitors. Whether it is user generated content, an interactive game mechanic, or even just the ability to select from among available prizes, always make visitors part of the experience when structuring your program. Don’t forget to make it viral by leveraging the power of the internet to exponentially grow the reach of your promotion. Whether it is a tell-a-friend email component or a social networking application, online promotions are natural lead generators. 

Make sure the logistics are covered. Online games, contests, and sweepstakes programs require careful attention to detail. From web design and development to official rules, privacy policies, prize sourcing/fulfillment, consumer affairs, winner handling/notification, and more- there are a host of issues that must be carefully managed. There are also a number of legal considerations to consider so engage a professional firm with proven experience in online games, contests, and sweepstakes to help you structure an online promotion that is in compliance with federal and state regulations. 

Some areas to be mindful of include: 

Laws surrounding Games of Chance
State requirements for bonding and registration of Games of Chance
Judging criteria for contests
Children’s Online Privacy Protection (COPPA) -for Under 13’s
Intellectual property rights and patents
Regulated industries
International laws for programs that cross national borders
There are also a number of technical considerations to keep in mind: 

Flash – Remember that all-Flash sites offer greater creativity but can compromise search engine optimization and make your promotion harder to find. Generally speaking, this is not a concern for limited time promotions – particularly if it is a drive to web offer from an in-store or on-pack call to action. If, however, you want search engine spiders to crawl your promotional site consider an HTML mirror site or an all HTML site with limited or no Flash. Keep in mind too that Flash can affect reporting if using a tool such as Google Analytics. 

Load Times – Music files, streaming video, and other large files can affect load time and user experience. If your audience is in largely urban areas probably not a concern but if your audience is more rural consider file size to avoid high abandonment rates. Also, if running a program involving large file transfers make sure appropriate bandwidth is allocated on the promotion’s server and that security measures have been taken to safeguard and protect the integrity of your promotion. 

In summary, here are several key points about interactive and online promotions to keep in mind as you move forward: 

Online promotions are flexible. They can exist as stand alone programs or as bolt-on features to wider integrated campaigns.
They accomplish a wide variety of marketing objectives.
When compared to other marketing solutions, they are cost effective, can typically be launched at a fraction of other programs, and are natural lead generators.
Make sure your promotional objectives are clear when considering an online promotion and that metrics for measuring the success of a program are considered prior to execution.
Engage a Promotion Firm with proven experience developing online games, contests, and sweepstakes to ensure that all technical, logistical, and legal considerations are addressed.
 

Hector Pages is Chief Operating Officer for Brandmovers, Inc., an Atlanta-based interactive promotion agency that specializes in online games, contests, and sweepstakes for leading consumer brands. He is an active member of the Promotion Marketing Association (PMA), the Atlanta Interactive Marketing Association (AIMA), the National Society of Hispanic MBA’s (NSHMBA), Judge in the 2008 PROMO Magazine Interactive Marketing Awards, and an annual sponsor of the Promotion Marketing Association’s Law Conference. Hector is also a member of the Board of Directors for A School Bell Rings, a 501 C3 non-profit that builds schools for impoverished children around the globe 

Sockpuppets, who are they?

Tuesday, September 28th, 2010

Unscrupulous users exploit technologies shortcomings by masquerading themselves for personal benefit.   Stone (2007) defines “sock-puppeting” as the act of creating a fake online identity to praise, defend or create the illusion of support for one’s self, allies or company. A sockpuppet is an online identity used for purposes of deception within an online community. In its earliest usage, a sockpuppet was a false identity through which a member of an internet community speaks with or about himself or herself, pretending to be a different person, like a ventriloquist manipulating a hand puppet. Trust is an essential ingredient of digital communities, therefore members should have a healthy dose of skepticism when participating in these types of communities.

So make sure you can identify your customers otherwise your brand can end up looking for a bailout!

There is hope and lots of opportunity, even during a recession; you just have to know where to look for it.

Tuesday, February 17th, 2009

There is hope and lots of opportunity, even during a recession; you just have to know where to look for it.

Recessions have a strange habit of changing rational behavior into frenzies of desperation. While markets adjust, the fundamental tools of economics “supply and demand” remain busy making amends for prior excess and greed. Many marketers have never been exposed to a market that does not conform to conventional wisdom. Now they have to re-adapt in order to succeed.

The recent hike in oil prices is a clear demonstration of the effects of market manipulation. As oil prices dropped OPEC reduced production in the hope of increasing prices. However the market did the complete opposite and prices fell further, contrary to OPEC’s intent.

The point I am making is that customers are like markets; they cannot be controlled or manipulated over a sustainable period. The panic and fear that the current recession is producing is ravishing the reasoning faculty of many brands marketers. Why you might ask? Because many of them believe slashing prices in order to maintain share is the best strategy in a downturn. Just as the Black Knight in Monty Python’s Holy Grail believed he was invisible, he was unrepentant even with the loss of all his limbs.

The same type of reckless behavior is also prevalent with panicked discounters slashing prices, believing that what worked in the past is sure to produce improved results in the future. If you want to see how fast the world is changing check out these stats.
Continuous discounting is not fiscally maintainable, even brands with the deepest pockets use it sparingly as a short term tactical event. So what’s the alternative, a loyalty program that has been designed to engage customers at a much lower cost when compared to discounting. Besides from choosing their individual reward (which is a key motivation factor) customers now tell most of their close network just how cool the reward program is and become WOM (word of mouth/mouse) brand advocates.

The rich and relevant data produced from an interactive loyalty structure contextual offers which can be specifically targeted at select customers. This strategy maximizes benefits and efficiencies for both members and the marketer. We refer to highly engaged customers as “Alpha” customers, engaged consumes as “Beta” and active customers as “Omegas”. Alpha customers spend 20 times more than a regular customers, Beta 10 times and Omegas 5 times.
So if you are looking to increase sales in the near future, identify your most profitable customers and then maximize your share of their purse by offering meaningful rewards that build lasting relationships.

When brands become the butt of comedians jokes.

Tuesday, December 30th, 2008

Unless your brand wants to become the butt of comedians jokes , make sure that you deliver on your promises. The pizza industry is notorious for adding new toppings, crusts, shapes you name it. These tactics highlight just how far a commodity product can be differentiated. Without a doubt some pizzas are better than others, the challenge is how do you communicate this credibly.
Regardless of how loud the advertisements shout (similar to yelling car dealers) one needs to take into account that consumers are not stupid.
This skit emphasizes the extreme product features some brands would have you believe are really possible;

The next time your brand launches a new product, flavor or variation, remember you can fool a few people some of the time, but not everyone all the time. Honest communication and consistency are two of the most essential ingredients for building sustainable brand loyalty.

Competitors love Schadenfreude!

Sunday, October 26th, 2008

What is Schadenfreude? Perhaps the greatest word in any language, Schadenfreude has become the defining emotion of the 20th Century. From the German, Schaden (damage), and Freude (joy), it means the enjoyment obtained from the troubles of others. It is the easiest, and often the most fulfilling, enjoyment available. http://www.bbc.co.uk/dna/h2g2/A287255 It is commonly referred to as “Happiness at the misfortune of others”Here is an example of all the sexy beautiful people taking a fall.
Here is an example of all the sexy beautiful people taking a fall.

The animal kingdom is less forgiving, make a slip and your dead. The same is true in business, competitors are merciless and will devour your customer base without hesitation. The recent meltdown in the capital markets have caused many smart and often prudent investors to make rash decisions based on fear. Why is this so? Because predictability brings security, removing one’s ability (or at least the perception) to predict future events, makes one insecure. The winners in these markets not only delight in the losses of others, but often depend on them to survive. Predictability brings security, however the only thing we can secure is our ability to control our attitude in any given situation. Everything counts, especially during challenging times. So keep your customers excited and delighted, otherwise your competitors will indulge in a schadenfreude feast at your expense. Marketers should focus on understating the wants, desires and needs of their customers. Technology (blogs, forums and digital communities for example) has enabled two- way communication channels that create an interactive dialog between customers and brand stakeholders. However some brands are petrified about unbridled open conversation. Remember, you’re best friends tell you the truth even when its hurts, because they love you. The same is true of your best customers. Engage them and you will create a host of loyal brand evangelists. A marketers dream.

Is your brand ready for adoption?

Monday, August 18th, 2008

Adoption - an instance of adopting somebody or something such as an idea, name, or attitude.

Imagine being able to create a family without ever getting pregnant.

So many brands and products frantically seek to get people pregnant in the hope of being accepted, when in reality people would adopt them without the need to get pregnant. Remember the book, CD and DVD clubs that offered your first favorite for a 99c. You then end up with a monthly subscription for a whole host of products you probably did’nt want.

However it takes more than good looks, charm and being cute in the world of technology adoption. For example, having a unique bar-coded coupon delivered to my cell phone with the latest discounts and offers is really exciting. I then take my amazing offer to the cash register attendant and discover the laser POS system can’t recognise my coupon because of the low resolution of the cell phone screen. The new invention becomes now appears to be unadoptable.

As you develop your next product or service make sure every step of the transactional process has been taken into account, otherwise you run the risk of never being loved, simply because  you developed excellent products that nobody can use.

Blowing back the hair so you can get down to the hide.

Saturday, August 9th, 2008

How many times have you heard technology marketers ranting about how they are going to revolutionise the world. The dilemna marketers face is who should they believe.

Because we work with some of the worlds best known brands, new technology vendors are constantly approaching us with the next ‘big idea’ and how its going to revolutionise our customers markets. The dilemna we face is deciding which new technology will be adopted in the marketplace. The is first step is to, blow back the hair so you can get down to the hide. Numerous questions need to, these are three fundemantal questions that have to be answered;

1. Will it attract and gain new customers for our clients

2. Will the value of average orders be increased

3. Will it increase the frequency of orders

Unless the answer is YES to all three, its not even worth evaluating. Why? because post modern marketers have access to a wealth of performance evalution tools. Having “buzz” and being ‘cool” no longer pays the rent. Its all about performance that can be measured, quantified and justified by results.

So the next time someone knocks on your door and promises to “rock your world”, ask them these three simple questions. Or your might find yourself buying Mutton dressed as Ham