What is a Contest Promotion?

A contest promotion is a promotional campaign sponsored and funded by the business or by its partners for the express purposes of generating revenue or, in the cash of a charitable organization, generating funds for distribution or to support the goals of the charity. 

As a consumer, you are exposed to contest promotions every day. You can even find them in the pop up screens you see online. Register to enter and you might win the contest promotion – cash, gifts or discount coupons. Casinos make a lot of money from contest promotions; so much so that they have made a science out of offering promotions to attract new customers and draw customers away from competitors.  

A contest promotion at a casino might include swiping your membership card in exchange for a chance to win a car, a vacation cruise or free money or chips or slot credits to use at the casino.

If you enter a contest promotion for a cash prize, remember that some contest promotion prizes require you to report additional income. Be sure you understand the reporting requirement before you enter and win or you might get a nasty surprise.  

As a business person, you can use contest promotions to generate business and get visibility in the local community. If a community event is large enough, other service providers in the neighborhood may agree to offer coupons or products for your drawing to get their name out to your clients.  

Every year, you receive a contest promotion in the mail from a large publication company. Send in the mailing, complete with your contact information and preferences and you get the chance to win a prize. The prize might be millions of dollars, or a trip to an exotic locale. Though the prize may cost the company money, but the value of the contacts, mailing lists, prospective clients or the money spent on the raffle entries is well worth the investment.