How to set up in Italy gamification activities trough sweepstakes, Raffle, Giveaway or Prize Contests according to italian law
Sweepstakes are used to promote brands or products, in order to obtain immediate commercial advantages and at the same time be able to build a database of potential customers to stimulate with ad hoc initiatives.
From a regulatory point of view, in Italy they are defined as Prize Competitions when the winning depends on luck, skill or any other criterion not directly connected to the purchase of the product (e.g. extraction, quiz, instant win, etc.) while Prize Operations are when the prize is awarded to all participants who carry out a certain action (e.g. purchase of a product, collection of points, cashback, etc.).
Why organize a Sweepstakes?
The success of a prize event is mainly due to the fact that it is not an invasive communication to a target forced to remain passive in the face of advertising bombardment, but a promotional tool that involves the public, creating a positive expectation (winning a prize).
Prize competitions are also a marketing tool to create reputation online and offline, involving and retaining the target audience and allowing you to acquire potential customers thanks to the incentive of one or more prizes up for grabs.
What are the advantages of a Prize Competition:
Quick creation of a user database;
Promotion of related services (newsletter, site registration ...);
Promotion of the brand or a specific product;
Interaction with users to determine an action (sale, profiling, registration ...);
launch of a new service/product;
Incentive to purchase;
Virality Factor;
Content Generation;
Effective evaluation of the return on investment.
Different methods of engaging users can be used, through invitation formulas to try a certain product or the use of simulation tools to verify the benefits of a certain solution; in this context, the digital tools available today are a facilitator and an amplifier for achieving objectives. Prizes can be of different nature and can also stimulate different needs and/or desires of users. Psychologically, it has been shown that few prizes (lower chances of winning) and of greater value are more attractive, instead of many prizes (higher chances of winning) but of lesser value.
The phases of a Prize Competition
E-Business Consulting is able to manage all aspects related to the organization of an online and/or offline prize competition, through instant win and/or with final draw, dealing with the reward mechanism, the bureaucratic and administrative aspects and the entire communication project.
The activities provided in a Prize competition by E-Business Consulting can be summarized in the following phases:
Determination of the user engagement method;
Management of all bureaucratic and administrative activities;
Set up a mobile and/or web platform for the visibility and collection of participant data based on the winning method identified;
Participant acquisition campaign management
Drawing and closing of the competition
The client company can choose all the phases listed above or request only part of the process. We are also able to organize prize competitions through co-sponsoringformulas based on the target of interest and the available budget.
Giveaway and Raffle the new methods
Alongside these types of activities that have been regulated for a long time, with the advent of digital, new opportunities have also developed that are typical of online today, such as giveaways and raffles, two techniques that are now well-known in the United States of America and are now increasingly present in the European market.
In fact, giveaways were born in the United States thanks to influencers and web personalities to thank their followers who faithfully support them daily on social networks and follow their content. This type of activity, now regulated in all respects as a normal prize competition, is often created to further extend the follower base in exchange for a series of actions to be carried out on social networks by users.
Giveaways are very successful because they reproduce the playful element in a game context to emotionally leverage users and stimulate their participation and competition in order to obtain satisfaction through winning a prize offered by the promoting brand. The advantages linked to the use of these engagement tools in the social sphere are many, such as: increasing brand reputation, maximizing intersections, increasing visibility and virality, user loyalty and acquisition of profiled leads.
On the other hand, the Raffle consists of a sort of lottery linked to launch events both online and offline where participants can exclusively purchase certain products, usually in limited edition. Unlike Giveaways, this marketing strategy, aimed at creating strong anticipation around a product, is mainly aimed at consumers most passionate about individual brands.
Typically, to participate in the draw, the customer must register by filling out a form in which they enter some personal data, provide consent for their processing according to the current European GDPR regulation, and agree to receive future commercial and marketing communications.
The raffle helps to make the product unique, exclusive, and highly attractive, implementing a marketing strategy that makes each launch a real event that pushes the customer to action: the so-called Call to Action. Moreover, the limited offer provides additional value to the brand, thus helping to outline and strengthen its Brand Identity.
E-Business Consulting has been active in organizing and managing online and offline prize contests since 2003. Many companies have relied on E-Business Consulting for the organization of prize contests, including: Coca Cola, Wind, Enel, and the Intesa San Paolo group. Contact us now for a free, no-obligation quote! E-Business Consulting is at your complete disposal to build a winning project together
