Prize promotions: myths and appeal

Prize promotions are a constantly active sector. Every day, advertising banners, direct emails and social media posts announce a new competition or promotion. Promotions help achieve marketing and sales objectives and appeal to almost everyone. These activities create engagement, involve the target audience and bring consumers closer to brands and products they might otherwise not have chosen.

As customers, we feel cared for, valued and happy, especially if we are lucky enough to win a prize. Yet many remain sceptical about whether prizes exist and are actually awarded. We often hear: 'Does anyone really win?' or 'I won't enter because I'll never win anyway.' Let's dispel these two widespread myths.

• Yes, people really do win. Prize promotions are governed by extensive regulations protecting consumers in both administrative and tax matters. For example, at the end of a competition, the promoter declares the exact number of prizes awarded before a notary, and any unawarded prizes are donated to the designated non-profit organisation. The prize therefore exists and must always be allocated to someone.
• Anyone can win: it is a matter of luck. Competitions must guarantee equal opportunity and treatment, so the promoter has both the right and the duty to invalidate prizes won by users who have clearly entered unfairly or contrary to the rules.

As always, the difference comes down to the company chosen to deliver the initiative.

• Uphold the public promise, equal treatment and the allocation of prizes;
• ensure participation methods genuinely match those set out in the rules;
• activate appropriate checks and blocking systems so fraudulent entries do not prevent prizes from being awarded to eligible participants;
• minimise cases where prizes are donated to the designated non-profit organisation at the expense of participants who have followed the rules;
• collect participant data in compliance with privacy regulations:

are all essential rules that must not be overlooked.

For more than thirty years, PSP has worked in prize promotions providing consulting and services for promoters. As an appointed delegate, PSP fully represents them in legal and administrative matters, oversees management processes involving different suppliers, directly manages entries through various methods, delivers prizes to eligible winners and the designated non-profit organisation, and stays in contact with participants through its contact centre.

Our experience with highly successful, multi-season campaigns for leading food companies and numerous digital, paper, telephone and social competitions, using a wide range of prize allocation methods, demonstrates PSP's ability to shape its activities around each project's goals rather than offer a standardised mechanism.

PSP also works with great rigour and respect for the confidentiality of its client companies and communication agencies, for whom it has chosen not to publish case studies. We believe working behind the scenes reflects how strongly PSP focuses on client outcomes, as is the case with the most sensitive professional consulting services.