History of Sweepstakes Marketing

Sweepstakes marketing has a rich history dating back to the early 20th century. In the 1920s, companies began using sweepstakes as a promotional tool to increase brand awareness and drive sales. These early sweepstakes were primarily conducted via mail, where consumers sent postcards or entry forms for a chance to win.

Major corporations like Coca-Cola and Procter & Gamble played a significant role in popularizing and expanding sweepstakes marketing in the 1950s. These companies were at the forefront of conducting large-scale national contests that offered substantial prizes to participants. They helped transform sweepstakes from small, local promotions into nationwide marketing campaigns with impressive (anf valuable!) rewards.

Some memorable examples of large corporations using sweepstakes to promote their brands:

• 1987: McDonald’s Monopoly promotion launched, becoming one of the most significant sweepstakes in marketing history.
• 1989: The Bud Bowl sweepstakes by Anheuser-Busch combined Super Bowl advertising with a chance to win cash prizes, demonstrating effective ad/promo teamwork.
• 1989: CBS/Kmart Get Ready Giveaway used the “Watch & Win” tactic to boost fall programming lineup, offering six million prizes.
• 1990: Oreo’s “Twist” campaign introduced “retail-tainment” by sending Chubby Checker to stores for live events.
• 1991: NutraSweet’s 10th Anniversary sweepstakes pioneered the use of UPCs as game codes and implemented one of the earliest large-scale telepromotions.

The Role of Major Brands

These corporations leveraged their extensive resources and wide reach to promote their sweepstakes through various media channels. They utilized television, radio, and print advertising to create awareness and generate excitement about their promotional contests. The multi-channel approach used by brands in the 1980’s and 1990’s helped sweepstakes become a mainstream marketing tool and significantly increased consumer participation.

Coca-Cola, Procter & Gamble, and other major corporations of the time effectively used sweepstakes to:

• Incentivizing product purchases: Many early sweepstakes required consumers to buy products to enter, directly boosting sales.
• Increasing brand engagement: Consumers became more aware of and involved with brands through the excitement of potentially winning prizes.
• Driving repeat purchases: The collect-and-win format of some sweepstakes, like McDonald’s Monopoly (introduced in 1987), encouraged multiple purchases to increase chances of winning.
• Creating needs: As part of the broader consumer culture developing in the 1920s, sweepstakes helped create new desires for products, encouraging people to value goods over free time.
• Shifting from thrift to spending: Sweepstakes were part of a larger movement encouraging consumers to give up thrift and embrace a culture of acquisition and consumption.

Pivoting to Online Sweepstakes

The rise of the internet in the 1990s marked a significant turning point. Online sweepstakes allowed companies to reach a much larger audience and made it easier for consumers to enter and track their entries. This shift to digital platforms increased the popularity of sweepstakes and transformed them into a multi-billion dollar industry.

Today, online sweepstakes continue to evolve, with companies using social media and mobile apps to engage consumers and gather valuable data. Despite challenges such as increased fraud and stricter regulations, sweepstakes remain a popular and effective marketing tool for companies to promote their products and services.

Still Have Questions?

Want to run your own online sweepstakes? Contact us to learn more! And check out our other articles for more advice on specific industries and use cases.