As more people drift away from televisions and focus more on smartphones and tablets, advertisers are adjusting marketing strategies to promote their brands. Since smartphone users are estimated to spend nine hours a month just on social networking, companies are naturally running contests and promos via social media platforms. As The Wall Street Journal reports, BBVA Compass, one of the largest commercial banks in the country, recently launched a Facebook competition aimed toward small business owners:
“”BBVA Compass today launched its Great Ideas for Small Business contest on Facebook to help entrepreneurs and local business owners make waves in their communities.
The competition provides a platform for small business owners to showcase their inventiveness while earning a chance to win one of two $10,000 prizes to help fuel business expansion. To participate, qualifying small business owners and entrepreneurs looking to start their own businesses need to submit their ideas via a contest app located on the BBVA Compass Facebook page.
The bank will award one $10,000 prize to the business idea that receives the most votes, or likes, from visitors to the Facebook app […]”
While the explosion of social media contests is a relatively new phenomenon, contests in general have long been used as a marketing tool. After all, contests drive sales because there is a prize in store for consumers if they try a product or subscribe to a service. Contests are also structured to put product branding front and center, leading to greater brand awareness, especially for new products.
That being said, social media contests have their own unique benefits. For example, a crowd-sourced contest encourages an audience to share their own experiences with a product or give creative suggestions on solving a problem, thus fostering a deeper engagement between businesses and consumers. Additionally, people can easily share the contest to their friends, in effect doing additional marketing for the company.
Another upside is that social networks already have millions of people using them—a huge potential audience. If the contest proves successful, however, the company may also have to process thousands, or even millions, of entries. Fortunately, they can hire a contest software specialist like Skild to help them with the details of running a social media contest.
Contests can be a win-win situation for both brands and consumers. With the popularity of social media and the help of effective contest or award software, they are easier than ever to manage.
(Info from BBVA Compass to reward great business ideas with new contest on Facebook, The Wall Street Journal, October 15, 2013)