Commercial Co-Venture (CCV) Promotions: An Overview
Q4 2011
© Gage Marketing Group, LLC 206-330-6396
Addressing Legal Compliance
Promotion Dialog: Two Key Question to Address
Sweepstakes Versus a Contest: Common Misperceptions
The Role of Prizes
Promotions and Social Media
Defining Success with Your Promotion
Corporate Co-Venture (CCV) Integration
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Gage at a Glance8
Abstract
• Presentation is a high level overview of best practices in CCV promotion strategy
• Presentation is targeted to marketing professionals for national or global brands, for whom legal compliance is essential to mitigating risk
• Skilled legal guidance is as essential for CCVs as with any form of promotional marketing
Raising Awareness through a Promotion?
• Is raising awareness of a product / service an goal?• Historically “awareness” has been the job of advertising• Advertising made customers aware; promotion gave the
incentive to take a specific action• We need to ask WHY and WHAT questions to determine
what specific behavior we should drive
We want to raise awareness with consumers. Did we address the “WHY?”
?
A Typical Dialog within a Promotion
A Typical Dialog within a Promotion
WHY? “Because we have a new product that is perfect for a consumer.”
?:-o
A Typical Dialog within a Promotion
OK, WHAT do you want the consumer to know, or do, or think about this new product?
Client: “We want them to learn about the features and benefits and be motivated to buy it.”
;-)
The client just identified the specific actions.
A Typical Dialog within a Promotion
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What are the promotions I could consider?
• Coupons• Rebates• BOGOs (Buy One Get One)• Mail-in offers• Premiums (gift with purchase)• Sampling• In-packs / on-packs / special offers• Sweepstakes• Contests
What game mechanics should I consider?
• Communal Discovery: An entire community is rallied to work together to solve a riddle, a problem or a challenge.
• Epic Meaning: Players highly motivated if they believe they are working to achieve something great, awe-inspiring, bigger than themselves.
• Lottery: Winner is determined solely by chance. Creates a high level of anticipation.
• Leader boards: Rankings of all individuals in a micro-set. For distributed game dynamics where you want many micro-competitions or desire to induce loyalty.
What game mechanics should I consider?
• Countdown: Players are given a certain amount of time to do something. Creates an activity graph that causes increased initial activity, increasing frenetically until time runs out.
• Envy: Desire to have what others have. To be effective, it must be possible for participants to see what other people have.
• Progression Dynamic: Success is granularly displayed and measured through the process of completing itemized tasks.
• Viral: Game element that requires multiple people to play (or that can be played better with multiple people)
The terms “Sweepstakes” and “Contest” are not interchangeable
Promotion Types: Sweepstakes vs. Contests
Sweepstakes and Contests are types of promotions. They are similar because they both use prizes as a way to entice consumers to take a specific action and drive behavior.
•Sweepstakes are games of chance. There are two types:– Random Draw – Instant Win…These are typically open to a broad audience
•Contests are skill-based - there is no chance involved– Criteria & judging is used to determine winners…These are typically open only to current customers/users
Prizing
• What is the role (purpose) of a prize?• A prize is the…
– Reward– “Shiny” object– Incentive– Payoff– Bonus – Etc.
…used to incent people to take the specific action. • Many will enter, few will win
Prizing Analogy
• You want your daughter to put away her toys every night before she goes to bed [Specific behavior: put away toys]
• To encourage her to take the action, you offer a “prize” [She gets to spend $5 next trip to the store]
• Your daughter puts away her toys every night [Primary objective met]
• Your child spends $5 at the store. [You are happy because the incentive worked to get her to take the specific action; she is happy because she got $5 to spend at the store]
Guidance on Prizes
• Does the prize need to appeal to the target audience? [Yes]• Does a prize need to be high-value? [No]• Are prizes the reason to run a sweepstakes or contest?
[No. The reason is to Get consumers to take a specific behavior]
• Should prizes be related to the brand/product? [Can’t hurt!]• Should prizes be front and center in all communications?
– Yes and No. We should strike a balance between:• The product / service / brand • The specific action • The prizes
Prizing Continued…
• Once a consumer takes the specific action – we’ve helped the client meet their primary goal/objective
• We simply used a prize as an incentive for that behavior
Does the number of entries equal Success?
Yes and No. Depends on the specific action, type of promotion and tactical execution...
For example:• YES, if the specific actions were:
– Visit our site to learn more about our products/services– Enter our sweepstakes
• NO, if your specific action was: – Buy our product
… and although many entered, no purchase was required and few products were sold
Summary: Setting objectives and expectations
for driving the correct behavior and action for your promotion are
essential.
Promotion Tactics to Drive Awareness
• Where/how the promotion will be communicated/executed:– Micro site / website / mobile site– Tear pad (at shelf, on-pack)– Package (outside/inside)– Social Media (Facebook, Twitter, etc.)– In stores (at shelf, at check out, flyer, etc.)– FSI– Events / booths– Print ads– Online banners– Radio, TV
Importance of Legal
• Rules first– Contract between Consumer and Sponsor– Guides structure and communications– All materials are subject to the Official Rules– Rules and Functional Requirements should be in sync
• Promotion must comply with State / Federal promotion laws• Will the promotion be global?
– Consider the complexities of addressing different countries’ laws;– Allow for enough time and resources
• Are you aware of all the risks? Does your agency offer indemnification from liability?
• What is your liability mitigation strategy?
CCV Promotions
Why a CCV Promotion?
• When done correctly and with authenticity, CCV promotions can evolve your brand's perception from the benefits of your products and services to the values embodied in non-profits’ missions and activities
• Example: NFL collaboration with the American Cancer Society– Addressing breast cancer– Raising funds– Driving awareness
Commercial Co-Venture (CCV) Overview
• A CCV is a way to structure a promotion that drives benefits for non-profit as well as for-profit organizations
• Range from short term marketing campaigns to strategic, multi-year (and multi-dimensional) alliances
• Verify that your corporate relationship agreement with any non-profit is consistent with your planned marketing activities
• Do your values and culture align? (Ties back to authenticity)
Key Considerations for CCV Promotions
• State regulations vary re: CCV activities– Ensure legal has capability to navigate and structure to comply across
entire target geography– E.g., filings, registrations, approval process, fees, bonding and post-
CCV reporting
• CCV’s can also be very time consuming– Typically requires officer-level approvals – Requires good planning and creative solutions to comply with
requirements
• Consider a Power of Attorney (POA) with a trusted marketing partner to streamline the ongoing process
Common Pitfalls with Setting up a CCV
• Keep in mind, you cannot communicate and execute charitable promotions by misleading potential participants as to the effect of their purchase
– For example, if a company says: "We will donate a [insert value] for every Like on Facebook up to $50,000…" and your corporate relationship agreement with that non-profit says you will donate $50,000 no matter how many likes you receive; this is not in compliance
– The actions of participants does not impact the outcome in this example
• As a rule of thumb, plan for 60-90 days in advance if you are looking to integrate a CCV based campaign into your marketing mix
Promotions and Social Media
• Social Media-based or promoted promotions increase the value proposition for target audiences to engage on social channels
• Social media can also dramatically improve participation volumes though demand creation, engagement and direct and indirect viral advocacy
• CCV promotions are particularly effective because they speak to a powerful driver of viral sharing: the desire to be perceived positively by others in their social network
Social media networks can host promotions and/or support web-based promotions
Awareness
Engagement
How Social Media Can Affect Promotions
How people generally experience promotions in social media
Seen from a measurement POV
Awareness
Engagement
Advocacy
Conversion
Time
0%
100%
Advocacy Feedback Loop
Ratio to a conversion(example)
100,000:1
5,000:1
50:1
Conversions 1:1Target users take a desired action (participate)
Promotions and Social Media
• However, CCV social media promotions must:– Be authentic – Design so that sponsoring/partnering brand is
subordinate to that of the CCV/cause– Be accurate – Awareness of false or misleading claims can
spread virally much faster than positives and destroy a brand’s image
– Be logical – Simplicity increases likelihood of conversion in a medium that requires “distraction” to attract targets
– Be legal – Social media is still rife with illegal promotions; brands with the most to lose will likely be first to be prosecuted, so legal must be addressed properly to avoid excessive risk
At a Glance
• Formed in 1992• Headquarters: Minneapolis • Officers in Los Angeles and Redmond, WA• Ad Age / Interactive Rank: #35• Promo / Promotion Rank: #37• Digital
– Mobile, web, media, social, analytics• Loyalty Programs
– CRM, Incentive, Sales Training, DR• Promotional
– Sweeps, games, contests, POP, legal• Social /Emerging media• In-house Technology, Legal
Marketing Solutions that Drive Behavior
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Gage Point of ViewMarketing challenges are getting more complex. Agencies need to be well versed across numerous disciplines to integrate brand messaging and design --- and be able to deliver with technology and analytics.
Sweepstakes: Bing + Ryan Seacrest
Drive awareness and registrations for Bing though promotional sweepstakes
Description–Components included:
• Promotional Microsite
• Banner ads for on-net placement
• Email creation
• Rules/Privacy/Terms of Use
• Prize Fulfillment
• Winner management (verification, communication, affidavits, tax reporting)
• Customer Service (via email)
• Reporting–Social media sharing tools were included and offered unique tracking capabilities showing the viral “spider” of who/how/where the sweepstakes was passed along via Facebook, Twitter, Windows Live and email.
Results–Over 258,000 unique visitors –84,000 registrations–32.4% conversion rate –63,810 new Bing accounts
Bing: Media Support
How Gage can help…
• Gage can provide a turnkey marketing foundation platform to address your specific audience
• Everything from Strategy and Planning -> Website Design and Development -> Print Production -> Social Media Activation
• Gage can manage the entire process and handle all aspects of integrated marketing campaigns – including legal and compliance
Program Flow / Strategy (example)
Wireframe for DesignExecution and Management
For more details on CCV promotions
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Please contact:
Mark KurtzChief Growth Officer Phone: 206-330-6396Email: [email protected]
