{"id":66198,"date":"2020-03-20T09:58:35","date_gmt":"2020-03-20T09:58:35","guid":{"rendered":"https:\/\/www.easypromosapp.com\/blog\/rate-of-return-from-a-contest-or-giveaway\/"},"modified":"2023-05-10T13:21:00","modified_gmt":"2023-05-10T11:21:00","slug":"rate-of-return-from-a-contest-or-giveaway","status":"publish","type":"post","link":"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/","title":{"rendered":"3 Steps to Calculate the Rate of Return From a Contest or Giveaway"},"content":{"rendered":"\n<p>You would\u2019ve heard Peter Drucker\u2019s wise words, <em>\u201cWhat gets measured gets done.\u201d <\/em>And that couldn\u2019t be any more true in the world of contests and giveaways. <\/p>\n\n\n\n<p>It\u2019s important you know if you\u2019re generating a return on your online promotions to know if you\u2019re spending your marketing dollars wisely. Calculating the ROI on any online promotion like a contest or giveaway is a simple calculation mathematically. All it is is: <\/p>\n\n\n\n<p><strong>Net Return Or Gain\/Investment In The Promotion * 100.&nbsp;<\/strong><\/p>\n\n\n\n<p>There are many ways of getting to the right, most accurate numbers for the above equation, which we\u2019ll cover in this article. Armed with this wisdom, you\u2019ll learn whether you should <a href=\"https:\/\/www.elevationb2b.com\/blog\/rethinking-visual-marketing-strategy-in-an-overwhelmed-online-world\/\" target=\"_blank\" rel=\"noreferrer noopener\">persist or pivot on your campaign<\/a>s.&nbsp;<br><\/p>\n\n\n\n<p>Let the fun begin!&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Determine What Outcome You\u2019re Expecting From Your Contest Or Giveaway<\/h2>\n\n\n\n<p>Before you set out on the task of estimating the net gain of your contest or giveaway, you need to start with the end in mind. What goal did you have for your online promotion before you got started? Were you expecting a financial, intangible or tangible return of some kind?&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Are you looking to highlight your newly launched product or bestseller? Fantastic! Our interactive and innovative apps can help you achieve a variety of different marketing objectives while promoting your product. Head to our <a href=\"https:\/\/www.easypromosapp.com\/product-promotion-solutions\/\">Product Promotion Solutions<\/a> to find out more.<\/p>\n\n\n\n<p><\/p>\n<\/blockquote>\n\n\n\n<p>Having clarity about what return you were expecting in the first place is what will enable you to calculate the ROI on your campaign accurately. You can consider some of the following questions and metrics to help you set the right goal in relation to a generic online promotion:<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How many people visited your promotion? How much time did they spend engaging?<\/li>\n\n\n\n<li>Of those who visited, how many actively participated? How many entered and how many voted (if applicable)?<\/li>\n\n\n\n<li>How much social sharing took place?<\/li>\n\n\n\n<li>What type of content generated the most interaction (i.e., comments, Likes, retweets)?<\/li>\n\n\n\n<li>How many new likes on Facebook or followers on Twitter?<\/li>\n<\/ul>\n\n\n\n<p>Delving deeper, if your contest or giveaway is on twitter, you could use these questions or metrics to become clear about your KPIs:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What was the level of Twitter activity (especially if you have a contest-specific hashtag)?<\/li>\n\n\n\n<li>What was the redemption rate of any coupons or offers?<\/li>\n\n\n\n<li>How many people retweeted the contest or giveaway?&nbsp;<\/li>\n\n\n\n<li>How many twitter influencers tweeted your campaign and what was their total reach?&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Some questions relevant to an email campaign or promotion include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How many users opted-in to your email list?<\/li>\n\n\n\n<li>If you included any outbound links to drive traffic, what was the click-through rate?<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><\/h4>\n\n\n\n<p>At the end of the day, your goal is to determine how much impact your campaigns made to your profits and bottom line. And the metrics you determine for your contest or giveaway must be traceable to your bottom line. Never forget the end game! <\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Know How Much You Will Invest In Your Contest Or Giveaway<\/h2>\n\n\n\n<p>The second part of this process is knowing how much you\u2019ve spent or invested in your campaign. This is the base, the denominator of the equation we\u2019ve spoken about because you must know what the ROI has been produced on!&nbsp;<br><\/p>\n\n\n\n<p>While costs will vary depending on the type of contest or giveaway you\u2019ve organized, the following questions will be a huge help in determining this number accurately:&nbsp;<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What\u2019s the cost of the prize you\u2019re giving to the winners of your promotion?&nbsp;<\/li>\n\n\n\n<li>Who is organizing the contest or giveaway and how much of their time will be invested?&nbsp;<\/li>\n\n\n\n<li>How much are you paying in salary or wages to the person or people organizing the campaign? What is the labor cost involved?&nbsp;<\/li>\n\n\n\n<li>What other costs are involved in the campaign, from start to finish?&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you have the answers to these questions, start to put them on an excel spreadsheet and totaling the numbers up to arrive at the right investment amount.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use The Right ROI Calculation Formula<br><\/h2>\n\n\n\n<p>Once you\u2019ve done steps 1 and 2, it\u2019s time to plug the numbers into the formula we gave you at the beginning of the article. However, depending on the type of contest or giveaway you\u2019re organizing, there may be a few different formulas you should take into consideration.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>All of these formulas will help you make sense of the rate of return and look at your content or giveaway from different dimensions. Some simple success formulas you can use:&nbsp;<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>% Of Your Fan Base That Entered Your Giveaway: If you have 1350 fans on your Facebook page, and 342 enter your contest, that shows you that 25% of your fan base entered the campaign. That\u2019s an expression of interest from 1\/4th of your fan base! That paints a clear picture in your mind about how many people took an interest, and also allows you to compare this percentage to future or past promotions, as your fan base grows or shrinks. Percentages make comparisons easy!&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Social Engagement Rate: You could look at the number of comments or shares, divide it by your total fan base and get a metric called the \u2018social engagement rate\u2019. This would tell you how enthused your fan base was by your campaign.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ROI, In Dollars: Now if your social campaign is producing a direct dollar return, you must calculate this by estimating the number of sales or boost in revenue that happened due to your campaign. This will give you an accurate financial perspective.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You could use the number of views as the base number since it\u2019s not necessary that your entire fanbase views your contest or giveaway. This might be a fairer way to measure the rate of return on your social campaigns since you only take into account those who\u2019ve seen what you\u2019re offering through your promotion!&nbsp;<br><\/p>\n\n\n\n<p>Remember, without measuring the results of your contest or giveaway, you\u2019re simply shooting arrows in the dark. Be smart in your marketing approach by applying both, creativity to get the attention of your audience and stimulate their interest in your promotion, and analytical abilities to know whether what you\u2019re doing is worth your while.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Looking to create your first promotion with Easypromos? <a href=\"https:\/\/panel.easypromosapp.com\/register\/\">Create your account for free<\/a> and start working on your next contest. And in case of questions or doubts you can always <a href=\"https:\/\/www.easypromosapp.com\/live-chat\/\">Online Chat with us<\/a>!<\/p>\n<\/blockquote>\n\n\n\n<p><br><\/p>\n","protected":false},"excerpt":{"rendered":"Wondering how to calculate the rate of return from a contest or giveaway? Read on to discover how to measure the success of your online promotions.\n","protected":false},"author":48,"featured_media":66199,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7067],"tags":[],"class_list":{"0":"post-66198","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-social-media-promotions"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>3 Steps to Calculate the Rate of Return From a Contest or Giveaway<\/title>\n<meta name=\"description\" content=\"Wondering how to calculate the rate of return from a contest or giveaway? Discover how to measure the success of your online promotions.\" \/>\n<meta name=\"robots\" content=\"index, nofollow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Steps to Calculate the Rate of Return From a Contest or Giveaway\" \/>\n<meta property=\"og:description\" content=\"Wondering how to calculate the rate of return from a contest or giveaway? Discover how to measure the success of your online promotions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\" \/>\n<meta property=\"og:site_name\" content=\"Easypromos Blog: digital engagement strategies and examples for brands\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-20T09:58:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-10T11:21:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/wwwcdn.cstmapp.com\/blog\/wp-content\/uploads\/xxss_5Steps_To_Calculate_The_Rate-_Of_Return_From_A_Contest_Or_Giveaway.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ryan Gould\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ryan Gould\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\"},\"author\":{\"name\":\"Ryan Gould\",\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/#\/schema\/person\/1365d089f0340d77f30c737e77553919\"},\"headline\":\"3 Steps to Calculate the Rate of Return From a Contest or Giveaway\",\"datePublished\":\"2020-03-20T09:58:35+00:00\",\"dateModified\":\"2023-05-10T11:21:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\"},\"wordCount\":1092,\"image\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/wwwcdn.cstmapp.com\/blog\/wp-content\/uploads\/header_3Steps_To_Calculate_The-Rate-_Of_Return_From_A_Contest_Or_Giveaway.jpg\",\"articleSection\":[\"Social Media Promotions\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\",\"url\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/\",\"name\":\"3 Steps to Calculate the Rate of Return From a Contest or Giveaway\",\"isPartOf\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/rate-of-return-from-a-contest-or-giveaway\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/wwwcdn.cstmapp.com\/blog\/wp-content\/uploads\/header_3Steps_To_Calculate_The-Rate-_Of_Return_From_A_Contest_Or_Giveaway.jpg\",\"datePublished\":\"2020-03-20T09:58:35+00:00\",\"dateModified\":\"2023-05-10T11:21:00+00:00\",\"author\":{\"@id\":\"https:\/\/www.easypromosapp.com\/blog\/en\/#\/schema\/person\/1365d089f0340d77f30c737e77553919\"},\"description\":\"Wondering how to calculate the rate of return from a contest or giveaway? 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