1. Contests are a great tool for building your fan base

Whether you are starting with 100 or 100,000 likes on your Facebook Page, contests offer a proven way to increase that number. Influencers can go from 50 to 1,000 and from 15,000 to 30,000 likes in a matter of days or weeks when running an online contest. Of course this is not the only metric to think about, but it is one measure of the power of a promotion. A basic enter-to-win sweepstakes with a lower barrier to entry often provides the best option for those just starting out with social media contests or without a large base of fans in place

2. Contests enable you to engage your audience

In addition to increasing the sheer number of people who interact with your brand, a contest provides a means to deepen the connection as well. An online promotion such as a the PrizePop.com Wheel contest is a great way to do just that. PrizePop contests tap in to the human drive to compete, and they provide an opportunity for everyone to experience their 15 minutes of fame. Most importantly, when participants are engaging, they are naturally invested in your brand.

3. Contests are a rich source of data

With the lure of a prize, many people are prepared to share information with you as part of the entry process. You don’t want to introduce too many barriers, but don’t miss the opportunity to learn a bit more about your consumers . Remember that what you ask from your contestants should be commensurate with what you offer in return. In addition to collecting data as part of the entry process, you can also learn a great deal from the interaction and conversation that takes place around your contest, so be sure to listen in.

4. Contests empower consumers to do your marketing for you

How would you like to have hundreds or thousands of your fans helping to spread the word about your campaign? It is important to have a promotional plan that encompasses multiple marketing channels, but thanks to sharing via social media, online contests today enable an amplification of your marketing message that was not previously possible.

If your contest includes a like or sharing component, participants will be inclined to share through their social social network.

Like other tools, contests can be extremely effective when used as part of a comprehensive social media strategy. Any influencer or brand facing organization, as well as many business-to-business enterprises, can take advantage of online contests to realize the four benefits highlighted above.