Case Study and Competition Pitfalls

Competitions - keeping them legal

Wired-Up talks to Eduardo Ustaran, Solicitor at Berwin Leighton Paisner

Increasingly, marketers are trying out different ways to encourage the promiscuous consumer to interact with new companies, switch to alternative brands and trial new products. And competitions are an effective method to achieve all these things. As a marketing tool they are enjoying increased use online, not simply from an exposure viewpoint but also because they present a list-building opportunity.

But with new legislation afoot, every digital marketer needs to know their legal obligations...

Wired-Up: What, in law, constitutes a competition?
EU: A competition is not a prize draw or a lottery whereby payment is required and the prize is awarded on the basis of luck. To qualify as a competition entrants pay no entry fee and a certain degree of skill is required, like answering a multiple-choice question. There may be a cost of responding, like the cost of sending an SMS but as long as the cost of responding is made clear, this is quite legal.

Wired-Up: And what are the legal requirements of a 'Terms and Conditions' document?
EU: There are two key elements to competitions terms and conditions - what you need to do to win (how the competition works), and who you need to be to enter (entry criteria like age, residence and relationship to companies involved in the organisation and promotion of the competition).
It is not difficult to draft a terms and conditions document. Good starting points are the British Code of Sales Promotion and the ASA. If you follow their guidelines it is not too difficult to get it right. But of course it is advisable to consult legal advice whenever preparing legal documents.

Wired-Up: What legal issues concern the digital marketer considering using a competition?
EU: UK marketers running competitions have always had to comply with the British Code of Sales Promotion when using competitions for promotional purposes, but the European e-commerce directive tightens this up. It requires every digital competition - be it by e-mail, SMS or WAP - to clearly identify the rules that apply to the competition.

Wired-Up: Is the new directive law now?
EU: No. It was due to become law in January of this year, but things have been held up. We are expecting it to come into effect in the UK before the summer. So digital marketers planning to use competitions that run into or begin in the summer would be well advised to adhere to it.

Wired-Up: Why is the new directive of particular relevance to digital marketers?
EU: Because it applies specifically to the digital media. The directive does recognise that not every digital medium lends itself to housing both the competition vehicle and the terms and conditions that apply to it. SMS is an obvious example. With just 160 characters to work with there is barely enough space to ask the question. So for text competitions digital marketers can house the terms and conditions on a web site as long as the text message includes the URL and states that is where the terms and conditions are to be found.

The DTI has published guidance on the directive and how it is to be interpreted in instances like this.

Wired-Up: What are the implications of failing to provide terms and conditions
EU: Aside from the legal imperative, it is simply good practise to provide terms and conditions to all competition entrants.
Having said that, we all know the digital media are not perfect. If you decide to e-mail all competition entrants your terms and conditions and the e-mail bounces back or if you advertise them at a given URL on a SMS competition and the link fails you will be in breach of the new directive.

Technically in these instances an individual could make a claim. Obviously to make that claim that individual would have to suffer damages. This is where bigger companies should beware - as some individuals might make a claim on the basis that they'll get a settlement. It could be a big deal.

How Marketing Expo improved conversion rates using an e-mail comp

Wired-Up Case Study
How Reed exhibitions used an e-mail competition to build a new brand and improve conversion rates.

BACKGROUND
The International Direct Marketing Fair (IDMF) has long been a key date in every direct marketer's calendar. And over the years, along with the discipline of direct marketing, it has evolved to include the old and the new marketing media. In light of this, the decision was made to re-brand the show for 2002 as 'The Marketing Expo' to reflect the show's content which included a broader mix of marketing exhibitor.

Registration has always been free for the event, which has historically attracted an impressive number of delegates.

In 2001 the fair moved to a new venue, Excel, and offered online registration well in advance of the event to encourage more people to put it in their diaries and streamline the registration process on arrival. However the chasm between the number of those registering online and those attending was wider than Reed had hoped. It was felt this was mainly because of the amount of time between registration and the event itself.

OBJECTIVES
Working with agency Geronimo Reed had two key objectives:
· To remind those who had registered well in advance of the date nearer the time
· To increase the conversion of registered delegates to attending delegates

THE SOLUTION
Using the established visual identity of the show Geronimo devised a three-day countdown e-mail competition for Reed. It started one week before the show to ensure delivery close enough to bring the event front of mind, and well enough in advance for the recipients to make travel arrangements and diary alterations.

Everyone who had pre-registered and given permission to be contacted by e-mail was sent the series of e-mails which consisted of copy about the event and the interactive element of a multiple choice competition.

The winners were also notified by e-mail and invited to collect their prize - a bottle of Champagne - from the press office at the show.

RESULTS
Reed is still totting up the final figures, but official sources indicate attendance was up on 2001.

The Wired-Up guide to online competitions

By offering people the chance to win something, they are more likely to stop and take a look at what's on offer - and on the web that means more hits, potentially more advertising opportunities and hopefully an increase in interest in your products and/or business.

Used properly, competitions can help promote your site, promote your product, and attract traffic! More traffic could mean more potential customers! Competitions can also be used to find out about your users, obtain demographics, or simply as a means of ensuring your users return again and again to your website.

So, how do you go about running a website competition? Download the Wired-Up guide now.

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