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In any contest or sweepstakes, the winner of a high-value prize — worth more than $600 — is required to record that prize with the IRS. Typically, the sponsoring brand and their sweepstakes management company handle all aspects of legal administration, including the IRS filing, to ensure full compliance — but the back-and-forth required of winners can be a painstaking process.

The landing page for a contest or sweepstakes should be a clean, straightforward design that’s both immersive and effective. As the user’s first touchpoint with the promotion, it’s important to quickly capture their attention with engaging imagery and clear next steps to guide them through participation.

Contests, giveaways and sweepstakes are proven to build brand loyalty and engagement while meeting strategic marketing goals, such as acquiring first-party data or supporting a product launch. Tying a promotion into the summer season — which often connotes feelings of freedom, adventure or relaxation — can increase positive brand associations while keeping your products top of mind and brand relevant.

Sweepstakes and instant-win games are fun, effective ways for adult beverage brands to connect with consumers — but they are legally nuanced. To ensure the promotion is approved and compliant in states that permit adult beverage promotions, brands must be prepared to navigate several additional regulations that don’t apply to other industries.

In 2022, we saw marketers increasingly utilize digital promotions — such as sweepstakes, instant win games and contests — to create custom brand experiences for consumers. In today’s noisy digital environment, where thousands of brand messages compete for attention, a strategic promotion and chance to win an exciting prize helps brands to stand out while driving loyalty, engagement and even first-party data.

The purpose behind every contest, sweepstakes or instant-win game is to accomplish your brand’s specific marketing goals. That might be driving sales, gathering consumer preference data, acquiring users or building brand loyalty — but the success of any goal is dependent on your user experience, from registration to prize delivery.