The difference between a prize game and a contest

What is a prize competition and what is a prize game?

You can often meet on social networks, the so-called "giveaway", posts where something is given away and it is necessary to fulfill certain defined conditions.

One of the more popular ways of building an online community on social platforms is certainly prize games or contests. When designing how to increase the attention of users, a decision is always made to give something that will surely attract users, especially if the conditions for participation are simple.

However, precisely because of this, we often come across all kinds of contests and prize games that do not comply with the prescribed laws of the Republic of Croatia.

Prize games

• they are done to promote products and services
• contain elements of happiness
• the organizer of the prize game is a trading company or other legal and natural person, an entrepreneur registered in the trade register or the register of the commercial court in the Republic of Croatia
• it is necessary to report the lottery to the competent ministry
• the rules of the prize game are the conditions under which the prize game is organized, and are applied after the approval of the Ministry of Finance
• it is necessary to work according to the prescribed laws of the Republic of Croatia
• the fee is 5% of the total prize fund that the organizers pay before issuing the approval in favor of HCK
• prize pool - goods or services that cannot be exchanged for money
• the organizer of the contest assigns the winners of the prize games by random selection, in accordance with the rules of the prize game
  
  

Contest

• accepts elements of creativity
• he does not have to apply to other institutions
• it is necessary to write the rules of the prize contest - who organizes the prize contest, the exact duration, how to participate, what the prizes are and when the winner will be announced
• what exactly can be won - the prize must be described in detail
• ensure fair play for all users
• emphasize who can participate
• example: best picture, best comment, etc.

Which is better?

1. There is a difference between a raffle and a contest
   1. The prize draw - contains an element of luck, and it is necessary to report the draw to the competent ministry, pay something to the Red Cross and other things prescribed by the law of the Republic of Croatia
      1. example: "we will draw a lucky winner"
   2. Award competition - based on creativity, so you don't have to apply to other institutions, it's enough just to write the rules of the competition
      1. examples: best comment, best picture and so on
2. How to behave during the prize game/contest?
   1. Be ready
   2. Monitor responses regularly
   3. Be sure to promote the post with likes
3. Pay attention to "fakers"!
   1. "bounty hunters"
   2. Users who have hundreds or thousands of different profiles
   3. A big problem with games based on likes.

Also, it is prohibited to condition Share as part of the prize game, while comments and likes are acceptable for conditioning. Although it is often assumed that they are not too important because everyone does it anyway, Ilija does not advise engaging in such things because one report is enough to earn a fine.

When should a prize game be chosen and when should a contest be chosen?

In most cases, a prize game is a better mechanism for a simple reason – it is a transparent type of promotion that provides an equal opportunity to win prizes to all participants who meet the conditions set out in the rules.

Raffles are used to increase sales, brand awareness and attract new customers or users.

One of the goals may be to reward existing, loyal customers. We often receive an email from the winners thanking them for the award, in which they write how happy they are to have been awarded because they "love our biscuits" or "have only bought our coffee all their lives".

Each platform also has its own legalities, which it is good to study before conducting the prize competition. For Facebook, read the conditions here, and for Instagram here.

Expect the unexpected

During the duration of the prize game or contest, be prepared for various unpredictable situations, regularly review the answers, watch out for fake profiles and "prize hunters", promote the post through likes.

Also, inform users when and in what cases their personal data is collected. You may not collect the user's personal data without their consent, i.e. without writing it to them in the terms of the prize game or contest.

Contests are good for increasing interaction on social networks, and for this purpose they are used by larger companies aware of all the challenges in implementation.

Remember: Conditional Shares are prohibited as part of the giveaway while likes and comments are acceptable. When setting the terms of the prize draw, pay attention to the prescribed laws, because in some cases one report is enough to get a fine, and nobody wants that, right?