What is the difference between contests, giveaways and sweepstakes?
When should we call a campaign a contest, and when is giveaway the more appropriate term?
Is there a difference between Instagram contests, Facebook contests, giveaways and similar promotions?
Let’s make it clear.
First, both contests and giveaways in Italy can be classed as prize promotions and governed by the relevant legislation, DPR 430/2001 and its accompanying FAQs).
What is a contest?
A contest is a prize promotion involving participant skill.
For example, in a photo contest where a panel awards prizes for originality, uniqueness and meeting the brief set out in the terms, the winner is rewarded for fulfilling that brief better than other participants.
The result is based on merit rather than chance.
What is a giveaway?
A giveaway generally awards prizes through a random draw. In US terminology, a chance-based promotion is commonly called a sweepstakes.
For example, an online promotion whose terms provide for a random draw among everyone who completes the entry form is a giveaway: chance determines the winners.
Some promotions combine both approaches, such as quizzes where only participants who answer correctly qualify for the final draw.
This combines skill, through the correct answer needed to qualify, with chance, through random selection.
