Prize - something the consumer receives if declared the winner (trips, merchandise, things with monetary value, things with intrinsic value.)

Chance - anything that is beyond the control of the participant (random drawing, instant win.)

Consideration - any cost associated with winning (purchasing a product, costs to participate such as text message fees, completing surveys, visiting retail establishments, telling friends, downloading files, etc.)

A lottery, which is prohibited by criminal law, combines all three of the above elements. A sweepstakes has prize and chance, but no consideration. A contest involves prize and consideration, but no chance.

Advantages of Sweepstakes, Games and Contests

• Reinforce brand image.
• Create excitement and attention.
• May encourage purchase.

Disadvantages of Sweepstakes, Games and Contests

• Can cause consumer saturation.
• May not produce measurable incremental sales.
• Can be skewed by professional entrants.
• May have high judging costs.

Source: PMA