Study: Romanian consumers prefer the promotions with cash prizes

Cristina Blanaru Marketing

A study made by Mediapost Hit Mail – analyzing over 100 “send and win” campaigns made in Romania between 2005 – 2011, shows that cash prizes bring the biggest numbers of participants.

“Send and win” promotions are the ones in which consumers are sending, via a pre-defined channel (SMS, web, social media, voice, rarely postal services), a proof of buying a product and can win one or more prizes, following a draw.

If in 2006 the web percentage in promotions was of 8%, it started to grow (51%)  from 2008, maintaining at 54% in 2010 and 2011.

In the same time, validation rate started to grow in the mentioned promotion: from 60% in 2006 to 94% in 2011. Validation rate is higher when an unique code system is used (94%) compared to the one without an unique code (62%).

Acording to the study:

  • the medium number of entries per consumer per campaign is 4 times
  • the participation rate in promotions varies with the regions they live (number of entries reported to the number of area inhabitants): Muntenia and Dobrogea (+17% higher than the average), București/Ilfov (+12%), Transilvania (+4%), Moldova (-3%), Oltenia (-28%)
  • the most attractive campaigns are the ones with a cash big prize – redemption rate is 49% higher then average when the prizes are cash and with 42%, respectvely 38%, lower than average when the prizes consist in cars or electronics.
  • when it comes of prizes evolution offered by “send and win” promotions, the general tendency is to decrease the total  value of prizes and to increase the value of the big prize
  • the best day when it comes of participating in promotions was Friday  (4.7% over the average), while the weakest day was Tuesdat (4.3% lower than average)

The study also identifies the most important factors that are influecing the entry numbers and redemption rates in a promotion: total number of participating codes (when there are codes on the product), total value of prizes, big prize’s value, total number of prizes, promotion’s period, media budget, the existance of repeted participation encouraging mechanisms.

Along with the study,  Mediapost Hit Mail also announced that it ended 2011 with an Euro 7.5M turnover, 28% higher than in 2010. The company is offering relational and multichannel direct marketing (direct mail, call center, email marketing, mobile marketing) services, database management, promotions logistics for consumers and retailers and mailbox flyers  distribution.

Mediapost Hit Mail, founded in 1997, is owned by French Post (60%) and Marian Seitan (40%). French Post became a shareholder in Mediapost Hit Mail in March 2009, through  Mediapost. Mediapost Hit Mail has offices in Bucharest and Cluj Napoca (Romania) and in Sofia (Bulgaria).