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Trade Promotion vs Raffle | What's the difference?

What is a Trade Promotion?

A Trade Promotion is a free to enter competition that a business can run to promote their business. Companies can run trade promotions to showcase new product lines and increase consumer engagement with their goods and can provide businesses with a different way of reaching their target market, rather than resorting to traditional methods of reaching consumers. Trade promotions can be integrated into their favourite TV content, creating a more meaningful link between the product and the consumer.


Example: Seven Network | 7NEWS Coles Competition


Viewers were asked to watch 7NEWS on the Seven Network each weekday throughout the competition period and look out for each unique codeword advertised during a competition segment.


Once a codeword had been aired, viewers were then required to fill out the entry form created by Ansible and iframed into the 7NEWS website, with all details along with the corresponding registration period codeword to participate in the competition.


Now, what is a Raffle?

A Raffle can be described as any lottery, scheme or arrangement that involves the distribution of prizes, that do not exceed $30,000, via the sales of tickets followed by a one-off draw to determine the winner or winners. Raffles are a popular way to raise funds for charities/not-for-profit organisations, and are commonly conducted at a venue using tickets or marbles, or by utilising an electronic device.


Example: Penrith Panthers | Club Raffles


Throughout each week Penrith Panthers host a range of exciting Raffles! To be in with a chance to win a share of $2,000 worth of gift vouchers, people were asked to purchase tickets into the raffle, for example $1 for 6 numbers/tickets. A draw would then take place in venue on that same day.



So what's the difference?

A feature that can help you distinguish a Trade Promotion from a Raffle is that a Trade Promotion is free to enter (except in the case of Football tipping competitions), and is often run for commercial purposes not fundraising purposes. Dependent on prize value, trade promotions also require permits while a raffle does not always. However, it is important to always comply with all rules and regulations no matter the type.

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