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Written by Derek Aten | 4/22/2022

In the last couple of years, I have talked to many eCommerce merchants, influencers, and creators about their Marketing strategies. The most common overlaps to marketing strategy are that companies are spending between 10% to 15% of NET revenue on paid ads. The marketing spend is distributed between Google, Instagram/Facebook, and TikTok. The ROAS (Return on Ad Spend) is between 1.5 and 3.5 ROAS. When I ask about Giveaways, the majority of response is that they have not done a giveaway and don't have any plans for the future.

One of KillerMerch's clients 'Danny Duncan' is a well-known content creator. For the last two years, he has given away a Tesla during the last month of the year. The way to enter the giveaway is by signing up for his newsletter or making a purchase. Every purchase is an additional entry to the giveaway. Danny decided to add an additional giveaway this month.

For the month of April, customers have a chance to win a mystery container that is worth up to $50K. In the first week of April, the giveaway was announced through social media and email marketing. There was no paid advertising or google ads enabled. The sales increased by 60%, the conversion rate increased by 33%, and social referrals increased by 434%.

The second week, Danny Duncan releases a video on Sunday at 8:00 PM PST. Instead of the traditional announcement about the giveaway, he did something special. The Tesla giveaway in December was ready to be delivered to the winner. Danny's video captured the different events of him traveling through states in the Tesla and stopping at different monuments. When he reached the winner's house they were not home. Danny went to his school and picked him up. The video captured all the emotions of the winner, his mother, and all his classmates. Danny created an unforgettable experience that people only dream about. In part of the video, Danny mentions that he is doing another giveaway and this can be you. In the second week, the sales increased by 208%, the conversion rate increased by 93%, and YouTube referrals increased by 2,438%. The giveaway has another two weeks for that lucky winner to meet Danny and receive a mystery container.

There are many different components that made this giveaway campaign successful.

  • Danny Duncan created an unforgettable experience. 

  • KillerMerch managed, implemented, and marketed the giveaway.

  • Shopify - Danny Duncan's website is on the Shopify Plus platform. During the bursts of traffic when he released his video, the Shopify architecture gracefully scaled to meet the traffic demand. 

  • Rebuy - The website uses Rebuy a personalization application that displays products that match the user's behavior. There are many areas of the website that recently added the personalization widgets that increased the conversion rate and sales. 

  • Email and Social announcements of the giveaway. 

Based on the mystery container that is worth over $50k, Danny has already crushed the ROAS goals that he would have seen using paid advertising. Paid marketing is a great lever to use on a monthly basis. Moral of the story: don’t underestimate the power of giveaways.

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