Social media is a numbers game. Brands are always on the lookout for innovative ways to grow their number of followers on social media and attract new customers. Aside from growing their follower count, brands must also have a high engagement rate. One way they can achieve this is by running occasional Instagram contests.
If you are a start-up business owner, you may be hesitant about running a contest. But in this article, we’ll teach you why brands take time to host a contest on social media and how to do it successfully. Plus, in this time and age, is it still worth it to run an Instagram contest? Keep reading for the answers.
Why You Should Host an Instagram Contest/Giveaway
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Instagram contests are incredibly popular across various markets, including Singapore, where digital engagement is among the highest in Southeast Asia. These contests have significantly risen, mainly due to their ability to generate engagement and boost follower numbers quickly.
According to HubSpot, brands that run regular contests on Instagram see a 70% increase in engagement compared to non-contest posts. Nearly one-third of Instagram’s top-performing posts are contests or giveaways. But is this the right option for your business?
Running an Instagram contest can be a highly effective marketing strategy for brands, but like any business decision, it comes with both perks and drawbacks. Here’s a breakdown of the key advantages and disadvantages:
Perks of Running an Instagram Contest
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1. Boosts Engagement and Reach
Contests naturally encourage followers to engage with posts by liking, sharing, and commenting. They also prompt users to tag friends or share the content on their profiles, increasing the brand’s organic reach. On Instagram, contests get 3.5 times as many likes and 64 times more comments than regular posts. This amplification effect can introduce the brand to new audiences who might not have encountered it otherwise.
2. Gains New Followers and Builds Community
Instagram contests often require participants to follow the brand’s account as part of the entry process, quickly increasing follower count. A study found that over 34% of new customers are acquired through contests. Over time, this can help foster a loyal community, especially if the contests resonate with the target audience’s interests.
3. Encourages User-Generated Content (UGC)
Many contests ask followers to create content—whether it’s sharing a photo, video, or a story using a specific product or theme. This generates fresh, authentic content for the brand and promotes deeper user involvement. UGC adds social proof and credibility, showing real people engaging with the brand.
4. Cost-Effective Marketing
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Compared to traditional forms of advertising, Instagram contests can be a more affordable way to achieve significant exposure. Prizes, often in the form of products or services already in stock, can serve as both the reward and the marketing material, making the investment minimal compared to the returns.
5. Strengthens Brand Awareness
Contests provide an opportunity to reinforce branding. By encouraging users to share posts using branded hashtags or featuring the brand in some way, companies can spread their message widely while making their logo, product, or ethos more recognisable to a broader audience.
6. Increases Website Traffic and Sales
Contests often drive traffic to the brand’s website, especially if entry requires visiting a landing page or signing up for an email list. Contests that offer product samples or vouchers as prizes can also incentivise immediate purchases, helping to convert participants into customers directly.
Cons of Running an Instagram Contest
1. Short-Term Follower Growth
While contests can lead to a rapid increase in followers, this growth can sometimes be temporary. Contest-only followers may lose interest once the promotion ends, leading to unfollows or low engagement from a portion of the new audience. This “quick-win” approach doesn’t always translate to sustained, quality engagement.
2. Risk of Low-Quality Engagement
Some participants enter contests solely for the chance to win a prize, not because they have a genuine interest in the brand. This can result in superficial interactions or even spammy comments. The contest might attract people more interested in giveaways than in the brand’s products or values.
3. High Competition
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Instagram is flooded with contests, making it harder for any contest to stand out. On Google alone, an estimated 132,000 people look for “giveaways” every month. A poorly executed or generic contest might get lost in a sea of similar promotions, leading to disappointing results in terms of participation and engagement.
4. Time-Consuming to Manage
Organising and running a contest can be time-intensive. It requires creating content, ensuring compliance with Instagram’s contest rules, answering participant queries, and selecting and announcing winners fairly. Managing a contest can consume more resources than anticipated if not planned well.
5. Legal and Compliance Risks
Contests must comply with Instagram’s policies and, depending on location, local regulations on promotions and giveaways. Failing to communicate terms, conditions, and eligibility criteria can lead to disqualified entries or even legal complications, which could tarnish the brand’s reputation.
6. Potential for Negative Feedback
The brand could face backlash if participants feel that a contest is unfair or not transparent—such as when there are unclear rules or the winner selection process is dubious. Negative comments or even complaints to authorities can harm the brand’s public image.
Instagram contests are a powerful tool for increasing engagement, building brand awareness, and driving traffic, but they must be carefully managed to avoid pitfalls. Singaporean brands, in particular, should follow local regulations and Instagram’s platform policies to maintain transparency and trust with their audience.
For businesses willing to invest the necessary time and effort, the rewards of a well-executed contest can significantly outweigh the challenges, leading to long-term brand loyalty and growth.
Are Instagram Contests Legitimate?
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Yes, Instagram contests are legitimate and highly effective for Singaporean brands, provided they adhere to both Instagram’s platform policies and local laws. Instagram itself encourages the use of contests to increase engagement, but the legitimacy of these contests depends on proper execution and transparency.
If you are considering running a giveaway on Instagram, here are some things you need to remember:
Following Instagram’s Rules
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Instagram has detailed rules and guidelines for running promotions, including contests. Singaporean brands must ensure that:
- No purchase or payment is required to enter the contest, as this could turn it into a lottery heavily regulated in many countries.
- Official contest rules are clearly stated, such as how the winner will be chosen and what the participants must do.
- Acknowledgement of Instagram’s non-involvement in the contest is made clear to participants, which is part of Instagram’s official guidelines for any promotions run on their platform.
- Compliance with local regulations on contests and sweepstakes is met, as the legal landscape may vary by country.
Compliance with Singaporean Regulations
In Singapore, contests and promotions are subject to specific legal requirements under the Remote Gambling Act, which regulates lotteries and certain gambling activities. To ensure that an Instagram contest is legitimate:
- The contest must not be structured as a form of gambling, meaning participants should not need to pay or offer consideration to enter.
- Contests should be skill-based rather than luck-based. A photography or user-generated content contest, where the winner is chosen based on the quality or creativity of their submission, is usually considered acceptable.
- If a contest involves a lucky draw or random selection, the authorities may require specific licenses.
- Local brands in Singapore, such as fashion retailers and lifestyle brands, often run successful contests without violating these regulations by focusing on user participation, creativity, or community engagement rather than randomised giveaways.
Maintaining Legitimacy
For Instagram contests to remain legitimate, Singaporean businesses should:
- Adherence to the Competition Act: Brands must ensure that their contests comply with the Singapore Competition Act, which prohibits anti-competitive practices. This means avoiding misleading or deceptive conduct in contest promotions.
- Set clear, transparent terms: Outline the contest rules, eligibility criteria, and prize details clearly. This transparency helps build participant trust and ensures compliance with consumer protection laws.
- Data Protection: Brands should comply with the Personal Data Protection Act (PDPA) when collecting personal information from participants. This includes obtaining consent before using any submitted content for marketing purposes.
- Follow through on promises: Ensure winners are selected fairly, and prizes are distributed as advertised. Failure to do so could harm the brand’s reputation.
- Avoid engaging fake accounts or bots: Some brands mistakenly allow bots or inauthentic engagement in their contests. This skews the results and could lead to distrust from legitimate followers.
- Seek legal advice if in doubt: If unsure about the legalities of the contest format, particularly when involving luck-based elements like random draws, it’s best to consult a legal expert in Singapore.
Instagram contests are legitimate for Singaporean brands as long as they comply with Instagram’s platform guidelines and local regulations. When executed fairly and transparently, these contests offer an excellent way to engage followers and boost brand awareness. Singaporean businesses must ensure that their contests are skill-based, non-gambling, and that the rules are clear to maintain legitimacy and trust among participants.
Common Pitfalls and Dangers of Running an Instagram Contest
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Running an Instagram contest can be a great way to boost engagement. Still, brands must navigate several pitfalls and dangers to ensure success and avoid negative consequences. Here are some common challenges:
1. Failure to Follow Instagram’s Promotion Guidelines
Instagram has clear rules for running promotions, which include contests. One of the most common pitfalls is neglecting to follow these guidelines. For example:
- Failing to include a disclaimer that Instagram is not involved in or sponsoring the contest.
- Not providing clear contest rules, including how to enter, how winners will be chosen, and eligibility criteria.
- Violating Instagram’s terms of service could result in penalties, including the suspension of the account.
2. Legal Risks and Compliance Issues
Different countries have specific legal requirements for contests, and failure to comply can lead to legal challenges. For instance:
- Some jurisdictions, like Singapore, regulate contests as a form of gambling under the Remote Gambling Act, requiring companies to ensure their contests don’t resemble lotteries or require licenses.
- Ensuring compliance with consumer protection laws, such as disclosing how personal data will be used, is crucial. Neglecting legal issues can lead to fines or legal actions.
3. Unclear or Unfair Contest Rules
Transparency is key when running a contest. If the rules aren’t clear, or if the process of selecting winners appears biased or unfair, participants may lose trust in the brand. This can lead to negative feedback, public complaints, or legal disputes.
- Unclear rules regarding participation, prize eligibility, or the selection process often frustrate participants, leading to backlash.
- If winners aren’t announced promptly or prizes aren’t delivered as promised, the brand’s reputation can suffer significantly.
4. Attracting the Wrong Audience
Contests often attract people interested in winning a prize rather than engaging with the brand. These participants may unfollow the brand after the contest, or worse, they may be inactive or spam accounts. This skews engagement metrics and reduces the quality of your audience:
- Contests may attract “prize hunters” who are unlikely to become loyal customers.
- Fake followers and bots could undermine the contest’s credibility, diluting its effectiveness.
5. Overlooking the Impact on Engagement Metrics
While contests can generate a temporary spike in engagement, they might not lead to long-term benefits. Some pitfalls include:
- A sudden increase in followers who don’t engage with future content can negatively impact the account’s overall engagement rate.
- Instagram’s algorithm favours accounts with consistent, genuine engagement. If contest entries artificially inflate numbers, future posts may receive less visibility.
6. Poor Prize Selection
Choosing a prize that doesn’t resonate with your audience can hurt participation rates. If the prize is too generic or irrelevant to your brand, participants may lose interest, leading to lower engagement:
- Offering unrelated prizes, such as generic gadgets or cash, might attract people not interested in your business or products, limiting the contest’s marketing potential.
7. Failure to Measure ROI
Running an Instagram contest requires resources: time, money, or products. Many brands fail to adequately measure the return on investment (ROI) from the contest, missing out on insights that could help improve future campaigns:
- Without clear goals (e.g., boosting sales, increasing website traffic), it’s hard to assess whether the contest was successful or worth the investment.
Running an Instagram contest requires careful planning and execution to avoid these pitfalls. By following Instagram’s guidelines, complying with local laws, and ensuring fairness and transparency, businesses can minimise risks and maximise the benefits of their campaigns. Proper prize selection, clear rules, and an understanding of engagement metrics are key to ensuring that the contest attracts the right audience and delivers measurable results.
Are Instagram Contests Still Effective?
As algorithms evolve and the platform becomes more crowded, the question arises: are Instagram contests still effective? The short answer is yes, but their effectiveness depends on how they are run.
Instagram contests will continue to be a powerful marketing tool in 2024, but businesses must be strategic and innovative in their approach. By adhering to best practices, understanding platform regulations, and exploring new formats like AR contests, companies can continue to use this dynamic tool to drive growth and foster community engagement. As digital landscapes evolve, so must the creativity behind these contests.
For business owners, leveraging Instagram contests is not just about giving away prizes—it’s about connecting with your audience authentically and engagingly, keeping your brand top-of-mind. Contact us today so we can create an effective plan for running Instagram contests on your social media account.
Frequently Asked Questions
What are the legal requirements for running an Instagram contest in 2025?
You must comply with Instagram’s promotion guidelines and local laws to run a legal Instagram contest. Instagram requires clear contest rules, a disclaimer stating that the platform is not involved, and a transparent method for selecting winners. Certain contests might also need to follow gambling laws or licensing requirements in countries like Singapore. It’s essential to check regional regulations to ensure compliance.
How can I ensure my Instagram contest is fair to all participants?
To keep your contest fair, set clear rules that explain how users can enter and how winners will be selected. Use random selection tools or clear, skill-based criteria to avoid bias. Transparency is key—make sure participants understand the terms from the outset. Also, avoid favouring influencers or large accounts, which can alienate smaller followers and damage trust.
What are the risks of attracting fake followers or bots in Instagram contests?
One of the most significant risks is attracting inauthentic followers, such as bots or people only interested in winning the prize. This dilutes the contest’s value and skews engagement metrics. To avoid this, focus on attracting participants who are genuinely interested in your brand by offering relevant prizes and requiring engagement, like user-generated content, instead of simple likes or follows. You can also monitor entries and use tools to weed out fake accounts.
Can Instagram contests boost long-term engagement, or are the results usually temporary?
While Instagram contests can give a short-term boost in followers and engagement, long-term results depend on how well the contest aligns with your overall marketing strategy. If the contest is well-targeted and offers value to your core audience, it can lead to sustained engagement. However, poorly planned contests may only result in temporary interest, followed by a drop in followers after the campaign ends.
What happens if I violate Instagram’s contest guidelines or local laws?
Violating Instagram’s contest guidelines can lead to penalties such as content removal or account suspension. If your contest violates local laws, you might face legal actions, including fines or other penalties, especially if you fail to comply with consumer protection regulations or gambling laws. To avoid this, always review Instagram’s latest rules and consult legal professionals to ensure your contest complies with local regulations.
