Cross-border prize promotions: from brief to execution checklist

A practical guide to planning, managing, and delivering successful cross-border prize promotions

Expanding a prize promotion beyond the local market is one of the most ambitious marketing moves a brand can make. But while they seem simple on paper thanks to social media platforms, cross-border prize promotions are rarely easy to run.

The main reason for this is that each jurisdiction you enter means new legal rules, tax requirements, and cultural expectations. Add in the fact that you’ll likely need to ship prizes overseas, and you realize that you need a solid international contest execution plan.

The key is having a proper structure and knowing what you need at each step, and we’ll take you through the main checklist from an international perspective.

Building the campaign brief

Your brief is the backbone of your campaign, so you need to ensure it’s well-structured and captures all key items. Otherwise, you can end up with a popular campaign that doesn’t really achieve the specific goals you were aiming for.

Here’s what you need to capture at this stage:

• Have clear objectives: What’s the purpose of your campaign beyond the entries? Are you creating awareness in a new market or looking for international first-party data?
• Identify your target markets: There’s nothing like a global campaign, so list every country you want to operate in. This will shape decisions around the legal requirements and prize delivery.
• Shape your prize strategy: An item that appeals to a certain region may not work in another, and it can even be illegal. In the strategy, factor in the prize value, cultural relevance, and the logistics.

Apart from these, ensure that your budget also goes beyond the prize and marketing to things like professional translations for terms and conditions.

Navigating legal and compliance

This is the stage where cross-border prize promotions become complicated. You need to comply with the rules of each country you’ll operate in, and they vary greatly. If you miss some little details, you can be fined, or your promotion can be banned.

So:

• Ensure you understand the local regulations, from registration requirements to chance vs. skill and prohibited prizes.
• Identify the taxes and other financial requirements you may need to abide by.
• Draft localized terms and conditions based on the requirements of each jurisdiction.
• Understand the data privacy laws you need to abide by in every region.
• Impose strict age qualification requirements based on local laws.

This is where most promotions fail in compliance checks, so it’s always recommended to enlist professionals who understand the international promotion rules.

Setting up the promotion mechanics

The mechanics play a huge role in cross-border prize promotions. Not just in the general aspect of promotion success, but also for compliance reasons.

The main consideration here is chance vs. skill. In most jurisdictions, chance-based promotions are permitted, but they are tightly regulated as they come close to lotteries in terms of operation. The specifics also vary by country, so you need to ensure your promotion isn’t categorized as an “illegal lottery” and banned. 

These also go along with the entry methods. For example, purchase-based entries may be allowed in some countries if there’s an alternative free entry method, but they are strictly illegal in the US and many EU countries. Some jurisdictions also require random draws to be notarized or supervised by officials.

Handling prize fulfilment and logistics

If you run a successful promotion but don’t deliver (or are late) on the prizes due to unexpected customs and tax challenges, you may end up tanking your brand reputation. This means that you need a clear fulfilment plan for every country your promotion is in.

Start with the customs, duties, and taxes, as they vary significantly. A prize that sails through customs in one country may be heavily taxed in another, so budget and plan for that. Ensure you clearly state your import responsibilities in the T&Cs.

To minimize logistical challenges, you can also create a local sourcing plan in every country. This will need you to do some good homework, but it will help with faster delivery, lower costs, and fewer border risks.

Whichever way you go, ensure that your international prize promotion guide also includes a clear delivery timeline, tracking options, and support channels for winners. This will prevent uncertainty and foster a positive winner experience, something that will boost your image when showcasing the prizes after delivery.

Want to run international promotions without getting lost in legal or logistical pitfalls?

Partner with Promosfera for expert guidance and flawless execution. We have 19 years of experience in international promotions, and we can guide you through every step.