Advertize call-in contests on the radio

[colinmcmahon]

Ok so here's the idea.
Buy a 50" Plasma TV for 3000$
Put some ads on the local radio station for 3000$
Set-up a call-in phone number where each call charges the person 2$ per call. Have them call in to enter the contest.

The radio station has about 1 million listeners at any given time. Even if 0.8% of the listeners call the number you make 2000$ if you get 1$ per call after all applicable fees.


Whats your oppinion?

[akula]

The short answer is yes. This works and it's profitable.

Call in contests are such good money makers that all of Australia's commercial TV chanels have replaced their late night programming with shows like quizmania

Chanels 10, 7 and 9 all seem to be able to make more money from these things rather than advertising

All in all, there's lots of evidence that a suitably large portion of consumers don't mind paying 50c-$3 to enter into contests in an attempt to win cash and prizes....although cash seems to be more practical

Now....there's a number of important points which you can ask about

There seems to be a number of rules for how to launch sucessful call in contests, such as the choice of medium and the role of the host

In that sense, there is a question mark of whether these things will work on the radio or the net

[swantaylor]

Hi Colin

These competitions are very profitable and there are many rules involved (depending on country) it may not be as straightforward as you think otherwise everybody would be doing it. Akula mentioned money prizes and there are currently a couple of websites which offer this competition to win a £ 1.000.000 - one of them has been running since march last year and is failing miserably, the reason why is very obvious.

In 2005 the revenue for these premium lines reached 1.6 billion in the UK so the market is definitely there but do your research and make it different, there are thousands of competitions like this already you will have to make yours stand out.

[akula]

Also, a note on further advertising opportunities

Technology change: Change in technology always creates new opportunies for entrepreneurs. In fact, the question of timing is very important in terms of opportunity selection (i.e. Why is this venture possible now, as opposed to 5 years ago?).

With advertisng, the availability of affordable, lightweight LCD screens, as well as SMS and MMS technology creates a lot of opportunity for outdoors advertising startups.

The problem: Many venues, from concert halls, universities, corner shops, bus stops and practically any location with high human traffic, typically sufffer from undiversified revenues.

The solution: In the same way that Google created a $150billion market cap from enabling small publishers to monetise their content; startups that commercialise "Adsense for Offline" products will earn billions in helping venues monetise their human traffic.

Ideally, what I want to see is an entreprising young team slap up a network of leased LCD screens at a number of key locations, charge advertisers a set of rates for displaying messages through this network, and forward a cut of the revenues to who ever is hosting the LCD screens.

[adrizzle]

How can you charge them the money for each call? How will you get paid? Do you have to go threw the phone company or what?

[colinmcmahon]

I am trying to find out all the legalities behind this. It's something I want to pursue in Canada and the USA. I can't find out how to automatically charge ones phone though...

[akula]

so how are you gonna solve your problem?

[colinmcmahon]

Research, emails and phone calls. As usual

[akula]

and are you gonna get the usual results, or are you gonna create some value?

[Energie9]

Yea, here in Canada you get a lot of TV commercials now with the "text us with the awnser to the following question and win an xbox 360!" then they ask who makes the xbox and they charge $1.50 a text i think? I'm guessing these guys are making a killing!

[swantaylor]

Hi Colin

In Europe the Premium phone company will charge the customer and in turn after taking their cut pay you the balance. I have been working on something very similar for the past 14 months and there is allot of work involved more than you may think. You will have to check the laws in your country and taxes

[WhoYoDaddy]

In the USA...it would be considered a lottery. and would therefore be illegal

good idea...but a much better way to do it.

you can get a 10,000 prize underwritten by insurer, would cost you the same 3,000

also partner with other businesses, to pay the 3k

and then focus on pushing the people to sign up to some mailing list etc that would be valuable to the businesses partnered

sell something to the list, sell the list, have an offer on the backend of signing up

think "publishers clearing house"...people don't NEED to buy subscriptions to be entered...but a gangload do.

[adrizzle]

I dont think it's illegal because I see them on MTV and etc.

[WhoYoDaddy]

doubtful

3 things consideration, chance and compensation

your compensation is the 3000 valued prize

the element of chance is that its random

the consideration is they must make a phone call where they have to pay (900, 809 etc)


=====

what you normally see on MTV is a SWEEPSTAKES (which does not require entry fee or purchase)

You always see the disclaimer...

NO PURCHASE NECESSARY


the only way to CHARGE or have a PURCHASE for entry is to NOT have an element of random selection or "chance"....then its a CONTEST

which means that one person has to do something more, or better than another to win...or there is some sort of judging

MTV DOES NOT RUN LOTTERIES...I'm positive of that.