Experts Urge Brand Managers to Reassess the Real Value of Risk-Insured Prize Promotions

I’m talking about risk-insured prize promotions. You know what I am referring to… bold headlines promising “millions in prizes,” “guaranteed rewards,” and other shiny phrases designed to catch the consumer's attention. And to be fair, they do. These promotions often look fantastic on a billboard or social media banner. But peel back the layers, and I believe a different story starts to emerge, one that’s not doing your brand any favours.

Here’s my concern:

These campaigns advertise massive prize pools, but the actual number of meaningful winners is usually tiny. We're talking odds of 1 in 500 or worse. Why? Because the risk companies behind these promos build formulas that deliberately ensure the vast majority of the advertised prize money will never be paid out.

That’s the entire business model: structure the mechanics in a way that protects the budget, by making the odds of a big win so small it’s virtually impossible. The headline might say “millions in prizes,” but the fine print and the math, guarantees that most of those millions will never get to the consumer.

In other words, the headline isn’t just optimistic. It’s not truthful.

And to me, that’s not the kind of competition that builds loyalty. It’s the kind that leaves people feeling flat and misled.

A useful comparison is the infamous “Spell & Go” campaign by Walkers Crisps in the UK. It promised 20,000 holidays. Millions entered. But a handful of winning letters were so rare that hardly anyone completed the puzzle. The campaign ended in complaints, reputational damage, and a wave of disillusioned customers.

I’m starting to see similar sentiments surface locally.

More and more South African campaigns are built around the same risk-managed structure. They feel safe from a budgeting point of view, but they chip away at consumer trust with every disappointing interaction.

At Techsys, we’ve always believed that the best promotions are the ones where consumers feel like they’ve been treated fairly. That doesn’t mean every campaign has to give away millions. But if you’re offering something, make sure it’s real. Make sure the odds are reasonable. And make sure the reward matches the effort required to get it.

So, to the brand managers and marketers reading this:

If you’re planning your next big promotion, take a moment to look past the shiny headline. Ask yourself how it will feel for the person on the other side. Will they feel delighted? Or disappointed? Because in my experience, the best promotions reward customers - they don’t mislead them. And trust, once broken, is a lot harder to win back the second time.