How giveaway marketing can lower acquisition costs

Van Oakes broke down giveaway marketing at AGS Rome 2026 on 03 November. The GOAT Media founder shared his approach in Leveraging 3x Cheaper Cost Per Acquisition Running A Giveaway on Day 1. He explained how prizes can lower customer acquisition costs. His approach pairs product sales with prize entries, giving shoppers another reason to choose a store. The audience built during the promotion then gives brands further opportunities through email and short message service (SMS).

Why shoppers choose your store

Oakes challenged the idea that dropshipping no longer works. “I hear it all the time, that drop shipping’s dead. I disagree heavily. Dropshipping still works.” He argued that the model has changed, with better products and fulfilment options.

He described using Shopify Collective to sell other brands’ products without holding inventory. In that setup, the supplier fulfils the order while the retailer promotes the store. For Oakes, choosing products with strong reviews and reliable delivery remains part of making the model work. The giveaway then gives shoppers another reason to buy.

That addresses a practical problem for retailers selling products available elsewhere. If shoppers can buy directly from the original brand, another store needs a reason to earn their business. Oakes uses giveaways to create that incentive, matching the prize to the audience. Cars, trucks and kitchen renovations featured among the examples he shared.

Replace discounts with extra entries

Oakes argued that giveaway marketing gives brands another option when discounts start eating into margins. So instead of reducing a product’s price, a store can offer additional entries with the purchase. The prize remains the same even when customers receive more entries. He presented that flexibility as a way to encourage purchases while protecting product margins.

He described one brand reaching $1.5 million in revenue within a month, despite having no previous sales. Its cart offered shoppers a $20 digital book that doubled their entries. He reported a 61% take rate for the upsell. Oakes said that digital offer generated around $500,000 during the campaign. The digital entries became a revenue line in their own right, on top of product sales.

Build content around the prize

Oakes centres paid advertising on the prize customers could win. That changes the message from another product advert to the prospect of winning something valuable. He urged brands to choose a prize their specific audience would actually want. A prize that appeals to one niche may hold little interest for another.

Influencers also play a central role in his approach because unfamiliar brands need to earn trust. Oakes argued that a relevant creator can make shoppers more confident that the giveaway will happen. He then emphasised the volume of content a prize can support, from walkthroughs to comedy sketches and winner reveals. He said footage of winners receiving their cars produced some of his strongest adverts.

Keep working the list after the draw

For Oakes, giveaway marketing continues after someone takes home the prize. He said prizes can lower acquisition costs because shoppers are more likely to buy when they have a chance to win. He said the customer list from his featured campaign later generated nearly $500,000 in revenue through email and SMS. “So, in essence, we got paid to build a list.” He encouraged brands to announce the winner, follow up with subscribers and introduce their next promotion.

He also argued that a giveaway gives existing customers another reason to return. “Now you’re giving them a chance to win something life-changing; they’ll buy again, trust me.” 

Oakes described the prize as a fresh message for people who already know the products. In his view, that creates more opportunities to encourage repeat purchases.

Oakes also told brands to address compliance before launching, including the rules governing entry. He described offering a free entry route and noted that requirements differ between markets. He pointed to registration, licensing and bonding as considerations when setting up a promotion. Brands need to investigate the rules of their chosen market before putting the campaign live, he said.

AGS Rome 2026 is presented by TrafficStars. It connects advertisers with premium inventory across global markets, offering both self-serve and fully managed campaign options.

Join us at AGS Rome from 02–05 November 2026 for more insights from affiliates, advertisers and performance marketers. Visit Affiliate Grand Slam for the full programme and event details.