Customers love having the chance to win those big prizes—it’s the same thrill they get when playing the lottery or gambling, but with less social stigma and guilt involved. This is because (depending on the mechanics) they’re not just buying a paper ticket—they’re buying a product that they’re actually going to use, and a chance for greater rewards beyond that. Even if the customer doesn’t win, they’ve still gotten a neat product out of the exchange.
Brands get the better end of the deal by far. Well-run contests manage to do multiple things at once, all of which are extremely beneficial to the brand: