Online contests are popular these days, especially on platforms such as Facebook. But while they may seem like all fun and games, they can actually help online merchants increase consumer engagement - and generate revenue as well, according to Second Street cofounder Matt Coen. His company's platform has hosted more than 40,000 contests for more than 6 million players. Coen shares some tips on running successful contests on Facebook and other sites, and explains how they can also help retailers grow their email marketing lists.

Tell us a little bit about your company and about UPICKEM.

Matt Coen: Second Street is the leading provider of private-label, online promotions platforms. Our company was founded in 2007, and we have really made a name for ourselves in the world of local media - more than 2,400 of the nation's top newspapers, TV and radio stations use our platforms to power their contests, daily deals and photo ecommerce programs.

Over the past three years, we have steadily expanded our services beyond the media industry by partnering with reputable brands, which use our UPICKEM platform to run private-label contests.

UPICKEM enables our partners to create real-time contests including photo, video, sweepstakes, brackets, reality shows, national and local sports and more. UPICKEM contests help our partners generate revenue, increase consumer engagement and grow their email databases. To date, Second Street partners have hosted more than 40,000 contests for more than 6 million players on the UPICKEM platform.

From a technology standpoint, UPICKEM contests are created once and are seamlessly formatted to display on Facebook pages, websites, smartphones and tablets.

How did you get the idea for UPICKEM?

Matt Coen: In the late 90's, I met my business partner, Doug Villhard, while we were working in the New Media division of Pulitzer, Inc. Our time together at Pulitzer provided us with a front row seat to observe the challenges facing local media companies in the digital age.

We believed that media companies could position themselves as a destination for online promotions, such as contests, and developed UPICKEM to provide them with the technology to make it happen. As digital and social media have continued to evolve, companies, brands and ecommerce sites have become destinations for content in their own right, and UPICKEM contests have enabled them to do some of the same things as our media clients - increase revenue, increase engagement and grow email databases.

Why do retailers need UPICKEM, why not just run contests and promotions themselves on Facebook or their own website?

Matt Coen: According to Facebook rules, retailers need to use a third-party application to run contests on their page. Violations of Facebook's terms of service can lead to reprimands.

In addition, UPICKEM enables retailers to capture user data, such as demographic information and email addresses, which is a huge win for future marketing efforts. As a private-label solution, retailers can create UPICKEM contests with customized aesthetics specific to their brand. UPICKEM contests provide contestants with an immersive user experience that cannot be matched by standard Facebook pages or static websites.

What should online sellers know about running contests in order to drive traffic (and ultimately sales)?

Matt Coen: A well-executed contest can ignite passion within your community - more so than other forms of advertising and promotions. Contests, especially ones that feature user generated content, have a viral appeal that can help expose your site or store to people beyond your current base.

Contests can also help to grow your email database significantly, since most contests require user registration to participate. This is an important means of driving future sales, since outreach to these newly-acquired potential customers will keep them engaged with your offerings going forward.

What kinds of contests and promotions work, and what doesn't work well?

Matt Coen: Our partners have hosted a wide variety of successful contests in terms of both types and themes. There isn't one magic formula for success. In general, you have to know what will resonate with your target audience, and it helps to make the criteria for entry as accessible as possible to engage the largest number of people.

In general, a simple sweepstakes with a great prize is almost always effective, if promoted properly. User generated photo and video contests can also be tremendously successful because of their viral nature and niche topics.

Must merchants offer expensive prizes, and how effective are coupons or loyalty programs?

Matt Coen: Expensive prizes aren't necessary for a successful contest, but prizes have to be desirable. Sometimes recognition is the greatest prize of all - particularly in user generated formats. For example, the winner of "Cutest Pet" contest is likely going to get a bigger kick out of seeing their dog gain recognition than winning a gift card.

As for coupons, we encourage contest sponsors to send coupons to every contest registrant. Coupons are a great way to thank users for participating, drive additional engagement and keep them coming back.

Are UPICKEM promotions best for getting new visitors to a website, or engaging existing customers, and how does it translate into sales?

Matt Coen: UPICKEM contests are a great way to engage current customers and reach new ones. Contests give merchants something exciting to share with their existing community, and the viral nature of contests encourages consumers to share stories with their friends and can help expand a merchant's digital reach. We've already touched on how UPICKEM contests can help users expand email databases - those lists are the gift that keeps on giving. The bigger your email database, the more success you can expect with future contests, promotions and sales offers.

What information do you recommend and/or require your clients to collect from participants?

Matt Coen: We recommend that you keep registration simple. Prioritize the information that is valuable to you, but keep the barrier to enter low. That being said, people are more willing than usual to share information when participating in a contest. UPICKEM is a completely privately label platform; meaning our clients own 100% of the data they collect.

How much should retailers spend on this kind of promotion versus advertising and marketing?

Matt Coen: Running contests on UPICKEM is affordable and drives great ROI, leaving plenty of room to spend money elsewhere - such as advertising and PR. We also encourage our partners to focus on promoting their contests. This does not necessarily mean spending money on paid advertising. Most ecommerce sites already have a host of promotional assets at their disposal that can be deployed to support their contests and increase user participation - such as prominent placement on their websites, social media communications on Facebook and Twitter and e-blasts.

Where can they learn more about UPICKEM, and what are the costs involved?

Matt Coen: Our partners license UPICKEM for a flat, monthly fee - for as low as a couple hundred dollars a month - which enables them to run an unlimited amount of contests throughout the year.

You can find more information on the SecondStreet website.