Contests and giveaways can create all sorts of interest in your company and its products. There are many ways to promote contests and giveaways, though, and there's some debate over whether it's better to use an email newsletter or a more open method.
Suppose you put up posters, make an announcement on your blog or website, and generally shout through a proverbial bullhorn. A lot of people will show up to see what's going on. The trouble is that they may disappear again once the event is over, and you could be left where you started (or due to a giveaway, with even less stuff).
So it may be better to use something like a newsletter, where the only people who will receive a heads up are people who already have some sort of relationship to your company. They're more likely to buy stuff or pay for your service than those random rubberneckers. And their word of mouth may spread to a few more choice individuals.
People in different industries will probably have to come to their own conclusions on this matter; there might not be a universal "right" answer. The product or discount that's at stake, along with the state of any given market, is bound make a great deal of difference.
Feel free to weigh in with your opinions and personal experience, and in any event, a hat tip goes to the Small Business Mavericks blog.
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