The $1 million prize just became chump change.
Backed by Dallas-based promotion guarantor SCA Promotions, online contest site Grab.com launched last month with a contest dangling what is considered to be the biggest payoff in history: $1 billion.
Visitors to the site select seven numbers from one through 77 or have their picks randomly selected for them. They then submit their e-mail and home addresses, select from a list of e-mail information services they would like to receive, and respond to an e-mail confirming their entry.
“No one has ever dared offer this large a prize before,” says SCA chairman Bob Hamman. But the company investigated and found “that it was indeed possible to offer this high a prize on an Internet contest.” SCA’s guarantee is being underwritten by National Indemnity Co.
Any ultimate winner will have to live at least 40 years to collect the whole bundle: the prize will be awarded in annual installments starting at $5 million and concluding with a $620 million payoff. The winner will have the option of accepting an immediate payment of $170 million.
The contest runs through Dec. 26.
Tampa, FL-based American Family Enterprises agreed to pay $32 million to settle several class-action lawsuits alleging that the company’s American Family Publishers’ sweepstakes mailings induced consumers to buy magazines to better chances of winning.
The deal has its own promotional twist: While plaintiffs will receive an average payment of $524, 10 names drawn at random will receive $100,000 each, according to published reports.
Valassis Communications, Livonia, MI, acquired the door-to-door sampling business of Alternate Marketing Networks, Grand Rapids, MI. The operation gives Valassis an opportunity to handle samples that it can’t distribute through its existing newspaper-pouch and direct-mail networks. The deal also included Internet-based software products that offer program tracking and data analysis.
Adidas, Portland, OR, renewed its FIFA World Cup sponsorship to include the men’s tournaments in 2002 and 2006, the women’s tourney in 2003, and the World Youth Championship in 2001, 2003, and 2005. The deal was brokered by FIFA’s marketing agency, ISL Worldwide.
Fetzer Vineyards, San Rafael, CA, signed an endorsement deal with Emeril Lagasse through which the celebrity chef will appear in radio ads and P-O-P displays and have his name attached to a future wine series. TLP, Inc., Dallas, negotiated the deal.
Walt Disney Co., Burbank, CA, and Pawtucket, RI-based Hasbro, Inc. signed a multi-year alliance through which the toy maker will create product based on future Disney-branded film properties and become the official toy and game company for Disney theme parks and resorts.
The North American Coffee Partnership, Purchase, NY, the six-year-old alliance of Pepsi-Cola Co. and Starbucks Coffee Co., rolled out a sixth flavor in its Frappuccino ready-to-drink coffee line. New Caramel Frappuccino will be included as part of the brand’s first-ever national packaging promotion.
GAINING FOCUS Maxxcom, Toronto, part of MDC Corp., acquired 60 percent of London-based Interfocus Network shortly after a management team bought the agency back from the Lowe Group. Interfocus, whose clients include Eddie Bauer and Microsoft, has billings estimated at $87 million. Chairman and ceo Matthew Hooper will remain in those posts.
RAPP UP Omnicom Group’s Rapp Collins Worldwide, New York City, acquired Seattle-based Innovyx, an e-mail service provider. Innovyx will become an autonomous unit of the Rapp Digital interactive division. David Townsend remains ceo.
MADE TO ACQUIRE Promotional apparel company MadeTo-Order.com, Redwood City, CA, purchased Shea Hammond, a Palo Alto, CA-based creative services firm. The acquisition gives MadeToOrder access to Shea’s services and its client base, which includes Cisco Systems, Clorox, IBM, and Sun Microsystems. Shea ceo Lisa Hammond becomes MadeToOrder’s vp-merchandising.
CANADIAN BACON Paris-based Havas acquired Vickers & Benson, Toronto, which handles advertising, direct marketing, and interactive operations for British Airways, McDonald’s, Ralston Purina, and other clients. Revenues at Vickers & Benson are estimated at $20.9 million.
PUBLIC AFFAIRS New York City-based p.r. agency Bratskeir & Co. was acquired by Margeotes/Fertitta & Partners. Bratskeir has estimated billings of $4.5 million and a client list featuring Chiquita, Hasbro, and 1-800-Flowers.com.
NEW CURE WPP Group, London, acquired a minority interest in Medical Broadcasting Co., Philadelphia, an agency that provides digital marketing services to pharmaceutical and healthcare clients. The new unit becomes part of WPP’s CommonHealth, Parsippany, NJ.
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