Giving away money to increase awareness

Stuart Elliott of the New York Times writes Tuesday about companies that have promotional giveaways where they give away money, and focuses on CNBC‘s $1 million stock portfolio challenge.

Elliott writes, “A cash giveaway can make sense ‘when it connects in the consumer’s mind to the brand’s purpose,’ he added, citing a contest sponsored by CNBC called the CNBC.com Million Dollar Portfolio Challenge. The first prize is $500,000 in cash, the second prize is $200,000, and the third prize is $100,000.

“’The prize money is certainly attractive,’ said Tom Clendenin, vice president for marketing at CNBC, part of the NBC Universal division of the General Electric Company. ‘But people like the opportunity to learn more about the market and about the cnbc.com site.’

“This is the third time for the contest, which was first played in spring 2007 and returned in spring 2008. The fall run began its make-believe trading on Nov. 17 and ends on Feb. 6, 2009.

“‘We’re trying to capitalize on the traffic to the site,’ Mr. Clendenin said, referring to the increasing number of visitors to cnbc.com, ‘as well as drive people to the site.’ The contest has ‘thousands of players,’ he added, declining to be more specific.”

Read more here.