Marketing Powerball

Wednesday’s Powerball drawing is estimated to be worth $1.4 billion, a record.  On the surface—a massive payday for the winner or winners.

Some interesting facts we dug up courtesy of MarketWatch:

  • About 15% of the total is spent on marketing. All the broadcast ads, online marketing and more cost a pretty penny.
  • The $1.4 billion number is based on the winner taking his or her money in the form of a 29-year annuity.
  • The projected cash-option jackpot is a mere $868 million.
  • The biggest factor in choosing a payout option is taxes.
  • Lottery jackpots are fully taxable to the tune of 39.6%.
  • If the winner elects the $868 million cash payout, the federal income tax hit would be about $344 million.
  • The Fed withholds 25%. So at $868 million, the winner will pen a check for an incomprehensible $127 million.

Vision Critical recently published their findings on U.S. adult lottery players. The compelling truths:

  • 50% of Americans actively play the lottery
  • Enjoyment is cited by many lottery players, with 40% opting for non-cash contests.
  • 62% of 18 to 24 year olds enjoy playing non-cash lottery games.
  • Consumers still prefer to purchase lottery games in person
  • 78% of the lottery players choose to buy in-store vs. online
  • Only 75% of players believe that they will eventually win the lottery. Sounds like a lot–but that means that 1 in 4 people play realizing winning is unlikely.

Are you buying a ticket?

Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, and LinkedIn

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