Many internet surfers think video advertisements are an annoyance to be avoided, but Loffles.com is founded on the idea that the right incentives will not only convince Web users to sit through videos, but it will even get them to pay attention.
In exchange for watching video advertisements and answering a question afterward (to prove they really listened), Loffles users are entered into contests to win gift cards and prizes. Users also earn online points, called Loffles (a blend of “lottery” and “raffle”) to spend on items in the Loffles store.
Loffles Founder and CEO Brandon Yoshimura, a Brown University student, took off his final semester of college last spring to start the business, attracting $500,000 in funding and expanding to six employees. In its first month, Loffles has registered nearly 2,500 users, and the site awards prizes to five to 10 players a day.
Brandon spoke to PBN about the Loffles business model and told the story behind its cartoon logo.
PBN: What experience did you have with technology and business before you founded Loffles?
YOSHIMURA: I worked with a friend who founded Jobzle (Walker Williams) for Rhode Island college students to find jobs. He helped guide me through a lot of the processes that go into creating a company.
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PBN: How do advertisers get their ads on the site? Is there a fee?
YOSHIMURA: Currently we are offering free pilots to new clients. Ultimately, we will charge per thousand impressions. An impression is only counted when a user in a preselected demographic validates his/her view through correct quiz responses.
PBN: On the Loffles blog, it says Loffles is “ushering in a new era of consumer identity” because Loffles users have more control over the personal information they give out to advertisers. Can you explain this further?
YOSHIMURA: In the past, consumer interactions with advertisements have been passive engagements. But in today’s world, consumers have access to a lot of different media channels and the ability to ignore or fast forward through advertisements.
At Loffles, consumers actively choose to enter contests for products that interest them. They indicate interest in a brand and choose to engage with its media.
We don’t ask consumers for their information for social networking purposes and then bombard them with flashing banner advertisements, pop-ups, and overlays. We capture a few data points to make sweepstakes recommendations and then allow consumers to opt into relevant brand media.
It’s a system that acknowledges the options a 21st-century consumer has and subsequently empowers them to engage with content as they see fit.
PBN: What is the story behind the Loffles bunny logo?
YOSHIMURA: Loffles is all about winning contests through brand interactions, so we wanted to emphasize the idea of getting lucky at Loffles. One of the symbols we employed in our pre-launch landing page was a rabbit missing one paw. The other paw, the lucky rabbit’s foot, was designated for our users.
After we launched, we decided to keep the bunny but also give him his lucky paw back. He has been a lot happier since then.
PBN: Now that Loffles has launched, what are your plans for the future? Will you stay in Providence?
YOSHIMURA: Our plans are to continue working to establish Loffles as the No. 1 destination site for branded online contests. We’re going to be launching new marketing campaigns and brand ambassadorship programs in the next few weeks, as well as some really exciting sweepstakes for trips and luxury items.
We’re also working on different business solutions for the Loffles technology and expanding our mobile capabilities.
We have offices in both Providence and Philadelphia and are not currently seeking to relocate.
