Running Local Competitions and Giveaways on Facebook & Instagram: The Ultimate Guide for UK Businesses

Have you ever wondered why some local businesses in your area seem to be everywhere on social media?

One week it’s a bakery giving away a year’s worth of cupcakes, the next it’s a florist offering a free bouquet for tagging a friend.

These businesses aren’t just lucky—they’re using the power of local competitions and giveaways on Facebook and Instagram to get noticed, build excitement, and bring new customers through the door.

At Socially Spotted, we’ve seen first-hand how a well-run competition can transform a small business’s online presence.

It’s not just about free stuff; it’s about community, brand loyalty, and turning online engagement into real-world results.

If you want to boost your visibility, grow your following, and create a buzz around your business, this guide is for you.

Why Competitions and Giveaways Work for Local Businesses

Running a local competition or giveaway is one of the most effective strategies for increasing engagement and attracting attention on social media. Here’s why:

• People love free things: A relevant prize can get people talking, sharing, and tagging friends.
• You reach new audiences: Giveaways encourage sharing, which helps your business reach people who might never have found you otherwise.
• You build community: Competitions give your followers a reason to interact and feel part of your story.
• You drive real action: Whether it’s visiting your shop, signing up for your newsletter, or simply following your page, competitions can encourage the behaviours that matter most to your business.

According to Wishpond, brands that run social media contests see a 34% increase in new customers on average. That’s a huge opportunity for small businesses looking to grow locally.

Step 1: Set Clear Goals for Your Competition

Before you post anything, decide what you want to achieve. Some common goals include:

• Growing your follower count on Facebook or Instagram
• Increasing engagement (likes, comments, shares)
• Driving traffic to your website or shop
• Collecting user-generated content (like customer photos)
• Building your email list

Having a clear goal will help you design a competition that delivers results, not just likes.

Step 2: Choose a Prize That Appeals to Local Customers

The best prizes are those that appeal directly to people in your area and reflect your business.

Think about what your ideal customer would love:

• Gift vouchers to spend in your shop or café
• Free products, meals, or experiences
• Tickets to a local event
• Bundles with other local businesses (for example, a “Night Out in [Your Town]” package)

Pro tip:
Partnering with another local business for a joint giveaway can double your reach and introduce you to a whole new audience.

Step 3: Pick the Right Competition Format

There are many ways to run a competition or giveaway on Facebook and Instagram.

Here are the most popular (and effective) for local UK businesses:

• Like and Comment to Enter: Ask people to like your post and comment with an answer to a fun question (e.g., “What’s your favourite cake flavour?”).
• Tag a Friend: Encourage participants to tag a friend who might love your business (but don’t make this a requirement, as per platform rules).
• Share a Photo or Story: Invite customers to post a photo using your product, tagging your business and using a unique hashtag.
• Caption This: Post a funny or interesting photo and ask for the best caption.
• Check-In or Location Tag: Ask people to check in at your business or tag your location for a chance to win.

Example:
A local pizza shop could run a “Best Pizza Selfie” contest, asking customers to share a photo with their pizza and use #PizzaIn[YourTown].

Step 4: Write Clear Rules and Terms

Transparency builds trust and keeps you legal. Every competition post should include:

• How to enter: Be specific (e.g., “Like this post and comment below with your answer”).
• Who can enter: Age and location restrictions (e.g., “Open to UK residents aged 18+”).
• Start and end dates: Include the time and time zone.
• How the winner will be chosen: Random draw, best answer, etc.
• Prize details: What’s included and how to claim.
• Disclaimer: State that the promotion is not sponsored or endorsed by Facebook or Instagram.

Sample wording:
This competition is open to UK residents who are 18 years or older.

To take part, simply comment below with your favourite item from our menu.

Entries will be accepted until 8pm on 30th June 2025.

The winner will be selected at random and announced on this page.

Please note, this giveaway is not sponsored, endorsed, or administered by Facebook or Instagram, nor is it associated with them in any way.”

For further information on running competitions legally, you can refer to guidance from Legal Foundations and Peacock & Co Solicitors.

Step 5: Follow Platform and UK Legal Rules

Facebook and Instagram have specific rules for running competitions:

• Don’t require sharing or tagging as a condition of entry: You can encourage it, but not make it mandatory.
• No inaccurate tagging: Don’t ask people to tag themselves or others in photos they’re not in.
• Always include a disclaimer: As above, state that your contest isn’t affiliated with Facebook or Instagram.
• Comply with UK law: Your competition should be free to enter or involve a skill element to avoid gambling regulations. Provide clear terms and conditions.

For more details, see Social Media Exec’s guide.

Step 6: Promote Your Competition

A great competition deserves an audience! Here’s how to get the word out:

• Pin the post: Keep your competition at the top of your Facebook page.
• Share in local groups: Post in community Facebook groups (if allowed).
• Use Stories: Remind your Instagram followers with Stories and countdown stickers.
• Email your list: Let your newsletter subscribers know about the giveaway.
• Collaborate: If you’re partnering with another business, both of you should promote the contest.

Boosting your post:
A small budget for Facebook or Instagram ads can help your competition reach more local people.

Step 7: Choose and Announce the Winner Fairly

• Use a random winner picker tool or app for transparency.
• Announce the winner publicly (unless they request privacy).
• Deliver the prize quickly, and if possible, share a photo of the winner (with their permission) to build excitement for future competitions.

Step 8: Keep the Conversation Going

Don’t let the buzz die down after your giveaway ends:

• Thank everyone for entering and invite them to follow you for future updates.
• Share some of the best user-generated content from the competition.
• Run regular “mini-giveaways” or flash contests to keep your audience engaged.

Real-World UK Examples

• Cupcake Coffee Box (Scotland): Their Facebook giveaways of coffee shop vouchers resulted in over 10,000 post engagements and a huge increase in page reach.
• Great Lakes: Grew their Facebook fans by 200% in three weeks with a well-promoted, relevant giveaway.
• Hot Devil: Weekly sweepstakes pinned to their Facebook page kept their audience engaged and coming back for more.

For more inspiration, check out Easypromos’ real-life examples and Wishpond’s contest roundup.

Best Practices for Maximum Impact

• Make it visual: Use eye-catching graphics or videos for your competition post.
• Be authentic: Show your team, your shop, or your products—people connect with real stories.
• Engage during the contest: Reply to comments, thank participants, and keep the excitement high.
• Measure your results: Use Facebook and Instagram Insights to track engagement, reach, and new followers.

FAQs

Are competitions and giveaways allowed on Facebook and Instagram?

Yes, but you must follow each platform’s rules and UK legal requirements.

Always include clear terms, a disclaimer, and avoid requiring shares or tags for entry.

What are the best prizes for local competitions?

Prizes that are relevant to your business—like gift vouchers, products, or exclusive experiences—work best.

Partnering with other local businesses can make prizes even more appealing.

How do I pick a winner fairly?

Use a random winner picker tool or app, and make your process transparent.

Announce the winner publicly and deliver the prize as promised.

Do I need terms and conditions for my competition?

Yes. You must provide clear rules, eligibility criteria, how to enter, start/end dates, and how the winner will be chosen.

This protects both your business and your entrants.

Can I ask people to share or tag friends to enter?

No. Facebook and Instagram prohibit making sharing or tagging a requirement for entry.

You can encourage it, but not require it.

Conclusion

Running local competitions and giveaways on Facebook and Instagram is one of the smartest, most cost-effective ways to grow your brand, engage your community, and drive real business results.

By setting clear goals, choosing the right prize and format, following the rules, and promoting your contest creatively, you can turn a simple giveaway into a powerful marketing tool.

At Socially Spotted, we’re here to help UK businesses make the most of social media—so if you’re ready to launch your next big competition, let’s make it a winner!