Here's a brief idea on how giveaways work. But beware, this type of advertising strategy doesn't suit all products so make sure your product fits the criteria before you start a campaign.

Introduce the product

Historically marketers have always considered giveaways to be an attractive way to boost product (or service) visibility. Consumers may not notice the product until they are presented with a free option. This is a great opening for a marketer to get their product in the consumers’ hands and let them take a proverbial test drive with the product or service.

This is especially true for new products or market segments. Giveaways are a prime chance to introduce new products to a current audience or introduce an old product to a new audience.

Visibility

When companies offer giveaways this typically draws a lot of positive attention. Generally getting something for nothing is alluring and consumers are often eager to receive a giveaway. If anything it reminds consumers of the product's presence on the market and reminds them of a reason to buy.

Even those already loyal to the brand will appreciate the giveaway; rewarding and retaining current loyal customers is just as important as attracting new customers. Giveaways provide that visibility to both audiences.

Customers who receive giveaways are likely to remember this act. Consumers are more likely to buy an item once they have a good idea of what they are spending their hard earned money on. Giveaways can effectively accomplish this.

Buy more products

Depending on the nature of the giveaway, consumers might be more apt to purchase other products while they are in the store. The giveaway may attract people into the store, and there is a good chance customers will buy other products, or at the very least, look around. Any visibility is a positive. Ideally a business wants 'window shopping' to convert to sales, but by at least seeing the products, this keeps the brand fresh in their minds.

Free samples and giveaways are a great way to promote a business and provide consumers with the opportunity to try a product. If the product (or service) is good enough, the item will sell itself in the future as customers generally love finding a decent product.