Contests are used by bloggers to get extra exposure. This is proved simply by me making this post:
CarlOCab is running a contest to celebrate his blog turning 1 
and to do so he has been very smart. Instead of putting up his own money or prizes, he has contacted lots of people and asked them to submit a gift. I have put up a 1 month 125*125 banner ad spot valued at $50.
He is awarding ‘tickets’ for part taking in actions. I am linking to the post and also chasing package 7 so am linking to Bloginads Website! This is a clever contest as it gets exposure for the people and blogs that take part as well as huge exposure for Carl’s blog. how much does it cost him? – time… that is all. If you are willing to spend the time to get a contest together, then go for it and start boosting the incoming links and traffic to your blog!
I plan on running a contest in the near future when I am ready for more mass exposure to my new, little blog 
Head over to CarlOCab and get your entry in as well
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Let ye be heard ↓