on Self Publishing Advice:

Winning a major book award is a clear indicator to the book-buying public of a book’s worth, at least as perceived by the judges of that prize. A prize—winner or even a shortlisted runner-up sticker on a book cover has the power to boost sales.

The top literary prizes are very high profile, making news headlines many times over whenever they are awarded, increasing awareness, branding and notoriety around the book and author. Many other benefits may be gained beyond the winner’s cash prize—$15,000 for the Pulitzer, £50,000 for the Man Booker, and a staggering (Swedish Kronor) SEK8 million (US$1.2 million, €0.93 million, £0.6 million) for the Nobel Prize for Literature. For example, the winner may expect to accrue increased sales in their home market, new or extended contracts from overseas, sales of translation rights, higher advances for future commissions, and greater visibility for their backlist.

Announcements of long lists, short lists, winners, and the aftermath all provide valuable publicity for those authors lucky enough to be involved.

At the other end of the scale are the many awards set up in recent years to capitalise on authors’ desire to be award-winning authors. If you’ve considered submitting your book, you’ll know the book awards landscape is littered with high fees, small rewards, and poor transparency.