If you publish a newsletter, consider declaring the winners in your newsletter. You can also perform a review of the winners' sites in your newsletter. This adds useful content to your newsletter and also gives more webmasters the incentive to apply for your award, since you may review their sites in your newsletter. This also gives them the incentive to subscribe to your newsletter to see if they win the award.
Make sure that you give awards to only those sites which deserve to win. If you give your award to sites which don't deserve it, your award will have little credibility, which will, in turn, hurt the credibility of your company. Furthermore, make sure that the logo you Design for the award looks professional. If it doesn't, not many webmasters will want to display it in their sites.
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