Using a Giveaway to launch a site selling physical product

Background:

I'm going to be launching a website in the near term selling a physical product. It's a high demand product which I have had pretty decent success in previous selling on eBay in the past.

Phase I is the pre launch sign ups, maybe run for 3-4 weeks. My goal is to build a list of at least 10,000 subscribers and start to engage folks on social platforms.

Phase II is Launch day, I giveaway a coupon, giveaway the actual item (Which is a $200 value, branded item related to the niche) and hopefully get sales

Phase III is maintenence based marketing/advertising and possible running addition giveaways to drive more members to the list.

Originally I set out to advertise on FB pointing at the giveaway form since I can target a specific audience. But according to FB estimator tool (Is it even accurate?) on 50dollars a day with a reach of 3M I'm projected to receive 17-35 clicks.. per day. That's horrible in my opinion.

I'm thinking about going the display advertising route using a media buy company.

In your expertise, what is the best method for this? It seems google/facebook PPC is a waste. What companies are pretty solid. Yes, I have seen:

http://www.warriorforum.com/ad-netwo...c-sources.html

There is plenty of traffic out there in this niche, it's just finding the best source to expedite the lead generating.

My budget for this is $500/month

Thanks a ton.