From October 5, the overall prize fund will more than double, with the prize for three numbers increasing from £10 to £25 and the average Saturday jackpot rising from £3.9 to £5m.
There will also be a raffle every week where at least 50 winners will receive £20,000 each and the BBC1 show will be overhauled, with TV presenter Chris Evans brought in as the host.
These changes are designed to stimulate interest in Lotto, which has suffered from declining sales for a number of years. However, the price of a ticket is doubling to £2, a move dubbed by critics as a "tax on the poor".
The new game will launch with two special "event" draws on its first two Saturdays, where Lotto jackpots of £10m will be on offer and 1,000 raffle prizes of £20,000 will be guaranteed in each draw.
The ad push in support of the revamp will be spearheaded by a TV campaign based on the creative theme of a "new dawn".
Created by Abbott Mead Vickers BBDO, the ads start with the sun rising and feature 300 people singing a reworded version of Gilbert O’Sullivan’s 'Ooh-Wakka-Doo-Wakka-Day', while going about their daily business.
The campaign will introduce the new strapline, "Game changing. Life changing", to highlight the life-changing element of winning and how playing the game helps good causes.
A 20-second teaser TV ad breaks on Thursday 26 September. This will be followed by a 60-second spot on 28 September.
The radio, outdoor, digital and print executions will carry through the "new dawn" theme and deliver more tailored messages throughout the various phases of the game launch.
The digital side of the campaign will feature a YouTube "sing-along" competition where people can upload videos of themselves signing the new Lotto song, either by using the ad’s lyrics or by making up their own. The best entry will win £20,000.
Facebook users will also be able to create their own "Social Syndicates" by inviting nine other "friends" to join their syndicate and be in with a chance of winning £20,000 – making this competition the biggest cash giveaway to date on Facebook in the UK.