Generally the Masquerades I have been to are judged both on Stage Presentation and Craftsmanship. A successful union of both is what will win the major awards such as best in class or best in show. Some competition split Masquerade awards into Craftsman ship and Performance category. This allows for someone to win based purely based on the craftsman ship.
Personally I have a lot of fun coming up with skits, blocking them out, recording the audio and presenting them. In the end if the audience has a good reaction to it then I've done a successful job. If you don't get enjoyment out of doing the skits or from the Masquerade culture in general then it may be best to stay with just the Hall Contest. If you are unsure I'd say try entering! Your skit / presentation does not have to be complicated or fill up all the time you are granted. You can do successful Solo performances, just don't make them too long =)
My cosplay goal is to one day have my closet look like Tomoyo's costume van from Cardcaptor Sakura.