I believe the original intent was to adjust video, but it works on all effects. The reason you're not really seeing a difference is likely because your effects are already at full brightness. Increasing contrast makes every pixel above 50% intensity even brighter, and every pixel below 50% intensity darker. The amount of contrast affects how much of this brightening and darkening. But if a pixel is already at full brightness, contrast will have no effect. Same for 0% brightness - no effect.
To more clearly see the difference, choose an effect that has the option box "3D." This will usually mean the color will fade to black in the effect. Without contrast it should fade very smoothly. With contrast added it will fade more abruptly.