The Prepaid Press - March 2009 - (Page 20)

GIFT CARDS & PROMOTIONS March 15 · 2009 - 20 MARKETING STRATEGIES by Ingrid Ricks Digital Promotions Grow in Popularity Offer Prepaid Industry Way to Increase Sales, Generate New Revenue incentive that will motivate consumers to purchase your prepaid product, or are searching for a new revenue stream to counter today’s tough economic times, digital promotions may be the solution you need. Below are six reasons digital promotions make such good business sense. 1. Minimal Delivery Costs: The beauty of offering a digital incentive as a gift-withpurchase with a prepaid product offering is that it costs virtually nothing to distribute. Because digital incentives are delivered through a unique code and URL, they can easily be incorporated into an existing prepaid offering. Simply print the promo code and URL on the back of the prepaid card and advertise the incentive on the front. It’s that simple. Digital promotions can also be delivered via a custom-branded card that promotes a retailer or builds brand awareness for a company. They can even be delivered virtually via email, making them ideal for practically every promotional application. 2. Universal Appeal: Thanks to the mass penetration of cell phones, MP3 players and the Internet, digital promotions offer something for everyone – making incentives such as music downloads, ringtones and games a universal marketing tool. And digital promotions don’t have to be limited to digital entertainment. They can also be online instant win games that give promotion recipients the chance to win a large prize such as a big screen TV or $25,000 in cash – often for a fraction of the actual prize value. 3. Low Cost: Along with minimal delivery and inventory costs, digital promotions have a lower cost point than other promotional offers because digital incentive providers are able to take into account breakage models – enabling them to offer digital incentives at prices lower coverage calculate the estimated redemption on a given promotion – such as a ten million piece music download promotion delivered inside boxes of cereal – and then secure risk coverage from an A+ insurance company. By incorporating promotional risk coverage, they are able to provide promotion sponsors with a fixed cost that often amounts to a fraction of the actual promotional value. Should overredemption occur, the promotional risk coverage kicks in to cover the cost. 4. Drive Web Traffic: Virtually all digital incentives require recipients to log onto a Web site to redeem. As a result, they serve as a powerful online traffic generator for businesses interested in driving customers to their business Web site to reinforce their brand or cross-promote other products and services. Promotion sponsors simply need to route customers to their web site first and then add a link to the digital media store. 5. Capture Customer Data: The very nature of the prepaid industry makes knowing who the customer is an inherent challenge. Digital incentives give businesses a way to change this. Prior to redeeming their free digital media or instant win prize, consumers can first be required to fill out a short online registration page or survey – enabling your businesses to capture valuable information for ongoing marketing. 6. Product Sampling: Just as promotional phone time giveaways in the mid-1990s helped educate consumers about prepaid long distance and paved the way for the prepaid industry as whole, offering digital incentives as a giveaway on a well established prepaid product can help educate your customers about a new product offer and determine if there is a market fit and sufficient demand. Interested in launching a branded prepaid music card that ties in with your current prepaid brands? Why not include it as a giveaway on an existing prepaid product with print advertising first? Wondering if personalized covers for cell phones or MP3 players would make a good prepaid product? Consider including a free skin code with a wireless phone purchase. Remember: Driving consumer awareness and interest is the first key to success. Ingrid Ricks is Principal of RC Strategies Group, a digital promotions and e-marketing firm. For more information, visit www.rcstrategiesgroup.com. Prepaid entertainment cards have grown into one of the most popular categories in the prepaid sector. But while many in the industry understand the power of these products from What other incentive costs virtually nothing to deliver, has universal appeal and can be customized to the unique tastes of the recipient? a retail perspective, few have paid attention to the role digital entertainment is playing on the promotional side. As a result, prepaid product providers and distributors alike are missing out on a huge market opportunity — both in terms of turning digital incentives into a significant revenue generator by marketing them to retailers as a promotional product, and driving prepaid wireless and gift cards sales by tying in free digital content. WEB SITE ? http://www.iNetGroup.com Website Design and Development Strategy Identi cation NEED A At the iNet Group, We Can Develop the Very Best Web Site! 1.800.738.1740 Graphic Design Corporate Identity Website Hosting E-commerce Solutions Backend Programming Web Standards Solutions Macromedia® Flash™ E-mail Marketing Solutions Search Engines and Marketing Webmaster Services Why Digital Promotions Anyone involved in the prepaid industry understands the benefits of being able to deliver products through a unique code and a toll free phone number or URL. It’s this same delivery model that makes digital incentives like music downloads, personalized skins and online instant win games such a powerful marketing tool for virtually any type of business. Think about it: What other incentive costs virtually nothing to deliver, has universal appeal and can be customized to the unique tastes of the recipient? Throw in instant gratification, the low-cost factor and the ability of digital promotions to drive web traffic and capture customer data and you begin to understand why digital promotions have soared in popularity and are expected to skyrocket over the next few years. Six Benefits of Digital Incentives Whether you are looking for a compelling Whether you are looking for a compelling incentive that will motivate consumers to purchase your prepaid product, or are searching for a new revenue stream to counter today’s tough economic times, digital promotions may be the solution you need. than retail. On large case promotions, promotional risk coverage is almost always incorporated to fix the cost while offsetting the risk. Companies specializing in promotional risk PROFESSIONAL WEB DESIGN & DEVELOPMENT SOLUTIONS FROM CONCEPT TO THE WWW CALL US FOR A FREE INITIAL CONSULTATION AND RECEIVE 10% OFF YOUR CUSTOM WEB SITE SOLUTION Copyright © 2005 The iNet Group. All rights reserved. All other copyrights and trademarks are the property of their respective owners - Member AMC - AIGA - NAPP The iNet Group http://www.rcstrategiesgroup.com http://www.inetgroup.com http://www.inetgroup.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - March 2009

The Prepaid Press - March 2009 Contents The Retske Report: A Disconnect in Connecticut Regulatory Rundown 5 Minutes With Brooks Smith, CEO of InComm TracFone Launches SafeLink Wireless in NY iPayStation Enables International Top-Up Comverse Launches Next-Generation IMS Solution Prepaid Companies Agree to Pay $2.25 Million Prepaid Telecom in Brief Boost Mobile Reintroduces Itself Virgin Mobile Announces New Branding Campaign The State of Prepaid Technology: Becoming a Virtual Operator Prepaid Wireless Roundup New Prepaid Calling Plans from Verizon Wireless The Legal Line Jobless Benefit Debit Card Usage Debated InsurCard Provides Catastrophic Relief Solution Metavante, Monitise Americas Launch Text Banking TransCard Provides Personal Financial Management Walmart to Help Americans Manage Finances Payments and Processing in Brief Prepaid Consumer and Employee/Partner Incentives CashStar Launches Interactive Gift Card Platform VIPGift Continues Sales Expansion Pentagon Installs Unique Card Personalization Line Digital Promotions Grow in Popularity The Ultimate Gift Card Network Retail Sales Show Unexpected Rebound Smart Transaction Systems Selects Hypercom GiftCards.com Acquires Swapagift.com InComm Gaming Opportunities on the Rise VCT Adds Equipment to New Jersey Facility Gift Cards and Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - March 2009

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