Barry Schaffer, president of Promotional Currency, a digital promotions firm which specializes in the development of fixed-cost digital entertainment promotions for brands and retailers, says the definition of digital incentives boils down to two key factors: 1) the incentive is distributed to consumers through a unique, secure promo code; 2) the incentive is redeemed via the Internet or a mobile phone.

“The secure code represents the digital content being delivered – it’s just a matter of deciding what content to tie to it,” notes Schaffer. “It could be digital music, ringtones, PC games, concert tickets, a movie, or the chance to win $1 million or other big-money prize through an online instant win game. The possibilities are numerous.”

Schaffer, who provides turnkey, fixed-cost solutions that incorporate his promotional risk coverage service, also sees digital entertainment promotions as a means to stretch promotional budgets.

“When you deliver a physical product such as a pen or a T-shirt, the cost is the cost and there is no getting around it,” explains Schaffer. “But when something is delivered digitally through a unique code, we are able to calculate the odds of redemption and then cover the promotional risk with our proprietary risk coverage service. “As a result, we are able to offer the incentives at a fixed cost that is often a fraction of the actual prize value. And when over-redemption occurs, we cover the cost.”