To compete in today’s tough economic environment, businesses are searching for more cost-effective marketing and promotions strategies. As a result, many are shifting their spending to online marketing, according to a recent survey by the Society of Digital Agencies (SoDA).

The SoDA survey, referred to in an April 30 article by E-Marketer, found that  more than 77% of traditional advertising agencies are increasing their digital marketing budgets by 1% to 29% in 2009 ― with over 10% upping online budgets by 30% or more.

What’s more, because digital promotions are redeemed online, they can be used to drive web traffic and capture valuable customer data through online surveys ―giving marketers a multi-pronged marketing tool that keeps performing long after the initial promotion ends.

How to Drive Success with Digital Promotions:

Increase Sales: To entice dog owners to tune into Purina Dog Chow, Ralston Purina offered consumers two music tunes of their choice with each 2-pound purchase of the dog food.

The music download promotion was printed on a custom-branded FDA-approved plastic card and inserted into nearly 200,000 boxes of Purina Dog Chow. To download their free songs, recipients were routed to a customized landing page that further promoted the Ralston Purina brand. The promotion was a big hit among dog lovers and music to Ralston Purina’s bottom line.

How Levi’s Boosted Sales with a Music Download/iPod Giveaway

Build Prospect Databases: Red Cross needed an incentive that would motivate people to register in the organization’s online blood bank database. The solution? An Instant Win Mystery Promotion.

Red Cross distributed 270,000 flyers to people who visited Red Cross locations, each featuring a mystery code guaranteed to win a prize.  Most codes contained music downloads good for either one or five free songs.   But there were also a few iPods, DVD players and a 40-inch flat screen TV up for grabs. To find out what their mystery code was worth, flyer recipients were first required to log onto the Red Cross web site and register in their blood bank database. The result?  Red Cross increased its database by 105,000 people, a 39 percent conversion rate.

How College Recruiters are Utilizing Music Download Cards

Generate Traffic: To build consumer awareness for its new GPS in-car accessory, Pioneer distributed music mystery cards to consumers who stopped by their exhibition tents at summer festivals throughout the country. The promotion was advertised through radio, newspaper and on-site event signage.

To find out how many free songs they had won, consumers were first required to fill out an online survey, which linked back to Pioneer’s corporate web site – giving the company another chance to reinforce its GPS products. The promotion was such a big hit it resulted in two re-orders.

How Banks Can Use Digital Promotions to Sign Up New Accounts

Drive Foot Traffic: Chrysler needed a powerful incentive that would generate foot traffic and motivate consumers to test-drive vehicles during its auto show events held at malls across the country. The answer? Chrysler-branded music downloads cards good for three free songs.

The promotion – which was first tested in regional markets – was a huge success, resulting in a nationwide rollout of the test-drive music card promotion.

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