Promotional incentives like music download promotions are the perfect non monetary incentive to drive consumer response and customer loyalty. The transition from cassette tapes and CDs to digital content has allowed marketers to create connections with consumers and influence behavior economically and with quantifiable results.

The reason that these promotional incentives are so successful is simple. As a promotional tool, music is an effective hook - people like it. It also has perceived value and there is a high demand for it. Music is a personal experience, a connection which creates a unique bond (and therefore a unique value) with the music, and more importantly, with the marketer. Savvy marketers have capitalized by effectively using music and musicians to engage consumers and create powerful brand connections for the last 80 years. On a basic level, digital music is an extension of consumer empowerment, web 2.0, and social networking.

With cassettes and CDs, distribution was an issue. However, digital music downloads are ideal for consumer incentive programs because they are easy to distribute and difficult to abuse. Downloads can be delivered on pack or in pack, cards can be handed out on the street (or at specific events such as tastings and concerts as was done by Monet Hennessy) http://www.promotionalcurrency.com/case_list.php?client_id=2 or links can be delivered via email. The technology barrier of the past has been resolved. Since broadband penetration was 87% as of January 2008, access is no longer an issue.

Promotional incentives and consumer loyalty programs are being examined more closely than ever for their return on investment and companies are less likely to take big financial gambles. However, the cost of music download promotions can be effectively managed by analyzing promotional mechanics to forecast risk and underwriting excess redemption. Promotional Currency can deliver content to marketers at a fixed cost. Most marketing budgets, when facing the potential cost of $.86-$1.00 per song, cannot bear the cost per unit. However, depending on the scale of the incentive program, that cost can be as low as $.04-$.06.
One added benefit of : versatility. They are as relevant for teenagers buying soft drinks as they are for consumers of high end products. ?We have always been cognizant of what is relevant to our consumers and see the digital music cards as a way to talk with them in a contemporary way that also conveys our luxury wine and spirits position in the U.S.,? notes Tim Norris, director of marketing for Moet Hennessy's Southwest Region.
?The Spanish music store was key for us because Hennessy is a brand that enjoys consumer consumption across ethnic and multicultural lines and the Hispanic market is a big market for us,? he adds.
For music download promotions to be viable as , the perceived value, distribution and cost must all be adequately addressed. After these objectives have been met, it is a matter of selecting the right content for the promotional incentive program and finding the right opportunities for the marketer (and the rights holders.)