1. DIGITAL
PROMOTIONS:
BENCHMARKS
AND
REDEMPTION
Milan, April 2013
Copyright 2013 SDM srl

2. Index
Preface
Digital users
Digital communication tools
What is a digital promotion?
Why promote a contest or sweepstake?
How does it work: different types
Method
Research
Promosuite®
Copyright 2013 SDM srl

3. Preface
This presentation contains a statistical analysis using data from
1000 digital promotions created by SdM between 2007 and
2012. The study covers 17 product areas and highlights:
- the players' profile
- the types of promotions used
- the digital channels employed
- the prizes at stake
- the redemption obtained
At last a benchmark for the digital promotions market!
Copyright 2013 SDM srl

4. Digital users: what do they use
Audiweb trends - Dicember 2012 aggregated data over 4 cycles in 2012
HOME PC 74,2%
22,6%
34,8%
7,7%
5,6%
WORK PC
SCHOOL &
UNIVERSITY PC
MOBILE/
SMARTPHONE
TABLET
Copyright 2013 SDM srl

5. Digital communication tools
? ? ? ? ?
? ? ? ?
$ $ $ $ $
! ! ! !
PA
ID
OW
N
ED
EA
R
NED
media
driven
brand
driven
user
driven
Web portals
News sites
Vertical sites (sports,
cars, wellness)
Search engines
Brand owned
sites/apps
(linked to a product,
campaign, etc.)
Social network
Community
Blog
Photo/Video Sharing
Strangers Clients Fans
Copyright 2013 SDM srl

6. What is a promotion
A game, contest or sweepstakes is a free entry event featuring
prizes and conducted to promote goods or services supplied by
a business.
There should be no monetary cost for the entrant to participate
in the promotion except for, if applicable, the phone/messaging
charges, the mailing fees, etc.
Copyright 2013 SDM srl

7. Why promote a contest or sweepstakes?
Rede
m
ption Bran
d
Experien
ce
DBB
uilding
Freq
uency
Viral
/
Social
Prod
uct Sell-out
Prod
uct Trial
Incen
tive
Loyal
ty
Foot
traffic to RS
MARKETING/COMMUNICATION OBJECTIVES
COMMERCIAL OBJECTIVES
1,6 0,5
%7
19
412
?
Copyright 2013 SDM srl

8. How does it work: types of promotions
There are two ways to take part in a
competition:
Depending on what is chosen, a
sweepstakes or contest has different
participation methods which help achieve
the promoter's objectives .
The main participation methods are:
Buy
and win
Play
and win
Instant
Win
Final
random
drawing
Jury
verdict
User
poll
Skill
game
Member
Get
Member
Copyright 2013 SDM srl

9. S O CIA L
N
ETWORK
WE
B
PC/TABLET
/SMARTPHO
NE
Engagement channels
Copyright 2013 SDM srl

10. Promotions today
High consumer involvement
Low consumer involvement
Brandselling
Brandawareness
Instant
Win
UGC
Viral
Social
Advergame
Collection
Receipt
or Code
Web
Phone
Mail-in
Social
Network
Mobile
Final
random
draw
Rush &
Win
Winnings
Means
Method
Copyright 2013 SDM srl

11. Statistical Method
PRODUCT AREAS
DIGITAL PROMOTIONS
PRIZES FULFILLED
PROFILED PLAYERS
17
1000
203.221
7.512.410
The following analysis of digital promotions is based on data
gathered during a 6 year period.
These are some of the key numbers involved:
Copyright 2013 SDM srl

12. Males or Females?
CLOTH
IN
G
FOOD
CARS
SOFT
DRIN
KS/SPIRITS
PERSON
AL
H
YGIEN
E
LARGE
DISTRIBUTION
H
OM
E
APPLIAN
CES
PH
ARM
ACEUTICALS/H
EALTH
FIN
AN
CE/IN
SURAN
CE
H
OM
E
M
AN
AGEM
EN
T
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRON
ICS/PH
OTO
M
EDIA/PUBLISH
IN
G
M
OTORCYCLES/VEH
ICLES
PERSON
AL
ACCESSORIES
CATERIN
G
COM
M
UN
ICATION
S
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$
£
€
Copyright 2013 SDM srl

13. Player average age
CLOTH
IN
G
FOOD
CARS
SOFT
DRIN
KS/SPIRITS
PERSON
AL
H
YGIEN
E
LARGE
DISTRIBUTION
H
OM
E
APPLIAN
CES
PH
ARM
ACEUTICALS/H
EALTH
FIN
AN
CE/IN
SURAN
CE
H
OM
E
M
AN
AGEM
EN
T
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRON
ICS/PH
OTO
M
EDIA/PUBLISH
IN
G
M
OTORCYCLES/VEH
ICLES
PERSON
AL
ACCESSORIES
CATERIN
G
COM
M
UN
ICATION
S
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$
£
€
> 85
75-84
65-74
55-64
45-54
35-44
25-34
15-24
< 15
Copyright 2013 SDM srl

14. Distribution: Gender vs. Age
Adults
Young Adults
MalesFemales
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE LARGE DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/
INSURANCE
HOME MANAGEMENT
INDUSTRY/CONTRUCTION/BUSINESS
ELECTRONICS/PHOTO
MEDIA/PUBLISHING
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
COMMUNICATIONS
$
£
€
Copyright 2013 SDM srl

15. Quali sono gli obiettivi?
INCREASE
SALES 67,4%
62,2%
26,7%
48,7%
7,1%
DB BUILDING
BRANDING
ENGAGEMENT
PRODUCT TRIAL
LOYALTY
INCREASE FOOT
TRAFFIC TO RS
2,1%
1,9%
€
?
€€
Brand
Copyright 2013 SDM srl

16. Objectives by Poduct Area
CLOTH
IN
G
FOOD
CARS
SOFT
DRIN
KS/SPIRITS
PERSON
AL
H
YGIEN
E
LARGE
DISTRIBUTION
H
OM
E
APPLIAN
CES
PH
ARM
ACEUTICALS/H
EALTH
FIN
AN
CE/IN
SURAN
CE
H
OM
E
M
AN
AGEM
EN
T
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRON
ICS/PH
OTO
M
EDIA/PUBLISH
IN
G
M
OTORCYCLES/VEH
ICLES
PERSON
AL
ACCESSORIES
CATERIN
G
COM
M
UN
ICATION
S
$
£
€
$
£
€
$
£
€
$
£
€
BRANDING
ENGAGEMENT
DB BUILDING
SALES
FOOT TRAFFIC TO RS
PRODUCT TRIAL
LOYALTY
Copyright 2013 SDM srl

17. Types of Prizes
CLOTHING
PHARMACEUTICALS/
HEALTHFOOD CARS
SOFT DRINKS/
SPIRITS PERSONALHYGIENE
LARGE
DISTRIBUTION
HOME
APPLIANCES
INDUSTRY/
CONSTRUCTION/BUSINESS
MEDIA/
PUBLISHING
PERSONAL
ACCESSORIES
COMMUNICATIONSELECTRONICS/
PHOTO
HOME
MANAGEMENT
CATERINGMOTORCYCLES/
VEHICLES
FINANCE/
INSURANCE
$
£
€
Cars
Real estate
Soft drinks
Movie tickets
Music
Smartbox
Travel
Magazine subscription
Food
Car
Household utensils
Movie tickets
Electronics
Events
Vehicles
Travel
Gift cards
Electronics
Smartbox
Travel
Clothing
Magazine subscription
Sport accessories
Food
Soft drinks
Gift cards
VIP dinner
Make-up products
Electronics
Travel
Gift cards
Electronics
Smartbox
Travel
Clothing
Magazine subscription
Sport accessories
Food
Soft drinks
Gift cards
Make-up products
Electronics
Photo shoot
Travel
Clothing
Motorcycles
Smartbox
PhotoShoot
Movie tickets
Electronics
Watches
Music
Travel
Movie tickets
Electronics
Music
Smartbox
Travel
Monthly plans
Movie tickets
Electronics
TopUp voucher
Smartbox
Gas coupons
Movie tickets
Electronics
Jewelry
Music
Perfumes
Food
Cars
Gift cards
Electronics
Smartbox
Travel
Movie tickets
Electronics
Music
Smartbox
Gift cards
Electronics
Smartbox
Travel
Gift cards
Electronics
Smartbox
Travel
Vehicle test drive
Smartbox
Travel
Clothing
Household utensils
Electronics
Photo shoot
Travel
Copyright 2013 SDM srl

18. Total Approximate Retail Value of prizes by area
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE
LARGE DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/INSURANCE
HOME MANAGEMENT
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRONICS/PHOTO
MEDIA/PUBLISHING
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
COMMUNICATIONS
$
£
€
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
8.923
14.476
8.246
33.412
10.931
36.712
6.535
28.564
34.500
24.543
12.100
9.628
4.423
8.808
13.298
12.345
9.676
Product area by Average Total
Approximate Retail Value of prizes
(in Euro)
Copyright 2013 SDM srl

19. What is the Approximate Retail Value of the prizes?
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE
LARGE DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/INSURANCE
HOME MANAGEMENT
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRONICS/PHOTO
MEDIA/PUBLISHING
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
COMMUNICATIONS
$
£
€
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
98
120
320
150
135
223
234
323
298
125
120
450
67
280
134
110
121
Average retail value of
“Instant win” prizes
(in Euro)
Copyright 2013 SDM srl

20. What is the Approximate Retail Value of the prizes?
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE
LARGE DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/INSURANCE
HOME MANAGEMENT
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRONICS/PHOTO
MEDIA/PUBLISHING
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
COMMUNICATIONS
$
£
€
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ €€ € € €
670
2.423
4.208
1.047
734
920
724
1.902
910
385
876
1.045
450
2.387
340
443
452
Grand Prize
Average Retail Value
(in Euro)
Copyright 2013 SDM srl

21. Product areas vs. prizes comparison
"Instant win" average retail value
Grandprizeaverageretailvalue
€
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE
LARGE
DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/
INSURANCE
HOME MANAGEMENT
INDUSTRY/
CONSTRUCT./BUSINESS
ELECTRONICS/
PHOTO
MEDIA/
PUBLISHING
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
TLC
$
£
€
+
+
-
-
€
Copyright 2013 SDM srl

22. Types of promotions by product areas
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CLOTH
IN
G
FOOD
CARS
SOFT
DRIN
KS/SPIRITS
PERSON
AL
H
YGIEN
E
LARGE
DISTRIBUTION
H
OM
E
APPLIAN
CES
PH
ARM
ACEUTICALS/H
EALTH
FIN
AN
CE/IN
SURAN
CE
H
OM
E
M
AN
AGEM
EN
T
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRON
ICS/PH
OTO
M
EDIA/PUBLISH
IN
G
M
OTORCYCLES/VEH
ICLES
PERSON
AL
ACCESSORIES
CATERIN
G
COM
M
UN
ICATION
S
$
£
€
Member
get member
Skill game
Ranking
User poll
Jury verdict
Final random
drawing
Instant win
Copyright 2013 SDM srl

23. Which platforms are most used?
Web Social App
Web Social SMS
Social
Web Social
Web SMS
SMS
Web
100%
99,2%
96,9%
91,8%
83,9%
70,5%
53,6%
13,4%
7,9%
5,1%
2,3%
0,8%
16,9%
53,6%
Copyright 2013 SDM srl

24. How many contests do players enter?
>10 2,9%
17,3%
13,1%
6,3%
17,7%
19,9%
22,45%
6-10
5
4
3
2
1
Year 2012
Copyright 2013 SDM srl

25. Redemption by area/type
CLOTHING
FOOD
CARS
SOFT DRINKS/SPIRITS
PERSONAL HYGIENE
LARGE DISTRIBUTION
HOME APPLIANCES
PHARMACEUTICALS/HEALTH
FINANCE/INSURANCE
HOME MANAGEMENT
INDUSTRY/CONSTRUCTION/BUSINESS
ELECTRONICS/PHOTO
MEDIA/PUBLISHIN
MOTORCYCLES/VEHICLES
PERSONAL ACCESSORIES
CATERING
COMMUNICATIONS
$
£
€
Buy and win:
% of the available
packs
Play and win:
% of plays on total
players that have
reached the contest
Viral:
% partecipation due
to viral/social
3,1%
2,8%
0,0%
2,5%
1,9%
1,2%
1,3%
2,1%
0,0%
1,9%
0,0%
1,3%
0,0%
0,0%
1,4%
1,2%
2,4%
16,5%
15,5%
20,3%
20,4%
19,6%
15,4%
22,1%
19,5%
11,5%
21,5%
11,4%
15,8%
20,4%
19,5%
18,9%
14,9%
18,6%
18,8%
21,3%
17,1%
16,5%
19,1%
7,3%
14,7%
9,8%
7,5%
17,3%
7,3%
20,3%
18,7%
18,4%
15,7%
12,4%
17,4%
Gioca
e vinciPlay and win
Viral/SocialBuy and win
Copyright 2013 SDM srl

26. Legal and fiscal
support
The process is in compliance with existing laws and completely insured.
Concept design
Methods
1,6 0,5
%7
19
412
Backoffice
Online statistics
Fulfillment
support
Logistics
Technological
platform
SDM uses Promosuite®
The platform for digital promotions and incentives.
Copyright 2013 SDM srl

27. A special THANK YOU
to the 317 promoters and
the 7.512.410 players who
have believed in us.
Via Ariberto 24 - 20123 Milano
ph: +39 02 84256100
www.sdm.to
Giorgio Crippa
crippa@sdm.to
Luca Jalongo
jalongo@sdm.to