Below are three critical questions that your digital promotions provider should ask you at the onset of any promotion discussion. If these questions aren’t addressed, you should look for another provider.

1. Where is the Promotion Going to Run? Because of complex copyrights and licensing issues that accompany music, images, games, movies and other digital content, most digital media providers only have licensing rights in a single country. As such, one of the first questions your provider should ask you is where you plan to run the promotion. If you aren’t asked this question, it is crucial that you conduct the necessary due diligence to ensure the provider you work with can deliver content in the country or countries where your promotion will run. From the provider perspective, this information is also important because depending on where the promotion runs, there may be different tax implications associated.
    
2. How is the Promotion Going to Be Distributed/Used? When it comes to promotional use, pricing for digital media is often influenced by the way a product is being delivered and how it will be used. If, for example, music downloads are being handed out as a sales incentive to gamers, the usage is likely to be much greater than if it is being distributed through an in-pack food promotion. Likewise, if the digital incentive is being used as part of a rewards program in which customers who earn points can choose the digital incentive, it’s a sure bet that usage is going to be much higher. Make sure that any digital promotions provider you work with understands how your promotion is going to be distributed and used, and is willing to stand by the price points offered – regardless of redemption. By doing so, you ensure that your costs don’t end up exceeding your promotional budget.
    
3. Who is the Target Audience? When it comes to digital incentives, it’s critical for providers to understand who your target audience is for two key reasons: 1) if the promotion is being targeted to youth, it is likely that you will need access to digital content that is COPA compliant – and not all digital content providers offer this kind of content filter; 2) licensing agreements tied to the digital content might restrict use of the content in certain types of promotions – such as promotions that advertise alcohol or tobacco. By addressing these issues with providers ahead of time, you protect yourself from liability or problems.