1. What is promotional risk?

Promotional risk is the financial uncertainty a brand faces when running offers like cashback rewards, prize draws, or guaranteed rewards, where redemption levels can vary. As a marketing person running a campaign you would like to know that you are covered no matter how many people claim the prize. Promotional risk will cover the risk of the uptake for one fixed fee upfront so you can rest easy knowing no matter how many prizes gets claimed you are covered.

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2. How does promotional risk insurance work?

We calculate the potential exposure of your campaign and fix the cost upfront. If redemptions exceed expectations, we cover the difference. We do look at things like how long will the promotion run for? How many people have entered the promotion before (history) and how you are supporting the campaign (media support and social media support) how much are your spending for this will increase the reach and popularity of the promotion. Once we have these inputs we can determine the fee. Also having been in the industry so long we do tend to know how different campaigns will redeem.

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3. Why is promotional risk important?

Without protection, high participation can lead to unexpected costs. Managing risk allows you to run bold campaigns without financial surprises. You as a brand marketing person would not need to limit a campaign. Like "while stocks last" and potentially irritate consumers, with promotional risk you can run uncapped campaigns and be rest assured that no matter how many people claim they will be paid out.

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4. What types of promotions can you cover?

We support cash-back offers, guaranteed gifts, prize draws, instant wins, and other incentive-based campaigns. We can also cover any games and odds based outcomes. Generally if a consumer has to do something to enter we can insure it. 

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5. Can I still offer big prizes safely?

Yes. We structure and insure campaigns so

you can offer high-value rewards with a fixed, known budget upfront. In some cases we put the "big prizes" allocated on the back end against certain unique codes or position of entry numbers and lock this down prior to the campaign starting. If the consumer with that unique code enters they win the big prize. A good idea is to always have one big prize that is guaranteed and 2-3 more that are randomly allocated so that you get both the big headline and shout out as well as a definite winner.

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6. How do you calculate the risk?

We use data modelling, historical performance, and probability analysis to forecast redemption and set a secure cost. We also take a lot into account how many entries you receive on your last campaign. How much are you spending on media? What type of media are you spending on? What is the offer? Is it on pack communication or only on TV? This all affects the redemption and how many people will enter the competition.

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7. Do you manage the campaign as well?

Yes. We offer end-to-end services, including campaign setup, fulfilment, and claims handling. We can use your back end supplier or use our own we have worked with numerous different suppliers as long as we get to look at all the terms and conditions of the campaign and have axis to the database entries we can either manager the whole campaign or just do the promotional risk side of things.

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8. What happens if more people claim than expected?

That’s where we come in Transmedia covers the additional cost, protecting your budget. We pay out up to 100% of all claims. As long as consumers are abiding by the Terms and Conditions set in the Rules of the promotion we carry on paying till the end of the campaign period.

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9. Is promotional risk only for large brands?

No. We work with businesses of all sizes, tailoring solutions to match your campaign scale and budget. Generally i say that if you only have R50k to spend it is better to run the campaign yourself. If you have R100k we can potentially give your a R1million budget or headline depending on the mechanic. So really allowing you to maximise the headline of your campaign and look and feel more appealing to consumers.

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10. How quickly can a campaign be set up?

Depending on complexity, campaigns can be structured and ready to launch within days to a few weeks.

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