‘American Idol’ Takes Over Gift Cards

Posted on by Chief Marketer Staff

IdeaEdge Inc. has launched the American Idol gift card, which lets recipients buy “American Idol” merchandise, including show apparel, accessories, karaoke CDs and a Playstation 2 video game.

The cards are available in denominations of $25 or $50 at http://www.americanidolgifts.com and in more than 16,000 grocery and drug stores nationwide, including Winn Dixie, Duane Reade, Rite Aide, Kinny Drugs and Drug Mart.

On the site, visitors can design their own American Idol gift cards and greeting cards by choosing from various designs, uploading digital photos and adding a personal message.

The gift card features an extra incentive. Each time people redeem their gift card online, recipients will be automatically entered into a sweepstakes for a chance to win a trip for four to Los Angeles to attend the season seven “American Idol” finale in 2008.

IdeaEdge is catering to the show’s fan base—more than 40 million people—with the card. Its prime target is teens and tweens, Jim Collas, the firm’s president and CEO, said.

The American Idol gift card, the company’s flagship gift card program, is expected to be a “top seller” at retail this year, Collas said.

“More than 44 million viewers on average are engrossed in the show each season,” Collas said. “This creates a large base of consumers who have a strong emotional connection with the brand and the contestants that perform on the show each year. This strong emotional connection will invoke a strong impulse to buy the gift card for friends and family that are fans of the show.”

The gift card is the latest from a company that has no brick and mortar store outlets. It joins others brands, including American Airlines, eBay and Jet Blue that use gift card malls and Internet sits to sell its gift cards.

“We continue to see a strong demand from retailers/firms that do not have physical locations, yet still want a gift card program,” says Robert H. Skiba, executive vice president, general manager, Stored Value Solutions, which manages American Idol gift card account numbers and transactions for IdeaEdge.

P-O-P materials, online marketing, PR and social media marketing activities will help promote the gift card.

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