Digital gift cards get the short stick

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A new report finds that on the eve of the 2010 holiday shopping season, a number of marketers are neglecting the digital version of that now age-old gifting icon: the gift card.

A new survey by RSR Research, sponsored by digital gifting firm CashStar, found that top-tier brands such as Apple, Urban Outfitters and Victoria's Secret are not making use of this digital gift phenomenon.

On the other hand, Home Depot, CVS Caremark and Amazon.com took the top three places in terms of leading digital gift card giving options. American Eagle Outfitters and Sears Holding Corp rounded out the top five.

Given that gift card sales continue to rise - by about 2% in last year's holiday season, according to FirstData - it's surprising that more brands aren't taking advantage of the digital version of these popular cards. I would welcome some feedback on what some of the stumbling blocks are to initiating this tactic.

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