They are codes that Devs can generate (but limited to 50 per update) They are used to download the game without paying money and such...
You get a promo code, which is a bunch of letters and numbers in a row, and then log on to iTunes. From there, you go to "Redeem" and then type in the code. Then you magically get a discount or something.
They are like giftcards you type into itunes, that give you an app or series of apps for free but is legal
They can also be exchanged for cash or applications, which in turn can be exchanged for entertainment.
promotion: Encouragement of the progress or growth or acceptance of something code: A coding*system used for transmitting messages requiring brevity or secrecy promo-code: a series of digits and letters transmitting messages in secrecy allowing the encouragement of the progress or growth or acceptance of an app. You're welcome!