More Advertisers Trying Mobile Coupons

    March 10, 2008

Around thirty percent of cell phone users are interested in receiving mobile coupons according to a new report by JupiterResearch, "Mobile Coupons: Identifying New Opportunities Beyond Early Trials."

Over the next year, more advertisers are expected to explore the interest in using mobile coupons but anticipated growth will be in the single digits. To be successful such mobile tactics must focus on relevant offers, bring value and give the user control.

More Advertisers Trying Mobile Coupons

"Mobile coupons are gaining traction among advertisers, and are no longer just a niche tactic, rather they are moving toward the mainstream to more common use," explained Neil Strother, analyst with JupiterResearch and lead author of the report.

"There are definite benefits to using mobile coupons such as real-time offers, geo-targeting, personalization, time-of-day redemption tracking, triggering impulse purchases, and a lower cost of delivery. But while there is tremendous untapped potential, there are still barriers that exist."

According to the report one significant problem with mobile coupons is how they are redeemed. Not many retailers have systems that read coupons directly from handset screens.

This means the point of sale requires another way of verifying and tracking. Methods currently used include manually entering a code into a cash register, matching a customer’s loyalty card number, or writing it down on paper.

"Mobile coupons will offer flexibility and the ability to target prospective consumers most likely to respond to an offer," said David Schatsky, President of JupiterResearch.

"Just how effective a tactic this is will be determined by the level of measurement. Because this technology is still evolving, it represents a solid opportunity to establish meaningful methods of measurement."