Plenty of application developers and content owners are spinning their wheels as they try to convince users to shell out for mobile goodies. But a small — and very optimistic — segment is hoping to get consumers to save money with their phones.

Mobile coupons — discounts delivered and redeemed via handsets — will be used by some 200 million mobile users by 2013, according to a recent forecast from Juniper Research, as Near Field Communications technology joins text-messaging and mobile barcodes as a retail force. While nearly all mobile coupon activity is currently limited to the Far East, uptake will surge in Western Europe and North America over the next few years, the market research firm predicts.

“We believe that consumers will be attracted to mobile coupons compared to traditional paper, and by the ability to tune the types of coupons received to their personal preferences rather than receiving all types through the vanilla distribution mode that is allowed by paper coupons,” Howard Wilcox of Juniper Research wrote. “Today, the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device, and mobile coupon pilots show great increased redemption rates — often double-digit percentages.”

Value play

Indeed, while mobile coupons are still in the earliest stages in Western markets, Cellfire — one of the first players in the space — is already gaining traction. The San Jose, Calif.-based startup found success last year by teaming with partners such as Arby’s, Gamestop and Valvoline to deliver discounts directly to mobile users, and is in the process of rolling out a nationwide campaign with The Kroger Co. after a 219-store trial in the Southeast that saw redemption rates as high as 20% — compared with print campaigns that typically result in a 2% return.

“The sliver lining of a negative economy for Cellfire … is that consumers’ interest in savings and coupons has gone up considerably,” Cellfire CEO Brent Dusing said via e-mail last week. “So marketers are viewing coupons as a valuable way to reach customers. We see advertiser promotions budgets remaining relatively stable vis-à-vis other media and advertising.”

The 3-year-old firm delivers coupons via a downloadable application as well as through a wireless Web site; users can choose to be alerted to new coupons via SMS or e-mail. Cellfire has grown to roughly 25 employees and in February raised $12 million in a third round of funding, and its offerings can be found on the decks of Verizon Wireless, Alltel Communications L.L.C. and several smaller operators.

Free-for-all

A host of other players are vying for room on the playground, too. MobileVerbs Inc. last month announced a deal with Jack-in-the-Box that allows users to provide feedback and receive coupons via text message, and Subway restaurants has tapped Modiv Media to handle mobile couponing for outlets in New York and Washington state. Yahoo Inc. has partnered with Coupons Inc. to launch a mobile platform, and other players include moQpon, NetInformation, Red Fish Media and 8coupons.com — not to mention the ever-growing number of companies looking to tap the mobile barcode segment.

Mobile coupon companies face a considerable challenge in making consumers aware of their offerings, however. Cellfire may be flush with cash thanks to last year’s funding round, but it doesn’t have the deep pockets to support broad national marketing efforts. Instead, the company works with partners to promote coupon campaigns with in-store signage, e-mails, newsletters and earned media. And, as Dusing points out, the value proposition that lies at the foundation of mobile coupons is an easy one for users to grasp and appreciate – especially during an economic downturn.

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