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-
