Mobile coupon use to grow in U.S./Europe

In some parts of the world, most notably the Far East, mobile coupons are already being used by millions, and a new study by Juniper Research forecasts that the North America and Western Europe will soon experience growth in this form of mobile promotion.

by Helen Leggatt

In Japan and Korea, using mobile devices to redeem coupons and participate in promotions at point of sale is commonplace, with over 50 million using their mobile devices as virtual wallets. The uptake has been driven by the proliferation of device readers in use throughout a wide range of locations including supermarkets, restaurants, car parks, travel hubs and department stores allowing redemptions and payments with the wave of a mobile.

The lack of infrastructure is currently holding back growth of mobile coupons in Western Europe and North America but Juniper's report predicts that the two regions will account for 20% of coupon redemption values by 2013. Coupons delivered and redeemed via mobile phones are forecast to be used by 200 million mobile subscribers globally by 2013.

Juniper Research defines a mobile coupon as "a coupon sent and stored on a mobile phone that can be exchanged for a rebate, a financial discount etc. at a retailer when the consumer purchases a product."

"Today the overwhelming majority of coupons are paper-based, but the mobile phone is the ultimate individual marketing device and mobile coupon pilots show greatly increased redemption rates - often double digit percentages," said report author Howard Wilcox.

As well as increased redemption rates, mobile coupons have a number of advantages over their paper cousins including:-

• real-time offers,
• geo-targeting,
• time-of-day redemption tracking,
• stimulate impulse purchases,
• cost efficiency.

Tags: coupon, Far East, impulse purchase, Japan, mobile coupon, mobile phone, point of sale, redemption rate