Tough times to drive mobile coupons use up 30 per cent

Mobile coupons will be one of the biggest winners of the current global economic downturn, a new report published today has predicted.

Juniper Research has forecast the value of coupons distributed and redeemed using a mobile device will grow 30 per cent to reach 100 million mobile users globally by 2010 to $3.2 billion (2.3 billion).

The analyst firm said the recession would drive the adoption of mobile coupons among consumers as they look to save money. At the same, the need to market products more heavily would also increase their use by merchants.

The report found that mobile coupons were seen by merchants as more attractive to traditional, one-size-fits-all' paper coupons, because they can be more targeted at specific customer groups and can be matched against particular interests and purchasing patterns.

Peter Johnson, market intelligence and strategy vice president for the Mobile Marketing Association (MMA), endorsed the report's findings.

He said it confirmed the MMA's own findings that consumers are most likely to respond to mobile marketing offers that result in clear personal benefits.

"Mobile coupons are a prime example of how mobile can be used in this way, combining relevance with immediate, tangible value for the consumer," said Johnson.

And he welcomed further research like Juniper's report to help build a clearer picture of the way that mobile marketing will develop over the next few years.

The report's author, Howard Wilcox, added: "We believe that merchants will see targeted, quick one-to-one marketing campaigns via mobile coupons as a valuable marketing weapon.

"Considering that mobile coupons offer much better redemption rates and are more cost effective, they represent a win-win approach for innovative retailers."

While the report also forecast growth would be strongest in developed mobile markets like North America, Western Europe and the Far East, it also pointed to a lack of suitable point-of-sale (POS) infrastructure for quick and easy redemption as a potential barrier to greater adoption.