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Mobile Coupons a Growing Trend

October 19, 2009

Posted by: Kelly Kilpatrick in Digital

According to a survey conducted by Jupiter Research, 30% of respondents are interested in receiving mobile coupons. Because users opt in to receive these offers, mobile coupon campaigns have been providing strong redemption rates between 5 and 15%. The growing smart phone industry will only help to increase the volume of coupons people receive and use.

Mobile coupon campaigns typically involve location based targeting. Advertisers are able to take advantage of a smart phone’s GPS capabilities and target users with offers based on their location.  The user can download the coupon to their phone and show it to a cashier upon checkout.

New technologies are currently in development which would allow retailers to scan coupon barcodes displayed on mobile phones. This will require retailers to make a significant investment in new technology, as current barcode scanners cannot read cell phone screens. Despite this technological hurdle, the investment should pay off in the long run since the convenience to consumers will only serve to increase usage.