Rev Up Your Cell Phone for eCoupons

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In just a few short years, the market for mobile coupons has gone from nearly non-existent to rapid growth and adoption.

Merchants are deserting newspaper advertising for mobile advertising as fast as they can. That's not surprising when you realize more than 4.5 billion cell phones are in use globally.

The opportunity to instantly reach an unheard of number of consumers is incredibly tempting. Expert estimates suggest the number of active cell-phone users in the United States alone will grow from 10 million in 2009 to 53 million by 2013. Most mobile marketing is presently targeted at cell phones, particularly smart phones.

A recently released survey by Unica Global Marketing asked retailers, consumer product companies and providers of travel and hospitality services in North America and Europe about their mobile-marketing plans. Fifty-seven percent said they either already use or shortly intend to use various mobile-marketing tactics as text messaging, mobile websites and phone applications (aka "apps).

In fact, the industry is growing so rapidly there's now an annual global awards ceremony for mobile marketing campaigns. (Sadly, the Bravo Channel's "Real Housewives of New York City" reality program received the "Ultimate Virtual Viewing Party" award for 2009.)

Mobile coupons are one of the most popular method of mobile marketing. Consumers exchange electronic "tickets" for a discount or rebate when purchasing a product or service. These coupons are distributed through MMS, SMS, Bluetooth and other mobile means and are redeemed either by having the cashier scan or input an onscreen code.

Customarily, coupons are issued by retailers or manufacturers of consumer goods as part of a sales promotions. They're also used as a means of attracting customers to entertainment sites for zoos, museums, amusement parks, etc.; and for service providers like beauty shops, spas, etc.

Types of mobile marketing coupons include:

• Cents-off or dollars-off deals
• Freebies
• Buy-one-get-one-free
• Multiple purchase (requires buying more than one of a given product)
• Time-release (coupons with different expiration dates distributed together to encourage repeat purchase)
• Self-destruct (coupons printed to overlap and requiring consumers to choose one deal or another)
• Crossruff (for one related product when purchasing another)
• Sweepstakes entries
• Universal (high-value coupon good for multiple products from a manufacturer)

Consumers can access mobile coupons in a variety of ways, including signing up to receive coupons; searching for coupons relating to a purchase they'd like to make; and reading unsolicited, coupon-alert text messages.

Additional information gleaned from Unica's survey included the following.

Percent of merchants currently or planning to use mobile marketing
Currently use, 33%
Plan to use in 2010, 24%
Plan to use after 2010, 13%
No plans, 20%
Don’t know, 10%

Merchants currently using mobile web sites:
Currently use, 33%
Plan to use in 2010, 33%
Plan to use after 2010, 17%
No plans. 8%
Don’t know, 9%

Merchants currently offering mobile phone apps
Currently use, 31%
Plan to use in 2010, 32%
Plan to use after 2010, 22%
No plans, 8%
Don’t know, 7%