More than 300 million consumers around the world will have used mobile coupons by 2014 and this usage will generate a redemption value close to $6 billion globally, according to a forecast and report by Juniper Research.
The report, “Mobile Coupons & NFC Smart Posters: Strategies, Applications & Forecasts 2009-2014,” predicts that as more and more users acquire smart phones, the apps revolution will continue to trigger growth of new mobile coupon services, especially in developed markets. In turn, consumers will exploit the improved capabilities of their devices, especially to save money.
“We found that with the growth of smart phones, a growing number of coupon-specific downloadable apps are being launched, often linked to location based searches.” said Howard Wilcox, senior analyst at Juniper Research. “For example, when you are in the mall and you have your smartphone on you with your downloaded coupons app, then you should be able to find your way to a good offer nearby.”
The research points to the fact that mobile coupon campaigns sent using location based applications can be much more effectively targeted than the scatter-shot approach of traditional coupons.
However, the report also identifies several constraints. For example, some users are concerned about their privacy and could be reluctant to share their mobile number to participate in coupon schemes for fear of spam and fake coupons. Despite this and the lack of progress on NFC coupons because of the poor availability of near-field-communication (NFC) phones, the mobile coupon usage is still set to triple over the next 5 years, Juniper said.
- ARPU from NFC coupons and smart posters will exceed ARPU from NFC payment transactions.
- The vast majority of mobile coupon redemption value will be generated by the Far East & China,
Western Europe and North America in 2014.
- The vast majority of the current users are QR code and FeliCa-enabled phone users in Japan.