Mobile Coupons are driving Mobile Commerce in the U.S.
Adam Rifkin stashed this in Commerce
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- Driving digital revenue: Successful coupon campaigns can help e-retailers acquire customers and drive online sales. By 2014 the number of mobile coupon users is expected to increase to 53.2 million a year. At roughly 10%, the redemption rate of mobile coupons crushes that of print coupons, which hovers around 1%.
- Increasing offline sales and foot traffic to physical stores: Effective coupon strategies can lure more consumers into bricks-and-mortar locations. Mobile coupons are also proving to be a path into mobile for large consumer packaged goods brands that have previously shunned the medium.
- Gathering data: Because they are received on phones but often redeemed offline, coupons are a perfect medium for acquiring consumer data. It is a great way for them to collect data on offline purchases and close the mobile-to-offline purchase loop. In a world where the linking of offline and online consumer behavior is still a daunting challenge, that's a valuable resource.
- Building relationships: Coupons are essentially just another channel through which to communicate with consumers. It's useful to think of coupons less as a discounting vehicle, and more a piece of content with an offer appended. If coupons are done right, they will weave a customer and a retailer or brand more tightly together.
Hmmm, what are good mobile coupon apps?
Viggle? eBates? Groupon? Any others? Anything from Google, Facebook, Twitter, or Amazon?
- The lure of social media advertising is massive: As brands look across a fractured media landscape, social networks offer them an interesting proposition. Social networks have scale - enormous user bases and deep databases. They have high engagement - Americans were spending an average of 12 hours per month on social networks as of July 2012, with 18-24 year olds averaging 20 hours. And potentially, social media gives brands offer a uniquely captive audience for their content.
- Guaranteed placement is getting advertisers to pay up: Brands are paying to get their content or copy in front of a quantifiable audience, an increasingly rare feat in an era of scattered consumer attention. This desire for guaranteed attention also helps to explain social media's move away from traditional display ads — like Facebook's right-rail ads — and toward so-called native ads that surface in a user's stream, either as a tweet or a Facebook post. A consensus seems to be forming around in-stream advertising as the most promising social advertising format.
- Social media advertising is set to explode: Social media advertising is a young market and so far, it only represents 1% to 10% of ad budgets for a wide majority of advertisers. There's significant opportunity for that share to grow. BIA/Kelsey recently came out with a study that offers one view - forecasting $11 billion of social ad spend in 2017, up from $4.7 billion last year. That estimate is large - but still seems pessimistic, because...
- Increased mobile usage will be a huge growth driver: The BIA/Kelsey prediction calls for mobile to account for only $2.2 billion of that in 2017 - a 20% market share. This could easily be surpassed. Both Twitter and Facebook have passed the 50% mobile usage mark and, given the continued growth of mobile devices, it will only rise. Mobile accounted for 11% of Facebook's ad revenue last year even though it didn't release mobile ads until the tail end of the second quarter. By the fourth quarter, it was up to 23%. And now, Twitter is reporting that its mobile ad revenue now regularly outpaces its desktop ad revenue. Social media advertising is therefore uniquely positioned to grab an increasing share of the fast growing mobile advertising market.