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Mobile coupon redemptions to increase 30% by 2010

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The redemption value of mobile coupons will increase by over 30% by 2010, according to Juniper Research’s new Mobile Coupons Report.

The researchers found that the twin effects of shoppers needing to make economies in their spending and merchants ever keen to make sales will combine to have a very positive impact on the overall demand for mobile coupons.

“Mobile coupons are attractive to both consumers and vendors as they can be targeted at specific groups of customers and can be matched against particular interests and purchasing patterns, as opposed to the vanilla approach where ‘everybody gets every coupon’ as in the traditional model,” says Juniper.

Howard Wilcox, the author of the report, explains “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.”

Peter Johnson, VP of market intelligence and strategy at the MMA (Mobile Marketing Association) added that “Juniper’s research confirms 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. We welcome further research such as this report from Juniper which helps to build a clearer picture of the way in which mobile marketing will develop over the next few years.”

As well as the key drivers, however, the researchers found that there are some significant hurdles to the adoption of mobile coupons. These include the lack of suitable point of sale infrastructure at the supermarket checkout allowing for the quick and easy redemption of coupons which is, they say, critical to the consumer shopping experience.

The Mobile Coupons Report includes an analysis of the trends and issues affecting this market, exploring how the mobile coupons market will develop to 2013, plus forecasts of user take-up, coupon redemptions and values. The report also presents profiles of six key vendors and 12 mobile coupon trials and services pioneering in this developing market.

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