AT&T Survey Finds Marketer Interest in Mobile Barcodes
By Barry Levine – December 2011

AT&T commissioned a new survey, and the sample was 501 marketing or advertising director-or-higher professionals working in U.S.-based companies with more than 1,000 employees. The survey was intended to determine the attitudes of such decision-makers toward mobile marketing, and specifically toward mobile barcodes.

The survey by AT&T found that the three most important factors for marketers in considering the use of mobile barcodes were consumer demand, cost, and security. All three factors were cited as highly important, by more than 80 percent of those queried, AT&T said.

What will be the most popular forms of mobile marketing in 2012?

Answer: the new tool of mobile barcodes will be among the top mobile marketing strategies, coming in a close second to mobile apps.

'Turn Up the Volume'

AT&T Business Solutions Vice President Chris Hill explained that the move by marketers to include mobile barcodes is not surprising. Because of the growing popularity of smartphones, he said, "it's only natural that marketing executives want to turn up the volume on their mobile strategies next year."

A mobile barcode is the black-and-white, pixelated-looking, 2D box found on products, similar to the old-fashioned striped or linear barcodes. They can be placed on products, movie posters, or magazine pages, and a mobile device user can scan them in to immediately go to a Web page with more information, without having to type a long Web address.

Static printed ads can thus become an interactive marketing experience, which is permission-driven. Mobile phones can be used to read a variety of different 2D mobile barcodes. Each barcode that is used can be traced back to the product or ad where it was located.

Consumer Demand, Cost, Security

The survey found that the three most important factors for marketers in considering the use of mobile barcodes were consumer demand, cost, and security

Slightly more than half of those surveyed said that mobile marketing would be part of their current marketing strategy, and 88 percent of those with an existing mobile marketing program said they expected it to increase over the next year.

Smartphones and other mobile devices have become a popular tool in purchasing decisions.

In October, another AT&T survey about the role of smartphones found that 60 percent of respondents used their mobile device to find websites, 52 percent to find locations, 36 percent to make purchases, and 31 percent to scan regular barcodes for price comparisons.

That survey also found that 23 percent of small business owners are responding to this increased use of smartphones for purchasing decisions by having a mobile-friendly website. One fifth regularly send text messages to customers, 14 percent have a mobile app, and 9 percent use location-based services.

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One in Ten Mobile Users Redeem Coupons

SEPTEMBER, 2011

Usage to nearly double by 2013

Mobile coupons represent a small portion of digital promotions, but usage is growing at a fast pace. The popularity of mobile coupons extends the trend of searching for online coupons, which emerged as a widespread, money-saving activity during the recession.

“Even as the sputtering economy attempts its recovery, the popularity of couponing has continued, spurred in part by the burgeoning daily deals space,” said Noah Elkin, eMarketer principal analyst and author of the new report, “Mobile Coupons: Offers and Deals Light Up the Last Mile.” “Mobile coupons will play a central role in broadening the appeal and acceptance of digital coupons among shoppers.”

eMarketer estimates that nearly 20 million US adults will redeem a mobile coupon this year, including coupons or codes received via SMS, applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile. By 2013, the number using such coupons will nearly double, and 16.5% of all US adult mobile phone users will redeem a coupon that year.

Among smartphone users, penetration is significantly higher. This year, nearly one in five smartphone owners ages 18 and older will redeem a mobile coupon, representing growth of 117.6%. Triple-digit uptake rates will be short-lived, but by 2013 almost one-third of smartphone users will be redeeming discounts on the go.

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Low Consumer Awareness and Other Challenges Inhibit Mobile Coupon Growth

AUGUST 2011

Gary Lombardo
Multichannel & Mobile Product Marketing Lead
Demandware

Gary Lombardo manages mobile, multichannel and social commerce product marketing for Demandware, an on-demand ecommerce platform. Demandware’s platform enables retailers and brands such as Barneys New York, Kiehl’s, Lifetime Brands, Marks & Spencer, Michaels Stores and Procter & Gamble to deliver customized, multichannel shopping experiences to consumers. Lombardo spoke with eMarketer Writer/Analyst Tobi Elkin about the obstacles and opportunities presented by mobile couponing.

eMarketer: What are the key drivers for mobile coupons?

Gary Lombardo: The key drivers are smartphones and smartphone technology, which enable a better experience than what consumers are able to get on feature phones. For example, Michaels Stores lets customers see an entire coupon via a mobile app or potentially through mobile text alerts. Retailers can also offer coupons through their mobile websites.

eMarketer: What are the inhibitors?

Lombardo: One inhibitor is the lack of consumer awareness. Consumers don’t necessarily think of using their mobile device for coupons today. Instead they think of traditional paper coupons.

The world of ecommerce is separate in a lot of ways from the in-store systems, and that’s a common pain-point for retailers. Mobile coupons can be managed only through the mobile channel in the short term. But in the long term, retailers are going to need to figure out how to make mobile coupons truly multichannel.

Campaign execution is also an issue in terms of how the display and creative are implemented and the frequency of distribution. There may be too many steps for the consumer to follow.

eMarketer: Are there redemption problems with mobile coupons?

Lombardo: Retailers must be able to say, “We issued this offer or that coupon. It was redeemed through this payment service.” Many retailers are still trying to figure that out.

Also, a lot of retailers don’t have optical scanners to scan mobile coupons. Most mobile coupons need to be printed out or shown to the person at the register. Sometimes there’s no matching of the issuing offer and redemption.

From the retail perspective, a lot has to happen in terms of the number of point-of-sale registers, rolling out the right hardware and software, employee training, reporting and everything else. It’s an enormous investment. Once those issues are overcome, retailers can close the gap and tie a particular consumer to a redeemed coupon.

eMarketer: Is fragmentation in the mobile device market a challenge for mobile coupon growth?

Lombardo: It remains a challenge because most retailers are issuing mobile coupons via native apps, and they need to develop apps for all of the platforms. A better way is to think about it is to offer coupons through a mobile website and third-party services with mobile capabilities.

This means leading everything back to your mobile website, which overcomes the fragmentation of devices issue. It enables customers walking into your store to pull up the mobile website and access the coupons and offers. In the long-term, I don't think it will be a critical factor. Increasingly, the majority of mobile devices will be smartphones.

eMarketer: What is the potential for location-based services in mobile couponing?

Lombardo: Coupling mobile coupons with location-based services has huge potential. We’re already seeing that with third-party services like foursquare, Gowalla and others. Retailers should be viewing those services as distribution channels to get their offers out into the marketplace.

In addition, they need to aggregate those offers, coupons or loyalty components back to their websites or native apps. We’re going to see a lot of retailers look at how to offer location-based services in a much more intelligent, contextual and relevant way. That might be through the third-party services or via the mobile device’s GPS capability and mobile alerts. There are platforms out there like Placecast and a few others that allow for the geo-fencing concept. We don’t see anyone doing this today but hopefully we will soon.

eMarketer: Can you suggest any mobile couponing best practices?

Lombardo: The instructions should clearly indicate how to redeem the coupon or offer. Retailers or marketers need to make sure the UPC and barcodes are very clear. It’s also important to include an alpha or numeric promotional code in case the primary validation method, like the scanner, doesn’t work at the point of sale and a salesperson needs to input the code.

I’ve seen so many bad examples of coupons where you don’t understand what the offer actually is, or there’s so much fine print. The consumer getting confused over how to redeem the coupon—that’s also a key inhibitor to mobile coupon growth. We’re in the early days of being very clear about how to redeem mobile coupons.

Achieving the right frequency for mobile coupon offers is also important. We have a customer that did some mobile alerts about an offer around Super Bowl time. They had great results but hadn’t done a subsequent offer in three months. Establishing the right cadence is really important once you’ve established initial awareness. They should have taken advantage of existing channels to disseminate more offers.

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Mobile Coupons Are Just One Tool for Local Businesses

AUGUST  2011

Nancy Cook
Vice President, New Media Business Development
Valpak

Nancy Cook is responsible for the development and implementation of Valpak’s new media strategy and digital products, including the Valpak Digital Network (Valpak.com), Valpak Deals and SMS texting. She spoke with eMarketer’s Tobi Elkin about the prospects for mobile coupons, how retailers can successfully incorporate them and the hurdles that prevent their growth.

eMarketer: What are the drivers of mobile coupons?

Nancy Cook: The consumer is the primary driver. The way consumers use mobile—searching not only for offers but for other things—is helping increase demand for mobile coupons. Obviously, being in the coupon and promotional offer business for a very long time, we know that people respond to the relevancy of an offer. If you put an offer that’s considered a good value in front of any given audience segment and there’s a need, consumers will engage. A strong offer will work in any space—and mobile even more so, because it can be relevant when a consumer may actually be ready to make a purchase.

eMarketer: What about any inhibitors?

Cook: The inhibitors have to do with the implementation of mobile couponing as well as consumers getting comfortable with using them. From an operational standpoint, retailers may be posting mobile coupons, but are they really ready to implement them? Do they know how consumers will redeem the coupons? Is their staff trained? How do they track mobile coupon redemptions?

eMarketer: Have you seen many difficulties with mobile coupon redemptions?

Cook: The majority of the businesses that we deal with, many of which are local, won’t have optical scanners for a very long time. They’re going to have to step into mobile couponing gradually.

eMarketer: What are some of other challenges that you see in implementing mobile couponing and making it easy for consumers?

Cook: We want to make it as easy as possible for the consumer to find the coupons when and where they are. From a best practices perspective, we’re not married to any particular technology or platform. We want to solve the fragmentation issue by being platform-agnostic. For example, we offer coupons on all five of the major mobile platforms with an app—iPhone, Android, Palm Pre, BlackBerry and Microsoft 7. Consumers don’t have to struggle to find us. We will continue to promote our advertisers’ content, coupons and deals on these platforms.

eMarketer: How do you work with retailers to overcome the challenges presented by mobile coupons?

Cook: Mobile by itself is not necessarily going to win the day for an advertiser or a retailer. We provide tools for driving traffic and bringing consumers to the store—whether that’s through a printed piece, mobile web or texting. What retailers and small businesses across the board really care about is the ROI on the spend.

eMarketer: How do you employ targeting for mobile coupons?

Cook: We use services like Claritas, which basically profiles different audience segments for the likelihood to purchase a certain type of service. Or we look for certain spending levels or demographics that are most likely to purchase a service, and can help business target their messages. Consumers in an older neighborhood, for example, might be most likely to use a new roofer.

eMarketer: What role do daily deals play in relation to mobile coupons?

Cook: Daily deals are a very important part of the savings space, but we view it as just one tool for advertisers to reach and engage consumers. The daily deal space is limited in that the Groupon and LivingSocial models represent a single point in time for a consumer to buy a deal, and then it’s over. We certainly see deals, particularly the prepay voucher, as an important tactic for a business to use, but it’s really just another way for a consumer to engage with that business. For example, a merchant might do a very strong promotion as a prepay deal one month, then offer a coupon for that same promotion through the summer.

eMarketer: What are specific mobile couponing best practices?

Cook: Advertisers should leverage mobile along with other tools—print and texting. The No. 1 thing that they need to focus on is making the offer relevant and timely—and they also need to give the consumer choice and convenience.

We also advise small businesses that the offer needs to be attractive enough for a consumer to come in and not feel like there’s a bunch of fine print around it. It has to be relevant and easy.

We recommend that retailers post a picture of the mobile coupon at the point of sale not only for the consumer, but for person who’s working at the register. They need to know how to handle the coupon to ensure the transaction works in whatever POS system they’re using. From a retail chain perspective, there’s an education process with respect to mobile.

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Product Availability Tops Consumers’ Mobile Commerce Wish List ---

But Coupons/Promotions Are Not Far Behind!

NOVEMBER 1, 2010

Mobile adds complication to multichannel demands

US internet users place great demands on multichannel retailers. A majority expect to be able to track, modify, complete and order from any channel, according to a July 2010 survey from Sterling Commerce. Shoppers expect to use a variety of routes from research to purchase, especially during the Christmas shopping season.

And as smartphones continue to proliferate and more consumers use their phone as yet another shopping channel, retailers must be ready to offer capabilities through the mobile web or an app, or both. While many retailers focus on the price-comparison ability of smartphones, which allows in-store shoppers to check competitors’ prices, web users surveyed by Sterling Commerce said the single most important shopping function of a mobile phone was the ability to check whether a product was in stock.

Some retailers still struggle with accurate assessments of in-store product availability on their websites; this type of multichannel integration faces technological hurdles that must be addressed. But as the Sterling Commerce report says, product availability is becoming a necessity for impatient shoppers: “Nearly two thirds (66%) of consumers surveyed considered it important to very important to be able to conveniently determine in-stock availability before visiting a store.”

And convenience translates to the always-on possibilities of mobile. Internet users also told Sterling Commerce that looking up product availability was the feature they would most like to see in a retailer’s branded app. It was significantly more popular than store locators and even the ability to read product reviews while in the store.

As retailers gear up their mobile efforts with the Christmas season, they must keep in mind that shoppers expect to do much more than find product info or a nearby store via the mobile web.

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Lightspeed Research ran a survey for Brand Republic on its UK online panel in October 2010 to understand how consumers are currently using mobile location services, including voucher applications, and their attitudes to them. All 1,001 respondents owned a smartphone. 

Attitudes to mobile voucher apps

Around one fifth said they had downloaded a voucher app to their mobile, while just over one quarter (28%) had never heard of these kinds of applications.

Men are more likely to have downloaded a voucher app than women (21% vs 14%). In terms of age range, at 20% those aged 18-34 are most likely to have downloaded a voucher app, closely followed by 35-54 year olds at 19% (Chart 1).

The majority of respondents (59%) who had downloaded a voucher app had actually used one of the vouchers they received. Men were more likely to have made use of the vouchers than women.

Have you ever downloaded an application to your phone that allows you to retrieve or use store vouchers?

Attitudes to mobile vouchers were overwhelmingly positive: the majority of respondents said they would like companies to send vouchers and discount offers direct to their phones. This proportion increases to 72% for 18-34 year olds. Although far fewer 55-64 year olds would like to receive vouchers to their phone, one quarter would still like to receive them (Chart 2).

Proportion that would like companies to send discount / special offer vouchers to their phone

Receiving mobile voucher apps

We wanted to understand how smartphone owners would like to receive their vouchers, so we gave respondents a number of options, and asked them to rank them in order of preference from one to six.

The chart below shows the average rank achieved by each option. Respondents prefer to download an app to receive vouchers only for brands they select.

Tying for second place were receiving a voucher while they were near or in-store and downloading an app that gives vouchers for a whole range of brands. Entering an SMS code when they are in-store was the least popular option.

Preferred method for receiving vouchers to phone

For marketers planning to use mobile vouchers, the good news is that there is a real appetite for them. Almost half of those surveyed would like to receive vouchers whenever there is an offer or a specific deal available. One in five would like to receive vouchers when they are near the store, and 16% would like to receive them while in store

When would you prefer to receive vouchers to your mobile?

The idea of receiving vouchers whenever offers are available is particularly attractive to 18-24 year olds (Chart 5). Younger respondents were also more likely to prefer receiving vouchers when they are near or in a store compared to other respondents.

The message is clear: marketers wanting to target older smartphone owners with mobile vouchers have more work to do to convince them to agree to receive them.

When would you prefer to receive vouchers to your mobile?

In-store mobile vouchers

We then specifically asked respondents if they would like to receive vouchers when they were walking near a store, or actually in the store. More than a quarter (28%) were happy to get vouchers in this way, with a further 48% willing to receive vouchers if they had registered with the store in some way.

Only one quarter (24%) were not willing to receive vouchers when they were in or near a store. Women are more likely to prefer receiving vouchers when in/near a store only if they have registered with the store in some way. Once again, 18-34 year olds have the strongest preference for being registered with the store in some way.

Would you be happy for a store to send vouchers to your mobile whilst you were in the store or walking close by?

Most smartphone owners think that companies should only send vouchers if you have "opted-in" to such a service, with women and 18-34 year olds the most likely to hold this opinion (Chart 7, Chart 8).

Thinking about vouchers for special offers - do you think companies should:

Attitudes to mobile marketing messages

In complete contrast, enthusiasm for mobile vouchers is not matched by enthusiasm for marketing messages - only 19% would like to receive these to their phones. Those aged 55-64 are the least enthusiastic.

Proportion that would like companies/stores to send marketing messages to their phone

Even fewer respondents would be happy to get marketing messages when they are in or near a store (12%) - although 39% would be happy to get these messages if they had registered with the store in some way - making a total of 51%.

Once again having the power to opt in to control marketing messages on the smartphone is important. When we asked respondents about receiving marketing messages on their phones, the vast majority believed that companies should only send them if recipients had signed up or agreed to them.

What the research suggests is that smartphone owners are very happy to receive vouchers for discounts and special offers when they are out and about in specific stores or whenever relevant discounts are available.

These vouchers can be sent by text message or via an app that consumers download. However, despite a willingness to engage with brands when there is a pay-off, there is very little appetite for pure marketing messages sent to the mobile.

Thinking about marketing messages - do you think companies should:

Ralph Risk, European marketing director, Lightspeed Research

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Women Take Lead on Mobile Coupons

MAY  2010

More than two-thirds report an interest in discounts via mobile

The recession helped boost overall coupon usage, and research firms expect usage via mobile to increase dramatically in the coming years. So far, mobile coupon adoption has been somewhat slow, but a study from mobile campaign services provider miBuys shows women may be more eager than average to receive discounts on their phones.

Two-thirds of female mobile Internet users surveyed said they would be interested in getting coupons on their mobile device. When Honeywell surveyed US Internet users in December 2009, 71% said they would not participate in any mobile couponing activities, including receiving, storing or sharing coupons in the mobile channel.

By contrast, respondents to the miBuys survey, who were already visitors to mobile shopping and promotions channels, seemed eager for the convenience of mobile. Only one-third said they were already regular coupon users, though 46% more did use coupons sometimes.

“Mobile phones and devices can already play a significant role in connecting retail brands with their customers,” said Mark Bamber, CEO of miBuys, in a statement. “It is perceived that women are only just embracing mobile services, but the truth is they're already well beyond this point and now want access to the entire high street through their phone.”

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Yankee Group found that in 2009 more than 90% of US consumers were at least somewhat interested in scanning images or bar codes with their mobile phone to get more information or coupons for a product.

Getting coupons via SMS or MMS was nearly as popular, although only 7% of respondents had received mobile coupons in the past three months.

Yankee Group expects involvement with mobile coupons to increase dramatically over the coming years, however. The number of mobile coupons redeemed in North America is set to increase more than tenfold in 2010. Triple-digit increases will follow in 2011 and 2012.

The value of mobile coupon transactions will climb commensurately. Yankee Group forecasts nearly $2.37 billion in North American mobile coupon transactions in 2013, up from just $5 million this year.

Hurdles remain for mobile coupons, which require infrastructure at the point of sale to deal with SMS codes or bar codes readable from mobile devices, but Yankee Group expects these challenges to be confronted successfully in the next few years. And since mobile coupons have been available for some time already, the research firm doesn’t predict consumer education will be a limiting factor.

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Mobile coupon redemption is poised to explode over the next few years. But mobile couponing is still in the early stages of adoption, as indicated in a Honeywell survey conducted by Harris Interactive in December 2009.

Just 4% of Internet users surveyed said they had redeemed mobile coupons, compared with 86% who had clipped paper coupons and 65% who had used electronic coupons from the Internet or e-mail. Younger adults were most interested in mobile coupons, with 66% saying they were at least somewhat likely to try them.

Most Web users, however, were not yet ready to join the bandwagon. Only 10% felt comfortable storing coupons on their mobile phone rather than printing them out, and one-half that number wanted retailers to text them about deals and sales. Across the board, younger respondents and those with higher incomes had more positive attitudes toward mobile coupon use.

Among Internet users who would give retailers their mobile number to get coupons, 18% would like to check a Website for coupons they could send to their own phone. Fewer respondents were interested in retailers pushing coupons to their phone periodically.

Overall, 31% of mobile phone owners said they were willing to share their number with a retailer to receive coupons. Among 18- to 34-year-olds, the proportion rose to one-half.

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Shooger Launches Free Coupon App on Android Smartphones

Money-Saving Application Conveniently Connects Consumers to Deals in Their Neighborhood, Coupons Also Available via SMS Text Messages

June 2010 -- Sweetening the shopping experience for consumers across the U.S., Shooger, a mobile coupon platform, announced today that its free application is now available on Android® smartphones, helping consumers find deals and save money on everyday services and products. The app also gives merchants a new and inexpensive way to engage mobile customers and increase sales.

Shooger

With universal availability on the iPhone, Android and SMS on any mobile phone, 100 percent of mobile users can access Shooger deals and offers, said Matt Myers, chief marketing officer, Shooger.

Launched on the iPhone® in September 2009, Shooger offers consumers local, national and online deals through a free app or via opt-in SMS text messages on any mobile phone. Sample coupons and exclusive offers include discounts at restaurants, retail locations, auto care shops and fitness centers.

Like the existing iPhone® version, the Android® Shooger app includes:

“With the Android platform, Shooger deals reach more consumers, helping them connect with money-saving offers from local businesses anywhere, anytime,” said Matt Myers, chief marketing officer, Shooger. “With universal availability on the iPhone, Android and SMS on any mobile phone, 100 percent of mobile users can access Shooger deals and offers.”

Today, Shooger offers users more than 100,000 local and national deals from 50,000 merchants searchable by category including Restaurants & Bars, Home Improvement, Travel, Automotive, Dentists & Doctors and Sports & Recreation.

Shooger provides businesses with a simple, performance-based mobile marketing option, allowing them to send instant offers directly to customers. Extending the reach of existing advertising, Shooger’s coupons and deals enhance ads across websites, email campaigns, newspapers, magazines, direct mail, Yellow Pages, billboards, radio and more.

Shooger is available for download at http://www.shooger.com.

About Shooger:
Shooger, a mobile coupon platform, offers consumers local and national deals via mobile devices, giving merchants a new way to engage customers, increase sales and monitor advertising performance in real-time. Users can access coupons through a free app on their smartphone or via opt-in SMS text messages across all mobile phones. Privately funded, Shooger is led by a team of interactive media entrepreneurs with a track record of success in innovative technology solutions. Shooger is available for download at www.shooger.com.