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Improving the Performance
                    of Mobile Coupons




                                             February 2013 | RadiumOne




Copyright © 2012 RadiumOne. All Rights Reserved.
Study performed on RadiumOne networks (January 2013).
If form ever follows
function, then
mobile coupons are
in desperate need
of re-design.
This month, RadiumOne analyzed
how consumers interface with mobile
coupons on their devices.

More importantly, we looked at
how individuals prefer to engage with
different types of digital promotions
and unearthed which form of
distribution best fits consumer needs.




Improving the Performance of Mobile Coupons   2
To better illustrate the importance of mobile coupons in this day
and age, eMarketer demonstrated the immense growth of mobile
coupon users in the last several years and shared their predictions
for 2014.

eMarketer’s research suggests that mobile coupon users will grow
from 12.3 million in 2010 to a whopping 46 million in 2013!

US Adult Mobile Coupon Users, 2010-2014*
millions and % of adult mobile users

                                                                                                    53.2
                                                                                46.0

                                                           34.7

                                       22.0
                                                                               21.3%               24.3%
                  12.3                                    16.3%
                                      10.5%
                  6.0%


                  2010                 2011                2012                2013                 2014
                    adult mobile coupon users                       % of adult mobile phone users



Leading the charge in this growth are the smartphone coupon
users. Smartphone users alone have risen from 7.4 million in 2010 to
40 million in 2013 and are predicted to rise to 47.1 million in 2014.

US Adult Smartphone Mobile Coupon Users, 2010-2014*
millions and % of adult smartphone users

                                                                                                    47.1
                                                                                40.0

                                                           29.5


                                       17.8

                   7.4
                                                          28.0%                32.0%               33.0%
                                      21.0%
                 13.0%
                  2010                 2011                2012                2013                 2014
                    adult smartphone                            % of adult smartphone users
                    mobile coupon users


* Note: ages 18+; used mobile/smartphone in the past year to redeem coupon/code obtained from SMS, application, mobile internet or mobile
barcode for online or offline shopping, includes group buying coupons purchased via mobile phone / smartphone. Source: eMarketer, Dec 2012




Improving the Performance of Mobile Coupons                                               3
Our study suggested that mobile users value
efficiency, utility, and ease of use. With respect to mobile
coupon redemption, users suggested that their
experiences vary substantially.



 40.7%                       coupon redemption varies on a
                             merchant-by-merchant basis
of respondents
         said...




When placed into context, this response should come as no
surprise. Consider, for example, that there are at least
four different ways by which a shopper can redeem a mobile
coupon. Whether a consumer is...



                           check
                                              $   $
                             in
                                                                thanks!




    scanning          checking-in        tapping their    or redeeming
   an image...       on a mobile          phone on a          coupons
                     application...      point-of-sale    vis-à-vis digital
                                           terminal...    loyalty cards.




The number of friction points in the redemption
process greatly reduces the practical use of
mobile based offers.



Improving the Performance of Mobile Coupons           4
Fortunately, there are a number of statistical insights that
advertisers can use to their advantage in strategically planning
their next mobile campaign launch.


For instance, the data points below highlight how mobile users
prefer to leverage the power of mobile coupons to their benefit:



                      61.9%
                      redeem grocery and consumer retail
                      goods based coupons




         51.5%
   prefer to display the
                                              23.8%
                                              prefer scanning
   coupon to a cashier                        based methods




         42.3%
       prefer SMS based
                                              28.1%
                                              prefer barcode-scan
                coupons                       mobile coupon




                      36.4%
                      find push notifications of mobile coupon
                      offers useful




Improving the Performance of Mobile Coupons   5
From this consumer feedback, advertisers possess not only the
proper tools at their disposal to enrich consumer shopping
experience, but also key insights that they can draw on to drive
greater sales via the mobile platform.


Key Advertiser Best Practices
     	 Employ quick access display and scan based
 	    coupon offers.

     	 Avoid multi-step redemption processes.

     	 Tailor mobile coupon offers specifically to
 	    everyday consumer based products.
 	    The top three most frequently redeemed
 	    coupon categories include:




         groceries           retail goods         food & drink



     	 Judiciously push relevant offers to mobile shoppers
 	    via SMS text.

     	 Leverage in-app loyalty programs that
 	    automatically redeem mobile coupon offers.




Improving the Performance of Mobile Coupons   6
Headquarters                                              Sales Offices
RadiumOne, Inc.                                           Chicago
55 Second Street                                          500 N. Dearborn, Suite 730
Suite 1800                                                Chicago, IL 60654
San Francisco, CA 94105 USA
Tel: (415) 418-2840                                       New York
Email: info@radiumone.com                                 215 Park Avenue South, Suite 1704
                                                          New York, NY 10003
www.radiumone.com
                                                          London
                                                          1 Heathcock Court
                                                          Covent Garden
For information on hard-copy or                           London WC2R 0NT
electronic reprints, please contact
marketing@radiumone.com                                   Paris
                                                          84 Boulevard des Batingnolles
                                                          Paris 75017
                                                          France

                                                          RadiumOne also has offices in Los Angles,
                                                          Dallas, Atlanta and Boston. To get in touch
                                                          with our sales team, please email
                                                          sales@radiumone.com




                            For More information about RadiumOne Mobile Solutions and to learn how
                            you can take advantage of our mobile ad solutions, please contact us at
                            mobile@radiumone.com or visit us at www.radiumone.com

                            About RadiumOne
                            RadiumOne is changing the face of online advertising through a
                            unique combination of programmatic buying, proprietary data,
                            patent-pending intelligence algorithms, and multi-channel capabilities.
                            Each month, we engage directly with 700 million unique consumers and
                            generate over 10 billion sharing events.

                            Within milliseconds, we can filter this data through our ShareGraph™
                            intelligence layer, build real-time audiences for our brands, and target ads
                            across the more than 25 billion real-time impressions we see each day.
                            Spanning the Web and Mobile, we offer advertisers the ability to reach the
                            right consumer at the right time, no matter where they might be.




Improving the Performance of Mobile Coupons              7

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Le coupon mobile aux US selon RadiumOne

  • 1. Improving the Performance of Mobile Coupons February 2013 | RadiumOne Copyright © 2012 RadiumOne. All Rights Reserved. Study performed on RadiumOne networks (January 2013).
  • 2. If form ever follows function, then mobile coupons are in desperate need of re-design. This month, RadiumOne analyzed how consumers interface with mobile coupons on their devices. More importantly, we looked at how individuals prefer to engage with different types of digital promotions and unearthed which form of distribution best fits consumer needs. Improving the Performance of Mobile Coupons 2
  • 3. To better illustrate the importance of mobile coupons in this day and age, eMarketer demonstrated the immense growth of mobile coupon users in the last several years and shared their predictions for 2014. eMarketer’s research suggests that mobile coupon users will grow from 12.3 million in 2010 to a whopping 46 million in 2013! US Adult Mobile Coupon Users, 2010-2014* millions and % of adult mobile users 53.2 46.0 34.7 22.0 21.3% 24.3% 12.3 16.3% 10.5% 6.0% 2010 2011 2012 2013 2014 adult mobile coupon users % of adult mobile phone users Leading the charge in this growth are the smartphone coupon users. Smartphone users alone have risen from 7.4 million in 2010 to 40 million in 2013 and are predicted to rise to 47.1 million in 2014. US Adult Smartphone Mobile Coupon Users, 2010-2014* millions and % of adult smartphone users 47.1 40.0 29.5 17.8 7.4 28.0% 32.0% 33.0% 21.0% 13.0% 2010 2011 2012 2013 2014 adult smartphone % of adult smartphone users mobile coupon users * Note: ages 18+; used mobile/smartphone in the past year to redeem coupon/code obtained from SMS, application, mobile internet or mobile barcode for online or offline shopping, includes group buying coupons purchased via mobile phone / smartphone. Source: eMarketer, Dec 2012 Improving the Performance of Mobile Coupons 3
  • 4. Our study suggested that mobile users value efficiency, utility, and ease of use. With respect to mobile coupon redemption, users suggested that their experiences vary substantially. 40.7% coupon redemption varies on a merchant-by-merchant basis of respondents said... When placed into context, this response should come as no surprise. Consider, for example, that there are at least four different ways by which a shopper can redeem a mobile coupon. Whether a consumer is... check $ $ in thanks! scanning checking-in tapping their or redeeming an image... on a mobile phone on a coupons application... point-of-sale vis-à-vis digital terminal... loyalty cards. The number of friction points in the redemption process greatly reduces the practical use of mobile based offers. Improving the Performance of Mobile Coupons 4
  • 5. Fortunately, there are a number of statistical insights that advertisers can use to their advantage in strategically planning their next mobile campaign launch. For instance, the data points below highlight how mobile users prefer to leverage the power of mobile coupons to their benefit: 61.9% redeem grocery and consumer retail goods based coupons 51.5% prefer to display the 23.8% prefer scanning coupon to a cashier based methods 42.3% prefer SMS based 28.1% prefer barcode-scan coupons mobile coupon 36.4% find push notifications of mobile coupon offers useful Improving the Performance of Mobile Coupons 5
  • 6. From this consumer feedback, advertisers possess not only the proper tools at their disposal to enrich consumer shopping experience, but also key insights that they can draw on to drive greater sales via the mobile platform. Key Advertiser Best Practices Employ quick access display and scan based coupon offers. Avoid multi-step redemption processes. Tailor mobile coupon offers specifically to everyday consumer based products. The top three most frequently redeemed coupon categories include: groceries retail goods food & drink Judiciously push relevant offers to mobile shoppers via SMS text. Leverage in-app loyalty programs that automatically redeem mobile coupon offers. Improving the Performance of Mobile Coupons 6
  • 7. Headquarters Sales Offices RadiumOne, Inc. Chicago 55 Second Street 500 N. Dearborn, Suite 730 Suite 1800 Chicago, IL 60654 San Francisco, CA 94105 USA Tel: (415) 418-2840 New York Email: info@radiumone.com 215 Park Avenue South, Suite 1704 New York, NY 10003 www.radiumone.com London 1 Heathcock Court Covent Garden For information on hard-copy or London WC2R 0NT electronic reprints, please contact marketing@radiumone.com Paris 84 Boulevard des Batingnolles Paris 75017 France RadiumOne also has offices in Los Angles, Dallas, Atlanta and Boston. To get in touch with our sales team, please email sales@radiumone.com For More information about RadiumOne Mobile Solutions and to learn how you can take advantage of our mobile ad solutions, please contact us at mobile@radiumone.com or visit us at www.radiumone.com About RadiumOne RadiumOne is changing the face of online advertising through a unique combination of programmatic buying, proprietary data, patent-pending intelligence algorithms, and multi-channel capabilities. Each month, we engage directly with 700 million unique consumers and generate over 10 billion sharing events. Within milliseconds, we can filter this data through our ShareGraph™ intelligence layer, build real-time audiences for our brands, and target ads across the more than 25 billion real-time impressions we see each day. Spanning the Web and Mobile, we offer advertisers the ability to reach the right consumer at the right time, no matter where they might be. Improving the Performance of Mobile Coupons 7