Mobile-based coupons, much like their traditional counterparts, will always be relevant with consumers. As print-based coupons continue to flourish, so to does consumer interest in the mobile delivery and redemption of digital coupons.
A new report from Borrell Associates indicates just how quickly the mobile coupon space is growing. Total mobile coupon spending in the U.S. is expected to rise from $90 million in 2009 to $6.53 billion in 2014, according to its 2010 U.S. Local Mobile Advertising and Promotions Forecast. That number is predicted to hit $370 million in 2010. By comparison, total U.S. spend on Internet coupons in 2009 was $4.2 billion, and is expected to hit $22.6 billion in 2014.
A large growth driver within mobile coupons comes on a hyperlocal level, where usage is skyrocketing as new GPS-laden devices become more prevalent. Local couponing, which is traditionally slower to grow, will account for $4 of every $100 spent on mobile coupons this year, but will reach $1 out of every $6 by 2014, the report said.
While mobile coupons are far from being as popular as their print and Online-based siblings, the report indicates the redeemed value of mobile coupons is 24 percent higher than Internet coupons and nearly half as high as paper coupons. The opt-in nature of mobile coupons go a long way in adding value from an advertiser’s standpoint.
One thing’s for sure, coupons of all varieties are here to stay, and mobile is the future. “When the economy goes down, people tend to find ways to save money, and there was certainly a very large spike in coupon usage last year,” said Gordon Borrell, CEO of Borrell Associates. “It’s also that the proximity of the mobile device to someone’s wallet is a heck of a lot closer than a PC when you’re out driving around.”