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One in Ten Mobile Users Redeem Coupons, New Forecast Shows

One in Ten Mobile Users Redeem Coupons, New Forecast Shows

NEW YORK, NY (Sept 7, 2011)—Mobile coupon usage is growing at a fast pace, with nearly one in 10 US mobile phone users over 18 expected to redeem a coupon this year, according to a new report by eMarketer.

eMarketer estimates 19.8 million adults, or 9.5% of US mobile phone users over 18, 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. Next year, the number of US consumers who redeem mobile coupons will rise to 28.7 million, or 13.5% of adult mobile phone users, eMarketer estimates.

“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.”

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.

Still, marketers and retailers will face challenges in encouraging this usage. The technology landscape is complex, and training sales associates about the intricacies of mobile coupon programs might be as big a change as getting consumers to use them in the first place.

“Consumers have started to use mobile devices more extensively at the top of the shopping funnel—to research products and pricing, for example,” said Elkin. “But usage has yet to migrate to the bottom of the funnel on a wide scale. Although awareness of mobile coupons is growing, it remains limited. And most consumers have yet to be convinced of the benefits of using their mobile devices as a payment mechanism, for either in-store or online purchases.”

eMarketer forms its estimates for US mobile coupon users through a meta-analysis of information aggregated from dozens of sources, including firms that track coupon usage and users. This forecast does not include mobile coupon users under the age of 18.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056

Posted on September 7, 2011.