Mobile coupons – what do advertisers want?

MoMoSydney – April 2010

Agenda

• The opportunity – why now?• Mobile coupons trial outline• Issues to consider

The opportunity – why now?

The age of mobile coupons is dawning...

People are open to mobile based offers…

Base: All respondents – mobile media users Source: Exposure2, Orange Home UK plc, March 2009

local informat

ion32%

coupons59%

SMSsales alerts32%

local info32%

SMSpush to web site

28%

SMSpush to web site

28%

SMS ad16%

Webdisplay ads

13%

sponsor games37%

sponsoredweb pages

21%

sponsoredscreen savers27%

ads for tickets /

reservations25%

sponsored videos22%

videoMMS ad

15%

pictureMMS ad

17%

Clear opportunity for coupons and sales alerts

• Mobile coupons for retail – over 165 companies using regularly in the US

• 1/3 of users signed up to mobile coupons have never used paper coupons (Source: mobile coupon aggregator Cellfire)

• Redemption rates from 5 to 6 % to 15 % (Source: Cellfire 2009 – Safeway and Kroger supermarkets)

• 5 to 8 times higher response than print media in Australian retail pilots (Source: Mercury Mobile Marketing)

Overseas experience to date

Mobile coupons trial overview

Introducing mobile coupons

A mobile coupon is a:• SMS offering discounts and

promotions• Uniquely coded offer requiring

validation at point of sale • Coupon tied to loyalty programAND• Permission based - requested by

consumers as part of a sales promotion (pull-based) or delivered to consumers via an opt-in database

Trial business objectives

The overall objectives of this study are to:

• Show how mobile can drive consumers in store• Drive consideration to purchase• (Optional) Evaluate the impact mobile couponing has on brand

perceptions and key brand metrics and to understand whether couponing changes brand perceptions amongst redeemers & non-redeemers

Activation1. Customer sees ad and offer bya) Offlineb) Database/loyaltyc) Onlined) Mobile

Delivery3.Receives offer by SMS, MMS or WAP push – as either unique code or Barcode/2d data matrix

Redemption4. Customer in store:• barcode on mobile scanned at POS, or • scans mobile on stand alone terminal and prints out paper EAN barcode, or• unique ID entered manually at POSValidation in real time

2 a) Coupon dynamically generated by host

2 b) Unique numbers uploaded to POS

OR

6. Campaign report

7. Compare/reconcile – apply discounts

Retailer System

5. Voucher validated

on host

Mobile coupons customer journey

• Audit/verify• Prefer POS integration therefore require scan• Major grocery retailers have in-counter laser

scanners• For mobile a linear imaging scanner is required

Issues to consider

Thank you

Claudia SagripantiDirector, VentureOne0414 520 836claudia@ventureone.com.au