Mobile Coupons & the Waning Impact of Printed Circulars
Maybe, just maybe, mobile commerce is having an effect on those traditional, printed circulars.
I just came across a rather interesting stat from Catalina, the marketing firm noted for its shopper history database.
In a study being released later in the fall, Catalina points out that while grocery stores spend as much as 70% of their ad budgets on circulars according to Nielsen figures, they aren’t being overly effective these days.
After analyzing 6 million transactions in 260 stores, the digital media firm found that more than 66% of transactions during the Memorial Day shopping period contained virtually no items that were promoted in the holiday circular. Zero. None. Nada.
And it’s not like the circulars were not loaded with promoted products, since they listed more than 1,100 items, according to Catalina.
Of the 6 million transactions, 17% included one item advertised in the circular and 17% had two or more.
To put this in context of m-commerce, just about every study looking at mobile consumer shopping behavior shows that deals and coupons are the top drivers.
Studies have shown that even small incentives of a few dollars off can influence a mobile shopper.
Mobile coupons have several obvious advantages over printed circulars, especially since they are in the phone and with the shopper all the time.
Rather than turning paper pages, mobile coupons can be digitally searched by shoppers. They can be automatically associated with products on a shopping list.
They can be offered based on aisle location of a shopper, and so on. You get the idea.
By next year, the number of U.S. mobile coupon users will reach 53 million, according to eMarketer. This will be an increase from 12 million just a few years ago.
By next year, one in four mobile phone users will redeem a coupon from their mobile device, says eMarketer.
I’m guessing many of them will be leaving those printed circulars in their recycle bin.