Commentary

Mobile Offers Are Hot

2016 proved to be another blockbuster year for the mobile offer industry as a whole, according to a trend analysis report by Koupon. The number of US mobile-offer users grew 11% to 104 million in 2016. Usage is especially skyrocketing with millennials, with almost half of the age group using more digital offers than the prior year.

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An Industry Snapshot shows that more customers are using mobile offers than ever before, and studies continue to reveal that shoppers not only want more mobile offers, but become better customers when they use them, says the report.

Us Adult Mobile Coupon Users (In Millions)

 

2013

2014

2015

2016

% of Digital Coupon Users

59.3%

70.0%

76.5%

82.0%

% of Mobile Device Users

284

357

41.2

457

Source: Koupon, April 2017

Mobile Offers Drive Traffic

  • 58% of customers visit a store after receiving a mobile offer
  • 90% of millennials actively look for mobile offers while shopping
  • 77% of customers spend more when redeeming a mobile offer
  • 44% of customers want to see offers included in mobile wallets

A lot is happening in the world of mobile offers, says the report. From explosive growth in usage to eye-popping results, mobile offers continue to reshape the retail marketing landscape. Some of the top headlines, according to the report, from 2016 are:

  • Cross-Channel Distribution Drives Success: A study at Koupon found that offers delivered through multiple channels like mobile app, social, online ads and more — had an exponential impacton the overall reach and success of an offer campaign.
  • Offers Drive Ad Engagement By 200% Customers are more likely to engage with ads that promote a mobile offer. For advertisers, mobile offers have introduced an entirely new way to boost performance of campaigns.
  • Data-Driven Mobile Offer Delivery Leveraging data to deliver more targeted marketing messages has always been a priority for marketers. New studies show how important this is for mobile offers too
  • The Rise Of Small Format A shift to online shopping, paired with changing demographics, is driving growth in small format stores. As the industry takes notice, mobile offers are emerging as the go-to solution for marketing to customers shopping in smaller stores.
  • Targeted Offers Delivered To Connected Cars The shift to connected and autonomous vehicles is happening. As cars get smarter, there is an emerging opportunity to deliver contextual offers to consumers on the road. With early campaigns demonstrating positive results, says the report, cars are expected to become a dominant offer distribution channel in the years to come. 75% of new cars will be equipped with internet connectivity by 2020; 68 minutes amount of time active drivers spend per day in the car; $150 billion size of connected car services market by 2030

Finally, the study reports an increase in CTR for online ads that include a mobile offer; 14% increase in clicks on a facebook post that includes a call to action, like an offer; 49% of customers say they prefer online ads to take them to a mobile coupon page; 43% of advertisers spend more than half of their ad budget targeting a specific audience; 17% increased purchase likelihood for customers that receive a targeted marketing message; and a 36%  increase in redemption rate if an offer is targeted to reach a specific audience

And, according to the Koupon report, 2016 was a pivotal year for the mobile offer industry, but we’re already looking to 2017 and beyond. We continue to be optimistic about the future, so here’s what we think is in store for this year.

  • Small Format’s Big Moment   We believe the small format retail trend is just beginning. In 2017, we predict that small format store growth will continue to outpace other formats, with Amazon opening physical stores at a faster rate than expected
  • Leveraging the Connected Car   As manufacturers include more connected services in cars, marketers have the opportunity to reach customers on the road and take mobile offer campaigns to a new level. Koupon expects the industry will deliver 3x more connected car campaigns in 2017 than last year.
  • Mobile Rebates   More CPG brands are demonstrating strong interest in launching mobile rebate campaigns. The ability to launch promotions quickly, combined with an opportunity to collect customer contact and purchase data are certain to drive more mobile rebate usage in the coming years. We predict the number of rebate campaigns will grow by 400%in 2017.

For additional information about the Koupon study, please visit here.

 

 

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