Coupon and Group Buying Sites Might Change Retailer Budgets, Campaigns and Channels

Shopkick Inc., which makes a smartphone app that offers shoppers rewards and discounts for entering stores, said it has attracted 750,000 users since the app made its debut in August 2010, the Wall Street Journal reports.

The growing use of, and popularity of, such group buying offers might, if it continues, rearrange retailer advertising, promotion and media spending. If the purpose of at least some advertising and promotion is to get shoppers into stores, the coupon sites are doing that.

Moreover, about 10 percent of them use the app at least once a day, said Shopkick, which has signed Target Corp., Best Buy Co., Macy's Inc. and other retailers to its service.

The retailers pay Shopkick to be included in the app and featured in special promotions. Though it declined to be specific, the high profile start-up said that each store visit by a user of its app costs a retailer "less than $1."

Mobile Apps Draw In Shoppers, Marketers - WSJ.com (subscription required)