10% of U.S. Mobile Users Redeem Coupons, 20% of Smart Phone Users

Research firm eMarketer now estimates 19.8 million adults, or 9.5 percent of U.S. mobile phone users over 18, will redeem a mobile coupon in 2011, including coupons or codes received using text messaging (SMS), applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile.

In 2012,  the number of U.S. consumers who redeem mobile coupons will rise to 28.7 million, or 13.5 percent of adult mobile phone users, eMarketer estimates.

By 2013, the number using such coupons will nearly double, and 16.5 percent of all U.S. adult mobile phone users will redeem a coupon.

Led by smart phone owners, the number of U.S. mobile coupon users will increase by 80 percent  between 2011 and 2013, eMarketer predicts, climbing from 19.8 million to 35.6 million.

Outside of the US, mobile coupons have likewise proven popular among consumers, although adoption is far from uniform. Mobile users in Asia-Pacific, particularly those in Japan and South Korea, constitute something of a vanguard, while in Western Europe usage is most extensive in the United Kingdom.

Among smart phone users, penetration is significantly higher. In 2011, nearly one in five smartphone owners ages 18 and older will redeem a mobile coupon, representing annual growth of 117.6 percent.

Triple-digit uptake rates will be short-lived, but by 2013 almost one-third of smart phone users will be redeeming discounts on the go.

Mobile coupon demand

Mobile Couponing Grew in 2010

Consumer use of mobile coupons has shifted radically from 2009 to 2010, say researchers at the Yankee Group. In 2009, just eight percent of respondents who expressed interest in mobile coupons using text messaging or multimedia message service had actually used a service such as Groupon.

Click on image for a larger view.

This figure more than doubled for 2010, to 19 percent of subscribers. Similarly, applications facilitating the real-time scanning of images or bar codes to receive more information or to compare prices increased in usage from five percent of consumers with an interest in mobile coupons in 2009 to 14 percent in 2010.

Yankee Group :: Research Report

Mobile Couponing: Glass Half Full or Half Empty?

According to some predictions in 2009, mobile couponing was ripe for takeoff. While relatively few mobile users had redeemed a coupon through their phone, many were interested, and Yankee Group predicted an increase in the number of mobile coupons redeemed in North America in 2010 from 200,000 to 2.3 million.

But some might argue consumers have been slow to respond. Others might say redemption rates and actions are well above what might be expected from other sorts of campaigns.

According to a September 2010 survey conducted by OnePoll for mobile transaction network mBlox, fewer than 15 percent of US mobile subscribers have redeemed a mobile coupon. This is about twice the penetration Yankee Group found in 2009.

So is that a glass half full, or half empty? An active response of 15 percent is considered quite good for other types of campaigns. Some would point out that a coupon redemption rates ranging from one percent to three percent would not be unusual for other types of traditional coupons.

That might strike you as quite low, but 81 percent of the units purchased using manufacturer coupons came from just 19 percent of U.S. households during the twenty-six week period ended June 27, 2009, for example, according to Nielsen.

The most avid users, called “coupon enthusiasts,” are households that purchased 104 or more items using manufacturers’ coupons. The 10 percent of shoppers that fall into this category accounted for 62 percent of manufacturers’ coupon units. They also accounted for 16 percent of total unit sales making them a very attractive and important consumer target.

Still Waiting on that Mobile Couponing Explosion - eMarketer