Mobile Coupons: Market Analysis and Forecasts


January 1, 2012
79 Pages - SKU: CCEQ6774109
License type:
As newspaper readership declines and consumers increasingly look online for savings, digital coupons are gaining significant momentum. Digital coupons represent the fastest growing segment of the coupon industry, and accounted for 10% of all coupons redeemed, up from 1% in 2006. In 2011, the market for online coupons is expected to reach $5 billion, with mobile just 15% of the overall online market. However, ARCchart expects mobile's share of the digital coupon market to steadily grow over the coming years, reaching revenues of $9 billion by 2016.

There are a number of reasons for engaging in a mobile coupon campaign including: increased repeat purchase, increased product awareness, introduction of a new product, selling excess stock inventory, targeting specific demographics, trading-up consumers, and responding to competitive changes in the market. This study provides an analysis of the global mobile coupon market.

Topics of coverage include:
  • What is a mobile coupon/voucher?
  • The Groupon affect
  • The mobile coupon value proposition
  • Industry ecosystem
  • Profiles of the key coupon players
  • Business models
  • Recent M&A activity
  • Distribution and redemption technologies
  • Case studies of selected mobile coupon campaigns
  • Global and regional marketing sizes and forecasts


A. INTRODUCTION
A.1 How Do Mobile Vouchers Work?
A.2 The Mobile Voucher Value Proposition
Drives In-store Sales
Saves Printing
Measurability
Proximity Marketing
Allows Retailers to Test Mobile Commerce
Broad Appeal
Recession Leads to Bargain Hunters
Cost Effectiveness
Appeals to a Key Demographic
A.3 Business Models
Types of Mobile Coupons
Coupon Aggregator Model
B. GROUP BUYING & COUPONING COMPANIES
B.1 Daily Deals
Signs of Saturation
B.2 The Groupon Affect
B.3 LivingSocial Goes Mobile
B.4 SavingStar Replicates the Newsprint Coupons
B.5 Coupons.com Targets Social Media
C. MOBILISING COUPONS
C.1 ‘Groupon Now’ Given Prominence by Groupon
C.2 Smartphones Open the Door
C.3 Strong Consumer Support & Awareness
Preference for Mobile Interaction
High Awareness of Mobile Apps
Privacy
D. MOBILE COUPON MARKET STRUCTURE
D.1 Value Chain
Enabler
Distribution
Carrier Involvement
Non-Carrier Involvement
Consumption
D.2 Competitive Pressures
Direct to Consumer
The Amazon Challenge
D.3 Mobile Operator Positioning
Mobile Operators Fight Back
Telenor and PayEx form Valuecodes
Churn Reduction
O2
Vodafone
Telefonica
Verizon
D.4 Google Attacks the Coupon Market
Google's Favourite Places Program
Google Wallet
D.5 Social Networking Companies
FourSquare
Facebook
D.6 Newspapers & Print Advertisers Attempt Move to Mobile
iCircular
E. MARKET TRENDS
E.1 Coupon Saturation Leading to Consumer Apathy
E.2 Coupon Ninjas
E.3 Mobile Wallet
E.4 Merchant-specific Mobile App
E.5 Time and Location-Based Strategies
E.6 Improvement in Phone Cameras
E.7 Near Field Communications
E.8 Better Analytics
E.9 Market Limitations
Limited Mobile Coupon Reach
Limited Coupon-Ready Audience
Challenge of Replicating Traditional Coupons
Costs to Scale
Potential to Slow Checkout Process
Lack of Standards
Over-Saturation
F. M&A ACTIVITY
2Ergo Acquires ActiveMedia Group (Nov 2009)
Amazon Invests $175 million In LivingSocial (Dec 2010)
Qype Acquires Cooldeals (Mar 2011)
nSphere Acquires Peekaboo Mobile (Mar 2011)
Alex Springer Acquires kaufDa (Mar 2011)
LivingSocial Acquires GoNabit (June 2011)
Zave Networks Acquired By Google (Sept 2011)
Google Acquires DailyDeal.de (Sep 2011)
Coupons.com Acquires CouponStar (Oct 2011)
G. TECHNOLOGY OVERVIEW
G.1 Distribution & Redemption
SMS and MMS
Chip & Pin Voucher Redemption
G.2 Readable Codes or Tags
QR Codes
Mobile OS Support
Reading and Decoding Challenges
Storefronts with Scannable QR Codes
Microsoft Tag
JAGTAG
G.3 NFC
Challenges with NFC Adoption
NFC Carrier Billing
Google & NFC
Apple’s iCoupons
Patents
G.4 Bluetooth
G.5 Mobile Apps
G.6 Geofencing
H. FORECASTS
H.1 Mobile Coupon Market
Regional Breakdown
Online versus Mobile Coupons
Revenue by Device Type
H.2 Average User Spend
H.3 Delivery Technology
I. CASE STUDIES
I.1 2Ergo & Ladbrokes
The Solution
Results
I.2 Orange Wednesdays & Buongiorno
The Solution
The Results
I.3 O2 UK - You Are Here
I.4 American Express Offers On-Demand Coupons
List of Figures
Figure 1 - Mobile vouchers workflow
Figure 2 - Groupon revenues by quarter: 2009 - 2011
Figure 3 - Schematic of the Groupon business model
Figure 4 - Groupon quarterly unique visitor growth: 2010 - 2011
Figure 5 - Groupon customer acquisition cost: 2010 - 2011
Figure 6 - Revenues and coupon volumes compared for Groupon, LivingSocial & Google
Figure 7 - Groupon Now as proportion of total Groupon North American revenues
Figure 8 - Average deal economics for Groupon & Groupon Now compared
Figure 9 - Installed base of smartphones and non-smartphone handset: 2011 - 2016
Figure 10 - Mobile coupon value chain
Figure 11 - Brands disintermediate voucher providers
Figure 12 - Google favourite places
Figure 13 - Google Wallet on the Nexus S 4G handset
Figure 14 - FourSquare digital coupon
Figure 15 - Shipment of NFC-enabled handsets: 2011 - 2015
Figure 16 - Performance of mobile coupon compared with various traditional coupons
Figure 17 - QR Code structure
Figure 18 - QR storefront
Figure 19 - Use of tags or QR Codes for lunchtime promotions
Figure 20 - Tags and QR Code designs compared
Figure 21 - Microsoft Tag in action
Figure 22 - JAGTAG
Figure 23 - Google’s Nexus S smartphone with embedded NFC
Figure 24 - Starbucks geofencing coupon promotion in London
Figure 25 - Global mobile coupon redemption revenue: 2011 - 2016
Figure 26 - Mobile coupon revenue by region: 2011 - 2016
Figure 27 - Mobile coupon revenue as a subset of online coupon revenue: 2011 - 2016
Figure 28 - Global mobile coupon revenue by handset type: 2011 - 2016
Figure 29 - Estimated average annual user coupon spend by handset type: 2011
Figure 30 - Mobile coupon revenue by coupon delivery technology: 2011 - 2016
Figure 31 - Orange Wednesdays promotion
Figure 32 - Orange Wednesday pizza promotion

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