Mobile coupons still lack scale...

Mobile coupons still lack scale: panelist

By Dan Butcher

March 4, 2011

Redemption of mobile coupons via 2D-bar-code readers is the way of the future for retailers

NEW YORK – Although local mobile coupons are effective drivers of foot traffic, the scale is not there yet in terms of national brand adoption, according to a panelist at Borrell Associates’ Local Online Advertising conference.  

The big coupon buzz about mobile marketing is in browsers versus application, but the local money is still in something as simple as SMS. The panelists discussed the move to the mobile Web and applications.

“The scale is not there yet in terms of these national brands delivering mobile coupons, but you have the power to make that meaningful for small businesses,” said Sandy Martin, Ft. Lauderdale, FL-based marketing analyst at Borrell Associates. “Mobile daily deals companies such as Groupon give local businesses the opportunity to drive repeat business after the initial investment.  

“Yowza is a self-serve platform, but I have no idea how many people in South Florida use it, so I didn’t sign up,” she said. “Shooger offers 100,000 mobile coupons from more than 50,000 merchants.

“I went looking for coupon directories in my area, and there is not a local solution for a coupon directory.”

Ms. Martin decided to tap iSites by Genwi, and she created applications for iPhone and Android, through which she distributes coupons. She can also sell ad inventory.

While text messaging has the widest reach of any mobile channel, Ms. Martin is not convinced.

“With SMS, it is difficult to get the list to a size that is relevant enough,” Ms. Martin said. “Restaurants have had a lot of success with it,