The growth of mobile and smartphones has had a great impact on the way that consumers search and shop. As the world has adjusted to these devices, so has the marketing world adapted with new ways to promote and advertise products. Mobile advertising is growing so rapidly that mobile will account for 86% of ad search dollars by 2018! One of the tools that marketers are using to promote businesses is the digital coupon.
According to Datasphere.com, in 2014 alone there were over 560 million digital coupon users and that number will grow to over a billion by 2019. Forrester released a study in August 2014 discussing the growth in use of digital coupons and the importance for businesses.
In the study it was found that mobile coupon use through tablets and smartphone is on the rise, because the digital coupon adds to the sale experience. It builds brand loyalty by consumers. Forrester found that consumers continue to believe that coupons “do not dilute brand perceptions, it increased brand loyalty”. Consumers who are searching on their mobile phones expect to get info quickly and easily when they need it. Getting served coupons is all part of that process. Coupon users have a sense of urgency and immediacy when receiving coupons, as most digital coupons are redeemed within several days and nearly one third are redeemed immediately.
Mobile targeting methods continue to improve as technology improves. Companies use a variety of targeting methods to find new customers including geo location, competitor conquesting, finding out who the audience is, retargeting, and time-based (or real time). These targeting methods will help deliver digital coupons to the right consumer when they need them.
The primary source for digital coupon is still via email, but native apps with geo-targeting is increasing in usage. Geo-targeting strategies by such companies as YP and DEX can detect when mobile users are near a store and will automatically send a digital coupon ad as these consumers browse the internet where they are shopping. This is very helpful for retail stores and restaurants. In one DEX case study, a department store wanted to run a campaign to leverage real-time user search behavior to drive dynamic sponsored ad placement among top search properties. The Click-thru-rate (CTR) exceeded average industry rate by 40%. (The CTR average on mobile display ads is .35%) Secondary Action Rates exceeded platform average by nearly 242% with the most popular secondary action being getting directions to nearest location.
To enhance mobile targeting and advertising even more, YP has developed a desktop to tablet or smartphone cross-device advertising program. The targeting starts with searching for a service or product via yp.com on your desktop and will engage with the consumer with targeted mobile ads and coupons across their other devices for the same search. This extends the reach and the effectiveness of the search and reaches consumers when they are ready to buy in real time.
As mobile usage continues to grow and the importance of coupons and targeting gets even more pinpointed, companies will need to develop mobile advertising programs to reach their customers when they are ready to buy. Linkmedia 360 works with a variety of companies in order to find the best mobile solutions for our clients, from display ads to mobile search campaigns.