DALLAS – Following a year of significant industry growth and widespread mobile coupon adoption, Koupon Media released its third annual State of the Mobile Offer Industry report, revealing key trends shaping the mobile coupon industry in 2017 and shedding light on the company’s rapid growth in 2016.
“Mobile offers are more popular than ever before, with 104 million mobile coupon users in the U.S. alone,” said Bill Ogle, CEO of Koupon Media, in a press release. “Between the surge of small format retail and the onset of the connected car, marketers are exploring new, innovative ways to deliver personalized, data-driven, omnichannel experiences that bridge the gap from online to in-store sales. As a result, major brands and retailers are fundamentally changing the way they think about marketing to consumers, incorporating mobile offers as a way to not only drive engagement but also increase sales.”
Key trends identified in the report include:
- Cross-channel distribution drives success. The number of digital channels used to deliver an offer has an exponential impact on its success.
- Offers drive ad engagement by 200%. If an online ad promotes a mobile offer, it has on average 200% higher customer engagement.
- Data-driven mobile offers delivery. Using data to strengthen offers comes into focus, with one study showing a 45% increase in redemption.
- The rise of small format retailers. Small format stores are growing faster than other retail verticals and adopting mobile offers at a rapid pace.
- Targeted offers can be delivered to connected cars. The smart car revolution is introducing an exciting new channel for delivering millions of mobile offers.
More customers are using mobile offers than ever before, and studies continue to reveal that shoppers not only want more mobile offers, but become better customers when they use them. For example, 58% of customers visit a store after receiving a mobile offer. Ninety percent of millennials actively look for mobile offers while shopping. Seventy-seven percent of customers spend more when redeeming a mobile offer. Forty-four percent of customers want to see offers included in mobile wallets.
Studies show that customers are more likely to engage with ads that promote a mobile offer. For advertisers, mobile offers have introduced an entirely new way to boost performance of campaigns.
In addition, a shift to online shopping paired with changing demographics is driving growth in small format stores. As the industry takes notice, mobile offers are emerging as the go-to solution for marketing to customers shopping in smaller stores. In 2015, small format retail categories—drug, dollar and convenience stores—outgrew larger format stores by almost 400%. This growth is no accident. Demographic shifts paired with online shopping behavior are forcing leading retailers to think small.