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Digital Coupons


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  • 1.
  • 3. Get the right message,
    to the right person,
    at the right time!
  • 4. What is Direct Marketing?
    A CONTROVERSIAL sales method by which advertisers approach potential customers directly with products or services
    Also involves compiling and maintaining a LARGE DATABASEof personal information about potential customers and clients
    Best way of breaking through clutter
    Impactful and relevant
    Costs less per sale then advertising and PR
    Measurable and Controllable by company
  • 6. Advertising
    Competitive attention
    Pay for everyone
    Direct Marketing
    Selective attention
    Pay for targets
  • 7. Types of Direct Marketing
    Email marketing
    Door-to-Door Marketing / Direct Selling
    Broadcast Faxing
    Voicemail Marketing
    Direct Response Television Marketing (DRTV)
  • 8. WHAT IS coupon
  • 9. History
    Introduced by Coca-Cola Company in 1887.
    Coupons were mailed to potential customers and placed in magazines.
    By 1913 one in nine Americans had received a free Coca-Cola, for a total of 8,500,000 free drinks through coupons
  • 10. popularity
    Traffic to coupon sites increased an incredible 38%from March 2007 to March 2008; whereas overall Internet traffic growth grew only 5% during the same period.
    Boom in discount coupons in 2009 due to recession and businesses issued 367 billion coupons last year and consumers redeemed 3.3 billion
    In 2009 57%of consumers said they were once self-conscious about using coupons but no longer care
  • 11. Consumer perspective
    Considered as best way for money saving
    People enjoy the feeling of gaining a bargain and being treated as special
    It's part of the thrill of the hunt of online shopping as much as any financial benefit
  • 12. Companies offering coupons
    Manufacturers of food products bought about 5% more couponsin the fourth quarter of 2008 to promote their goods because more people were eating at home to save money
    Almost EVERYONE!
  • 13. Companies offering coupons
    Ready-to-Eat Cereal
    Sweet Snacks
    Refrigerated Dough
    Salty Snacks
    Quick Serve Restaurant (QSR)/Casual Dining
    Nutritional Snacks
  • 14. WHAT IS digital coupon?
  • 15. Digital coupons?
    Utilizing DIGITAL MEDIUMS to spread coupons in consumers
    Growth of digital coupons OUTPACES that of printed newspaper coupons 10 to 1
    • Helped in printed savings of over 170 PERCENT during 2009 i.e. over $1 BILLION
    • 16. 45 MILLIONAmerican consumers are now using online coupons, up from 38 MILLIONin 2008
  • consumer perspective
  • 17. Business perspective
  • 18. Digital coupon hunting?
    Social Coupon Sites & Portals
    Search Engines
    Site Searching (brand websites)
    Extended life
    “My precious”
    Feels special
    Gift viral
    Brand – in hold
    Media life
    Everyone's click
    Feel mass
    Link viral
    Intangible link
    In sight
    Digital coupons vs. online banners
  • 20. Types of digital coupons
    Discount coupons (Show & Save)
    Enables shoppers to either print a local coupon offer or simply show the coupon on a mobile device at checkout at the retailer or service provider
    Save to Card
    Allows shoppers to save coupon offers directly to their store loyalty cards. The paperless, virtual coupons are automatically deducted at checkout
    Coupon codes
    gives access to hundreds of thousands of online coupon codes that provide discounts or free shipping on online purchases
  • 21. Profitability
    Traditional Economic View
    Target coupons towards customers who are unwilling to pay the current price.
    Incremental sales result from this new segment without impacting profits from existing customers.
    Behavioral View
    The existence of coupons decreases likelihood of purchase by current customers by about 15%.
    This offsets any gains from the new sales.
  • 22. Top 10 tips
    New Customers need higher % (15 vs. 10)
    Increase average order size by 10% as min
    Any Products vs One Product
    Coding the Code - Complex vs. Simple
    Optimize site for coupon (SiteSearch, Off-search, Social)
    Urgency vs. Expiration
    Lead generation - Get Coupon & Updates! Send to Friends
    Affiliate Coupon Codes
    Test Coupon Processes & Creatives
    Track - Core track (e.g. JOY), Per Channels (e.g. OUS /AND)
  • 23. Futurecoupon
  • 24. Market Summary
    The pullback of ad spending and mobile phones becoming personal computers, are the most "disruptive" force in media today, according to a new survey of media and advertising professionals by consulting giant KPMG(Mediapost, Feb. 6, 2009)
    63% of consumers, across all age groups, said that a coupon would be the most effective incentive to get them to respond to a mobile marketing message (ABI Research)
    Mobile handsets are now the technological tool Americans would be most reluctant to give up, surpassing the Internet and T.V. (Pew Internet & American Life Project)
    57% of consumers said they would want to receive a coupon on their phone (Deloitte)
    23 percent – that’s 58 million – of all U.S. mobile subscribers say they have been exposed to advertising on their phones in the past 30 days. Half of all data users, or 28 million, who recall seeing mobile advertising in the previous 30 days say they responded to a mobile ad.(Nielsen Mobile)
    The U.S. mobile ad market will grow from $33.2 million in 2008 to $1.4 billion in 2012(The Kelsey Group)
    The typical mobile phone user carries his or her phone around for an average of 14 hours per day(Gartner: Market Trends)
    243 million citizens, or 80 percent of the U.S. population of 303.6 million, have mo-bile phones. Of mobile phone users, 200 million, or 82 percent, operate phones with text messaging capabilities, and 174 million, or 72 percent, have phones capable of browsing the Web(CTIA-The Wireless Association)
  • 25. Market Summary cont.
    Global spending on mobile advertising totaled $2.7 billion in 2007 and is expected to reach $4.6 billion in 2008, and rise to $19.1 billion by 2012.(eMarketer)
    3.3 billion people worldwide now have mobile phones(eMarketer)
    87% of US market has a cell phone(Gartner)
    33% of email addresses change on an annual basis while cell phone numbers stay with the same customer for years(ABI Research)
    63% of consumers feel a coupon is the top incentive to receive mobile marketing text message(ABI Research)
  • 26. Operator to Consumer…(example)
  • 27. Types of Coupons
    Know your audience and deliver the least common denominator.
    Similar to browser and resolution considerations developers face.
    Alphanumeric (Text Message)
    Text mealdeal to 498536
    One Dimensional Bar Code
    • Helps prevent fraud
    • 29. Widely used
    • 30. Easy to create
    • 31. Served up via WAP
    Two Dimensional Bar Code
    • Prevents fraud
    • 32. Holds more info
    • 33. Doesn’t require scanner
    • 34. Read and interpreted by camera phones
  • Delivery Methods
    SMS – Short code campaign or text message promotion as part of location-based
    ad network.
    MMS – Can deliver one or two dimensional bar code coupons.
    WAP Push – Provides link to WAP site with coupon or promotion code.
    Print – Short code campaigns or one and two dimensional bar codes.
  • 35. Location Based Advertising
    Businesses pay to participate in industry’s first foodservice, location-based ad network
    Consumer’s opt in to receive promotions and coupons from the network
    When consumers are within a certain distance of a participating establishment, they automatically receive promotions
  • 36. Examples
    QR Codes (2 dimensional) will soon be appearing on cans of Pepsi Max. The code resolves to a WAP site with games and videos
  • 37. Case Studies
    Dining franchise Village Inn used mobile coupons to lure consumers and build out the restaurant brand’s Mobile VIP Club. The campaign offered users the chance to redeem one free entrée with their purchase of another entrée. Users were asked to text the word CREPES to short code 74642 to get the mobile coupon offer.
    30% double opt-in to VIP Club
    113% of coupons redeemed (created viral effect, users passed coupons to friends)
    The Wine Enthusiast advertisements in Wall Street Journal, prompted readers to take a picture of an advertisement with their camera phone to receive a special offer from Wine Enthusiast on their mobile phone. The offer was a coupon good for 15% percent off purchases of $100 or more at Wine Enthusiast.
    • Responses received from various cities across US
    • 38. Measurable print advertisement effectiveness by city, regional edition and time of day
    • 39. Image recognition rate of 99%+
  • conclusion
    Online coupons may be driving customers away
    In an experiment, an additional 15% of customers abandon carts due to coupon code prompting
    Must rethink presentation of coupons
    Coupon delivery out of company control
    Self selection along tech-savvy lines
    Must rethink efficacy of couponing
  • 40. Thank you