Feature Phone Users Still Clip Coupons even though 73 Percent Want Mobile

Hipcricket just passed 75,000 successful mobile marketing campaigns. Since they launched the Hispanic Mobile Marketing Network in April 2008, Hipcricket has been able to partner with some 60 broadcast media outlets targeting Hispanics. Hispanics' response to text marketing ads increased 20 percent last year.

Last year a survey conducted by the Yankee Group was predicting a jump in mobile coupon redemption from 200,000 to 2.3 million (for 2010), but so far this year just 15 percent of US mobile subscribers have redeemed mobile coupons, according to a OnePoll survey.

Through September 2010, 85.3 percent of US mobilephone users have not used mobile coupons, largely attributable to the current dominance of feature phones over smartphones.

On the other hand Hipcricket, a mobile marketing and advertising company, just passed 75,000 mobile marketing campaigns.  Hipcricket has seen 55 percent of its brands they have worked with choose SMS, while 45 percent choose mobile banner display ads.

Smartphones handle display ads much better than feature phones and smartphone sales data already shows growth, while sales in feature phones continue to decline, according to a Nielsenstudy.  From Q2 of 2008 smartphones had 10 percent of the market, by Q4 of 2009; sales percent jumped past 21 percent.  During that same time feature phone sales data of the mobile market dropped from 90 percent to below 79 percent.

With more smartphones coming to market, consumers will have more convenience of redeeming mobile coupons, easier than clipping coupons from the newspaper (also known as free standing insert (FSI) coupons).  FSI enjoyed a 10.1 percent increasein coupons dropped for the first 6 months of this year, compared to last year.  But as more US mobile users convert to smartphones, expect more mobile coupon redemption.

Young parents with children less than 6 years old who use feature phones, were 33 percent more likely be interested in receiving local mobile alerts and text-based coupons, according to eMarketer.

Previous prediction of mobile coupon redemption growth has not been met.  Consumers are not shunning mobile coupon use, instead it is inconvenient and currently easier to get a pair of scissors and cut out FSI coupons if you have a feature phone.  Feature phone users can still enjoy receiving simple, basic, call to action text alerts.  While smartphone users benefit through display and mobile Internet.


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“What is a JagTag?” Capstone Media.  October 27, 2010.

ABOUT:  Yankee Group, founded in 1970 in Boston, MA, is an independent technology research firm specializing in emerging technology communications.  They sell market research related to information technology.  Yankee Group, with 160 employees, link research, link data and link consulting to give clients market-driven research, monitoring and advice, respectively.

ABOUT:  OnePoll, an online market research company based in the UK, conducts company endorsed studies from various sectors in the UK and around the world.  OnePoll data is then used in press releases, TV and online.

ABOUT:  Hipcricket, founded in 2004 in Seattle, WA.  Specializes in permission-based mobile marketing campaigns.  They have recently reached 75,000 successful mobile marketing campaigns for clients such as Macy’s, Nestle, KFC, HBO, and Clear Channel.  The Company has been recognized by CTIAas a pioneer in the mobile marketing industry.  They produce interactive campaigns using SMS, Mobile Web/WAP on a software-as-a-service (SAAS) model.  In April 2008, HipCricket launched a mobile marketing media network called the Hispanic Mobile Marketing Network, composed of more than 60 broadcast stations.