O2 UK's mobile coupon efforts drive high returns for retailers

Mobile coupons are proving a hit with retailers with record redemptions following the introduction of the service by O2 UK.

The operator said that its O2 Media division had achieved a recall rate of over 90 per cent using its location-based ‘You Are Here' campaign to promote a Starbucks' coffee product.

According to Nick Pestell, O2 Media's head of agency sales, the Starbucks campaign was the coffee retailer's first effort to use location in the UK. "This is definitely one of the most popular campaigns conducted on O2 More," Pestell told NMA. "With a lot of location-based campaigns you typically get a 20-30 per cent response rate, depending on the product."

However, Everything Everywhere is planning to offer mobile coupons to advertisers shortly with the announcement that it has widened its partnership with the mobile marketing company Blyk. "Working with the coupon system in Blyk's media platform, and with some newly signed redemption partners, we'll be able to provide our own coupon offering," Clare Messenger, Everything Everywhere's head of mobile marketing, told NMA.

But the common problem of analysing the results of mobile marketing campaigns would still seem to remain. A poll of over 1,000 mobile subscribers in the UK conducted last October by the Internet Advertising Bureau (IAB) indicated that redeeming mobile coupons was the least favoured m-commerce activity.

The IAB research claimed that just over 20 per cent of those surveyed said they had used their handsets to redeem a voucher, compared with 40 per cent who had used their phones to find a retail location or contact details. IAB's mobile manager, Alex Kozloff, said media agencies were interested in using mobile coupons, but were encountering issues when it came to campaign analytics.

"It's something that agencies are interested in because the concept of coupons offering discounts always performs well with consumers in research studies," she said.

For more:
- see this NMA article

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