The Future of Coupons

NEW YORK, April 3 /PRNewswire/ -- Marketers who rely on the distribution of coupons to generate business, take notice. Consumers who are sick of taking out their scissors to clip coupons, look out! There are several new emerging media tactics that can be leveraged to distribute and redeem coupons. These methods may even prove to be more efficient than traditional tactics, such as inserts in the Sunday newspaper. ID Media, the largest direct and digital media services company in the U.S., recently tapped Josh Martin, Director of Emerging Media, to find out what the future holds for coupons and how emerging media channels can be implemented to give consumers the most bang for their buck.

In the rapidly evolving digital age, broadband video, mobile devices and automated toll-free directory assistance have each emerged to become highly effective platforms for coupon distribution and redemption. Each of these vehicles has several unique strengths in comparison to traditional coupon ad units, including stronger targeting capabilities, a deeper level of engagement and relevancy with the consumer, significantly lower production costs, greater levels of optimization and more flexibility to make creative changes and enhancements.

Broadband video, an on-demand online application for viewing TV-like video content on a Website via a high-speed broadband connection, has the potential to be a great extension of television advertising. Generally, a companion banner ad appears adjacent to a video clip, making this medium particularly well suited for coupon dissemination via a one-step click on the banner. There are currently two main types of online video opportunities associated with broadband: In-Stream (pre-roll, mid-roll and post-roll ad units) and In- Banner.

In-Stream videos, which appear on a Website, primarily feature licensed, user-generated or syndicated video content. The key ad unit associated with in-stream broadband video is pre-roll video, which is typically purchased on a CPM basis. These pre-roll units tend to be :15 or :30 seconds in length and appear before the content that a user "demanded". In many cases, a companion banner ad is featured along-side the video.

"These companion banner ad units provide an excellent platform to distribute coupons and complement the ad messaging from the video unit," says Martin.

In-Banner units are videos that appear in or expand from a banner in multiple sizes. Marketers can elect to have the user initiate the video experience with their computer mouse or these units can automatically expand and play video. Similar to pre-roll ad units and companion banners, once expanded, the in-banner ad units feature custom environments that can feature a coupon call-to-action.

"These opportunities are not only an effective tactic to distribute coupons but they are also efficient on a CPM basis and can contribute to a campaign's awareness or branding objectives (which is similar to traditional DRTV). Most importantly, they provide a consumer with a key benefit of saving money," says Martin.

Mobile devices are also quickly becoming an exciting way to distribute coupons since they are in nearly everyone's hands, especially while consumers are out shopping or traveling. There are several ways to deliver coupons to a consumer's mobile device including utilizing SMS, WAP sites and dynamic downloadable applications. Similar to broadband video, marketers can be extremely creative in this environment.

SMS, which stands for "Short Message Service", is available on nearly all of the newer cell phones in the market. Advertisers can leverage SMS by setting up short codes and keywords that can be unique to each advertising campaign in order to send text messages to consumers. The text message can be a coupon and be redeemed by the consumer by bringing the phone in-store or via a code that can be entered into a Website if it's an online purchase.

"So, consumers can now put down the scissors, say goodbye to the days of clipping coupons, and take out their mobile phone for the best steals and deals," states Martin.

Another option is WAP sites. WAP, which stands for wireless application protocol, are sites that are appropriately formatted for the small screen size of mobile phones. WAP sites can be accessed by the user when they utilize their mobile internet browsers. Coupons can be integrated on these WAP sites, along with other content such as store finders, hours of store operation, directions, etc.

"Utilizing WAP sites makes it easy to get the information you need in a convenient way, plus it can offer the additional incentive of a discount or special in-store promotion. Not only can you find the nearest store and the hours they are open, but you can access a coupon for a great deal when you get there," says Martin.

In addition to WAP sites, several mobile applications have emerged, like "Cellfire", which allows users to download a software application or program, typically from a Website or WAP site, to view, use and save coupons. These software applications are saved to the device deck of the phone and when selected by the user, feature mobile coupons from participating advertisers at the push of a button.

"Young males have always been an elusive target. Think of mobile as a new way to reach them and provide just the right level of incentive to make them switch brands," says Martin.

Another option is free, ad-supported phone directory assistance services. Several have recently emerged to compete with the phone providers "411" service, including 1-800-FREE-411 operated by Jingle Networks. Just like "411", consumers use this service to receive directory assistance and find the phone numbers and addresses of specific business or individuals. In contrast to "411", 1-800-FREE-411 features short audio advertisements, but does not charge the consumer for the service. One of the options FREE-411 offers to the consumer is to receive a text message from an advertiser in addition to the phone number they requested. This text message can feature a coupon which the consumer can use at their leisure.

"I like this application for fast food and quick service restaurants. Imagine intercepting a call for information for a restaurant with a discount offer for your brand. While these new emerging coupon distribution platforms won't replace traditional marketing tactics, it is extremely important to take notice and test these new vehicles. New coupon platforms allow marketers to remain top of mind and at the consumer's fingertips," concludes Martin.

ABOUT JOSH MARTIN

Josh Martin heads up the emerging media division of ID Media specializing in developing ROI-focused buying models for emerging media. Josh is responsible for educating ID Media employees and clients on the latest technologies, media platforms and advertising opportunities that are currently ... or will soon be ... in the marketplace.

Josh is a member of the American Association of Advertising Agencies' Digital Video Innovation Committee and was recently recognized as one of Advertising Age's top 40 executives under 40 for his experience in emerging media.

About ID Media

ID Media helps leading advertisers profit in today's fast-changing media marketplace. The company, which is the largest direct and digital media services company in the country, delivers the best possible return on media investments because of its superior rates, research resources, and reporting systems. ID Media serves clients including American Express, Johnson & Johnson, HBO, L'Oreal Paris, Nautilus, and Verizon from locations in New York, Chicago, and Los Angeles. ID Media is part of The Interpublic Group of Companies (NYSE: IPG) .