More advertisers are expected to use mobile coupons or promotions next year, although anticipated growth will remain in single digits, according to a report “Mobile Coupons: Identifying New Opportunities Beyond Early Trials,” published by JupiterResearch.

The study conclude that mobile coupon must focus on highly relevant offers, deliver value, manage frequency, and give the consumer control, in order to be truly successful. Currently, 30% of the consumers are interested in receiving coupons on their mobile phones.

"Mobile coupons are gaining traction among advertisers, and are no longer just a niche tactic, rather they are moving toward the mainstream to more common use,” explained Neil Strother, analyst with JupiterResearch and lead author of the report. “There are definite benefits to using mobile coupons such as real-time offers, geo-targeting, personalization, time-of-day redemption tracking, triggering impulse purchases, and a lower cost of delivery. But while there is tremendous untapped potential, there are still barriers that exist.”

Redemption methods are one key inhibitor to wider use by advertisers. Few retailers have systems able to read coupons directly from handset screens. This lack means the POS requires another way of verifying and tracking. Current methods include the following: entering the code manually in a cash register; matching it with a customer’s loyalty card number; or writing it down on paper—the least preferable way. But while there are still hurdles that need to be cleared, this method of mobile marketing presents some potential and clear benefits to advertisers.