The RadioShack ads are running within several mobile applications including the Weatherbug and Weather Channel iPhone apps. Although a mobile coupon can help trigger quick sales, brands also need to view how coupons play a role in their long-term marketing.

“Coupons have proven themselves to be an incredibly strong draw for consumers with a lot of voucher sites appearing in recent years,” said Eric Mugnier, U.S. senior vice president at M&C Saatchi Mobile, New York.

“This is especially the case during the current economic climate,” he said. “Saying that, brands still need to temper the quick win of a coupon with their longer-term image and brand-building, so they are not a suitable tactic for all brands as they don’t want to simply be associated with discounts.”

“One interesting thing that we’ve seen recently is that brands are using offers to add value to their customers in other ways such as giving them access to limited editions of a product – meaning that the retailer has not had to offer a discount or lose revenue to engage with a consumer. Overall, experience has shown us that coupons can deliver higher click-through rates compared to other forms of mobile advertising so yes, they do work because people always like a good deal.”

Mr. Mugnier is not associated with Radioshack. He commented based on his expertise on the subject.

RadioShack did not respond to press inquiries.

In-store incentive
The banner ads read, “Save $10 of $20 or more on any qualifying purchase” and feature RadioShack’s logo.

When consumers tap on the ad, they are directed to a mobile landing page with a coupon on it.

To save the coupon, consumers can email the URL to themselves for later or bookmark the page.

Consumers can also learn about which products the coupon can be applied from the landing page. The coupons run through March 30.

Each coupon contains a unique bar code attached to it. Employees can either scan the mobile bar code or manually enter the series of numbers and letters to redeem the coupon.

Location, location, location
RadioShack is smart to use a mobile coupon to spur in-store traffic.

Not only is the mobile ad tied with an offer, it also includes a store locator feature that leverages a user’s location as a catalyst to getting consumers into stores.

Recently, a number of retailers are using location-based mobile campaigns to incentivize shopping in bricks-and-mortar stores.

For example, Banana Republic ran a mobile advertising campaign that encompassed location, mobile commerce and offers. The key to the campaign’s success was offering consumers multiple ways to shop (see story).

Additionally, Hasbro recently partnered with Kiip on a campaign that rewarded mobile gamers with coupons on products that could be redeemed at Toys R Us (see story).

“The growth of real-time bidding and DSPs will facilitate a revolution in mobile targeting of which location will be a key component,” Mr. Mugnier said.

“I think that the introduction of Apple Passbook and the transition of loyalty systems to mobile – albeit via NFC or other means – will mean that brands can also target customers who are opted-in and open to receiving such offers and adverting,” he said.

“Perhaps some stores will limit people to receiving special offers and discounts only if they join a loyalty scheme – this way, they close the loop and continue receiving value from the customer acquisition.”

Final Take
Lauren Johnson is associate reporter on Mobile Commerce Daily, New York