The global redemption rate for mobile coupons will average at more than 8% by 2016, more than eight times better than the rate achieved by the best paper coupon campaigns, Jupiter predicts.

Juniper's report, Mobile Coupons: Ecosystem Analysis & Marketing Channel Strategy 2011-2016 says North American and Western European markets are now beginning to follow the same growth path as the Far East and China. By 2016, it says there will be over 600 million regular mobile coupon users worldwide.

The report argues that mobile coupons have compelling advantages over their paper and online antecedents and are particularly strategic for bricks and mortar retailers in the quest to regain ground lost to online retailers during the internet revolution. A mobile coupon bridges the divide between online and physical retailing and can be individually targeted to drive footfall to stores.

Juniper warns, however, that the rise in mobile coupon redemption rates will only come after an initial period of experimentation by both coupon issuers and users, during which redemption rates may actually decrease slightly. After this period, redemption rates will then start to rise steadily.

According to David Snow, the report's author, "As with all new mass markets there is an initial 'shakeout' period. North America and Western Europe are at this stage now. For the next few years, users will be signing up to multiple coupon schemes and deciding on the ones they like best - so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base."