Coupon-clipper

AOL is launching its first-ever couponing venture in an attempt to become a major player in that market, reports AdAge.

While many coupon-distribution sites exist, none have been able to achieve significant reach or greatly impact offline companies like SmartSource or Valassis.

AOL plans to run banner and other ads that would point people to the coupon site, dubbed AOL Shortcuts. The coupon site would forego printouts in favor of an all-electronic solution.

Fraud is a major concern for retailers and marketers when it comes to online coupons. AOL believes it can solve that problem by working within loyalty programs retailers already have, or by creating new online redemption systems for retailers that don't have any in place.

Bringing the coupon business online is attractive largely because of the demographics. Young people who aren't reading print publications also aren't seeing coupons inside them. Going online could go a long way to bringing more coupon use to that group.

AOL says it has deals pending with two "major" retailers already.