Certain brands like Crate & Barrel are more willing to offer coupons via smartphones compared to traditional avenues. That's because mobile coupons - delivered via sleek and expensive smartphones - are sexy and novel, says Greg Grunberg, co-creator of Yowza, a mobile computing application that allows users to search for nearby, participating retailers either via zip code or by using the device's GPS.

Retailers in Yowza's program include Toys R' Us, Babies R' Us, Robbins Brothers, Hobby Lobby and ULTA Beauty Stores. Admittedly, several of these stores offer paper coupons, Grunberg says. However there is a growing contingent of retailers that are experimenting with Yowza's platform that wouldn't ordinarily offer coupons, or do so on very limited basis.

These include Traditional Jewelers, Kiehl's, the Container Store, Aveda Salons, Planet Funk, a high-end clothing store, Klingman's Furniture, Gelson's, an upper crust super market, and American Gold Corp.

Stigma Free Discounting

"What these retailers love about mobile coupon is that it removes the stigma of discounting," he adds. "Their customers wouldn’t be embarrassed to be using a coupon this way either - for example, you can't hand over a paper coupon at a business lunch in an expensive restaurant to the server without being embarrassed. But it's nothing to give her your cell," says Grunberg, who is also an actor in NBC's Heroes and has been to his fair share of Hollywood-style lunches.

This week Yowza is making its mobile coupons available on the Android, with discounts accessible via the BlackBerry and Palm Pre, through a partnership with WHERE, a local search application from uLocate Communications. It originally launched earlier this year on the iPhone and iPod touch via the App Store.

Mobil Coupons Link to Local Search

For the moment mobile coupons are still a niche strategy. They deliver their biggest bang - luxury retailer or not - when they are sent using location based applications, according to a new report by Juniper Research. The study also found that more than 300 million consumers around the world will have used mobile coupons by 2014 and this usage will generate a redemption value close to $6 billion globally, writes MarketingCharts.

Google Ups the Ante

Google is also reaching deeper into this space, which should increase adoption. Last month the company added a new option for Local Business Center users to display coupons on mobile devices. When users pull up business listings on their mobile phone, they'll see a section that lists the available coupons. They can then click to find a specially-formated page which shows all the coupon details they need for redeeming it, Google explains.