AD|MAX MERCHANT MEDIA LLC

Darren Waddell is Vice President of Marketing atMerchantCircle.com. He can be found on theMerchantCircle blog and on Twitter.

The age of the coupon is upon us. With historically high unemployment and uncertainty about the economy weighing heavily on consumer spending, the humble coupon has enjoyed a resurgence. Both the classic clip-and-save variety and new online options delivered via the web, e-mail, social networks, and mobile phones are popular among consumers.

Coupon redemption in the U.S. rose 10% in the fourth quarter of 2008 –- the first rise in coupon use since the early 1990s –- and total coupon redemption reached 3 billion in 2009, according to Inmar. What's more, the use of printable coupons, where people print online coupons and redeem them in stores, rose 308% in the first half of 2009, while 10 million digital coupons were redeemed during the same period, up 25% year-on-year.

Price sensitive consumers want deals, and smart local companies realize coupons are a great way to attract new customers and retain existing ones. Increasingly, local businesses are eager to use online coupons as a simple, cost-effective way to attract local customers. But while it's fairly easy to create a coupon online (more on this below) the bigger trick is making sure people find it. To ensure a small business coupon promotion reaches enough people in your local area, a well-planned distribution strategy is crucial.

What is an Online Coupon?

Before I jump in with some concrete tips on how to create, distribute, and track redemption of online coupons, let's take a step back and answer the seemingly simple question: What is an online coupon?

The truth is, an online coupon can mean many things: A small clickable banner on a homepage offering 10% off; a discount offered via e-mail, redeemable online, over the phone, or in-store; a printable coupon consumers bring into a merchant's store or office; or even a limited-time deal offered solely to a company's Twitterfollowers or Facebook fans. Whether or not you've used online coupons before, now is the time to test the waters. Some 80% of consumers say they would increase coupon use if relevant coupons were delivered online, according to recent research from Prospectiv.

Create Your Online Coupon

The first step in creating an online coupon is deciding on the level of discount you want to offer, and how long you want the promotion to run. Be clear and direct with the promotion: "10% off this week" or "Buy one get one free today only."

Next, you'll need to create your online coupon. There are many national coupon sites targeted at large consumer brands, likeCoupons.com and Redplum, but they aren't suited to smaller businesses. Small businesses need to reach a targeted, local audience with their promotions, so it makes more sense to create a coupon on a site like Craigslist or Local.com, which let local businesses create and distribute coupons with just a few clicks. You can also create a "coupon" by simply coming up with an offer to send out via e-mail.

Distribute Your Online Coupon

Once you've created a coupon offer, you need distribution. If your local business coupon isn't getting into the hands of local consumers, what's the point? Here are several free or inexpensive ways small businesses can distribute online coupons.

1. E-mail a coupon to your client list. Allow recipients to print the coupon and bring it into your store, or simply "mention" the promotion to receive the discount.

2. Blog about it. Even if you only have a few customers subscribing to your blog, posting deals will encourage recommendations and new subscribers.

3. Post your coupon on an online business directory site or social network that automatically distributes coupons to targeted audiences via a network of local sites and social channels, such as Facebook, Local.com, or Valpak.

4. Particularly if you are a service business, create a Craigslist posting in a relevant business or service category offering your discount. Even a simple text-only coupon works well.