SunMatrix Ramble

Coupons with wings: iButterfly turns deals into a mobile hunt

Here is a great example of Online, Mobile and Shopper Marketing converging with Augmented Reality (AR). Integrated Marketing literally put into the hands of the people.

Japanese ad agency Dentsu has started this experimental coupon download platform called iButterfly on the iPhone. The free iPhone app transforms the habit of collecting coupons into a fun little game using AR and the device’s GPS.

The mechanic: catch a butterfly, unlock a coupon

The app tasks its users with catching virtual butterflies that are flying around, each representing one or more coupons. You can even share “butterflies” with your friends via Bluetooth.

Augmented reality in this context means the phone camera view becomes the backdrop, while digital objects. Here, butterflies. are overlaid and tied to location signals like GPS.

In retail and FMCG shopper marketing, the value of this approach is that promotions become a location-linked experience, not a passive download.

Why this format works for targeted promotions

The key shift is motivation. People are not “clipping” coupons. They are playing a simple collecting game, and the reward is a deal that feels earned.

Because butterflies can be placed around specific areas, the mechanic supports targeting by place and moment. That makes the coupon feel context-aware rather than generic.

What Dentsu is really prototyping here

This is less about novelty AR and more about a new distribution behavior. Turning offers into collectible objects changes how often users open the app, how long they stay in it, and how naturally they talk about it with friends.

It is also a rare example where “share with a friend” is not a marketing CTA. It is a gameplay action that carries the promotion with it.

What to steal for your own shopper activation

• Make the reward immediate. Catch. Unlock. Redeem. Long funnels kill the game loop.
• Use location as a story, not a filter. Place rewards where people already go, so the map feels meaningful.
• Let sharing be part of the mechanic. A tradable object beats a generic “share this” button.
• Keep the collection simple. If users need a manual, they will not hunt.

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A few fast answers before you act

What is iButterfly?

iButterfly is a mobile coupon platform that turns deal collection into a location-based AR game. Users catch virtual butterflies on their phone and unlock coupons as rewards.

How does the AR coupon mechanic work?

Users view the real world through the phone camera. Virtual butterflies appear and can be “caught”. Each butterfly contains one or more offers, which unlock after capture.

Why is this relevant for shopper marketing?

It shifts promotions from passive browsing to active discovery. Location and gameplay increase attention, repeat usage, and the likelihood of in-the-moment redemption.

What makes it feel targeted rather than random?

Butterflies can be tied to locations and contexts via GPS. That links the offer to where the shopper is, not just who they are.

What is the biggest execution risk?

If redemption is hard or the rewards feel weak, the novelty wears off fast. The game loop only survives when the payoff is clear and friction stays low.