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), where the phone camera view becomes the backdrop while digital objects are overlaid and tied to location signals like GPS. 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.
In this context, 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. That feeling is why the offer holds attention long enough to drive action.
Extractable takeaway: When an offer is packaged as a collectible tied to place and moment, it feels context-aware rather than generic. Treat location as part of the experience, and keep the capture-to-redemption path short so the “find” turns into a real reward.
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.
The real question is whether your promotion can create a repeat habit, not just a one-time redemption.
This format is worth copying when you can tie the reward to a real place and keep redemption friction near zero.
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.
Shopper activation moves to copy from iButterfly
- Make the reward immediate. Catch. Unlock. Redeem. Long funnels kill the game loop, the simple repeat cycle of catch, unlock, redeem.
- 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.
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.