Digital Coupon Use Soars in 2010

The number of digital coupon events increased by 59.9 percent for the year ending Sept. 30, versus the same period in 2009 across key websites tracked by Marx, a Kantar Media solution.

Additionally, 267 manufacturers distributed digital coupon offers, an increase of 23 percent compared to the 217 manufacturers that were active in 2009 across these key websites.

“Digital coupons are becoming a core component within the overall promotion mix for consumer packaged goods manufacturers. As with traditional FSI coupons, consumers actively engage with digital coupon websites in the home to make purchase decisions,” said Mark Nesbitt, Kantar’s president. “Digital promotion tactics continue to evolve as manufacturers gain experience and fine-tune best practices related to key websites, face value, expiration, timing and other factors.”

Refrigerated foods led the increase in activity within the food areas, with a 1.5 point increase in share of activity in 2010, contributing to an overall share of 67.3 percent. Health care drove the greatest decrease in activity within the nonfood Areas, with a 4.9 point decrease in 2010.

Face value and face value per unit decreased in four of five food areas. Dry grocery had the only increase, up 4.5 percent and 4.2 percent, respectively. In contrast, face value increased across all four nonfood areas during this period. Household products had the most growth, up 51.5 percent and 37.0 percent, respectively.

On retailer websites monitored by Marx, there were 286 manufacturers running digital promotion events. This is 5.5 percent more than the 271 manufacturers that participated in retailer promotion events in traditional print FSI vehicles during the same period. The 286 manufacturers that ran digital coupon events on retailer websites is also 7.1 percent greater than the 267 manufacturers that ran digital coupon events on the non-retailer websites tracked by Marx during CYTD 2010.

“Digital coupon events on retailer websites are becoming an attractive opportunity for manufacturers to align with their strategic retail partners in order to drive shopping trips and increase sales,” said Bob Cristofono, Marx VP of sales. “Manufacturers can use the Marx Digital ProMotion Report to gain insights into competitive retailer alignment and promotional tactics that are driving sales and share.”

Though 152 CPG manufacturers distributed digital coupons in Q4 2009 (3.4 percent more versus Q3 2009, the number of CPG manufacturers that ran digital coupons in Q1 2010 dropped to 142 across key websites tracked by Marx.

“The consumer promotion landscape is changing rapidly as more manufacturers leverage digital coupons to engage with consumers and partner with retailers,” said Dan Kitrell, Marx VP of account solutions. “We expect to see a slight increase in the number of CPG manufacturers that are distributing digital coupon events in Q4 2010 compared to Q3 2010, with a similar post-holiday pullback in the first quarter of next year. However, the more important trend to watch is the increased promotion activity on retailer websites.”

Kantar Media offers a full range of media insights and audience measurement services through its global business sectors, and tracks more than 3 million brands and delivers insight to more than 22,000 customers worldwide.


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