Digital Couponing Flat So Far This Year

Digital coupon event activity was flat in the first half of 2011 as compared to the same six months in 2010 across key websites tracked by Marx, a Kantar Media solution.

Additionally, 194 manufacturers distributed digital coupon offers in the first half of 2011, an increase of 2.6 percent over the number of manufacturers that distributed digital coupon offers in the first half of 2010.

“Increasingly, marketers are implementing promotion tactics that integrate digital coupon offers with print coupon events. For example, some CPG brands are using their FSI coupon events to drive shoppers to their brand websites or social media websites to download coupons,” said Mark Nesbitt, president, Kantar Media Intelligence North America. “Similarly, manufacturers are aligning their digital coupon activity with major corporate scale themed events like Procter & Gamble has done with their P&G BrandSaver.”

Non-food areas increased their share of digital coupon events in the first half of 2011 to 48 percent. Three of the four non-food areas increased share of activity in the first half of 2011 compared to the same six months in 2010. Health care had the greatest increase, followed by personal care with increases of 5.9 points and 4.3 points, respectively. Food areas represented 53.6 percent of digital coupon events with all five of the food areas decreasing in share of activity. Dry grocery had the greatest decrease, declining 3.9 points. This decline is a shift in trends from Q1 2010, when refrigerated foods declined the most at 5.7 points.

Although digital coupon activity on leading coupon network websites was flat, digital coupon activity on retailer websites monitored by Kantar Media increased 69.8 percent in the first half of 2011 versus the same period in 2010. The number of load-to-card digital coupon offers (i.e., offers that must be downloaded by a shopper to a retailer’s loyalty program account) grew 168 percent to represent 57 percent of the total digital coupon activity recorded on key retailer websites monitored by Kantar Media.

Previously, in the first half of 2010, load-to-card events represented 33 percent of all digital coupon offers on key retailer websites. Print-at-home offers increased by less than 1 percent versus the prior year, and were overtaken by load-to-card offers in overall share of activity.

“Manufacturers are partnering with leading retailers to reach shoppers in-the-home when they are making purchase decisions and planning shopping trips. However, retailers are increasingly leveraging their loyalty card programs to build equity for their retail banners with their shoppers,” said Dan Kitrell, VP of Marx Account Solutions at Kantar Media. “In addition to the growth in load-to-card digital coupon activity, we are also seeing a growth in store brand coupon activity on retailer websites. Manufacturers can continue to align their digital coupon events on retailer websites with their overall integrated promotion programs, but they must also be aware of the increasing level of store brand digital coupon activity which may be competing for share of mind with the consumer and share of merchandising support with the retailer.”

The Kantar Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world.