Product Launches Boosted by Digital Coupon Users
Engaging with digital coupon users dramatically impacts the effectiveness of brands’ new product introductions, according to new research by Millward Brown’s Dynamic Logic and commissioned by Coupons.com.
The study, which measured effectiveness of site display advertising and/or site sponsorships across three consumer packaged goods (CPG) brands, showed substantially higher increases in consumer recall and purchase intent, compared to industry benchmarks from Dynamic Logic’s MarketNorms ad effectiveness database.
“Brands marketing to digital coupon users not only benefit from increased ad recall and purchase intent, they also gain awareness among this group of consumers that shops more frequently than the average grocery shopper and spends more each time they do,” said Tony Biancalana, regional VP of media solutions at Coupons.com. “The new research further underscores the benefits for marketers to connect with this audience.”
Research by Coupons.com has shown that a large percentage of digital coupon users are in pre-shopping mode when browsing online coupons. Specifically, 59 percent of visitors planned to visit a grocery store within two days and 43 percent planned to shop within the next 24 hours.
Increased Consumer Recall of Brand Advertising
Consumer recall for each of the three campaigns greatly outperformed CPG industry benchmarks, helping the brands to attract attention for their new products. In fact, 36.3 percent of people were more aware of the brand advertising for the food category product after exposure to the brand sponsorship. In addition, the beverage category product saw an increase of 7.2 percentage points in ad recall and the household cleaning category product experienced an 11.9 percentage point increase in ad recall. For comparison, the average increase in online ad recall for CPG category campaigns is approximately 4.8 percent, according to Dynamic Logic’s MarketNorms. By messaging consumers in receptive pre-store shopping mindsets, the average increases in ad recall from the Coupons.com campaigns were 3.8 times better than industry benchmarks.
Increased Purchase Intent For Product Line Extensions
The results provided by Dynamic Logic’s AdIndex Dash, which measures advertising effectiveness, isolated the increases in purchase intent generated amongst consumers exposed to the advertisers’ messaging on Coupons.com. The additional attention that the three new product launches captured translated to increases in purchase intent for all three brands: +16.6 percent for the food product, +6.6 percent for the beverage product, and +7 percent for household cleaning product. These increases are higher than Dynamic Logic’s CPG industry benchmark increase for purchase intent of 1.1 percent, indicating that shoppers were, on average, 9.2 times more likely to consider purchasing the new products featured on Coupons.com, compared to Dynamic Logic CPG category benchmarks.
As part of Millward Brown, Dynamic Logic continues to develop innovations to optimize and track digital ad impact, specializing in emerging media platforms and integrating insights across all digital and non-digital media.