January 07, 2011

The number of digital coupon events increased by 33.6 percent in 2010 as compared to 2009 across key websites tracked by Marx, a Kantar Media solution. Additionally, 290 manufacturers distributed digital coupon offers in 2010, an increase of 17.4 percent compared to the 247 manufacturers that were active in 2009 across these key websites.

“In response to increased value-seeking behavior among consumers within the ‘new normal’ economy, manufacturers have increased their investment in digital coupon promotions along with the increase in traditional FSI coupon promotion previously reported by Marx. However, as consumers are exposed to more offers, manufacturers must continue to evaluate how their promotions translate into bumps in sales, shifts in share, and levels of quality merchandising support,” said Mark Nesbitt, President, Kantar Media Intelligence North America. “Marx continues to deliver the gold standard in both print and digital coupon insights,” said Nesbitt.

Food Areas represented 63.9 percent of digital coupon offers while Non-Food Areas represented 38.1 percent in 2010 (NOTE: Sum of all Areas may be greater than 100% due to events which include more than one Area). Overall Share of Activity for Non-Food Areas increased in 2010 driven by a 4.1 point increase in Personal Care, which ranked as the second most active Area after Dry Grocery. In contrast, Health Care had the greatest decrease in Share of Activity with a 4.5 point decrease in 2010.

Face Value and Face Value per Unit decreased in four of five Food Areas in 2010 versus year ago. Dry Grocery had the only increase for Face Value and Face Value per Unit within Food Areas, up 15.9 percent and 15.3 percent, respectively. In contrast, Face Value increased across three of four Non-Food Areas during this period. Household Products had the most growth in both Face Value and Face Value per Unit, up 51.9 percent and 35.4 percent, respectively.

Within the key websites monitored by Kantar Media, August was the most active month for digital coupon events based on 2009 and 2010 combined monthly activity. Although digital coupon activity increased for the full year in 2010 compared to 2009, monthly activity was down in August, November, and December 2010, versus the same months in 2009. January had the greatest monthly increase in 2010, indexing at 362 versus January 2009.

“Digital coupon seasonality aligns with traditional promotion periods including back-to-school, key holidays, and the post-New Year weeks,” stated Bob Cristofono, Vice President of Sales at Kantar Media Intelligence. “With the continued growth in digital coupon events, manufacturers need to break through the promotion clutter with relevant offers that reach shoppers when they are most engaged. Kantar Media provides weekly digital coupon activity insights across the total store that enable marketers to increase their share of voice with consumers and understand how their retail partners are promoting and developing private label brands,” concluded Cristofono.

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