With all our talk on digital coupons, you might think we’ve forgotten paper coupons – not so! Paper coupons are still king –
According to NCH Marketing Services’ Coupon Facts Report, 2011, freestanding inserts in newspapers account for 87.7% of U.S. CPG coupon distribution. The rest consists of in-store handouts (5.2%), direct mail (2.4%), magazines (2.2%), in/on pack and cross-ruff, an on-pack coupon redeemable on a different product (1.1%) — and finally all other, which includes all digital formats, at less than 2%. Most industry sources peg the percentage of digital coupons at 1%.
But digital coupons are where the growth is at –
When it comes to growth, however, digital is where the action is, albeit from a small base. Aided by the tough economy and rising food prices, total CPG coupon redemption grew 3.1% last year, and distribution jumped 6.8% to 332 billion, according to NCH. But the number of coupons available at major online distribution sites increased by 33.6%, and the number of manufacturers offering them (290) grew by 17%, according to Marx, Minneapolis, a division of Kantar Media.
And if my building is any indication, despite the prevalence of freestanding coupons appearing in our mailboxes, those go straight into the recycling bin whereas the Groupon and Living Social deals get emailed and shared.