Coupon Distribution Continues to Slowly Shift to Digital Promotions in H1

August 9, 2018

This article is included in these additional categories:

CPG & FMCG | Cross-Media & Traditional | Industries | Promotions, Coupons & Co-op

Promotional activity is following consumer trends: a continued preference for print, but an increasing use of digital. In a “mid-year catch up,” Kantar Media reveals that FSI promotion activity declined on a year-over-year basis in H1, while the number of digital promotion distributions grew.

During the first half of the year the number of dropped coupons in print declined by 12.2%, from 155.74 billion to 136.75 billion. The analysts note that the first half of this year included one fewer week than the first half of last year, so on a normalized basis the percentage drop this year was 8.5%.

Meanwhile, the number of digital promotions increased substantially. During the first half of the year brands distributed 4 billion digital promotion offers, up from 3.2 billion during the year-earlier period, representing a 25% year-over-year increase (not normalized).

Manufacturers in the Food category led the way in digital coupon distribution, with their 2.3 billion marking a roughly 28% rise from 1.8 billion a year earlier. The Non-Food category also upped its distribution, but by a smaller amount (20.9%) and to a smaller volume (~1.72 billion).

All told, despite the considerable rise in digital promotion offers, manufacturers still distributed about 34 times more print than digital coupons.

Shelf Life Shortens

The shelf life of both digital and print offers has shortened, per Kantar Media’s data. During the first half of the year print coupons had an average expiration time (time to redeem the offer) of 5.5 weeks, down from 5.7 weeks on average during H1 2017.

Digital promotions had even shorter expiration times: 3.9 weeks on average during the first half of this year, down from 4.3 weeks.

Print Food offers had the longest redemption time, of 7.7 weeks, compared to 4.8 weeks for Print Non-Food offers. However, while Print Non-Food offer redemption times remained flat, Print Food offer expirations times dropped.

Finally, Kantar Media notes that the weighted average face value of a Print Food offer grew to $1.28, while Non-Food offers’ face value remained largely flat.

More data can be accessed here.

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