Print remains the dominant coupon distribution method despite a decrease in promotion activity in 2019, according to new data [download page] from Kantar. Despite being vastly smaller, the number of digital coupons “clipped” rose again, illustrating the changing landscape of promotion in an increasingly digital world.
Dropping from 244 billion coupons distributed in 2018 to 214 billion, print promotion activity declined by 11.5% last year. Nearly all (99.5%) of printed coupons are distributed through free standing inserts (FSIs) across all forms of promotions.
Digital, for its part, increased by 9.7% y-o-y, going from 8.4 billion coupons “clipped” in 2018 to 8.7 billion in 2019. This newest increase puts the number of digital coupons “clipped” almost 2 billion more than just two years earlier, a relative rise of 26%.
Print and digital coupons differed in 2019 in terms of Food versus Non-Food promotions. While Non-Food promotion made up 76% of print coupons, with the number of print Food promotion distributions dropping by 16.9% y-o-y, Food accounted for more than 6 in 10 (62%) digital coupons “clipped” and showed an increase of 13% y-o-y in digital promotion.
Kantar’s report also takes a close look at digital rebates, which are offers that allow shoppers to redeem money or points at a later date. These offers are popular with consumers as well as manufacturers, allowing the former to save in different ways and the latter to learn from more customer touchpoints. Digital rebates were found to peak in August ahead of the back-to-school period, driven largely by Food activity among parents and caregivers.
This new research supports the continuing trend of the slow decrease of print promotion activity and the increase of digital, despite print remaining by far the most frequent method of promotion chosen by manufacturers.
Read the full report here.