CPG Print Coupon Distribution Relatively Flat in H1; Average Shelf Life Drops

August 8, 2017

More than 155.7 billion CPG promotions were distributed during the first half of this year, reports Kantar Media, though that figure is relatively flat from 154.9 billion during the year-earlier period. Digital promotions were up by 18% year-over-year, but were distributed far less frequently.

In sum, there were 3.4 billion digital promotions distributed during H1, up from slightly less than 2.9 billion in H1 2016. (Digital promotions are limited to desktop websites only.)

Interestingly, more manufacturers distributed Mobile (597) than Print (561) coupons. Digital coupons were the most popular, with Kantar Media counting more than 2,550 manufacturers distributing them.

More than 200 manufacturers (211) distributed coupons across all three formats: Mobile, Print, and Digital.

A back-of-the-envelope calculation suggests that the manufacturers distributing Digital coupons averaged around 1.3 million each, while those distributing Print coupons averaged 277.6 million each.

Print Promotions Preferred by Non-Food Manufacturers

In comparing Food and non-Food manufacturers’ distribution strategies, Kantar Media reveals that:

  • Digital distributions by Food manufacturers grew by 21%, and outnumbered distributions by non-Food manufacturers; while
  • Non-Food manufacturers upped their print distributions (to 110.7 billion), more than doubling the declining amount (45.6 billion) distributed by Food distributors.

Shelf Life Shortens

The average shelf life of a CPG coupon declined across both print and digital promotions.

For print coupons, the average expiration dropped from 6.1 weeks during the first half of 2016 to 5.7 weeks during this year’s first half.

Kantar Media notes that among Food categories, Cereals averaged the shortest expiration (at 6 weeks), while promotions for Frozen Products had an average shelf life of 8.2 weeks (down from 9.2 a year earlier).

Digital coupons – which maintain a shorter shelf life – were down from 4.4 weeks on average last year to 4.2 weeks this year.

Cereals also had the shortest shelf life in digital promotions (3.8 weeks), while Health Care had the longest, at slightly more than 5 weeks.

Recent data from Nielsen indicates that during the 52-week period ending in April 29 of this year, sales sold on promotion accounted for 27% of small FMCG manufacturers’ dollar volume, compared to 40% for the largest manufacturers.

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