After a couple of years of decline, the volume of coupons distributed by CPG marketers rose by 1.8% year-over-year in the first half of this year, according to [registration page] a new report from NCH Marketing. The study finds that marketers distributed 168 billion coupons, the highest number since the first half of 2010 (178 billion). Free-standing inserts (FSIs) remained the predominant media type, at 91.1% of all distributed coupons.
The increase in coupon distribution was entirely in non-food products, which represented 62.5% of coupons distributed, up slightly from 61.8% a year earlier.
Although the number of coupons distributed rose, overall redemptions fell by 8.1% to 1.43 billion. The 8.1% fall represented a slower decline than the 11.4% drop seen in H1 2012, but this year’s 1.43 billion redemptions was the lowest amount in at least 5 years. While non-food coupon distributions grew, redemption of non-food product coupons fell by 11.5% to represent 40.4% of coupons redeemed.
Similarly, while FSIs accounted for about 9 in 10 coupons distributed, they represented a smaller 52.3% of coupons redeemed, as their average redemption rate of 0.7% was the lowest of all media types. Redemption rates were highest for instant on-pack (22%), internet print at home (14.2%) and on-shelf distributed (11.3%) coupons. Direct mail coupons (whose users appear to show a similar age profile to email coupon users) averaged a 3.3% redemption rate.
About the Data: Coupons distributed and redeemed in the U.S. Consumer Packaged Goods (CPG) marketplace are studied utilizing NCH’s manufacturer client databases, data cleared via the NCH retailer processing operation and other independent sources. NCH’s proprietary methodology utilizes rigorous controls and statistical standards to maintain the integrity of the information contained in its report, as well as all other information tools supplied by NCH.
Data points from client and market sources are dynamic. As such, projections are based on the most current information available at the time of publication and may be revised in the future. Also, due to rounding, the sum of certain percentages may not equal 100 percent. The scope of the report includes Manufacturer Coupons of all paper and paperless media formats that are most typically funded by CPG marketing budget allocations for consumer promotion. Retailer In-Ad coupons are not included in the report, as they are most often funded by trade dollars. Consequently, In-Ad distribution and redemption are less precisely tracked by manufacturers.