US consumers redeemed 1.75 billion CPG coupons [sign-in page] in the first half of 2011, according to data from NCH Marketing. This represents a 2.9% increase from 1.7 billion CPG coupons redeemed in the first half of 2010.
In addition, CPG coupon redemption in the first half of 2010 represented a significant 7.9% jump from 1.575 billion CPG coupons redeemed in the first half of 2009. In turn, CPG coupon redemption in this period, which many consider to be the low point of the economic recession, was up an impressive 18.9% from 1.325 billion in the first half of 2008, which was down 3.6% from 1.375 billion in the first half of 2007.
Redemption Grows as Distribution Shrinks
Interestingly, US consumers are redeeming more CPG coupons as marketers are distributing less. In the first half of 2011, CPG marketers distributed 167 billion coupons, down 6.2% from 178 billion in the first half of 2008, the highest amount since 2007. The first half of 2010 represented 12.7% growth from 158 billion in the first half of 2009, which itself was a 12.1% jump from 141 billion in the first half of 2008.
The first half of 2008 saw a decrease in coupon distribution as well as redemption, as marketers distributed 151 billion coupons in the first half of the prior year, representing a 6.6% drop.
FSI Allocation Grows 2%
CPG marketers allocated 89.6% of coupons distributed in the first half of 2011 to free standing inserts (FSIs), a 2% increase from 87.5% during the first half of 2010. Of the remaining 10.4%, most (4.4%) were in-store handouts, while other methods included direct mail (2.4%) and magazine (1.3%).
Relatively few CPG coupons were allocated to the digital format in the first half of 2011, as digital coupons were included in the “remaining” category, which represented about 2% of all coupons distributed (and included newspapers and handouts away from stores).
Average Face Value Rises 5%
The average face value of a CPG coupon in the first half of 2011 (all formats, including digital) was $1.57, a 5% increase from $1.49 in the first half of 2010. In addition, 27% of CPG coupons in the first half of 2010 required multiple purchases, up 12.5% from 24% in the first half of 2010.
Meanwhile, the average duration of a CPG coupon in the first half of 2011 was 10.1 weeks, down 11% from 11.3 weeks a year earlier.
Harris: Consumers Cut Food Prices w/Coupons
Incorporating coupons was the most popular planned activity to offset rising food prices in an April 2011 Harris Poll, cited by nearly three-quarters (72%) of respondents. This strategy was followed by other cost-cutting actions, including comparing unit prices of package sizes (71%) and shopping at discount grocery stores (66%). The study also identified other popular planned behaviors, including stocking up when items reach rock-bottom prices (64%) and buying in bulk (57%), among others.
