Consumers are looking to save money wherever they can and they're clipping coupons at a furious pace, nearly $2 billion worth in the first half of the year, according to NCH Marketing Services (a division of Valassis).
The number of coupons put out by brand marketers jumped 11.4 percent versus the same period last year and nearly 25 percent higher than in 2008. Health and beauty care marketers put out 20.8 percent more coupons year-over-year while grocery was up 6.7 percent.
Marketers were looking to build a sense of urgency with coupons by increasing the value (up 4.4 percent) and shortening the period they could be redeemed by nearly a week-and-a-half (9.5 weeks) over last year (10.9).
Redemption rates are also higher with a number of "alternative" channels getting in on the act. NCH reports that convenience stores, dollar stores and warehouse clubs redeemed coupons at a 36.6 percent higher rate. Grocery, drug and mass still continue as the coupon heavyweights with 90 percent of all redemptions coming through these channels.
The vast majority of consumers continue to get their coupons through FSIs (85 percent) while online sees the biggest percentage gains over a low base. Coupons clipped online represent just over one percent of the total today.
Discussion Questions: Will coupons continue to grow as part of the advertising/promotional mix for brand marketers and retailers? What do you see as the positives and negatives associated with increased use of coupons by both brands and consumers?