Market Overview

NCH Mid-Year CPG Coupon Analysis: 4 out of 5 Coupons Redeemed from Print

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Need for Balanced, Integrated Media Mix Critical for Brand Marketers

NCH
Marketing Services
, a subsidiary of Valassis,
a leader in activating consumers through intelligent media delivery,
today announced its Mid-Year 2018 Coupon Trends Analysis for Consumer
Packaged Goods (CPG). The data reveals that four out of five coupons are
redeemed from traditional print media. Consumers count on coupons for
savings, notably millennials,
who represent 80 million shoppers with $600 billion in annual buying
power.

According to the 2K18
Coupon Intelligence Report
, overall, 94 percent of consumers
surveyed said they use coupons. This 4 percent increase from 2017 comes
as millennials use coupons more often. Specifically, half of millennials
said they "always or very often" use coupons, compared to 41 percent in
2016. The report also underscores the value of savings via print and
digital media. According to the survey, 93 percent of respondents
reported using paper, while 75 percent of consumers said they use
paperless coupons.

The NCH analysis indicates that free-standing inserts (FSI) remain the
primary distribution channel for coupons, though digital coupons are on
the rise. The FSI represents 94.5 percent of distribution quantity,
reflecting its scale of consumer reach for CPG marketers.

In the first half of 2018, CPG marketers shifted more of their coupon
media mix toward digital formats, such as paperless
clip-to-retailer-card offers. As digital distribution rises, redemption
of these coupons has increased as well. Year-over-year for the same time
period, paperless coupons redeemed jumped from 9.8 percent to 15.7
percent, according to NCH.

"The influence of coupons on consumers' decisions is strong and growing
with a broader media mix along the path to purchase," said Charlie
Brown, Vice President of Marketing, NCH.
"This means marketers must
strike the optimum balance of media reach and consumer activation to
produce positive results for their brands across all retail channels and
consumer audiences."

It's evident that consumers want to save using coupons; in fact, Prosper
Insights & Analytics finds that consumers rank coupons as the most
influential media on the purchase of grocery and beauty products.
Additionally, RetailMeNot
research
reveals that coupons can be instrumental to driving sales,
as 67 percent of consumers surveyed said they have made a purchase they
weren't originally planning to make solely based on finding a coupon or
discount.

With this in mind, incorporating digital into the marketing mix is
critical, but the NCH analysis suggests marketers need to optimize the
right amount of print and digital together to maintain the benefits
coupons bring to brands: sales lift, new user trial and increasing
market share.

For more information, view the NCH mid-year CPG coupon trends analysis
infographic here.

About Valassis

Valassis helps
thousands of local and national brands tap the potential of
industry-leading data through intelligent media delivery –
understanding, engaging and inspiring millions of consumers to action
with smarter cross-channel campaigns. We've been a part of consumers'
lives for decades, introducing new ways to deliver offers and messages
that activate them — whether via mail, digital, in-store or the
newspaper. NCH Marketing Services, Inc. and Clipper Magazine are
Valassis subsidiaries, and RetailMeNot Everyday™ is its consumer brand.
Its signature Have You Seen Me?® program delivers hope to
missing children and their familiesValassis and RetailMeNot are
wholly owned subsidiaries of Harland
Clarke Holdings
.

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