Average Face Value decreases in most major areas
E-Coupon participation increases while print-at-home participation decreases
MINNEAPOLIS, MN April 20, 2010 – In Q1 2010 (January 1st – March 31st), 142 manufacturers distributed digital coupon offers across key websites tracked by Marx, a Kantar Media solution. This number compares to 152 manufacturers that were active in Q4 2009. Food Areas captured a 68.1 percent Share of Activity for digital coupon promotions in Q1 2010, unchanged from Q4 2009. Three of the five Food Areas increased Share of Activity in Q1 2010, with Refrigerated Foods, Frozen Products, and Shelf Stable Beverages increasing 2.1 points, 0.9 points, and 0.5 points respectively. The Frozen Products increase in Share of Activity may be related to March “Frozen Food Month” promotions.
Non-Food Areas accounted for 31.9 percent Share of Activity with Health Care being the only Non-Food Area with a decrease versus prior quarter, down 2.5 points. “Manufacturers are using digital coupons within their promotion mix to target key promotion periods, support major brand initiatives, and counter competitive activity,” said Mark Nesbitt, President Kantar Media Intelligence. “In addition to the major coupon distribution network websites, Marx has been reporting how manufacturers are also distributing coupons through the websites of their strategic retailer partners to secure quality merchandising support and incremental sales for their brands, while also driving trips, transactions, and profits for their retailers,” said Nesbitt.
| CPG Areas | Q4 2009 Digital Activity | Q1 2010 Digital Activity | |||||
| Share of Activity(1) | Face Value(2) | Face Value Per Unit (2) | Share of Activity (1) | Face Value(2) | Face ValuePer Unit(2) | ||
| Cereals | 6.9% | $0.83 | $0.66 | 4.8% | $0.77 | $0.64 | |
| Dry Grocery | 33.0% | $0.90 | $0.71 | 31.8% | $0.86 | $0.69 | |
| Frozen Products | 10.7% | $0.79 | $0.69 | 11.6% | $0.75 | $0.61 | |
| Health Care | 11.4% | $2.29 | $2.29 | 8.9% | $2.10 | $1.98 | |
| Household Products | 4.1% | $1.06 | $0.98 | 5.3% | $1.04 | $0.97 | |
| Other Packaged Goods | 4.9% | $4.67 | $4.64 | 6.6% | $4.20 | $4.12 | |
| Personal Care | 12.8% | $2.10 | $1.94 | 13.3% | $1.56 | $1.44 | |
| Refrigerated Foods | 14.6% | $0.70 | $0.45 | 16.7% | $0.70 | $0.46 | |
| Shelf Stable Beverages | 2.9% | $1.28 | $0.97 | 3.4% | $0.89 | $0.67 | |
(1) Digital Share of Activity is based on Number of Events (NOTE: Sum of all Areas may be greater than 100% due to
events which include more than one Area)
(2) Digital Face Value and Face Value Per Unit are averaged values
Across the key websites monitored by Marx, Average Face Value decreased in eight of the nine major Areas in Q1 2010 versus prior quarter with Refrigerated Foods remaining flat. The Personal Care, Other Packaged Goods, and Shelf Stable Beverages Areas had the greatest declines in Average Face Value, down $0.54, $0.47, and $0.39 respectively. Shelf Stable Beverages had the greatest percent decline in Average Face Value, down 30.4-percent in Q1 2010 versus Q4 2009. All of the Food Areas remained below $1.00 in terms of Average Face Value, while the Non-Food Areas tended to offer higher Face Values to their consumers.
Digital e-coupon participation versus print-at-home participation
Overall, 6.5 percent fewer manufacturers distributed digital coupons in Q1 2010 versus Q4 2009. However, the number of manufacturers that distributed e-coupons (typically coupons that are redeemed electronically potentially through a loyalty card or cell phone) increased by 18.0 percent during Q1 2010. In contrast, the number of manufacturers that distributed print-at-home coupon offers (typically coupons that must be printed by the consumer prior to arriving at the store) decreased 10.2 percent during Q1 2010.
Digital e-coupons had greater activity within Food Areas, while some Non-Food Areas like Health Care had little to no activity during the past three quarters in e-coupons. Additionally, e-coupons tend to offer a lower Face Value and Face Value Per Unit than print-at-home coupons. In Q1 2010, the Average Face Value for e-coupons was $0.75 compared to the Average Face Value for print-at-home coupons of $1.33. Conversely, Expiration periods tended to be shorter on e-coupon promotions than with print-at-home coupons. “Based on website traffic reported by other industry sources, we have seen that print-at-home coupon websites may generate a higher number of visits across a higher number of unique visitors which may translate into consumer ‘reach’. However, we have also seen that e-coupon websites may generate a higher number of visits per visitor which may translate into impression ‘frequency’ and consumer ‘loyalty’,” said Dan Kitrell, Vice President of Account Solutions, Marx. “Coupons engage the consumer in the home which provides CPG manufacturers and retailers with an opportunity to develop purchase intent and influence trip decisions. E-coupon and print-at-home coupons represent different tactics to deliver targeted messages and offers to the consumer in the home. Marx continues to be an important source for digital coupon tracking in the marketplace today,” said Kitrell.
About Kantar Media
Established in more than in 50 countries, Kantar Media enables exploration of multimedia momentum through analysis of print, radio, TV, internet, social media, and outdoors worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences and TGI & Custom. Combining the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insights to more than 22,000 customers around the world. (www.KantarMediaNA.com).
About Kantar
Kantar is one of the world’s largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies. For further information, please visit us at www.kantar.com.