print Food Areas indexed higher for digital coupon activity while Non-Food Areas indexed higher for FSI coupon activity
Average Face Values were higher for FSI coupons than digital coupons in 8 of the 9 major Areas
MINNEAPOLIS, MN November 5, 2009 - 147 Consumer Packaged Goods (CPG) manufacturers distributed digital coupons in Q3 2009 (July-September) across the websites monitored as part of the Marx Digital ProMotion Report available from Marx Promotion Intelligence, a division of TNS Media Intelligence. This compares to 352 CPG manufacturers that distributed Free-Standing Insert (FSI) coupons during this same period. 98 CPG manufacturers ran both at least one digital coupon and one FSI coupon event. “In the current climate of economic uncertainty, FSI coupons represent a proven promotional vehicle to deliver advertising impact, influence consumer behavior, and secure retailer alignment, while digital coupons represent a new and complementary medium with which to engage consumers,” said Mark Nesbitt, President, TNS Media Intelligence.
| CPG Areas | Q3 2009 FSI Activity | Q3 2009 Digital Activity | |||||
| Share of Activity(1) | Face Value(2) | Face Value Per Unit(2) | Share of Activity(3) | Face Value(4) | Face Value Per Unit(4) | ||
| Cereals | 1.6% | $1.07 | $0.63 | 6.6% | $0.85 | $0.65 | |
| Dry Grocery | 22.4% | $1.05 | $0.81 | 34.1% | $0.83 | $0.67 | |
| Frozen Products | 4.7% | $0.90 | $0.73 | 9.1% | $0.82 | $0.66 | |
| Health Care | 15.4% | $2.00 | $1.83 | 13.3% | $1.94 | $1.81 | |
| Household Products | 19.2% | $1.39 | $1.16 | 5.2% | $0.87 | $0.78 | |
| Other Packaged Goods | 2.6% | $1.67 | $1.63 | 1.4% | $1.73 | $1.53 | |
| Personal Care | 25.2% | $1.68 | $1.44 | 12.2% | $1.56 | $1.49 | |
| Refrigerated Foods | 7.1% | $0.79 | $0.62 | 16.4% | $0.77 | $0.58 | |
| Shelf Stable Beverages | 3.1% | $0.95 | $0.68 | 5.0% | $0.74 | $0.67 | |
(1) FSI Coupon Share of Activity is based on Coupons Dropped (NOTE: Sum of all Areas may be greater than 100% due to events which include more than one Area)
(2) FSI Activity Face Value and Face Value Per Unit are weighted by Circulation
(3) 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)
(4) Digital Activity Face Value and Face Value Per Unit are averaged values
CPG Area Activity
Across the nine defined CPG Areas, share of activity for FSI coupons was driven by Personal Care (25.2%) and Dry Grocery (22.4%), which have traditionally maintained a high level of coupon activity. Share of activity for digital coupons was driven by Dry Grocery (34.1%) and Refrigerated Foods (16.4%). In viewing each Area between FSI coupons and digital coupons, share of activity for the four Non-Food Areas indexed higher for FSI coupons while share of activity for the five Food Areas indexed higher for digital coupons during Q3 2009.
Average Face Values were lower for digital coupons than for FSI coupons in 8 of the 9 Areas in Q3 2009, with Other Packaged Goods (which includes Batteries, Lawn Care and other Non-Food categories) being the only Area with higher Average Face Values for digital ($1.73) than for FSI coupons ($1.67). Average Unit Values were lower for digital coupons than for FSI coupons in 7 of the 9 Areas, with Cereals ($0.65) and Personal Care ($1.49) being higher for digital than for FSI coupons. The difference between Average Face Values and Average Unit Values reflects multiple purchase incentives being utilized across Areas for both FSI coupons and digital coupons.
Based on the above figures, one possible reason for lower incentive levels for digital coupons is a reflection of a higher level of consumer engagement across multiple exposures to the offer over time among shoppers that actively seek out digital coupons. In contrast, higher incentive levels for FSI coupons may reflect a manufacturer’s need to deliver an incentive that will create consumer engagement and purchase intent with only the initial exposure to the offer on the Sunday on which the event occurs.
Top 30 CPG Manufacturer Activity
25 of the top 30 CPG manufacturers based on FSI coupon activity also distributed digital coupons. Similarly, 27 of the top 30 CPG manufacturers based on digital coupon activity also distributed FSI coupons as part of their promotion mix in Q3 2009. “Leading CPG manufacturers are incorporating both digital coupons and FSI coupons as part of their promotion mix,” said Bob Cristofono, Vice President of Sales, Marx Promotion Intelligence. “By including both digital coupons and FSI coupons, manufacturers reach a wide audience through multiple media to deliver their brand message and promotion offers.”
Of the top 30 CPG manufacturers that ran digital coupon events across the websites monitored by Marx Promotion Intelligence in Q3 2009, 20 ran digital coupon events on two or more websites. Leveraging multiple websites may provide CPG manufacturers with access to different consumers through unique website visits or may reinforce brand messages with consumers across multiple website visits. “FSI coupons enable manufacturers to reach millions of consumers on a specific day with a single event. Digital coupons enable manufacturers to reach targeted consumers over time across multiple coupon distribution websites. FSI coupons and digital coupons provide complementary communication opportunities that deliver consumer incentives, generate advertising impact, and influence planned shopping trips,” stated Bob Cristofono.
About Marx Promotion Intelligence
Marx Promotion Intelligence, a TNS Media Intelligence company, is the definitive source for Free Standing Insert (FSI) coupon intelligence and is the leading provider of consumer promotion insights. The new Marx Digital ProMotion Report provides our clients with key insights into digital coupon activity including competitive brand activity and overall digital coupon website activity. Through our industry-leading ProMotion PLUS Services, our clients are able to remain ahead of their competition by effectively identifying emerging product trends, retail partnership opportunities, critical category dynamics and competitive promotion tactics. Marx Promotion Intelligence supports our clients’ overall marketing, research, category management and brand planning needs. You may learn more about Marx Promotion Intelligence at the company Web site: www.tnsmi-marx.com
About TNS Media
Established in more than 30 countries, TNS Media explores all media - print, radio, TV, Internet, social media, cinema and outdoor worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.
TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers around the world. For further information, please visit www.tnsmediagroup.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.
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