Number of manufacturers distributing digital coupons on these websites increased 14 percent
MINNEAPOLIS, MN, April 30, 2013 – Digital coupon events across key websites monitored by Marx, a Kantar Media solution, increased by 28 percent in Q1 (January – March) 2013 compared to the same period last year. 414 manufacturers distributed digital coupon offers on these key websites during Q1 2013, an increase of 14 percent as compared to the same period in 2012.
“Double-digit growth continued in the first quarter of 2013, demonstrating the ongoing importance of all digital coupon formats, including digital paperless coupons, which are typically loaded to a loyalty card, and internet print at home coupons, which are initially obtained online,” stated David Hamric, General Manager, Kantar Media Marx. “Manufacturers are creating new, effective and targeted online offers each and every day that shoppers can obtain digitally and may share socially.,” said Hamric.
(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
Food Areas: Cereals, Dry Grocery, Frozen Products, Refrigerated Foods, and Shelf Stable Beverages
Non Food Areas: Health Care, Household Products, Other Packaged Goods and Personal Care
Source: Kantar Media
Non-Food share of activity was 54 percent in Q1 2013, an increase of 2 points from the same period in 2012. Food Areas were included in 48 percent of digital coupon events in Q1 2013, a decrease of 1 point from Q1 2012. (NOTE: Sum of all Areas may be greater than 100 percent due to events which include more than one Area). Personal Care Area leads within Non-Food Areas with a 23 percent share of activity and Dry Grocery Area leads with a 24 percent share of activity during Q1 2013. If Personal Care continues to grow in share of events, it may overtake Dry Grocery in share of activity by the end of 2013. Face Value was down in four of five Food Areas, which is reflected in a 4 percent decrease in overall Face Value for all Areas in Q1 2013.
Specialty Channel Impact
To understand channel relevance in terms of non-traditional coupon activity, including digital paperless and digital print at home coupons, the Pet Food and Treats category was examined. In Q1 2013, the share of events in the Pet Food and Treats category by channel was led by the Food Channel with 47 percent share of events. The Mass Channel was second largest at 32 percent share of coupon events in Q1 2013, followed by the Drug Channel at 17 percent. The Pet Specialty Channel reported the smallest share of coupon events at 4 percent in Q1 2013.
Incentive levels varied across these channels, with the higher value non-traditional coupon offers distributed in the Pet Specialty Channel, at $2.25. The next highest level of incentive was in the Mass Channel for the Pet Food and Treats category at $1.45, measuring at $0.80 less or 35 percent lower than the pet specialty channel incentive level. Drug and Food Channels were one-cent apart at $1.36 and $1.37, respectively.
“Shoppers seek out relevant offers by channel before planning their trip,” commented Darcy Douglas, Director, Account Solutions, Kantar Media Marx. “This may include planning for a regular weekly Food Channel trip or a less frequent specialty Pet Channel trip. Manufacturers can take advantage of this cycle of planned purchases by driving trips to their brands and their categories at retailers who promote the right incentive level,” continued Ms. Douglas.
“The Pet Food and Treats category offers an excellent example of how digital coupon values vary by channel and how much greater of an incentive may be needed to win the Pet Food and Treat category trip. It is no surprise that the Food Channel distributes the greatest share of digital coupons considering the frequency of Food Channel trips that occur. However, the Pet Specialty Channel has to work harder to win the less frequent Pet Food and Treat category trip. To win shopper’s trips to the Pet Specialty Channel in the first quarter of 2013 the incentive in pet specialty was much higher, at $2.25 or 55 percent more than the next closest channel. The shopper wins by earning a greater incentive that supports their planned trip and increases their engagement within a channel that offers a unique in-store experience. The pet retailer wins too; they’ve gained a shopper’s trip that may have been lost to another channel,” concluded Douglas.
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