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    Digital Couponing Soars 80-plus Percent in a Year

    During the first half of 2010, the number of digital coupon events increased by 84 percent vs. the first half of 2009 across key Web sites tracked by Marx, a Kantar Media solution.

    During the first half of 2010, the number of digital coupon events increased by 84 percent vs. the first half of 2009 across key Web sites tracked by Marx, a Kantar Media solution.

    Additionally, 200 manufacturers distributed digital coupon offers, an increase of 31.5 percent compared with the 152 manufacturers that were active in the first half of 2009 across these key Web sites.

    “Digital coupons complement traditional FSI coupons to reach the consumer in the home while they are actively making purchase decisions,” said Mark Nesbitt, president of Kantar Media Intelligence. “As more manufacturers distribute more digital coupons, it becomes increasingly critical to understand competitive digital promotion tactics to ensure that events break through the clutter to deliver the right offer to the right consumer.”

    The biggest increase in activity within food areas came from refrigerated foods, with a 3.9-point increase in the first half of 2010, contributing to an overall share of activity for the food areas of 64.6 percent. Health care drove the greatest decrease in activity within nonfood areas, with a 4.6-point decrease in the first half of 2010, resulting in an overall share of activity 37.5 percent.

    Face value and face value per unit decreased in four of five food areas; in contrast, face value increased in all four nonfood areas. All food areas had face value and face value per unit of less than $1, while all nonfood areas had values greater than $1 during the first half of 2010.

    On retailer Web sites during the first half of 2010, there were 268 manufacturers running digital promotion events. This is 25.8 percent more than the 213 manufacturers that participated in retailer promotion events in traditional print FSI vehicles during the same period.

    “Manufacturers are distributing coupons on retailer Web sites to build purchase intent with the consumer and drive shopping trips for the retailer,” said Bob Cristofono, VP of sales at Marx. “Increasingly, manufacturers need to understand competitive promotion activity on retailer Web sites to fully understand retail pricing, merchandising support and promotional lift.”

    During the first half of 2010, 35 new products included digital promotion events across sites monitored by Marx, compared with 196 new products that included traditional FSI coupons during the same period.

    “In addition to moving coupons online, many leading CPG manufacturers are also including social media references in their FSI coupon creatives,” said Dan Kitrell, VP of account solutions at Marx. “Facebook is the primary social media being used, but Twitter is included in addition to Facebook in about half of the creatives analyzed. Some brands have developed programs to incent consumers to support social media Web sites, including opportunities to download additional savings, join Web clubs and contribute to charities.”

    New York-based Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers around the world.

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