Vendors Shifting More Coupons to Digital, Mobile Formats

Fri Aug 18, 2017

Kathy Crosett

Consumer packaged goods companies count on their retail partners to help them sell product. couponPromotions in the form of coupons are a key strategy used by vendors to drive consumer traffic to retailer stores and online sites. Kantar Media reports the following coupon activity for the first half of 2017. The firm’s analysts also suggest ways for regional companies to grow with coupon campaigns.

Through June 30, vendors dropped 155.7 billion print coupons, slightly more than the 154.9 billion they distributed during the same period last year. The number of digital coupons (website only, not mobile) jumped over 18%, to 3.4 billion.

Here are the number of CPG vendors who use coupon promotions in terms of format:

  • Print 561
  • Digital 2,556
  • Mobile 597
  • Print, digital and mobile 211

Analysts called out the fact that more vendors are experimenting with using coupons in multiple formats in 2017.

This year, dry grocery is a leading category for both digital and print coupons. For non-food items, vendors continue to rely largely on print coupons. In terms of value, the heath care products category now has an average print coupon face value of $3.21. In the digital sector, vendors are promoting an average of $6.50 off with a coupon for an item in the ‘other packaged goods’ category. The average value of a mobile coupon this year has been $1.99, or about a 17% discount off full price.

Vendors can encourage consumers to speed up purchases of promoted products by shortening the life of the coupon. This year, the typical print coupon has a life of 5.7 weeks, while a digital coupon runs about 4.2 weeks. In general, food items have the longest print coupon life, about 8 weeks. For digital, coupons for health care items have about a 5-week span.

Analysts point out that coupon promotions aren’t just for large CPG vendors. Smaller companies, especially those launching new or regional brands, can use the format to drive sales. To be most successful, these vendors may want to work with local retailers to run promotions that may be paired with private-label products in order to increase sales in multiple categories for both parties.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

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