Report: Digital coupon events on websites rose 17.1% in Q1

Kantar Media solution Marx tracks activity of manufacturers, retailers

MINNEAPOLIS — Kantar Media revealed that digital coupon events across key websites experienced a boost during first quarter 2012.

Kantar Media solution Marx found that key websites increased digital coupon events by 17.1%, compared with the year-ago period, while 368 manufacturers distributed digital coupon offers on these key digital coupon websites during the quarter, a 29.1% increase over the year-ago period. Among these manufacturers, 146 distributed digital coupons across both retailer and network websites, 211 manufacturers distributed digital coupons only on retailer websites and 11 manufacturers distributed digital coupons only on network websites. The number of manufacturers distributing digital coupons on only retailer websites grew by 43.5% in the first quarter, compared to the same period in 2011, Kantar Media noted.

When it came to what areas were represented in first-quarter digital coupon events, food areas represented 49.6% of digital coupon events, while nonfood areas represented 52.3%, as some had activity in both areas. An increase in share of activity was recorded 3-out-of-4 nonfood areas, with household products experiencing the highest boost of 0.4 points. On the other hand, the dry grocery category saw the largest decrease in share, declining 1.5 points from first quarter 2011 to first quarter 2012.

"Digital coupons are a key component within an integrated consumer promotion and advertising program," Kantar Media Marx general manager David Hamric said. "More and more manufacturers are becoming involved in digital promotion and coupons, aligning with multiple websites, potentially increasing consumer exposure to their brand message."

Looking across the top retailer websites monitored by Kantar Media, the report found that these sites distributed 2,572 digital coupon events across 296 manufacturers during the first quarter. Additional findings included:

  • Kroger.com had the greatest number of events at 726, but the lowest number of manufacturers active on their website during the first quarter;

  • Safeway.com was the second-most active key retailer website with 634 events and 102 manufacturers promoting in first quarter 2012; and

  • Publix, the third-most active website had the greatest number of manufacturers at 141, comprising more than half of the total manufacturers that were active across all websites in first quarter 2012.

"Retailers provide an important link between manufacturers and their consumers through multiple advertising and promotion platforms that may be used to drive sales and build brand equity — including digital coupons," aid Dan Kitrell, VP of Marx Account Solutions, at Kantar Media North America. "Retailers offer brand marketers and retail account teams different digital coupon programs including both 'load-to-card' and 'print-at-home' coupon programs. But many retailers go further by integrating digital coupon offers with other advertising programs to reach shoppers in the home and to drive a trip to the retailer's store."

Kitrell said that manufacturers that are looking to effectively partner with retailers "need to understand where their categories and brands fit within their retailer's advertising and promotion programs so they may better align the right programs with the right retailers during the right weeks."

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