Consumers are using more coupons on an annual basis for the first time since 1992 and coupon distribution has hit the highest level recorded since tracking began in 1988, according to Inmar.
Last year, shoppers redeemed 3.3 billion consumer packaged goods coupons, a whopping 27% increase over the 2.6 billion redeemed in 2008.
The rise in coupon use can be traced back to October 2008, when the financial crisis began to grip the U.S. For the next five consecutive quarters the use continued to grow by double-digits as people lost jobs and consumers began to feel the pain of the weakened economy.
Marketers in turn, invested heavily in coupons, boosting the number available to the highest level in over 30 years. Brands issued 367 billion coupons, at an average face value of $1.44, indicating that they were committed to promotions in 2009, Inmar said.
“Brands saw coupons as a key to maintaining brand strength,” Matthew Tilley, director of marketing for Inmar’s promotion services division, said in a release “If they reduced their promotional presence, they stood to lose sales to lower priced competitors and store brands—so they doubled down hoping to create brand loyalty once the economic dust settles.”
The use of online coupons contributed to the rise in both distribution and redemption, with Internet distribution up 92% and consumer redemption of these coupons up over 360%.
In 2009, face values declined by a penny, reversing a multi-year trend of increasing values. Expiration periods were shortened by 10% last year, despite years of virtually no change, Inmar said.
“We don’t know how long this upward trend will continue, but it is evident that coupons are back on shoppers’ radar; the economic downturn has instilled a drive to be smart and frugal about spending and coupons definitely have a role in fulfilling it,” Tilley said.
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