Redemption for All

Posted on by Chief Marketer Staff

The decline in consumer coupon use that has plagued packaged goods marketers for several years may finally be leveling off, according to a new survey by Lincolnshire, IL-based NCH NuWorld Marketing.

A total of 249 billion coupons were circulated in 1998, with “strong upswings” in use near the end of the year suggesting that the erosion has abated, the survey says.

At 4.8 billion coupons, total redemption volume dropped 2 percent in ’98, the lowest decline in the past five years. “Indeed, the coupon industry has something to smile about,” NCH Nuworld vp Charles Brown says. “Almost all coupon media saw increases in 1998, as most marketers sought the brand-building sales increases and targeting benefits that come with sustained levels of coupon promotion,” he says, adding that coupons provided a total of $3.6 billion in savings to consumers.

In particular, free-standing inserts in Sunday newspapers, the largest coupon vehicle, increased their share of the market and helped to boost year-end totals, the survey found.

The downside was that marketers kept redemption attractiveness “at compressed levels,” Brown says. Although the average face value of coupons increased slightly to 70.2 cents (from 67.9 cents in 1997), more coupons required consumers to purchase two or more products to receive the discounts – a requirement widely disliked by customers, he says.

Nearly 22 percent of all coupons circulated are of the multiple-purchase variety, according to Brown. The trend is driven by grocery product manufacturers, who distributed more than 25 percent of their coupons as multiple-purchase last year, up one-and-a-half percentage points. Health and beauty care product manufacturers maintained multiple purchase coupon levels at 9.5 percent last year.


Related Posts

Chief Marketer Videos

by Chief Marketer Staff

“Trapped in Advertising” sounds like a hashtag you might use after a bad day at work, but for Pringles and Adult Swim, it was a year-long, pop culture-forward campaign aimed at ad-averse 18- to 35-year-old “Rick and Morty” fans. The goal was to sustain engagement and become part of the cultural conversation in order to…


PRO Awards


Join your industry peers for a fast-paced afternoon of inspired conversations led by industry leaders and live celebrations as we announce the winners of the 2021 PRO Awards. Click here to register.


CM 200

Click here to sign up for more information on the 2022 CM200 call for entries and to view the CM 200 2021 List.