324 Consumer Packaged Goods manufacturers
distributed digital coupons in 2011
MINNEAPOLIS, MN. - The number of digital coupon
events increased by 12.3 percent in 2011, as compared to
2010, across key websites tracked by Kantar Media. The number
of Consumer Packaged Goods (CPG) manufacturers that
distributed digital coupons across the same key websites
increased to 324 in 2011, a 2.5 percent increase versus the
prior year. Of the 324 manufacturers that distributed digital
coupons, 216 distributed both digital coupons and
Free-Standing Insert (FSI) coupons in 2011. While there were
108 manufacturers only active in digital coupons,
representing 33.3 percent of manufacturers that were active
in digital in 2011. (
Please see Marx 2011 FSI Trends Here)
"The increase in the number of manufacturers that are
active in the digital space makes it even more important to
monitor competitive promotion activity across all
media," said David Hamric, General Manager, Kantar Media
Marx. "Clearly, the majority of manufacturers view
digital coupons and FSI coupons as complementary promotion
tactics. However, the additional one-third of manufacturers
that only distribute digital coupons can impact shoppers as
they develop their shopping lists and plan their shopping
trips. Marx, a Kantar Media solution, continues to be the
only source for census-level FSI coupon and digital coupon
insights across leading network, brand and retailer websites
which helps our clients see a richer, more complete picture
of their competitive landscape," said Hamric.
Non-Food Areas continued to increase their share of events to
40.5 percent in 2011 across key websites tracked by Marx.
(NOTE: Sum of all Areas may be greater than 100 percent due
to events which include more than one Area). This is an
increase of 8.0 points over 2010, demonstrating that Non-Food
is playing a more prominent role in digital coupons than in
the past. Health Care had the greatest share increase at 3.7
points. Food Areas represented 60.9 percent of digital coupon
events with all five of the Food Areas decreasing in share of
activity. Dry Grocery had the greatest decrease, declining
4.6 points.
Retail Channel Tactics
Distinct promotion tactics are evident within the Food, Drug,
and Mass retail channels across the key retailer websites
tracked by Marx. With 424 manufacturers, the Food channel had
nearly double the number of manufacturers distributing
digital coupon events compared to the Drug channel which had
217 manufacturers distributing digital events. However, at
$2.94, the Drug channel maintains a significantly higher
Average Face Value than the Food or Mass channels, driven in
part by high value offers promoting channel-specific products
with higher retail prices. Digital coupons within the Mass
channel have a comparatively longer Average Impression Life
of 4.1 weeks which aligns with a lower trip frequency for
shoppers within the Mass channel than either the Food or Drug
channels.
"The timing and duration for digital coupon promotions
on retailer websites should reflect the purchase cycle of the
product and the trip frequency for the channel," stated
Dan Kitrell, Vice President of Marx Account Solutions at
Kantar Media. "While FSI coupons have a unique ability
to deliver a brand message with a purchase incentive to about
70 million households on a specific day, digital coupons on
retailer websites reach the shopper when they are actively
building shopping lists and planning shopping trips.
Retail account teams need a complete picture of digital
coupons on retailer websites, retailer participation in FSI
coupon events, and cooperative retailer advertising campaigns
to help them secure merchandising support, improve
promotional lift, and drive incremental sales. Shopper
marketing and retail account teams continue to seek solutions
to efficiently capture integrated retailer advertising and
promotion insights that can simplify account planning and
improve sales results. We've developed a new service
called DirectHEAT® Retail Insights, that addresses those
needs for manufacturers at their leading retailers,"
concluded Kitrell.
2011 New Product Introductions
As previously reported in the
Marx 2011 FSI Trends Press Release, 291 new
product introductions included FSI coupon support in 2011. Of
these 291 new product introductions, 117 included digital
coupon support in addition to the FSI coupon events. On
average, new product introductions in digital coupons
received 11.7 Event Dates per New Product (representing the
number of times each week a new product received support)
compared to 2.0 Event Dates per New Product for FSI coupon
promotions. New products are receiving more than five times
the number of Event Dates per New Product through digital
coupons, which as a flexible promotional vehicle, can
increase the potential exposure a shopper would have to both
the offer and the new product online.
QR Codes Usage
Based on a review of digital coupon events on retailer
websites monitored by Marx, we observed that Quick Response
(QR) codes were being used on a limited basis by
manufacturers that distributed digital coupons on retailer
websites. In contrast, there were no observed occurrences of
QR codes being used as part of digital coupon events on
brand-specific websites monitored by Marx. "Digital
coupon promotions have historically not taken full advantage
of the unique advertising potential of digital media,"
noted Kitrell. He emphasized, "Although QR codes are not
unique to digital promotions, they may align with the
demographics of a more tech-savvy coupon user. This presents
a real opportunity for brands that are looking for a
continued connection with the consumer by using a QR code to
track and continue to engage the shopper, long after the
digital offer has been redeemed."
About Kantar Media
Kantar Media provides strategic advice and competitive
intelligence to the world's leading brands, publishers,
agencies and industry bodies, helping them navigate and
succeed in a rapidly evolving media industry. This includes
analysis of paid media opportunities; counsel on brand
reputation, corporate management and consumer engagement
through owned media; and, evaluating consumers' reactions
in earned media. Kantar Media provides clients with a broad
range of insights from audience research, competitive
intelligence, vital consumer behavior and digital insights,
to marketing effectiveness and online influence. Our experts
currently work with 22,000 companies tracking 3 million
brands in 50 countries.
www.kantarmediana.com
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