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July 29th, 2011

250 million digital coupon clips & counting

Across the spectrum of providers, digital coupons grew rapidly in the first half of 2011, as retailers and CPGs continue to invest in this new medium.

Digital coupon downloads increased over 700% between the first half of 2010 and the first half of this year across our retail network.  We have now delivered over 5,000 unique digital coupon offers and over 250 million downloads over the past 2 years, far outpacing the rest of the market.

So, what’s driving the growth?  According to our customers, a few things:

  • Value-seeking shoppers.  Shoppers are using digital coupons to save money on their groceries.   In the first half of the year, shoppers downloaded coupons with nearly $125 million in savings across our network.
  • No longer an optional ingredient for Retailers and CPGs.  Retailers and CPGs are increasingly using digital coupons to drive sales and loyalty by integrating coupons into the circular, creating digital merchandising events tied to the sales plan, and developing co-branded digital shopper marketing programs.
  • Greater reach.  Retailers and CPGs are also using digital coupons to fuel social and mobile marketing initiatives that would be difficult if not impossible to execute with paper or print at home coupons.

What categories are most popular?

Shoppers are using digital coupons across a broad range of categories.  Across our network, the most popular category is personal care followed by paper, cleaning & home, frozen foods, and breakfast & cereal (see top 10 list below):

Total digital coupon downloads– top 10 categories

  1. Personal Care
  2. Paper Cleaning & Household
  3. Frozen Foods
  4. Breakfast & Cereal
  5. Cookies Snacks & Candy
  6. Condiments Spices & Baking
  7. Dairy Eggs & Cheese
  8. Beverages
  9. Baby
  10. Bread & Bakery

Although redemption rates vary by category, deli, meats & cheese, dairy, eggs & cheese, and bread & bakery all redeem well, suggesting retailers have a big opportunity in using digital coupons to promote the perimeter of the store and to deliver meal solutions.  The data also shows how more niche brands and categories, such as international cuisine and organic, can use digital coupons to stand out online and at the shelf.

Average Redemption Rates– top 10 categories (min 10 coupons)

  1. International Cuisine & Kosher
  2. Snacks
  3. Canned Goods & Soup
  4. Deli Meats & Cheese
  5. Household Needs
  6. Dairy Eggs & Cheese
  7. Beverages
  8. Bread & Bakery
  9. Organic
  10. Frozen Foods
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