Private Label Buyer

Reports Show Digital, Mobile Coupons Growing

January 30, 2013

A pair of reports issued Wednesday show the strength of digital and mobile couponing in retail channels in 2012, and expected growth in 2013.

Kantar Media reported that digital coupon events across key websites grew 46.1 percent in 2012 from a year earlier. The number of manufacturers participating on those websites grew 18.9 percent to 805 in 2012.

“2012 was a stellar year for digital coupon growth and manufacturer engagement, with more than 800 manufacturers distributing digital coupons representing the great number of manufacturers participating in digital coupons since the launch of the ProMotion PLUS Digital Service in 2009,” Kantar Media Marx General Manager David Hamric said in a news release.

In a separate report, Juniper Research said that mobile coupons are expected to reach 10 billion in 2013, up 50 percent from 2012. The report added that retailers were encouraged by the higher average redemption rate of mobile coupons, 10 percent in 2012, compared with traditional print and PC coupons, which averaged 1 percent of less.

The Juniper report added that time-based elements were critical to the success of the coupon program, noting that a number of offers went unintentionally viral and led to brands unable to meet the overwhelming demand for their products.

The Kantar report showed that food digital coupons grew slightly in share last year, up 0.4 percent to 51.7 percent, while nonfood coupons were flat at 50.1 percent.

Dry grocery coupons led the categories with 27 percent share of the market, up 2.1 percent from 2011. Personal care coupons led the nonfood category with 19.1 percent share, down 0.6 percent from 2011.

The food channel registered the largest share of digital coupon redemptions at 51 percent, followed by drug channel at 27 percent and mass channel at 22 percent. In terms of website visits for digital coupons, the food channel had 49 percent of the share, mass had 43 percent share and drug had 8 percent share.

“Although the drug channel captures a greater share of events than the mass channel, the drug channel sees fewer visits than the food and mass channels,” Kantar Media Marx Director of Account Solution Darcy Douglas said in the release. “Shoppers in the drug channel may only look for incentives during infrequently planned trips, contributing to a lower number of visits to a drug retailer website. Retailers within the drug channel could evaluate which incentives are driving repeated visits to their website, and consider enhancing those offerings with new incentives that help build a larger basket for the drug shopper and for that retailer.”