MINNEAPOLIS, MN July 21, 2010 – During the first half of 2010, the number of digital coupon events increased by 84.0 percent versus the first half of 2009 across key websites tracked by Marx, a Kantar Media solution.  Additionally, 200 manufacturers distributed digital coupon offers, an increase of 31.5 percent compared to the 152 manufacturers that were active in the first half of 2009 across these key websites.  “Digital coupons complement traditional FSI coupons to reach the consumer in the home while they are actively making purchase decisions,” said Mark Nesbitt, President Kantar Media Intelligence.  “As more manufacturers distribute more digital coupons, it becomes increasingly critical to understand competitive digital promotion tactics to insure that events break through the clutter to deliver the right offer to the right consumer,” said Nesbitt.

 (1) Digital Share of Activity is based on Number of Events (NOTE:  Sum of all Areas may be greater than 100% due to
events which include more than one Area)
(2) Digital Face Value and Face Value Per Unit are averaged values
Food Areas: Cereals, Dry Grocery, Frozen Products, Refrigerated Foods, and Shelf Stable Beverages
Non Food Areas: Health Care, Household Products, Other Packaged Goods and Personal Care
Source: Kantar Media

Refrigerated Foods led the increase in activity within the Food Areas.  This is a 3.9 point increase in the first half of 2010, contributing to an overall Share of Activity for the Food Areas of 64.6 percent.  Health Care drove the greatest decrease in activity within the Non-Food Areas with a 4.6 point decrease in the first half of 2010, which resulted in an overall Share of Activity for the Non-Food Areas of 37.5 percent. 

Face Value and Face Value Per Unit decreased in four of five Food Areas in the first half of 2010 versus a year ago.  In contrast, Face Value increased in all four Non-Food Areas during this period.  All Food Areas had Face Value and Face Value Per Unit of less than $1.00, while all Non-Food Areas had Face Value and Face Value Per Unit greater than $1.00 during the first half of 2010.

Retailer Promotion – Digital versus Print
On retailer websites monitored by Marx during the first half of 2010, there were 268 manufacturers running digital promotion events.  This is 25.8 percent more than the 213 manufacturers that participated in retailer promotion events in traditional print FSI vehicles during the same period. “Manufacturers are distributing coupons on retailer websites to build purchase intent with the consumer and drive shopping trips for the retailer,” said Bob Cristofono, Vice President of Sales at Marx.  “Increasingly, manufacturers need to understand competitive promotion activity on retailer websites to fully understand retail pricing, merchandising support, and promotional lift,” said Cristofono.

New Product Activity – Digital versus Print

Source: Kantar Media

During the first half of 2010, 35 new products included digital promotion events across the websites monitored by Marx compared to 196 new products that included traditional FSI coupons during the same period.  However, there was an average of 6.1 Event Dates Per New Product for digital promotions compared to 1.6 Event Dates Per New Product for FSI coupon promotions.  New products continue to gain support with digital coupons, with nearly four times the number of Event Dates in digital than in print.

Social Media Insights
“Manufacturers are blurring the lines between traditional FSI and digital promotion by developing integrated retailer and new product campaigns,“ said Dan Kitrell, Vice President of Account Solutions at Marx.  “In addition to moving coupons online, many leading CPG manufacturers are also including social media references in their FSI coupon creatives.  Facebook is the primary social media being used, but Twitter is included in addition to Facebook in about half of the creatives analyzed.  In most cases, the social media icon is the only reference.  However, some brands have developed programs to incent consumers to support social media websites including opportunities to download additional savings, join web clubs, and contribute to charities,” said Kitrell.

About Kantar Media
Established in more than 50 countries, Kantar Media enables the mastering of multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors – Intelligence, Audiences, TGI and Custom.  Kantar Media companies also include Compete, Cymfony and SRDS Media Solutions. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers around the world.  www.kantarMediaNA.com