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New third-quarter coupon facts demonstrate sustained coupon usage

Tuesday, October 19, 2010

Press release from the issuing company

Livonia, Mich. - Valassis, one of the nation's leading media and marketing services companies,announced today that 11.6% more coupons were issued industry-wide in the third quarter of 2010 than a year ago (year-to-date through Sept. 30, 2010). Coupon distribution continues to grow above the record-breaking volumes experienced in 2009. These findings were revealed as part of the Third Quarter 2010 Consumer Packaged Goods (CPG) Coupon Industry Facts recently released by NCH Marketing Services, Inc., a Valassis company.

"While CPG marketers have increased their coupon distribution to consumers enlisting new savings-oriented shopping behaviors triggered by the economy, they are also modifying their offerings," said Charlie Brown, NCH Vice President of Marketing. "What we have found is that marketers are balancing their budgets by managing the coupon offer characteristics that influence redemption velocity."

Third-quarter year-to-date 2010 findings reveal the following compared to the same period in 2009:
- 260 billion coupons were distributed versus 233 billion;
- Average face value increased to $1.44 compared to $1.37;
- Multiple purchase requirements account for 29% of all CPG coupons distributed, up 2 share points; and
- Expiration dates average 9.3 weeks compared to 10.9 weeks.

CPG marketers distributed even more coupons through the free-standing insert (FSI), up 1.7 share points since mid-year 2010 to account for 86.7% of CPG coupon distribution. The FSI continues to be, by far, the largest distribution channel. The Internet accounted for 1.1% of total CPG coupon distribution.

In total, 2.5 billion coupons have been redeemed year-to-date through the third quarter of 2010, up 5.3% compared to a year ago. With the exception of the retail segment where dollar stores are reported, which is up 31% year-to-date, redemption increases across most retail channels have been on par with the industry-wide increase.

"Undoubtedly, the return to savings continues to influence the way marketers promote their brands," said Suzie Brown, Valassis Chief Marketing Officer. "They are faced with meeting this increased demand for value while also providing the best return on their promotional dollars."

 

 

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