NCH: Coupon Distribution Down, Redemption Up

LIVONIA, Mich. — Last year, 305 billion CPG coupons were distributed in the U.S., representing an 8.1% drop from 2010, according to the 2012 Coupon Facts Report issued by NCH Marketing Services, a Valassis company.

The decline was entirely attributed to the grocery segment which distributed 13.1% fewer coupons, as health and beauty care coupon distribution held steady. Despite the drop in overall coupons, redemption increased with $4.6 billion saved.

The rise has led marketers to balance demand by modifying coupon offers. For instance, marketers limited offer durations — a tactic sometimes used when they are promoting frequently. Last year, the average offer duration was 9.9 weeks, down from 10.4 weeks in 2010. Grocery coupons in particular were viable for an average of 10.2 weeks, while HBC product offers could be used for 9.6 weeks on average.

Both grocery and HBC segments saw an increased share in multiple purchase coupons, with 27% of offers distributed requiring multiple item purchases, up two points from 2010. Meanwhile, the average face value of $1.54 remained in tact from 2010 to 2011 with grocery cutting 3 cents off the average value to $1.17 and HBC coupons averaging $2.09.

“This year was a very unique one for coupon trends in many respects,” said Charlie Brown, NCH vice president of marketing, in a statement. “Much of the changing trends in 2011 were a result of marketers managing and leveraging heightened consumer demand for coupon savings.”