Number of manufacturers distributing digital coupons on these websites increased 26.0 percent
MINNEAPOLIS, MN, July 31, 2012 – Digital coupon events across key websites monitored by Marx, a Kantar Media solution, increased by 24.3 percent in the first half of 2012 as compared to the same period in 2011. More than 550 manufacturers distributed digital coupon offers on these key websites during the first six months of 2012, an increase of 26.0 percent as compared to the same period in 2011.
“Increases in both the number of digital coupon offers being distributed and the number of manufacturers distributing digital coupons highlight the growing importance of digital coupons within the overall promotion mix for brand marketers,” stated David Hamric, General Manager, Kantar Media Marx. “Marx leads the industry by delivering valuable competitive intelligence on key websites for our clients, giving them an advantage in their integrated promotion planning across multiple print and digital platforms to stay aware and ahead of their competitors.” said Hamric.
(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
H1: January – June
Source: Kantar Media
For the first six months of 2012, Food Areas represented 49.4 percent of digital coupon events, while Non-Food Areas represented 52.3 percent (NOTE: Sum of all Areas may be greater than 100 percent due to events which include more than one Area). Three of the five Food Areas decreased in share of activity, with Refrigerated Foods decreasing 1.1 points. Conversely, Household Products saw the largest increase in share, increasing 1.8 points in the first six months of 2012 versus the same period in 2011.
Retailer Website Seasonality – Examples for Mass, Food, and Drug Channels
Retailer websites exhibit monthly seasonality based on Unique Visitors (UVs), a measure that counts the number of unique visitors to a website. UVs can also be used as an indicator of a website’s popularity. Variability in retailer website UVs is further amplified on a weekly basis, aligning with key pay weeks and holiday promotion periods.
As an illustration, monthly UV data from Kantar Media Compete were evaluated for Target.com, Kroger.com, and Walgreens.com. Among these three retailers, Target.com had the greatest number of UVs across the entire first half of 2012, peaking in May 2012 at 37.1MM. This quantifies the potential reach that Target.com has in engaging with Target’s shoppers in-the-home when they may be actively planning a shopping trip to Target.
“Leading retailers are leveraging retail brand equity in their retailer websites to engage with their shoppers online. Shoppers that are visiting a retailer website to search for deals or download digital coupons are likely planning a trip to that retailer,” noted Dan Kitrell, Vice President, Account Solutions, Kantar Media Marx.
Source: Kantar Media Compete
Among the three retailers, Kroger.com was the leader in the number of digital Coupon Events for each month except April 2012, when Walgreen’s offered their greatest number of Coupon Events at 287. This illustrates how retailers may vary their digital coupon promotion tactics from month-to-month (or even week-to-week) based on anticipated shopper behavior.
Source: Kantar Media
“Retailers can increase the perceived value to shoppers visiting their retailer websites by increasing the number and value of digital coupons available during key weeks including common salary pay periods and holiday promotion periods. Although major CPG brands contribute to this perceived value, increasingly, retailers like Kroger, Target and Walgreens are promoting their own store brands directly to their shoppers on their websites,” continued Kitrell.
“Retailers continue to influence the shopper’s path-to-purchase, first by driving shoppers to their websites to download digital coupons when they are developing purchase intent and then by driving shoppers into their stores where purchase decisions are ultimately made. To understand the role that digital coupons play within a retailer’s overall advertising and promotion mix, Kantar Media developed DirectHEAT Retail Insights to help Shopper Marketing and retail account teams align the right programs with the right retailers during the right weeks,” concluded Kitrell.
About Kantar Media
Kantar Media provides strategic advice and competitive intelligence to the world’s leading brands, publishers, agencies and industry bodies, helping them navigate and succeed in a rapidly evolving media industry. This includes analysis of paid media opportunities; counsel on brand reputation, corporate management and consumer engagement through owned media; and, evaluating consumers’ reactions in earned media. Kantar Media provides clients with a broad range of insights from audience research, competitive intelligence, vital consumer behavior and digital insights, to marketing effectiveness and online influence. Our experts currently work with 22,000 companies tracking 3 million brands in 50 countries. www.KantarMediaNA.com