FSIs Dominated H1 CPG Coupons; Trailed in Redemption Rates

July 25, 2012

This article is included in these additional categories:

CPG & FMCG | Food & Restaurants | Magazines | Newspapers | Promotions, Coupons & Co-op | Radio | Retail & E-Commerce

nch-coupon-distribution-methods-h1-2012-july2012.pngAt 89.7% share by distribution volume, free-standing inserts (FSIs) remained the dominant media format by which marketers distributed 165 billion coupons for consumer-packaged goods (CPG) in the first half (H1) of 2012, according to [sign-in page] a study released in July 2012 by NCH.

In-store handouts were a distant second at 4.1% of distribution volume, followed by direct mail (2%), magazines (1.8%), in/on package and cross-ruff (a coupon on one product redeemable for another – 1%), and the aggregate of all others (including newspapers, handouts away from stores, military distribution and surprisingly, all digital formats – 2%).

On-Package, Internet Led Grocery Store Redemptions

However dominant were FSIs by volume, their average redemption rates in the grocery category were a low 1.1%, unchanged from H1 2011. Instant on-package (20.1%) had the highest average redemption rate, followed by internet home printed (17.3%), on-shelf distributed (11.5%), and military (10.5%). Of the remaining methods, only electronically-dispensed handouts (8.5%) rose above 5% average redemption.

None of the formats tracked by NCH for H1 2012 showed a remarkable gain or loss year-over-year, other than the average redemption rate of newspaper coupons, which doubled from 0.7% to 1.4%.

On-Package Even Stronger In Health And Beauty

FSIs, at 0.5%, showed the weakest average redemption in the health-and-beauty care (HBC) category, also unchanged from H1 2011. Instant on-pack also led the HBC category with an average redemption rate of 29.6%. Internet home printed was second at 13.6%, followed by on-shelf distributed (8.1%), electronically-dispensed handout (7.4%) and military (5.7%). These were fairly consistent with H1 2011 numbers except for military, which was down 0.8% percentage points.

About The Data: Coupons distributed and redeemed in the US Consumer Packaged Goods (CPG) marketplace were studied using NCH’s manufacturer client databases, data cleared via its retailer processing operation and other independent sources. The scope of the report includes manufacturer coupons of all paper and paperless media formats: Retailer in-ad coupons were not included. Consumers were emailed an invitation to participate in the survey, which was closed once it reached 1,000 completed responses. The responses were weighted by factors obtained from national census data to provide appropriate representations of demographic groups at summary levels.

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