CPG marketers allocated the largest share of their coupon distribution to free standing inserts (FSIs) during 2010, according to a new study from NCH Marketing. Data from “NCH Annual Coupon Facts” indicates FSIs accounted for roughly 88% of CPG coupons in 2010, with all other forms of media comprising the remaining 12%.
In-store Handout Most Popular Other Media
Of the 12.3% of CPG coupons distributed in 2010 by media other than FSIs, in-store handouts represented 5.2%, followed by direct mail (2.4%), magazine (2.2%), other (including all digital formats – 2%), and in/on-pack and cross-ruff (1.1%).
Slightly More Grocery CPG Coupons Distributed by Non-FSI Media
While distribution demographics for grocery CPG coupons were similar to overall results, a slightly higher percentage (13.2%, or 7% more) were distributed by non-FSI means. The largest difference in the breakdown of non-FSI coupon media was an 11.5% higher percentage distributed via in-store handouts (5.8%).
More HBC Coupons Distributed via FSI
In a trend opposite to that of grocery CPG coupons, 89.3% of health/beauty care (HBC) coupons were distributed via FSI, a rate about 2% higher than the overall average. The breakdown of non-FSI media distribution rates was proportionally similar to the overall breakdown.
Average CPG Coupon Face Value Reaches $1.46
The average face value of a CPG coupon in 2010 was $1.46, up 6.6% from $1.37 in 2009. Average CPG coupon face value has risen year-over-year each year since 2006, when it stood at $1.18. Between 2006 and 2010, average value rose almost 24%.
Average CPG Coupon Face Value Growth Stays Ahead of CPI
Every year since 2006, the percent increase of face value for the average CPG coupon has been higher than that of the consumer price index (CPI). In 2010, the CPI grew around 2%, meaning CPG coupon face value grew at a rate about three times as high.
The widest disparity in growth rates since 2006 occurred in 2009, when CPG coupon face value also grew around 6% and the CPI experienced negative growth slightly below 0%. CPG coupon value growth only slightly outpaced CPI growth in 2007 and 2008.
CPG Coupon Value Grows 14% YOY
The total value of all CPG coupons distributed in the US last year equaled $485 billion, up 13.9% from $426 billion the prior year, according to other study results. Since 2006, when total value equaled $329 billion, the figure has increased 47.4%, with year-over-year increases in every individual year.