Some 272 billion free-standing insert (FSI) coupons were distributed in 2011 -- a decline of 6.5% from 2010, according to estimates released today by WPP’s Kantar Media unit.
The 2011 decline follows two consecutive years of annual increases, including a 7.2% gain in 2010 and an 8.0% gain in 2009.
The decrease may be a positive indicator for the advertising marketplace, since marketers historically shift budgets from brand-building advertising into consumer price promotions during periods of weak consumer demand. During 2011, Kantar estimated the value of the coupons distributed was worth more than $421 billion in consumer price incentives.
Another strong indicator: the average “face value” of coupon offers did not increase during 2011. It actually declined slightly from 2010. At $1.55, the average face value per coupon distributed in 2011 was down 0.2% from 2010.
Coupled with declines in another important metric -- the average expiration time per coupon offer, which fell 5.2% from 2010 -- this indicates "that manufacturers are managing their financial exposure by maintaining current offer values, reducing the number of coupons distributed, and shortening the length of time that these offers are available in the market,” Kantar said.
Read more: http://www.mediapost.com/publications/article/165126/marketers-hold-the-promo-line-in-2011-coupon-volu.html#ixzz1jdeZqY7v
The 2011 decline follows two consecutive years of annual increases, including a 7.2% gain in 2010 and an 8.0% gain in 2009.
The decrease may be a positive indicator for the advertising marketplace, since marketers historically shift budgets from brand-building advertising into consumer price promotions during periods of weak consumer demand. During 2011, Kantar estimated the value of the coupons distributed was worth more than $421 billion in consumer price incentives.
Another strong indicator: the average “face value” of coupon offers did not increase during 2011. It actually declined slightly from 2010. At $1.55, the average face value per coupon distributed in 2011 was down 0.2% from 2010.
Coupled with declines in another important metric -- the average expiration time per coupon offer, which fell 5.2% from 2010 -- this indicates "that manufacturers are managing their financial exposure by maintaining current offer values, reducing the number of coupons distributed, and shortening the length of time that these offers are available in the market,” Kantar said.
Read more: http://www.mediapost.com/publications/article/165126/marketers-hold-the-promo-line-in-2011-coupon-volu.html#ixzz1jdeZqY7v
