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2006 Coupon Usage and Trends

Coupon Distribution and Redemption falls in 2006

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CMS.com announced that over $331 billion dollars in potential consumer savings were distributed through coupons in 2006 with over 2.6 billion redeemed. This was a decline in both distribution (-12%) and redemption (-13%) from the past year.

"That illustrates the investment marketers are willing to make to move products off the shelf," said Matthew Tilley, Director of Marketing for CMS. "Ultimately, it says volumes about how much they trust coupons to do the trick. You hear a lot of talk about the advertising value of coupons. While brands would be foolish to completely depend on that value to justify their investment, it would be equally foolish to completely ignore it."

Despite the decline in newspaper readership, coupon inserts in newspapers made up about 89 percent of the distribution in 2006. Overall, 92.5 percent of all coupons were distributed via methods sent directly to the home (direct mail, newspaper, magazine, etc).

Other factors which could have influenced the decline in coupon redemption included an average shorter expiration date and a lower average face value on coupons. An increase in multiple purchase coupons (example - .50 cents off on the purchase of two) increased to almost 28 percent of all coupons distributed.

In-store coupons, meaning those coupons distributed inside retail stores, decreased in 2006 from 5.3 percent to 4.9 percent, however the percentage of those coupons redeemed increased to over 34 percent.

For a complete coupon trends analysis visit CMS.com.

See Also: 2005 Coupon Usage and Trends

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