Online Coupons: An Engaging Idea Kelly Clayton Brian Robinson Scott Swearingen

Background Coupon History Coupon History –Sunday Newspapers $250 billion a year $250 billion a year $3 billion in savings $3 billion in savings 80% of Americans use coupons 80% of Americans use coupons Sunday Newspaper ads still are the #1 source Sunday Newspaper ads still are the #1 source

Today’s Environment New trends New trends –Newspaper circulation declining –Trying to reach younger generations –Newspaper websites are becoming the new source of information  Adding online coupons to their websites to take advantage

Results Explosive growth of “consumer printed” online coupons Explosive growth of “consumer printed” online coupons Traditional coupons are on the decline Traditional coupons are on the decline Increasing amount of consumer savings are attributed to online coupons Increasing amount of consumer savings are attributed to online coupons

Advantages 15% redemption rate 15% redemption rate Extra benefits when used with traditional coupons Extra benefits when used with traditional coupons Easy to see who is using the coupons Easy to see who is using the coupons –Consumer demographics –Purchasing behavior –Targeting advantages

Comparison Print coupons create lift through retailer support Print coupons create lift through retailer support Print coupons provides an enormous scale Print coupons provides an enormous scale –1% redemption rate is low, but with six billion coupons distributed weekly, the venue still results in a noticeable sales lift With a 15% redemption rate, online coupons can produce the same lift with much lower distribution levels and costs With a 15% redemption rate, online coupons can produce the same lift with much lower distribution levels and costs

Why Companies are Switching Efficiency Efficiency No waste No waste Consumers get only what they want Consumers get only what they want Less fraud Less fraud Cost savings Cost savings

Conclusion Both online and print coupons can and will co-exist to serve brands with savvy marketers leveraging both for a campaign with maximum impact Both online and print coupons can and will co-exist to serve brands with savvy marketers leveraging both for a campaign with maximum impact The marketer who is best at connecting a consumer's interest to action will win, and online is the best place to accomplish this. The marketer who is best at connecting a consumer's interest to action will win, and online is the best place to accomplish this.

Source Online Coupons: An Engaging Idea. Online Coupons: An Engaging Idea. Best, Jeanette Brandweek, 5/2/2005, Vol. 46 Issue 18, p20-20, 1p, 1c.