Research by Kantar Media Finds Number of Digitally Distributed Coupon Events On Key Websites Increased by 17.7%

Average Cost Per Estimated Digital Print/Clip was $0.30 in 2014

MINNEAPOLIS, MN, March 25, 2015 – The number of digital coupons distributed on key websites monitored by Kantar Media’s Marx grew at a rate of 17.7 percent in 2014, according to data released today.

Analysis of the websites, which included Load to Card and Print at Home coupon types, also found that the Share of Activity in Food Areas for digitally distributed coupons over-indexed when compared to Print FSI (Free Standing Inserts) Food Area Share of Activity in 2014, meaning Food Areas are growing in digitally distributed coupon Events.

“2014 saw a significant expansion of digitally distributed coupons, but that growth did not translate into all Areas – with Cereal category facing the strongest decline of 20.5% in digitally distributed coupons in 2014,” stated David Hamric, General Manager at Kantar Media’s Marx. “Manufacturers will continue to develop new digital programs and evolve their digital strategies as they work to get ahead of their competition and align with key retailers. Identifying which competitors and which retailers are key to each manufacturer’s categories and brands is a work in progress, and will continue to evolve.”

Digitally distributed coupon percentage

Average Cost Per Estimated Digital Coupon Print/Clip is highest in Non Food Areas

Kantar Media also reported that the average Cost Per Estimated Digital Coupon Print / Clip across all Areas and key websites in 2014 was $0.30 (represented by the blue horizontal line in the graph below).

The Average Cost Per Estimated Digital Coupon Print/Clip (ACPEDCPC) is determined by the overall Estimated Expenditure divided by the number of Digitally Distributed Coupon Prints or Clips* it takes a brand or segment to reach that total cost for the digital program.

Three of nine Areas analyzed by Kantar Media showed to be higher than the industry average cost. Three of four Non-Food Areas led with the highest ACPEDCPC, with Other Packaged Goods ACPEDCPC being 66% higher than the overall Industry Average of $0.30. Shelf Stable Beverages, a Food Area, trailed the industry average with ACPEDCPC at $0.27, which was comprised of 73%, of Load to Card/Load to Wallet Events compared to Print at Home Events.

“Understanding how much it costs to run a digitally distributed coupon event is critical to planning digital brand campaigns on key websites,” says Darcy Douglas, Director of Account Solutions at Kantar Media’s Marx. “This calculation starts with taking the amount spent by brand, category or Area, then dividing by the number of prints or clips during that same time period. Determining how much your competitors are spending in your categories and with your retailers on their websites is indispensable during the brand planning process. Optimizing digital investments by choosing key websites helps brands extend their budgets and potentially get more bang for the digital buck.”

Average Cost Per Digital Print

About Kantar Media

Kantar Media provides critical information that helps our clients make better decisions about communications. We enable the world’s leading brands, publishers, agencies and industry bodies to navigate and succeed in a rapidly evolving media industry. Our services and data include analysis of paid media opportunities; counsel on brand reputation, corporate management and consumer engagement through owned media; and evaluating consumers’ reactions in earned media. As the global house of expertise in media and marketing information, Kantar Media provides clients with a broad range of insights, from audience research, competitive intelligence, vital consumer behaviour and digital insights, marketing and advertising effectiveness to social media monitoring. Our experts currently work with 22,000 companies tracking over 4 million brands in 50 countries.

For further information, please visit us at www.KantarMedia.US

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