2019 Promotion Trends: A look at digital rebates
We recently released our 2019 Print & Digital Trends analysis. Here we take a closer look at a key segment within this media – digital rebates, an offer where cash or points can be redeemed at a later date. In 2019, digital rebates had very pronounced increases with 22 of the top 100 manufacturers increasing coupons “clipped” by more than +100% YoY.
This is a significant area of interest for shoppers and manufacturers alike, as it provides consumers with another resource for savings, while the ability to receive incentives post-purchase rewards shoppers and reinforces brand loyalty.
This also gives brands access to two consumer touch points. First, during the purchase and brand selection when shopping in-store, and second, post-purchase when the digital rebate is selected or ‘redeemed’ with the receipt upload or purchase confirmation.
For a deeper dive into the 2019 promotions landscape, fill out the form on the right to download a full copy of the report.
Food remains on top
In 2019, digital rebates accounted for 822 million coupons “clipped”, an increase of +0.3% YoY, as well as accounted for 8% of all digital coupons “clipped”, a figure that held steady from the previous year. Mirroring the overall digital landscape, food offers dominated share of digital rebate activity, with share of food vs. non-food activity remaining steady from 2018.
Incentives on the rise
Incentives increased in seven out of nine areas within digital rebates in 2019. Weighted Average Face Values (WAFVs) increased +37.2% YoY, driven by non-food where other packaged goods saw incredible incentive growth of +$8.52 YoY to reach $11.44.
This surge in face value can be attributed to an increase of 83 manufacturers YoY offering average incentives of $10 or more in digital rebates, with the majority of the 83 exclusive to the other packaged goods segment.
Overall, digital rebate incentives increased in all areas except refrigerated foods and cereals.
Peak Season in August ahead of Back to School – driven by Food
The peak season for digital rebates is just ahead of the Back-to-School period and is primarily driven by food. This is a prime time to reach consumers in the market as parents and caregivers are stocking up on snacks and items for children’s lunchboxes. However, in 2019 this spike in activity occurred in August, one month earlier than the previous year, and was more pronounced with high activity in non-food during the same period.
In 2019, we saw greater alignment between food and non-food activity throughout the year – a sign that brands are identifying key weeks and fine-tuning their digital rebate strategy around what works. As the digital landscape continues to evolve, Kantar will be tracking digital rebates and digital promotion offers to see what trends develop.
For a deeper dive into our full print and digital trends analysis, fill out the form on the right to download the report.