Promotions trends 2017: Mid-year catch up

Kantar Media analyzed promotion trends for the first half of 2017 and found that Print promotions continue to dominate the CPG landscape. Distribution for Print remained flat while Digital promotions achieved a double digit increase.

Promotions Trends Distribution
Note: Digital promotions include desktop websites only; mobile sites are measured separately.

“Print AND Digital” rather than “Print OR Digital”

Our analysis revealed that coupon distributors have been increasingly evolving towards a “Print AND Digital” rather than “Print OR Digital” model. By combining Digital and Mobile into an integrated effort with Print, promotion can become more cost-effective for many new or regional brands.

During the first half of 2017, we found that 561 manufacturers distributed Print coupons, 2,556 distributed Digital coupons and 597 distributed Mobile coupons. Of these, 211 manufacturers distributed all three – Print AND Digital AND Mobile.

Digital promotion was more popular among Food brands. Indeed, distributing coupons directly on a retailer website is a tactical way to provide Retailer Alignment. This can also create greater efficiency for Purchase Incentives distributed by Food brands to support promotion offers with other retailer merchandising.

Promotions Trends Distribution
For Digital promotions, Dry Grocery was the leader within Food with over 1 billion Estimated Digital Prints in H1 2017. The category also ranked third for Print during the measured period.

Conversely, Print promotion tends to be more of a draw for Non-Food categories. Efforts from these manufacturers in the first six months of the year drove face-value of Print promotion up by $0.24, further widening the gap between Print and Digital.

Promotions Trends Distribution
Within Non-Food, Personal Care and Health Care have been the most active overall. Health Care specifically had largest increase in Print values, up $0.55 to $3.21. Other Packaged Goods saw the largest increase in Digital, up $0.50 to $6.50.

Shorter Shelf Life

The Expiration of Promotions saw declines for both Print and Digital in the first half of the year. Print Expiration dropped to below 6 weeks (5.7), while Digital Expiration dropped to 4.2 weeks.

Promotions Trends Expiration
Food categories typically average 8 weeks for Print Expirations, however Cereal has consistently been an outlier in this area, with an Expiration of 6 weeks. Cereal also has the shortest Expiration in Digital at 3.8 weeks, while Health Care has the longest Digital Expiration at just over 5 weeks.

Promotions Trends Expiration
For Non-Food categories, Expirations for both Print and Digital were close – approximately 4.5 weeks each.

Manufacturers Go Mobile

In the first half of 2017, 597 manufacturers participated in Mobile Promotions. The top 20 active manufacturers in Mobile accounted for 43% of all events. This included 10 Non-Food, eight Food, one Food/Non-Food and one Private Label manufacturer.

In Mobile, the average Face Value was $1.99 and the average Percent Off was 17%.

Retailer “Frenemies”

Retailer Alignment continues to be one of the three key objectives for consumer promotion. Consumer promotion represents a potential competitive advantage for brick and mortar retailers to drive trips from value-seeking shoppers versus online or omnichannel retailers.

For brand marketers, driving a trip to a brick and mortar retailer may limit competition for the sale based on items physically available in the store on the shelf, versus competing for the sale with any brand that has created a page on an online retailer website.

This is particularly true for many Non-Food categories including Personal Care and Health Care that align well with online retailer fulfillment (e.g., high value/price/margin, small cube/size and easy to ship/fits in box/non-perishable).

However, brand marketers need to be aware of how retailers are promoting their private label brands across these platforms in order to identify direct competition or complementary promotion opportunities.

Retailer websites continue to be key platform for distributing digital coupons with private label offers often competing directly with manufacturer brands.

Want to know more? For more specific insights into your key categories, contact our client service team at (952) 925-5272.

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