Coupon Volume Drops for First Time in Years

A possible indicator that the advertising industry is finally emerging from the recession is the fact that coupon volume fell substantially in 2011 following a few years of heavy coupon promotional strategies. MediaPost.com reported on what this may mean for the future of consumer purchasing.

According to WPP’s Kantar Media unit, this recent decline follows two consecutive years of increases, including a 7.2% rise in 2010 and an 8.0% jump in 2009. The practice of focusing budgets on consumer price promotions, such as coupons, is often seen during periods of economic trouble. The reversal of this coupon trend, in conjunction with the lower value of overall coupons offered in 2011, is being viewed as a strong sign that brands are regaining their confidence in consumer purchasing behavior.

Despite the decrease in both the volume and value of coupons in 2011, there was a 30 percent increase in the number of retailer promotion pages featuring freestanding insert coupons. Kantar explains this anomaly as the increasing occurrence of manufacturers and retailers using these freestanding inserts to influence shopping behavior through competitive promotions, creative advertising, and promotion alignment.

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