In Q4 2017, digital coupon usage rose while print coupons saw a significant decline, with 230 million fewer print coupons and 30 million more digital coupons being circulated. Despite digital coupons constituting only 2.9% of total coupon distribution, they accounted for 16.3% of redemptions, highlighting their increased effectiveness. Companies are willing to sacrifice margins to attract new customers, with a notable increase in offer face value for digital coupons, particularly in personal care and hygiene products.

1. Digital Coupon
Marketing Trends
Q4 2017

2. Fewer Print Coupons,More Digital Coupons
*E-commerce Statistics & Technology Trendsetters for 2017
**NCH U.S. CPG Coupon Facts: Mid-Year 2017
Growing Fast, but Still Not Mainstream
• Only 44.5% of Marketers utilized digital
coupons as part of their strategy in
2017*
• However, YOY distribution saw 230
million fewer print coupons, but 30
million more digital coupons in
circulation**
YOY Distribution, Print vs. Digital Coupons
-250
-200
-150
-100
-50
0
50
100
150
200
250
Print Digital
-230
Million
+30
Million

3. Why Is this Happening?
*NCH U.S. CPG Coupon Facts: Mid-Year 2017
**The Path to Purchase Institute: Guide to Digital Shopper Marketing 2017
Insanely Higher Redemption Rates
• 163 billion coupons were distributed,
with 1.08 billion coupons redeemed in
2017*
• Digital coupons made up just 2.9% of
distribution**, but drove 16.3% of
redemptions: 9.8% (paperless) and 6.5%
(print at home)*
Distributions vs. Redemptions
Distributed Redeemed
Print Paperless Print At Home

4. “Customers shop for discounts,and to win their business,brands
are willing to sacrifice margins. What you don’t want to see are
brands that suffer extensive margin erosion.”
-Jake Weatherly,CEO of SheerID. “
75% of companies say they
will sacrifice margins next
year to attract new
customers*
*SheerID: STUDY REVEALS MOST BUSINESSES WILLING TO SACRIFICE MARGIN TO GAIN CUSTOMER LOYALTY
Distribution is DOWN, but
offer face value is UP.

5. Digital Coupon Content Trends
*NCH U.S. CPG Coupon Facts: Mid-Year 2017
Food Brands
Yes No
Multiple Purchases Required?
Non-Food Brands
Yes No
40%
16%

6. Digital Coupon Content Trends
*NCH U.S. CPG Coupon Facts: Mid-Year 2017
Food
Brands
Non-Food
Brands
9.7 Weeks 5.9 Weeks
Average Offer Duration
Month 1
Month 3
Month 2
Month 4

7. Digital Coupon Content Trends
Non-Food Brands Missed
the Mark
Higher offers for Personal
Care & Hygiene products
drove an enormous, 12.5%
avg. value increase YOY,
but were largely
unsuccessful.
*NCH U.S. CPG Coupon Facts: Mid-Year 2017
Average Face Value
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
Distributed Redeemed
$1.17
$2.34 (up 12.5% YOY)
$1.18
$1.88 (up 6.1% YOY)
Food Brands
Non-Food Brands

8. Digital Coupon Content Trends
*SheerID: STUDY REVEALS MOST BUSINESSES WILLING TO SACRIFICE MARGIN TO GAIN CUSTOMER LOYALTY
Mobile
Yes No
Offer Promotions Year Round?
37%
In-Store
Yes No
39%
Online
Yes No
68%

9. % Used Coupons in 2017, by Age
Millennials Prefer Digital Coupons
*PRRI: 2017 Coupon and Promo Code Use Study
37%
39%39%
Millennials Gen X Baby Boomers

10. In-Store Mobile Coupon Activation, By Gender
Women Index Higher than Men
*Retail Dive: How Shoppers Use Their Smart Phones In Stores
37%
Women
Yes No
Men
Yes No
35%
48%

11. 48.4 50.7 52 53.2 54 54.7 55.3
7.2 5.8 3.8 3.3 2.4 2.2 2.10
10
20
30
40
50
60
2015 2016 2017 2018 2019 2020 2021
User Adoption is Going to Slow Down
*eMarketer: US Adult Digital Coupon Users and Penetration, 2015-2021
37%
39%39%
% Adults Using Digital Coupons*
% Change, YOY
YOY Adults Using Digital Coupons

12. Where Are Consumers Finding Digital Coupons?
*Nielson: Savvy Shoppers Use Connectivity to Score Deals on the Go
Retailer Sits & Apps
Specialty Sites & Apps
Email Marketing/Other
Digital Coupons Redeemed, by Source
50%
20%
30%

13. Thank You
info@creativedigitalagency.com
(415) 534-8639