Thursday, July 31, 2008

Where do you get your coupons?


Traditionally there have been two major sources for coupons, the Sunday Newspaper and direct mail.

However with the decline in the newspaper business, there is another source of coupons that is surging, boosted by the increase in technology and the decrease in our economy which has produced a new hunger from consumers to save.

Newspapers Dominate Coupon Sourcing, But Internet Up 83% in American HH Coupon Usage

According to a recent analysis Scarborough Research, Internet coupons are of increasing interest to consumers, Eleven percent of households currently obtain coupons via the Internet, and this has increased 83 percent since 2005. The Sunday newspaper remains the number one place for acquiring household coupons. Fifty-three percent of households get their coupons from the Sunday newspaper.

Other leading places for acquiring coupons include the mail, in-store coupons, preferred customer/loyalty cards, in-store circulars, weekday newspapers, product packages, and magazines. All of the coupon acquisition categories have experienced growth since 2005, however none at the level of Internet coupons.

Coupon Trend: Places Household Usually Obtains Cents-Off Coupons (%hhlds)

Coupon Source

2005 (%hhlds)

2006 (%hhlds)

2007

% Increase 2005-2007

Sunday newspaper

49

49

53

8

Mail

29

31

35

20

In-store coupons

27

27

33

22

Preferred customer card/loyalty card

21

20

22

5

In-store circulars

18

18

22

22

Weekday newspaper

14

15

17

21

Product packages

14

13

17

21

Magazines

12

12

15

25

Internet

6

8

11

83

Source: Scarborough Research USA, July 2008

Alisa Joseph, vice president, advertiser marketing services, Scarborough Research, said "... Coupons are one of several economically-focused promotional tools that stores and product brands can use to get shoppers in the door and... the Internet provides an easy to use vehicle to search for coupons."

Among Grocery Coupon Clipping Households, forty percent of Milwaukee households and 38 percent of Rochester households use grocery coupons once a week or more. Nationally, only 27 percent of households use grocery coupons with this same frequency. At the lowest end of the weekly users, fourteen percent of Albuquerque, and fifteen percent of El Paso, and Fresno households use grocery coupons once a week or more.

People from leading grocery coupon clipping cities have higher than average Sunday newspaper readership rates. Nationally, Sunday newspaper readers are 15 percent more likely than all adults to use grocery coupons in their household. Adults in leading coupon clipping market Milwaukee are 24 percent more likely to read the Sunday newspaper, and those in Rochester are 32 percent more likely to be readers of the Sunday paper.

The analysis also showed that Grocery Coupon Clipping Households spend $114 on groceries weekly, versus the national average of $110, and are more likely than the average household to purchase a variety of grocery products across categories, from pantry staples to health items such as yogurt and energy/nutrition bars.

The study concludes that people across all income brackets clip grocery coupons. However those with higher household incomes tend to be slightly more likely to clip grocery coupons.

Top Ranking Cities for Weekly Grocery Coupon Clipping Households (DMA percent of households)

Local Market

% of HH

Top 20


Milwaukee, WI

40

Rochester, NY

38

Pittsburgh, PA

36

Wilkes-Barre/Scranton, PA

36

Buffalo, NY

36

Hartford/New Haven, CT

36

Columbus, OH

36

Toledo, OH

36

Syracuse, NY

35

Green Bay/Appleton, WI

35

Cincinnati, OH

35

Albany/Schenectady/Troy, NY

34

Providence/New Bedford, RI

34

Minneapolis/St. Paul, MN

34

New York, NY

33

Baltimore

33

Harrisburg/Lancaster/

Lebanon/York, PA

33

Orlando/Daytona

Beach/Melbourne, FL

33

Philadelphia, PA

32

Tampa/St.Petersburg, FL

32


Bottom 20


Denver, CO

23

Wichita/Hutchinson, KS

23

Atlanta, GA

22

Birmingham, AL

21

Honolulu, HI

21

Austin, TX

20

Colorado Springs/Pueblo, CO

20

Spokane, WA

20

Little Rock/Pine Bluff, AR

20

Oklahoma City, OK

19

Chattanooga, TN

19

Tulsa, OK

19

Mobile, AL/Pensacola, FL

18

Salt Lake City, UT

17

Sacramento/Stockton/Modesto, CA

17

Bakersfield, CA

16

San Francisco/Oakland/San Jose,


CA

16

Fresno/Visalia, CA

15

El Paso, TX

15

Albuquerque/Santa Fe, NM

14

Source: Scarborough Research USA, July 2008

Please go online here to see full graphics and a complete local market ranking.

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