2008 Printable Coupon Consumer Pulse

Coupons Inc. & Simmons Market Research Bureau

April 25, 2008

©2008 Coupons, Inc.

Research Objectives

•  Confirm the demographic of the online coupon printer

•  Understand why shoppers use online coupons
•  Understand where online coupon printers prefer to find
coupons
•  Confirm the marketing benefit of adding coupons to ad
banners, e-mails, etc.
•  Explore consumer attitudes re. online coupons

©2008 Coupons, Inc.

 …Internet Use Climbs

Online Penetration

Newspaper Readership

Source: Pew Internet & American Life Project; Newspaper Association of America ©2008 Coupons, Inc.
 Coupon User Shift

Y2005

Newspaper

(96M)
 Y2007
 Newspaper

(92M)


Coupon
Users
 Coupon
Users

(149M)

Uses
Both
 (148M)

(29M)

Uses
Both

(23M)

Online

Online
 (33M)

(26M)


Online‐Only
 Online‐Only

(3M)
 (4M)


•  Newspaper share eroding as online couponing increases

•  Online couponing represents 22.4% market penetration in 2007
Source: Simmons Market Research Bureau ©2008 Coupons, Inc.
 Online Coupon Growth

•  Online coupon usage continues to grow – now accounting for 22.4% of

coupon market penetration

Source: Simmons Market Research Bureau ©2008 Coupons, Inc.

 SMRB National Panel
Desirable Demographics

•  36 % of online coupon printers have children under the age of 18 in their household
•  Online couponing reaching larger and wealthier households

Source:
Simmons
Market
Research
Bureau
–
Fall
2007
Na;onal
Consumer
Survey
 ©2008 Coupons, Inc.

 Age

Ages
22
to
44
 Ages
60
and
Older


•  47% of online coupon printers between 22 and 44 years old (28% more than
newspaper FSI clippers)
•  Online coupon printers 40% less likely than newspaper FSI clippers to be over 60 years
old (and 33% less likely than general adult population)
Source:
Simmons
Market
Research
Bureau
–
Fall
2007
Na;onal
Consumer
Survey
 ©2008 Coupons, Inc.
Reasons for Using Coupons

Q: Why do you use coupons? Select all that apply.

•  88% use coupons to save money on brands they usually buy

•  Almost half use coupons to try new products

©2008 Coupons, Inc.

Where Do You Typically Go to Find Coupons?

Q: Where do you typically find coupons? Select all that apply.

•  Majority of respondents find coupons in multiple locations

©2008 Coupons, Inc.

Where Do You Go to Get Printable Coupons?

Q: From which of the following sources do you obtain

printable coupons? Select all that apply.

•  Majority (43%) of printable coupons accessed at general savings sites like Coupons.com
•  Manufacturer’s promotional site is second (31.9%); followed closely by manufacturer’s
brand website and retailer sites (31.0% and 30.8% respectively)
©2008 Coupons, Inc.
Why Do You Go to Website or Subscribe to Newsletter?

Q: Why do you typically go to a website, manufacturer’s

website or subscribe to a manufacturer’s email newsletter?
Select all that apply.

•  Half (51%) of online coupon printers go to a manufacturer/retailer’s website or

subscribe to a newsletter to find money saving coupons

©2008 Coupons, Inc.

Products Use Coupons For

Q: Thinking about all types of coupons that you currently use,

which types of products do you use coupons for? Select all
that apply.

•  74% of online coupon printers use coupons on frozen food products; 71% use
coupon on refrigerated foods

©2008 Coupons, Inc.

Coupon Use and Intent

Q: For each type of product that you use coupons for, please
indicate whether you currently use printable coupons or
whether you would like to use printable coupons in the future.
74%

71%

67%
 65%

57%
 58%

54%

49%

47%

42%
 39%

32%


22%

19%
 18%

16%
 15%
 13%
 12%

10%


•  Enormous couponing upside still exists for most product categories

•  Restaurants and Fast Food offer untapped promotional opportunities
©2008 Coupons, Inc.
Time Spent Online in Past 7 Day

Q: How much time did you spend on the Internet for something
other than email in the last 7 days?

•  76% of online coupon printers

spent at least one hour online in
the past 7 days
•  51% spent at least 5 hours online
in the past 7 days

©2008 Coupons, Inc.

Time Spent Online in Past 7 Days

©2008 Coupons, Inc.

Importance of Internet

Q: Please indicate how important the Internet is to you as a

source of information for each of the following items.

•  60% of online coupon printers think the Internet is a very or extremely important source
for looking up product information
•  Over half (53%) thinks it is a very or extremely important source when shopping for
non-food items
©2008 Coupons, Inc.
Product Research

Q: How often do you research products or services online

prior to making an offline purchase decision?

•  81% of online coupon printers

research products or services
online before making an offline
purchase
•  Only 6% say they never do so

©2008 Coupons, Inc.

Online Research Method

Q: How do you research products online? Select all that apply.

•  59% of online coupon printers go directly to the manufacturer’s site to obtain

information on products
©2008 Coupons, Inc.
Agree: Products & Manufacturers with Online Coupon

Q: Please indicate how much you agree with each statement.

•  58% of online coupon printers agree that products and manufacturers with
online coupons are more likely to come up with products they will use and enjoy
©2008 Coupons, Inc.
Email

Q: If you know there is a coupon offered in an email, are you…?

•  73% of online coupon printers

are more likely to open an email
if a coupon was offered
•  Only 9% are less likely to do so

©2008 Coupons, Inc.

Banners or Search

Q: If you know there is a coupon available as a result of your

clicking on an ad banner or search listing, are you…?

•  64% of coupon printers state

they are likely to click on an ad
banner or search listing to get a
coupon
•  Only 14% are less likely to do so

©2008 Coupons, Inc.

Relevance

Q: When you are viewing an article or content on a website,

such as a recipe, and a coupon for something related to the
content (e.g. a coupon for a recipe ingredient) is located within
the article, how likely are you to print and use the coupon?

•  86% of online coupon printers

are likely to print and use
coupons that are relevant to
content

©2008 Coupons, Inc.

Personal Info

Q: When you are asked to provide personal information on a

website to receive a coupon, how does the value of the offer
affect your decision to provide this information?

•  77% of online coupon

printers state the value of
the coupon affects their
willingness to provide
personal information

©2008 Coupons, Inc.

$1 vs. $2 Coupons
Q: Which of the following pieces of information would you
supply in order to receive a $1 coupon and what information
would you supply for a $2 coupon?

•  The value of the offer will dramatically affect a consumer’s willingness to provide information
•  For $1 coupon, more than half of online coupon printers were willing to give their email address and
demographics data
•  For $2 coupon, nearly two-thirds willing to give anything from email address to postal address
©2008 Coupons, Inc.
Executive Summary

•  Online coupon printers skew younger, have larger

households, and are wealthier and better educated than
the general population and newspaper FSI clippers.
•  Over half of online coupon printers are more likely to
click on an ad banner or open an e-mail if it is enabled
with a coupon.
•  83% of online coupon printers are more likely to print a
coupon if it is relevant to their reading content.

©2008 Coupons, Inc.

•  77% of online coupon printers state the value of the
coupon affects their willingness to provide personal
information
•  81% of online coupon printers research products or
services online before making an offline purchase
•  Enormous couponing upside still exists for most product
categories
•  Half (51%) of online coupon printers go to a
manufacturer/retailer’s website or subscribe to a
newsletter to find money saving coupons

©2008 Coupons, Inc.