Recent burst in coupon use may hurt brands in longer term

As rising food and utility prices and global financial worries take their toll on spending, the number of consumers seeking out promotional deals is rising. According to a recent survey by GfK NOP, 30% of consumers are more actively searching for deals this year

 

No surprises there. During the last recession in 1991, coupon firm Valassis reported a 17% rise in the volume of coupons redeemed compared with 1990.

However, this time around, more consumers than ever are redeeming and entering promotions online. The latest figures from Nielsen Online show that those websites tapping into consumer concerns about the economy by giving opportunities to save money are the fastest-growing.

This includes portals for using promotional codes and e-vouchers for online shopping discounts, such as MyVouchercodes.co.uk.

It was Walkers Crisps, however, which claimed Nielsen's number one spot in June, with its web traffic figures growing by 2575%, as people visited its 'Brit Trip' site in droves to take advantage of the snack brands' on-pack offer of discounts on days out and holidays (see case study).

'When times get tough, promotions benefit, as brands take marketing spend from above-the-line activity to below-the-line to get instant results,' says Graham Howarth, director of sales promotion at integrated marketing communications agency P&MM. 'What's interesting, however, is that the credit crunch is not just about consumers wanting greater value for money. It is also driving audiences to look further for rewards that create the feel-good factor, or to replace goods and items they might have bought previously with their disposable income.'

P&MM has run value-added online and mobile promotions with Lipton Ice Tea, offering 'Ice Cool' holidays and breaks to global destinations such as Sri Lanka, Sweden and Santa Claus' Village in Lapland.

Txmm