The Coupon Craze

The last time coupons were popular at such a large demand was during the last economic recession.  Clipping coupons is not the most impressive past time so it is obvious to see why they are more popular at times when the economy is falling and people are looking for simple ways to save money, and do it fast. Coupons, in turn, are the best way to do that.  They are readily available almost anywhere you look, they are free, and you can get what you need immediately. 

According the the February 11, 2008 edition of Brandweek, marketers spent more than double the amount of money on freestanding insert coupons in 2007 compared to 2006. Some companies were just increasing spending while others were joining in for the first time. Discover Financial Services and Citigroup were among a few who decided to give the sunday papers a chance.  Procter & Gamble, Unilever, and General Mills have always included coupons in their marketing plans, but they too have increased spending.  Procter & Gamble and Unilever both spent more than twice as much on FSI's in 2007 than in 2006.

The category total for 2006 was $413.3 million and for 2007 was $907.6 million.  The increase in spending is because, "for marketers, FSIs are a measurable, inexpensive way to reach these budget-conscious customers."  As discussed in the prior blog, to keep coupons with the technology age, many companies are offering printable coupons online as well.  This way, there is faster audience research and less production costs. 

The newest effect of increased coupon use for marketing needs is the entry of brand new industries onto the scene.  Coupon use is growing within the medical field as well as restaurants and other services.