Internet coupon use rising but newspapers still main source

Newspapers are still the main source for coupons, according to new research from Borrell Associates. But, while online coupons currently represent just 5% of redemptions this year, they account for 20% of the value of all redeemed coupons.

by Helen Leggatt

Coupons are hot and consumers are actively seeking them out both online and in print. In fact, some consumers are now deciding where to purchase items based on the coupons offered and will even leave one store for another if tempted by coupons.

Why the surge in coupons? Not only are businesses using several routes - print, Internet and mobile - to bring offers to consumers, but the stigma attached to using coupons has dwindled along with the economy.

Borrell expects the rise in coupon use to continue and outlast the economic downturn, particularly as marketers begin to more fully understand their effect on shopping behavior and discover new ways to employ them.

While coupons in newspapers will continue to dominate - 70% of all coupons used come from Sunday circulars - Internet coupon use is expected to rise. According to the study, the Internet will account for about 9% of all coupons distributed during 2010, while newspapers will account for slightly less (68%) next year.

"Given this surge in the use of online coupons, it is not surprising to see a number of players jumping into that segment of the market," says the Borrell study, "What's on Sale?: Coupons and Sales Circulars move Online".

"Traditional distributors of circulars such as Valassis and Valpak are being joined online by media companies such as ShopLocal.com (Gannett), YourLI.com (radio group on Long Island) and Zip2Save (19 newspaper companies), to name a few. A plethora of pure-play Internet companies is also vying for a share of this sector as well."