©2008 Coupons, Inc.

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

Source: Pew Internet & American Life Project; Newspaper Association of America

Online Penetration

Newspaper Readership

©2008 Coupons, Inc.

Coupon User Shift

CouponUsers(149M)

Online(26M)

Online‐Only(3M)

UsesBoth(23M)

Y2005

CouponUsers(148M)

Online(33M)

Online‐Only(4M)

UsesBoth(29M)

Y2007

•  Newspaper share eroding as online couponing increases •  Online couponing represents 22.4% market penetration in 2007

Newspaper(96M)

Newspaper(92M)

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:SimmonsMarketResearchBureau–Fall2007Na;onalConsumerSurvey

©2008 Coupons, Inc.

Age

•  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:SimmonsMarketResearchBureau–Fall2007Na;onalConsumerSurvey

Ages22to44 Ages60andOlder

©2008 Coupons, Inc.

Reasons for Using Coupons

•  88% use coupons to save money on brands they usually buy •  Almost half use coupons to try new products

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

©2008 Coupons, Inc.

Where Do You Typically Go to Find Coupons?

•  Majority of respondents find coupons in multiple locations

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

©2008 Coupons, Inc.

Where Do You Go to Get Printable Coupons?

•  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)

Q: From which of the following sources do you obtain printable coupons? Select all that apply.

©2008 Coupons, Inc.

Why Do You Go to Website or Subscribe to Newsletter?

•  Half (51%) of online coupon printers go to a manufacturer/retailer’s website or subscribe to a newsletter to find money saving coupons

Q: Why do you typically go to a website, manufacturer’s website or subscribe to a manufacturer’s email newsletter? Select all that apply.

©2008 Coupons, Inc.

Products Use Coupons For

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

Q: Thinking about all types of coupons that you currently use, which types of products do you use coupons for? Select all that apply.

©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.

•  Enormous couponing upside still exists for most product categories •  Restaurants and Fast Food offer untapped promotional opportunities

74%71%

67% 65%

57% 58%54%

49%47%

42% 39%

32%

22%19%

16% 18%15% 13% 12% 10%

©2008 Coupons, Inc.

Time Spent Online in Past 7 Day

•  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

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

©2008 Coupons, Inc.

Time Spent Online in Past 7 Days

©2008 Coupons, Inc.

Importance of Internet

•  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

Q: Please indicate how important the Internet is to you as a source of information for each of the following items.

©2008 Coupons, Inc.

Product Research

•  81% of online coupon printers research products or services online before making an offline purchase

•  Only 6% say they never do so

Q: How often do you research products or services online prior to making an offline purchase decision?

©2008 Coupons, Inc.

Online Research Method

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

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

©2008 Coupons, Inc.

Agree: Products & Manufacturers with Online Coupon

•  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

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

©2008 Coupons, Inc.

Email

•  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

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

©2008 Coupons, Inc.

Banners or Search

•  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

Q: If you know there is a coupon available as a result of your clicking on an ad banner or search listing, are you…?

©2008 Coupons, Inc.

Relevance

•  86% of online coupon printers are likely to print and use coupons that are relevant to content

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?

©2008 Coupons, Inc.

Personal Info

•  77% of online coupon printers state the value of the coupon affects their willingness to provide personal information

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?

©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