Coupons and The Digital World

Welcome

Digital and Internet Print at Home Coupons Trends•Marx Overview•Measuring Scale and Size of non-traditional coupons•Where coupons are growing•Why coupon websites matter •Brand study – measuring the total impact of advertising

Marx, a Kantar Media Solution

COMPETITOR

– Competitive Brand Strategy and Tactics

– Historical Trending

– Manufacturer Insights

Monitoring more than 600 manufacturers in print and more than 800 in digital

RETAILER

– Retailer and Manufacturer Alignment

– Retailer Launch Support

– Cross-Channel Insights: Drug, Mass, Value, Grocery

Monitoring more than 100 retailer banners in print and leading retailer websites

INDUSTRY

– Corporate Scale Events

– New Product Attributes

– Seasonality

Monitoring more than 200 billion FSI pages and the leading Network, Retailer and Brand websites

Free-Standing InsertCoupons & Retailer

Promotions

In-Store CouponMachines

Consumer MagazineCoupons

DigitalCoupons

Sunday MagazineCoupons

Advertising(18 Media)

CPG ADVERTISING AND PROMOTION FOCUS

Coupons and The Digital World

SECTION I

2012 YE Coupon Size

As measured by Marx

Coupons and The Digital World

Local Newspapers decline -2% but FSI coupon pages grow +1% in part due to shared mail distribution

Print Metrics 2012 Chg vs 2011

Coupons Dropped (MMs) 274,730.3 0.8%

Page Circulation (MMs) 208,140.2 1.4%

Wtd. Ave. Face Value ($) $1.53 -1.2%

Wtd. Ave, Expiration (Wks) 7.3 -9.0%

Digital Metrics 2012 Chg vs 2011

Number of Events +++ 46.1%

Avg Face Value ($) $1.66 4.4%

Avg Expiration (Wks) 6.3 -11.3%

Media 2012 vs 2011

Television 8%

Magazines 2%

Newspapers Local National Spanish language

-3%-2%

-12%2%

Internet (Display ads only) -3%

Radio 3%

Outdoor 5%

FSIs 5%

Total 3%

Source: Kantar Media

Source: Kantar Media

Source: Kantar Media

Decreased Face Value and Expiration lengths may have dampened FSI coupon redemption in 2012.

Percent Change in Measured Ad Spending1 Percent Change in FSI Coupon Activity

Percent Change in Digital Coupon Activity

Advertising Impact and Digital Offers

Website examples: January 2012 - December 2012 FSI Print promotions

tied in with retailer support guiding shoppers to

digital offers

It matters where shoppers receive their coupons

Now, shoppers can be measured when and where they interact with digital coupons

And, shoppers that start in traditional media, may potentially be measured as they move into digital media

Which retailer had the most visitors to its website in 2012?

A:

It matters where shoppers receive their coupons

It matters where shoppers receive their coupons

• lknvlknfvlknfvWhich retailer ranked highest in it’s COUPON section for visitors?

A:

The scale of digital coupons

Walmart had the most visitors at 58 MM, great exposure, right?

Source: Compete, September 2012Unique Visitors: Only counts a person once no matter how many times they visit a site in a given month.

However, Publix had more visitors to the Publix coupon section than Walmart’s coupon section

place your offer where the shoppers go

The scale of digital coupons

The channel matters too – help the shopper plan their trip

Website examples: January 2012 - December 2012

Source: CompeteSource: Kantar Media

place your offer where the shoppers go

The timing of digital coupons

Who spiked coupons.target.com activity?

place your offer when shoppers goWebsite examples: January 2012 - December 2012

Source: Compete

Why does this matter?

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Measure the shopper; measure your competitor – even as they change tactics

“Thorny Issues Cloud Future of Digital and FSI Promotions” – CPG Matters

“Weis boosts loyalty program with digital coupons ”– Progressive Grocer

Koupon Media Launches Cost Per Offer (CPO) Model; Helps Retailers and Brands Monetize Mobile Through Offers- Globe Newswire

“2012 was a stellar year for digital coupon growth and manufacturer engagement” – Kantar Media, Marx

“Free-Standing Insert (FSI) coupons will continue to dominate the landscape based on their ability to reach millions of households” – Kantar Media, Marx

Digital Coupons 2.0

2012 - 2013 Brand Case Study

Path to Purchase: How a brand leveraged omni-channels to promote

What is the Advertising Impact?

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Listerine: 21 Day Challenge

TV Ad

Facebook January-March 2013

Banner Ad

Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013

FSI TargetFSI

Retailer websitesAllyou.com Target.com

A Shopper’s Path Includes Coupons!

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How do shoppers get to the First Moment of Truth?

Thank you

Darcy Douglas

Kantar Media

darcy.douglas@kantarmedia.com

Office: 952.253.1604

Cell: 612.281.7246