According to NCH Marketing Services' Coupon Facts Report, 2011, nevertheless digital coupons represent a fraction of total coupon distribution, they are expected to become a major promotional force as infrastructure issues are resolved, i.e. the ability of POS to process coupons digitally.Freestanding inserts in newspapers account for 87.7% of U.S. Consumer Packaged Goods (CPG) coupon distribution. The rest consists of in-store handouts (5.2%), direct mail (2.4%), magazines (2.2%), in/on pack and cross-ruff, an on-pack coupon redeemable on a different product (1.1%), and finally all other, which includes all digital formats, at less than 2%. Most industry sources peg the percentage of digital coupons at 1%.
Aided by the tough economy and rising food prices, total CPG coupon redemption grew 3.1% last year, and distribution jumped 6.8% to 332 billion, according to NCH. But the number of coupons available at major on-line distribution sites increased by 33.6%, and the number of manufacturers offering them (290) grew by 17%.
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