Bad Economy Driving Coupon Growth?

Yesterday I had an email exchange with Jeff Weitzman, CMO of Coupons.com. He said the following:

We’ve reached the inflection point where the major brands are building online coupons into their budgets and sales planning. The “less than one percent” of coupons distributed number is misleading, since most paper coupons redeem at less than 1%. With redemption rates averaging 10-20% on our coupons . . .

Those redemption figures are dramatic.

Earlier this week, Hitwise put out some coupon-related data as follows:

The weekly share of U.S. visits to a custom category of coupon websites have increased 56 percent for the week ending June 6, 2008, as compared to the same week last year, according to Hitwise. Coupons.com received the largest market share of visits within the category at 29 percent, with its market share increasing 190 percent from the same week last year. Coupon Mountain and Eversave followed with 14 and 6 percent, respectively.

Search engines accounted for 20 percent of the traffic referred to coupon sites and among the top 250 search terms driving traffic to the coupon websites, 60 percent of the search queries include a specific retailer brand or branded product. The remaining queries were split between generic searches for terms such as ‘grocery coupons’ and ‘promo codes’ and navigation by the names of coupon websites.

Hitwise Coupon data

This brand-specific coupon query behavior is obviously significant and shows a high demand for deals on specific items or products. Beyond the high “redemption” rates stated above, coupons offer the additional benefit of being trackable to the point of sale (there’s also a mobile dimension here).

Earlier I wrote about Coupons.com’s launch of Brandcaster, a coupon network, which distributes coupons across the Internet.

4 Responses to “Bad Economy Driving Coupon Growth?”

  1. Dave Oremland Says:

    Big increase. I bet the economy is going to drive this ever higher.

  2. Changes Google Local Business Center « Screenwerk Says:

    […] Mike has also said we’ll see a revamp of coupons in Google’s LBC. Coupons are now (once again) a hot category for several reasons; the bad economy is one of them. […]

  3. Greg Sterling Says:

    Dave: question is how will this content be aggregated, distributed and presented. That’s what’s been lacking — consumer-friendly access/presentation.

  4. proxies for scrapebox Says:

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