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Press: Promotion Marketing Association Releases 2003 Coupon Stats in Conjunction With National Coupon Month
(September 3, 2004)
PMA Coupon Council Offers Retail And Manufacturer Usage Information

The Promotion Marketing Association (PMA) Coupon Council announced 2003 coupon distribution and usage data in advance of September, the seventh annual National Coupon Month.  The statistics underscore the proliferation of coupon usage by the vast majority of Americans.

According to the PMA Coupon Council, manufacturers offered more than $250 billion dollars in coupons in 2003, resulting in $3 billion in consumer savings.  Total coupon spending by marketers was also slightly up this year, from $6.8 billion to $7 billion.  The average face value of manufacturer's coupons offered to consumers increased 4.9% to $.85 - more than double the pace of the Consumer Price Index, which climbed only 2.3% in 2003.  The average expiration period remained relatively stable at three months.

"While the data clearly supports the use of coupons as a key promotion tactic to increase sales and brand loyalty, consumers do tend to take issue with too-short expiration dates," said Charles Brown, co-chair of the PMA Coupon Council.  "As tight restrictions can suppress the response and ROI on any coupon initiative, businesses might consider extending expiration dates allowing for greater consumer participation."

Manufacturer offers are just one slice of the coupon pie - retailers are increasingly turning to coupon promotions to help attract, retain and reward loyal shoppers - in fact, in 2003, 46% of retailers reported offering some form of a bonus coupon program. 

Lorraine Gallaher, co-chair of the PMA Coupon Council, remarked, "Ranging from their own offers to doubling the face value of manufacturer's coupons, retailers view coupons as a new weapon in their competitive arsenal."

The PMA Coupon Council also released the following information about coupon distribution and usage:

Coupons Are Everywhere

Where Coupons Were Distributed

2003

Free Standing Insert

79%

In-ad

12%

Instant Redeemable

1.5%

Magazine

1%

Direct Mail

1%

In-Pack

1%

Handout

1%

On-Pack

1%

Electronic Checkout

1%

Electronic Shelf

.5%

Internet

.5%

Everyone Uses Coupons

Age

% Using Coupons

18-24

68%

25-34

75%

35-44

78%

45-54

79%

55-64

80%

65+

78%

Income

% Using Coupons

Under $25,000

77%

$25-$50,000

79%

$50-$75,000

80%

$75,000+

74%

"It is interesting to note that the largest group of coupon users by education are those with the most advanced degrees - post-graduates at 79% (as compared to 76% for high school and some college)," said Brown.  "This further supports the notion that consumers of all demographics, including individuals in the highest income and education brackets, recognize the benefit of using coupons, making this promotional tactic ideal for any business looking to meet their business objectives."

About the PMA Coupon Council

Founded in late 1994, the PMA Coupon Council is an advocacy group for coupons within the Promotion Marketing Association. The group focuses on providing education on, and promoting the use of, couponing among manufacturers, retailers and consumers.

About the PMA

Established in 1911, the Promotion Marketing Association, Inc. (PMA) is the premier trade association representing the over $350 billion promotion marketing industry. Its mission is to be the voice of the promotion industry, recognized and relied upon as the primary resource of promotion education, information, and interaction for marketers. As the world's leading non-profit promotion marketing trade association, PMA's members include many Fortune 500 corporations, top promotion agencies, suppliers of promotional products and services, law firms and academics. Championing the highest standards of excellence and recognition in the industry, PMA's objective is to foster a better understanding of how promotion builds brand equity and its importance in the overall marketing process. For more information about the PMA, visit the Association's Web site at http://www.pmalink.org , e-mail at pma@pmalink.org , or call (212) 420-1100. The PMA is headquartered in New York City.