Commentary

Digital Coupon Users Are An Upscale Market

According to the Coupons.com Digital Coupons Trends Report for 2010, more than $1.2 billion in digital coupons savings was issued in 2010, representing a 41% growth over the year before. Digital coupons dramatically outpaced the growth of their newspaper counterparts compared to coupons distributed in newspapers of 7%.

Steven Boal, CEO of Coupons.com, says that "... more and more consumers are making digital coupons a part of their shopping routine... across the entire digital domain, including the Web, social media, consumer electronics, mobile phones, etcetera... (and) brand marketers are increasingly engaging with consumers via digital offers... "

Recent data shows that users of digital coupons have higher household incomes and are better educated than users of newspaper coupons and the general population overall, dispelling the perceived low-brow stigma of couponing.

The consumer who prints digital coupons has an average household income of $105,000, 26% higher income level than the U.S. average. 36% of those who use digital coupons have a college degree, compared to 28% of those who use newspaper coupons and 26% of the general populace,

Adults with household income of over $100,000 are twice as likely to have redeemed coupons printed from an online source than adults with household income less than $35,000.Also, adults with college degrees are almost twice as likely to have used coupons in the prior six months as those who didn't graduate from high school.

Cereal was by far the most popular coupon category in 2010, followed by Yogurt.

Most Popular Coupon Categories

Category

Rank

Ready to Eat Cereal

1

Yogurt

2

Refrigerated Dough

3

Portable Snacks

4

Vegetables

5

Baby Products: Other

6

Soup

7

Air, Rug & Fabric Care

8

Cheese

9

Lunch Meats

10

Source: Coupons.com, February 2011

Increasingly, consumers are taking advantage of mobile devices to access, print and save coupons. The top categories for coupons accessed via mobile applications, including Coupons.com and Grocery iQ, are:

Top 10 Coupons Accessed by Mobile Apps

Category

Rank

Ready to Eat Cereal

1

Yogurt

2

Refrigerated Dough

3

Portable Snacks

4

Vegetables

5

Air, Rug & Fabric Care

6

Baby Products: Other

7

Dinner: Multi-Serve

8

Lunch Meats

9

Nutritional Snacks

10

Source: Coupons.com, February 2011

The South is big on savings: more than one-third of the top 20 frugal cities are in the Southern region of the United States. For the second year in a row, Atlanta takes the top spot on the Most Frugal U.S. Cities list for 2010, according to the report. On average, regular users of Coupons.com in Atlanta printed or saved to a loyalty card more than $1000.00 dollars in coupon savings from the site in 2010, almost twice the amount of savings in 2009.

Top 20 Frugal U.S. Cities

2010 Rank

City

State

Savings Index

1

Atlanta

GA

997

2

Tampa

FL

569

3

Cincinnati

OH

497

4

St. Louis

MO

420

5

Minneapolis

MN

329

6

Charlotte

NC

303

7

Nashville

TN

291

8

Cleveland

OH

289

9

Pittsburgh

PA

250

10

Raleigh

NC

235

11

Kansas City

MO

233

12

Washington

DC

207

13

Miami

FL

202

14

Dallas

TX

 198

15

Oklahoma City

OK

198

16

Boston

MA

192

17

Denver

CO

170

18

Seattle

WA

153

19

Columbus

OH

147

20

Wichita

KS

146

Source: Coupons.com, February 2011

Coupon access via mobile device varies by city regardless of their position on the overall Most Frugal Cities List. Savers in Oklahoma City, New Orleans, Las Vegas and Philadelphia are quick to look to their mobile device to maximize savings and advance on the On-the-Go list relative to their position on the Most Frugal U.S. Cities list, while Minneapolis, Cleveland and Seattle were lower on the On-the-Go list relative to their position on the Most Frugal U.S. Cities list.

Top 20 Most On-the-Go Frugal Coupon Cities

2010 Rank

City

State

Savings Index

1

Atlanta

GA

906

2

Tampa

FL

531

3

St. Louis

MO

490

4

Cincinnati

OH

374

5

Oklahoma City

OK

363

6

Dallas

TX

282

7

Charlotte

NC

280

8

Pittsburgh

PA

246

9

Tulsa

OK

241

10

Miami

FL

238

11

Minneapolis

MN

235

12

Washington

DC

232

13

Nashville

TN

226

14

Raleigh

NC

222

15

Wichita

KS

219

16

Kansas City

MO

214

17

New Orleans

LA

198

18

Cleveland

OH

196

19

Denver

CO

177

20

Memphis

TN

165

Source: Coupons.com, February 2011

Representing over 16% of the U.S. population, more than 49 million American consumers are now using online coupons, up from 45 million in 2009. Of the 49 million online coupon users, 14.8 million have not read or looked into the Sunday newspaper within the prior six months, a 13% increase over 13.1 million in 2008.

Weak economic conditions have been a primary factor driving the use of coupons overall. U.S. consumers appear to have an insatiable desire for deals and savings, as is evident by the increased popularity of the broad range of saving offers, such as digital coupons, daily deals, flash buying and online coupon codes. Research consistently shows that even when economic conditions improve, 8 out of 10 U.S. adults plan to continue to engage in couponing activities, concludes the report.

For additional information about the study, please visit here.

3 comments about "Digital Coupon Users Are An Upscale Market".
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  1. Evan W from Experience Advertising, Inc., February 23, 2011 at 10:32 a.m.

    Great stuff!

  2. Tiffany Jonas from The AIO Group | AIO Design LLC, February 23, 2011 at 10:38 a.m.

    The fact that affluent consumers (average household income of $105,000, as above) use digital coupons is not at all surprising. While they'll splurge on the items most important to them, affluent women in particular like value... but they're far too busy to sit clipping coupons out of a newspaper. Email or otherwise deliver to them a digital coupon for a brand they already love, though, and all it takes is a quick click to use it.

    Great information!

  3. Fj Rich from chase media group, February 24, 2011 at 1:33 p.m.

    Is the same growth occurring in print coupons?

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