• by September 5, 2000

By Anya Khait

In recognition of the annual National Coupon Month this September, the Promotion Marketing Association's Coupon Council today released coupon usage statistics for 1999.

1999 proved to be another record-breaking year for the coupon industry, with marketers distributing more coupons for the first time in five years, resulting in huge savings for consumers. Manufacturers distributed 256 billion coupons last year, of which more than 4.7 billion were redeemed, with an estimated savings of $3.6 billion to American consumers.

"Coupons certainly continue to be an important and well-received savings vehicle in our society and both industry and the consumers continue to respond positively," said Lynn Liddle, co-chair of the PMA's Coupon Council. "In fact, 81% of the American population, in all age and income groups, use coupons."

The PMA Coupon Council released the following information about coupon usage in varying age and income brackets: Seventy-four percent of the 18-24 age-group use coupons, 83% of the 25-34 group, 83% of the 35-44, 82% of the 45-54, 81% of the 55-64, and 82% of the 65+.

Seventy-four percent of consumers with income under $15,000 use coupons, 82% of the $15,000 income bracket, 83% of the $15-$25,000, 76% of $25-$40,000, 83% of $50,000+.

Which product managers most utilized coupons in their marketing mix? Overall, coupons for household cleaners were the most widely distributed in 1999, replacing cereal, the top distributor in 1998 and now second highest distributor in 1999. Condiment coupons were the next most highly distributed, followed by: medications, prepared foods, detergents, frozen foods, personal soap, papers products and packaged meats.

"Many marketers have now realized that a strong couponing strategy reinforced by large-scale distribution is one of the most cost effective ways to directly motivate trial and repeat purchases," said Charles Brown, co-chair of PMA's Coupon Council.

"And with 4.5 billion coupon redeemed in 1999, clearly consumers like this strategy as well."

- Anya Khait may be reached at anya@mediapost.com