1. Coupon Trends and Takeaways for 2013 Devora Rogers Senior Director, Retail Marketing Insights

2. Devora Rogers Senior Director, Retail Marketing Insights New to Inmar (and North Carolina) Previously with IPG Media Lab and Shopper Sciences devora.rogers@inmar.com 336.770.3495 Twitter: @devoraerogers

3. Inmar’s Portfolio of Services

4. 2012 COUPON TRENDS Key Findings

5. Distribution & Redemption (in billions) DOWN 1.2% 2011-2012 DOWN 1.2% 2011-2012 DOWN 14.3% 2011-2012 DOWN 14.3% 2011-2012 Sources: 2012 Inmar Coupon Trends Report

6. 2012 Distribution Sources: 2012 Inmar Coupon Trends Report

7. 2012 Redemption Sources: 2012 Inmar Coupon Trends Report

8. Redemption Down Across the Board 65.8% of Total BILLION 34.2% of Total Sources: 2012 Inmar Coupon Trends Report

9. So what’s driving the decline? Rising prices Low consumer confidence Low consumer confidence Declining paid Sunday newspaper subscriptions Sources: 2012 Inmar Coupon Trends Report

10. Tactics having limited impact on redemption Distributed: $1.57 /coupon (-1.3%) Redeemed: $1.14 /coupon (+1.8%) Distributed: 1.49 units/coupon Redeemed: 1.61 units Distributed: 2.4 months (-4.0%) Redeemed: 5.4 months (-7.0%) Average Face Value Distributed Average Face Value Distributed Average Purchase Requirement Distributed Average Redemption Period Distributed Average Redemption Period Distributed Sources: 2012 Inmar Coupon Trends Report

11. Tactics having limited impact on redemption 34.36% “I usually won’t use a coupon if I have to purchase multiple items”37.64% “There are too many rules/exclusions for using coupons” Sources: 2012 Inmar Coupon Trends Report

12. New Product Trial Dampening Redemption Manufacturers Promoting New Products via FSI in 2012 190 +9.9% over 2011 727 New Product Event Dates in 2012 +23.2% over 2011 93 Categories Featuring New Product Events in 2012 +13.4% over 2011 “I can’t find coupons for the products I want to buy” 52.83% Sources:, Marx and 2012 Inmar Shopper Survey

13. Redemption Period by Method Type My coupons often expire before I have the chance to use them. Sources: 2012 Inmar Coupon Trends Report

14. SHOPPER BEHAVIOR

15. 15 ENTITLED ENABLED ENGAGED

16. Changing Shopper Sentiment “If I put in the effort, I can get deals on the brands I buy.” “If I shop a store a lot, I shouldn’t have to work for deals I deserve.” From effort to entitlement

17. Are shoppers still using coupons? Compared to 2011, shoppers reported coupon usage in 2012: In their own words: YES Sources: 2012 Inmar Coupon Trends Report

18. Shopper Attitudes to Coupons 36% I am not sure where to get coupons for the products that I want to buy. 37% I wish all coupons were digital. 65% Don’t think they should have to work for deals. 66% I would use coupons more if they were more available online. 80% Using coupons makes me feel smarter. Sources: 2012 Inmar Coupon Trends Report

19. “I wish all coupons were digital” 19 44%Hispanic 35% Non- Hispanic Hispanic Shopper Attitudes

20. The “New Couponer” is Tech Savvy Goldman Sachs, 2011 of U.S. cell users will have smartphones By 2015 Coupon methods used (on average) Smartphone User = 7.12 Non-smartphone User = 5.19 Sources: 2013 Inmar Shopper Behavior Survey

21. Rise of the Mansumer 86%44% 40% Sources: 2012 Inmar Holiday Study, KSDK, Men’s Health, Spike Network’s ‘State of Men’ study Participation in holiday meal planning

22. Average Number of Coupon Methods Used 22 6.43 Overall 7.11 35+ 6.00 Under 35 6.76 Female 5.68 Male 7.32 Hispanic 6.12 Non- Hispanic 7.49 Kids 5.47 No kids

23. THE DISH ON DIGITAL

24. How Digitally Discovered Coupons are Redeemed Manifests as a paper coupon Redeems as a paper coupon Settles as a paper coupon Retailer Loyalty Program (i.e. eWallet/ Direct-to-Card / Save-to- Card) Unique Identifier (10-digit mobile) Loyalty Aggregator (AOL shortcuts, SavingStar, etc.) “Closed” Retailer Program (Target, Walgreens, Starbucks, etc.) Never manifests as paper Redemption recorded separately Text EmailWebsite Social QR (et al) Apps Redeemed like paper Paperlessly redeemed

25. Digital Stats for 2012 In 2013, the number of retailer storefronts which accept paperless coupons is expected to grow 50% or more depending on channel. 250MCLIPPED 27.5MREDEEMED $0.91AVERAGE FACE VALUE 11%AVERAGEREDEMPTIONRATE Sources: 2012 Inmar Coupon Trends Report

26. 2013: So far, so good? Q1 2013 (vs. Q1 2012) Distribution a little better than flat (up 2%) Redemption continues to slide… (down 6.6%) …as marketers continue to pull back (face values down, redemption period shortened)

27. 2013: So far, so good? Just the (Q1) facts: Distribution 90.6 billion (up 2.0%) Redemption 717.4 million (down 6.6%) Avg. Face Value (dist) $1.48 (down 9.8%) Avg. Face Value (red) $1.31 (down 2.2%) Avg. Redemption Period (dist) 2.2 months (down 4.3%) Avg. Redemption Period (red) 4.9 months (down 2.0%) Avg. Purchase Requirement (dist) 1.55 (down 0.6%) Avg. Purchase Requirement (red) 1.61 (up 1.9%)

28. Plus ca change… Q1 2013 (vs. Q1 2012) Distribution a little better than flat (up 2%) Redemption continues to slide… (down 6.6%) …as marketers continue to pull back (face values down, redemption period shortened)

29. …plus c’est la meme chose Q1 2013 (vs. Q1 2012) FSI remains dominant for distribution (91.2%) “Big 3” redemption methods (FSI, Instant Redeemable, Electronic Checkout) account for 75% of all coupons redeemed Print at Home / Internet Printable next with 5.8% share

30. QUESTIONS? Thank you.