Demand for Digital Coupons on the Rise

Whether there is a recession or not, one space appears to be hot and will stay hot, is the digital coupon business. According to a new data released by, the demand for digital coupons has been picking up steam. says savings from its coupons printed out or loaded to a loyalty card from its online properties doubled to more than $1 billion from $529 million a year ago. The value of savings in June alone hit $110 million, the highest monthly total to date. That increase has come despite traffic to the site actually dropping in the last year from 18.2 million monthly visitors to 14.5 million.

The company’s claim is right along with other surveys I have been reading past eight month or so including the one from NCH Marketing Services that also indicates a continuing upswing for digital coupons. The recent data from Google Insights also shows searches for “printable coupons” increased 67% over a year ago.

Thanks to the Internet which has been the fastest-growing distribution vehicle for not only during the first half of 2010, but other players in the space including:


Consumers on all these sites have shifted to saving discounts onto loyalty cards instead of printing out coupons. Both methods are included in the $1 billion total in redemption value that is reporting for the first six months of the year.

Separately, the number of digital print-at-home coupons is up 4% in the first half of 2010 compared to a year earlier — despite coupon distribution overall being down 12%, according to coupon-processing company Inmar, which focuses on the consumer packaged goods category. Internet coupons still account for only 0.4% of all coupons distributed — with free-standing inserts, or Sunday circulars, accounting for 88%.

Another survey conducted by Harris Interactive earlier this year found that people who print digital coupons have an estimated average household income of $96,000, 14% than the U.S average. Part of the reason could be that lower-income households don’t have computers to retrieve and print coupons from.

My favorite part of the survey was men vs women’s interests. Women’s apparel and shoes were the top coupon segment, followed by home and garden, men’s apparel and shoes, toys and hobbies and computers and software. Classic!

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and that I founded in 1999. I am currently the founder and awesomizer @

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