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NutriSystem, Inc.

pons.com Digital

Coupon Network in

2010, Representing 41 Percent Growth

Mountain View, Calif. – February 8, 2011 – Following recent

research demonstrating coupon distribution in the U.S.  increased

6.8 percent in 2010 and that more coupons were distributed  during

the year than ever before, Coupons.com Incorporated today issued

its Digital Coupons Trends Report for 2010, releasing data about

consumer use of digital coupons aggregated from the Coupons.com

digital  coupon network. As the largest digital coupon network on

the Web,  comprised of Coupons.com as well as thousands of independen

t partners,  the Coupons.com network is representative of the digital

coupon industry  overall.  The Trend Report indicates that more than

$1.2 billion  in digital coupons savings was issued in 2010, representing

a 41 percent  growth over the year before. Compared to growth metrics for

coupons  distributed in newspapers of 7 percent, digital coupons

dramatically  outpaced the growth of their newspaper counterparts, approximately 6 to  1.2 The report also

includes data on user demographics,  popular coupon categories

and top couponing U.S. cities. Also announced  today is Coupons.com

Incorporated’s business report for 2010 titled  “Coupons.com Issues

More than $1.2 Billion in Digital Coupon Savings in  2010; New

Consumer Products and Expanded Distribution, Staff and Offices

Enable Growth.”  “Online savings as an industry is growing at

a  frenzied pace, and the digital coupons space is no exception.”

said  Steven Boal, CEO of Coupons.com Incorporated. “More and

more consumers  are making digital coupons a part of their

shopping routine, accessing  them across the entire digital

domain—including the Web, in social  media, with consumer

electronics, via their mobile phones, etcetera. At  the same time,

brand marketers are increasingly engaging with consumers

via digital offers, wanting to influence shoppers throughout

their path  to purchase.”  2010 User Demographics: Coupons

are High Brow! 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,

a 26 percent higher income level than the  U.S average. 36 percent

of those who use digital coupons have a college  degree, compared

to 28 percent of those who use newspaper coupons and 26  percent

of the general populace.3 Interestingly,  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 $35,000.4 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.5Coupon Usage by

Product Category: Cereal Leads the Way Cereal  was by far

the most popular coupon category in 2010, followed by Yogurt

(No. 2), Refrigerated Dough (No. 3), Portable Snacks (No. 4), and

Vegetables (No. 5). Baby Products: Other, including bottles,

car seats  and diaper pails, also topped the list at No. 6, followed

by Soup (No.  7), Air, Rug & Fabric Care (No. 8), Cheese (No. 9)

and Lunch Meats  (No. 10). 

Table 1: Top Categories (Text version of table is provided below) 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 Ready to Eat  Cereal (No. 1), Yogur

t (No. 2), Refrigerated Dough (No. 3), Portable  Snacks (No. 4), Vegetables (No. 5),

Air, Rug & Fabric Care (No. 6),  Baby Needs: Other (No. 7), Dinner: Multi-Serve

(No. 8), Lunch Meats (No.  9), and Nutritional Snacks (No. 10).  Table 2: Top Categories

Accessed via Mobile Apps (Text version of table is provided below.) Coupon

Usage by City: Atlanta Holds Its Own For  the second year in a row,

Atlanta takes the top spot on the Most Frugal  U.S. Cities list for 2010,

according to Coupons.com’s Savings Index.6 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. That is almost

twice the amount of savings in 2009, during  which time Coupons.com

users printed or saved to loyalty card $531 in  savings.  The Top 20

couponing cities for 2010 are Atlanta (No. 1),  Tampa (No. 2), Cincinnati

(No. 3), St. Louis (No. 4), Minneapolis (No.  5), Charlotte (No. 6), Nashville

(No. 7), Cleveland (No. 8), Pittsburgh  (No. 9), Raleigh (No. 10), Kansas City

(No. 11), Washington DC (No. 12),  Miami (No. 13), Dallas (No. 14), Oklahoma City

(No. 15), Boston (No.  16), Denver (No. 17), Seattle (No. 18), Columbus (No. 19),

and Wichita  (No. 20).  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.  Once  again

, Ohio is the country’s most frugal state. The Buckeye state is  represented three

times in the top 20. North Carolina is Ohio’s biggest  challenger, with two cities

in the top 10.  Seattle advanced the most, up 5 positions, to the No. 18 spot on the

list.  Table 3: Top

20 Frugal U.S. Cities (Text version of table is provided below.) 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 are Atlanta (No. 1), Tampa (No.  2),

St. Louis (No. 3), Cincinnati (No. 4), Oklahoma City (No. 5), Dallas  (No. 6),

Charlotte (No. 7), Pittsburgh (No. 8), Tulsa (No. 9), Miami  (No. 10),

Minneapolis (No. 11), Washington DC (No. 12), Nashville (No.  13),

Raleigh (No. 14), Wichita (No. 15), Kansas City (No. 16), New  Orleans

(No. 17), Cleveland (No. 18), Denver (No. 19), and Memphis (No.  20). Table 4: Top

Frugal U.S. Cities – Mobile (Text version of table is provide below.)

Increased Consumer Interest: Coupons Speak Up in the

Consumer Vernacular Representing  over 16 percent of the

U.S. population, more than 49 million American  consumers are

now using online coupons, up from 45 million in 2009.7 Of the 49

million online coupon users, almost one-third (14.8 million)

has not read or looked into the Sunday newspaper within the

prior six  months, a 13 percent increase over 13.1 million in

20088.     Research also indicates 73 percent of all U.S. shoppers

have used online printable Web coupons to date9.     Additionally,

reflective of trends in the consumer vernacular, Internet queries

for  coupons and related terms increased significantly on search

engines  during the year. Specifically, searches on Google for

“Digital Coupons”  and “Printable Coupons” increased 200 and

170 percent, respectively10.     Outlook for Digital Coupons

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. Consumer interest in savings is  expected to

remain steadfast regardless of economic recovery signs, with

many reports predicting that buyer behavior around savings

is here to  stay. In fact, research consistently shows that even

when economic  conditions improve, 8 out of 10 U.S. adults plan

to continue to engage  in couponing activities11. In  addition,

food prices are predicted to rise during 2011, putting  pressure

on consumer budgets while, at the same time, driving  manufacturers

to use creative vehicles to move product off the shelves.     Other  factors

 

influencing the growth of digital coupons include increased  InternET

and mobile adoption by consumers, increased comfort with  technology

by mainstream consumers, and decreasing reach of traditional  newspapers.

Digital coupons are expected to continue to show up in new  places across

the digital domain, including social media, consumer  electronics, home

appliances and in-store kiosks and shopping carts.     In  the longer term,

with changes expected at point-of-sale checkout with  new technologies

like RFID (radio frequency identification) and NFC  (near field communications)

and increased use of mobile apps, coupons  will be saved to mobile devices and

redeemed without the actual scanning  of the mobile screen. U.S. penetration

of smart phones is expected to  exceed basic phones (i.e. “feature” phones) in by

the end of 201112.     “With  the continuing weakened economy, growing online

and mobile access by  consumers, an increasingly deals-oriented society and

rising food  prices, we expect consumers will increasingly look to digital

coupons as  an effective means to cut costs and save money,” said Boal.

“We will  continue to be aggressive in delivering coupons at every turn

across the  digital landscape—especially social media—and continue to

innovate with  digital coupon solutions to connect brands with shoppers

throughout  their path to purchase.”     Data not otherwise cited is Coupons.com

internal data.  1.  NCH Marketing Services Inc., Coupon Facts Report, 2011; 6.8

percent  increase represents 332 billion coupons distributed in 2010 2, Kanta

r Media, Press Release, January 5, 2011 3. Simmons Market Research,

Summer 2010 4. Survey conducted by Harris Interactive on behalf of

Coupons.com. All  data collection was done by telephone within the

United States from  March 5-8, 2010. 5. Survey conducted by Harris

Interactive on behalf of Coupons.com. All  data collection was done

by telephone within the United States from  March 5-8, 2010. 6. Savings

Index ranks cities (with a population of 300,000 or more)  based on each

city’s total printed coupon savings on Coupons.com and the  Coupons.com

network in 2010 relative to its population size. With an  index of 997, Atlanta

residents are ten times more likely to print  coupon savings than the average

American city dweller, as shown in Table  3.  7. Simmons Market Research,

Summer 2010 and Summer 2009 8. Simmons Market Research, Summer 2010

and Summer 2009 9. In-Store Marketing Institute, Clicking Through the Path

to Purchase:  Best Practices in Digital Shopper Marketing, conducted by

Catapult and  Ipsos OTX, September 1, 2010 10. Google Insights for Search

, for U.S. searches during the period beginning January 3, 2010 and

ending January 1, 2011 11. Survey conducted by Harris Interactive on

behalf of Coupons.com. All  data collection was done by telephone

within the United States from  March 5-8, 2010. 12. Nielsen, nielsenwire

blog, March, 26, 2010

Category
Rank
Ready   to Eat Cereal1
Yogurt2
Refrigerated   Dough3
Portable   Snacks4
Vegetables5
Baby Products:   Other6
Soup7
Air,   Rug & Fabric Care8
Cheese9
Lunch Meats10

Table 1: Top Categories

Category
Rank
Ready   to Eat Cereal1
Yogurt2
Refrigerated   Dough3
Portable   Snacks4
Vegetables5
Air,   Rug & Fabric Care6
Baby   Products: Other7
Dinner: Multi-Serve8
Lunch Meats9
Nutritional Snacks10

Table 2: Top Categories Accessed via Mobile Apps

2010 RankChange Since 2009CityStateSavings Index
1AtlantaGA997
2TampaFL569
3CincinnatiOH497
4St. LouisMO420
5MinneapolisMN329
6↑ 1CharlotteNC303
7↓ 1NashvilleTN291
8ClevelandOH289
9PittsburghPA250
10↑ 1RaleighNC235
11↓ 1Kansas CityMO233
12↑ 3WashingtonDC207
13↓ 1MiamiFL202
14↑ 4DallasTX198
15↓ 2Oklahoma CityOK198
16↓ 4BostonMA192
17DenverCO170
18↑ 5SeattleWA153
19↑ 1ColumbusOH147
20↓ 1WichitaKS146

Table 3: Top 20 Frugal U.S. Cities

2010 RankCityStateSavings Index
1AtlantaGA906
2TampaFL531
3St. LouisMO490
4CincinnatiOH374
5Oklahoma CityOK363
6DallasTX282
7CharlotteNC280
8PittsburghPA246
9TulsaOK241
10MiamiFL238
11MinneapolisMN235
12WashingtonDC232
13NashvilleTN226
14RaleighNC222
15WichitaKS219
16Kansas CityMO214
17New OrleansLA198
18ClevelandOH196
19DenverCO177
20MemphisTN165

Table 4: Top Frugal U.S. Cities – Mobile

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