The Profit-Producing Power of Couponing

The Profit-Producing Power of Couponing

Coupons have proven themselves to be highly effective sales tools for every conceivable size and type of business, according to Tom Reece in The Profit-Producing Power of Couponing .

'Because coupons "pull in the business" they have gained remarkable acceptance and popularity among astute marketing managers. A simple explanation for their acceptance by advertisers is their overwhelming acceptance and use by the consuming public. In fact, Advertising Age (the Bible of the advertising industry) reports that 87% of all shoppers use coupons.,' according to Reece.

'Another independent marketing research firm, the A.C. Nielson Co., reveals that 95% of all shoppers like coupons. And 60% actively look for coupons.

'A recent article in the Wall Street Journal entitled, "In a Pinch, Snip.", states that coupon use rises, as the economy in any given area slides. 54% of shoppers surveyed said they had already stepped up use of coupons, and even more are expected to do so.

'It's very easy to see why coupon advertising is sweeping the country. Regular use of good couponing strategy will provide a steady stream of new customers and high quality sales leads. The Profit-Producing Power of Couponing To Work For You,' Reece goes on.

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THE UTLTIMATE MARKETING MACHINE

The ultimate marketing machine

Online advertising: The ultimate marketing machine | The Economist

Thanks to the power of the internet, advertising is becoming less wasteful and its value more measurable.

Internet advertising

The ultimate marketing machine

Jul 6th 2006 | SAN FRANCISCO
From The Economist print edition

Thanks to the power of the internet, advertising is becoming less wasteful and its value more measurable

IN TERMS of efficiency, if not size, the advertising industry is only now starting to grow out of its century-long infancy, which might be called "the Wanamaker era". It was John Wanamaker, a devoutly Christian merchant from Philadelphia, who in the 1870s not only invented department stores and price tags (to eliminate haggling, since everybody should be equal before God and price), but also became the first modern advertiser when he bought space in newspapers to promote his stores. He went about it in a Christian way, neither advertising on Sundays nor fibbing (thus minting the concept of "truth in advertising"). And, with his precise business mind, he expounded a witticism that has ever since seemed like an economic law: "Half the money I spend on advertising is wasted," he said. "The trouble is, I don't know which half."

Wanamaker's wasted half is not entirely proverbial. The worldwide advertising industry is likely to be worth $428 billion in revenues this year, according to ZenithOptimedia, a market-research firm. Greg Stuart, the author of a forthcoming book on the industry and the boss of the Interactive Advertising Bureau, a trade association, estimates that advertisers waste—that is, they send messages that reach the wrong audience or none at all—$112 billion a year in America and $220 billion worldwide, or just over half of their total spending. Wanamaker was remarkably accurate.