WHY COUPONS AREN’T GOING AWAY ANYTIME SOON
Key Takeaways from the Association for Coupons and Promotions Conference
Recently, I had the opportunity to attend the Association for Coupons and Promotions Conference. I went into it with a bit of skepticism, wondering if there was anything new to learn after 12 years of experience in the coupon world. But what I found was an entirely different vibe: an industry that’s deeply engaged and eager to tackle the daily hustle of coupon execution, amid a growing wave of modernization. Here’s a closer look at the current landscape and why coupons aren’t going away anytime soon.
A Different Kind of Audience
Unlike other industry events where agencies and big media companies like Publicis, Starcom, The Trade Desk, or Criteo dominate, this conference focused squarely on retailers, technology providers, and brands. And while big holding companies might be absent now, that won’t last long, the coupon industry is a multi-billion dollar opportunity poised for a renaissance. We’re likely at the beginning of a transformative shift, similar to retail media a decade ago.
What We Discussed
The conference agenda was evenly split among pressing issues:
- Legal & Risk (50%): Discussions on fraud prevention and addressing claims of digital discrimination
- Marketing (25%): Influencer strategies and retailer loyalty initiatives
- Technology (25%): Innovations in barcodes and point-of-sale (POS) systems
Key Challenges Holding the Industry Back
The conference shed light on some of the major barriers preventing the coupon industry from fully embracing digital modernization:
- Fraud: The coupon industry loses potentially hundreds of millions of dollars due to fraud. Criminal syndicates exploit vulnerabilities in coupon systems for free products or cash, and with limited law enforcement support, retailers are left to manage these losses independently.
- Digital Discrimination Concerns: As retailers launch digital-only promotions, they face accusations of discrimination from less digitally-enabled shoppers—typically older or less affluent individuals without smartphones. This has led to proposed legislation in several states aimed at addressing the issue, creating a barrier for digital-only couponing and making retailers hesitant to fully innovate.
- Scaling Expectations: Brands and retailers often seek large-scale impacts from campaigns, but couponing naturally has a more segmented effect, with fewer than 100% of shoppers engaging. This patience-testing aspect has made it difficult for the industry to fully embrace it as a digital tactic.
Why Coupons Aren’t Going Away Anytime Soon
Despite these hurdles, two major drivers keep the industry afloat—and positioned for growth:
- Shoppers Love Savings: The personal satisfaction shoppers feel from “clipping” a coupon and seeing instant savings at checkout remains a powerful motivator. Our own data shows that Target Circle’s 5% discounts continue to drive significant sales. It’s why 3.6M shoppers follow an influencer like Torok Coupon hunter – who was in attendance and gave a motivating presentation!
- Effectiveness: Coupons are among the most cost-effective promotional vehicles, consistently outperforming retail media networks (RMNs) and broad mass promotions. When done right, they can be a CPG’s highest-return tactic.
Torok Coupon hunter
A Look Ahead: What Will Drive the Industry Forward
The industry is finally approaching a tech-driven transformation that will address these challenges while unlocking unprecedented opportunities. Here’s what’s on the horizon:
- Universal Coupons: Current digital coupons are often retailer-specific, but a new technology—8112 universal coupons—is set to change that. Soon, shoppers will be able to save at almost any retailer by using a coupon stored in their mobile wallet, similar to tap-to-pay. This universal approach will simplify couponing and provide a seamless experience for shoppers.
- Social Media Influencers: Platforms like Amazon, TikTok, and Temu have shown that influencers are powerful attention getters and conversion drivers. With universal coupons, influencers could be promoting consumer goods, like cereal or skincare products, across U.S. retailers. Imagine the impact of a nationwide influencer campaign where followers can click a link for a 25% off coupon!
- Retail Media Democratization: Retail media has become a massive industry, traditionally limited to closed networks managed by each retailer. However, major players like Walmart and Target are now decoupling audiences and data from their retail media execution. This shift allows brands to run cross-retailer campaigns and attach universal coupons to retail media, creating a seamless experience that blends media and promotion.
DIGITS: Leading the Charge in Coupon Modernization
At DIGITS, we’re committed to being at the forefront of this coupon renaissance. As the industry adopts technology that allows for more seamless, effective, and widespread coupon distribution, we’re here to help brands leverage these advancements for maximum impact. The future of couponing is dynamic, and we can’t wait to see what’s next!
The next few years promise to be transformative, and DIGITS is excited to lead the way in this evolving industry. Stay tuned as we continue to drive innovation and bring these cutting-edge tools to our partners.
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
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