Couponstar Business Soars Due to Worsening Economy Increasing Consumer Demand for Internet-Printable Coupons and FMCG Brands Turning to Sales Promotion


CHISWICK, England, April 21 /PRNewswire/ --

- Internet-Printable Coupons Prove to be on Average 11 Times More
Effective Than Traditional Manufacturer Coupon Campaigns

Millions of UK consumers printed internet coupons (many for
the first time) in 2008 driven by a 140% year on year increase in the number
of coupon campaigns run by Couponstar clients. Almost 100 brands signed up to
run internet-printable coupon campaigns redeemable at the UK's largest
supermarkets and pharmacy chains including Tesco, Asda & Boots. As FMCG
companies continue to direct more and more of their marketing spend
below-the-line due to current economic conditions, companies such as
Unilever, Kraft, Kimberly-Clark, Colgate Palmolive, Johnson & Johnson,
GlaxoSmithKline and Nestle have turned to internet-printable coupons to drive
both brand engagement online and measure impact on in-store sales both in the
UK and throughout Europe.

Jared Keen, managing director at Couponstar, explains,
"Consumption does not stop in a recession - consumers still need to purchase
essential goods, from cleaning products to butter. However, consumers are
making both conscious and unconscious modifications to purchasing behaviour
in a bid to reduce spending, from switching brands, to moving to 'private
label' goods, taking advantage of promotions such as coupon offers or trade
promotions. In response FMCGs are finding more innovative, interactive
methods of engaging with consumers, which increasingly requires them to offer
tangible incentives and/or rewards to their customers; a task at which
print-at-home coupons excel."

Keen continues, "Internet-printable coupons are providing
marketers with a highly effective and measurable route to the newly cost
conscious middle England. But to be effective the focus must remain on
customer engagement not just discounting. As FMCGs continue to reallocate
their marketing spend to both online and sales promotion (confirmed by the
recent Bellwether Report) they are jumping on board the opportunity to target
this audience with relevant coupon offers to reinforce brand value and
loyalty and, critically, drive measurable in-store sales."

The success of 2008 in such difficult economic conditions is a
real testament to the strength of the Couponstar portfolio, particularly its
more recent CouponNET(R) program, which provides brands with access to
millions of primary household shoppers through a network of leading consumer
websites, whilst continuing to leverage Couponstar's platform for
distributing coupons securely over the Internet. Throughout 2008,
CouponNET(R) has continued to attract unprecedented support with key
retailers such as Asda and Tesco Diets signing up to the network in addition
to leading website publishers, including GMTV, UKTV, Yours.co.uk, Now
Magazine, and Bounty.com and interest in the offering continues to increase.

Keen continues, "As a result of these significant
developments, we saw a further 161% increase in the number of coupons
redeemed, which clearly illustrates the appetite and faith consumers have in
us. However, even more impressively, our average coupon redemption rate has
grown to 29.9% across the board - over 11 times more effective than the
typical manufacturer coupon campaign which on average achieves a 2.5%
redemption rate (Source: 2008 Valassis Report). The increase in our
redemption rates was due to the combination of better quality offers made by
brands and through better targeting through websites, email and working with
our publisher partners to attract the right audience."

Manufacturers and retailers are increasingly acknowledging the
opportunities presented to them by internet-printable coupons, but the market
is continually evolving. A few even began running Pan European campaigns in
France, Germany, Italy, Netherlands and Scandinavia to extend both the reach
and scale of campaign activity and compare behaviour across countries.

"Following our success in 2008, we have already made a strong
start to 2009, with two more consecutive record-setting months in terms of
revenue, the number of campaigns run, and the number of coupons printed &
redeemed. Additionally, we have made some strategic hires, including the
appointment of Steven Horowitz from Google as CTO of our parent company
Coupons, Inc., which will ensure we can continue to expand our offerings to
meet the growing demands of our clients."

Keen concludes, "We believe shoppers will continue to seek out
savings everywhere they can find them as the economy further tightens in
2009. With newspapers, magazines and direct mail struggling to prove its
effectiveness, many consumers will lose access to their coupons. As a result,
household brand name companies are increasingly looking to deliver savings to
those consumers online. Our goal in 2009 is to bring coupons to as many
digital platforms as possible so that consumers can readily find savings in
these difficult times."

About Couponstar

Couponstar is an interactive coupon solutions company that
specialises in transforming online activity into measurable offline sales
with a suite of products that safely and effectively integrates printable
coupons (or vouchers) into online marketing campaigns. Its innovative
marketing technology solutions, including its CouponNET(R) network of leading
publisher websites such as Asda.com, Tesco Diets, GM.TV, UKTV, Now Magazine,
Yours Magazine, and Bounty.com enable FMCG brands and retailers to reach
millions of qualified UK consumers every month with the most flexible,
effective and secure alternative to offline-delivered coupons. Since 2002
they have run more than 1200 promotions for over 150 brands across numerous
industry sectors.

Couponstar holds the exclusive global license for Coupons,
Inc. technology outside of North America. Their clients include the world's
leading FMCG manufacturers such as Unilever, Nestle, Mars, Colgate Palmolive,
Johnson & Johnson, Disney, Kraft, Kimberly-Clark and GlaxoSmithKline.
Couponstar currently operate campaigns in UK, Europe & Australia. Learn more
about Couponstar at http://www.couponstar.com

For further information, please contact:
    Lisa Williams
    itpr
    t. +44(0)1932-57-88-00
    http://www.itpr.co.uk



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