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Instant win offers lead promotion tools

Instant win offers lead promotion tools

Instant Win offers, followed by coupons, are the promotions for which brand owners and agencies are most likely to seek fixed fee cover, However coupons are the fastest growing sector, accounting for a rapidly increasing share of fixed fee deals.
These are among the findings of fascinating new research and analysis by Fotorama, the leading fixed fee promotions company which this year is celebrating 25 years as a major fixed fee business.
Instant Win accounted for 41 per cent of the many tender,invitations that Fotorama received in 2007. Coupons were 32 per cent, followed by Cash backs, including Try Me Frees, Taste Challenges and Price Challenges, with 15 per cent. Other promotions such as Collector Packs, Free Mail Ins and Self Liquidating Promotions, made up 12 per cent.
Since 2005 there has been a notable trend. In that year coupon offers were only 18 per cent of the promotions requiring fixed fee cover. Now they are 32 per cent."
Philip Penlington, Director of Fotorama who has 18 years experience in the market, commented: " We believe that there are two explanations for this trend. It has been very fashionable to back new product launches with coupons so there have been more of these promotions, while, at the same time, marketers behind coupon offers have been more cautious, unwilling to risk the increasingly unpredictable level of redemption."
Coupons have mainly taken this greater share from Cash Backs which are down from 21 per cent to 15 per cent of the tenders, and from Others (Collectors, Free Mail ins and Self Liquidating Promotions) down from 16 per cent to 12 per cent. Instant Wins only dropped slightly from 44 to 41 per cent of the market.
Philip Penlington says: " The number of tenders invitations that Fotorama has received has increased by 195 per cent in the last two years. There has been a steady growth in the number of requests for fixed fee cover for each type of promotion but the increase in coupon cover tenders has been striking."
For further press information please contact
Alex Shephard or Chris Lewis at the Fotorama Press Office
Clareville Communications Tel: 020 7736 4022

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