The History of Coupons
Consumers redeemed 2.6 billion coupons in 2008. By October 2009 they had already turned in 2.4 billion coupons, 26-percent over the same time in 2008. These numbers must have been unimaginable in 1887, when druggist and marketer Asa Candler and his employees handed out thousands of coupons redeemable for a free glass of Cola-Cola, the first coupons used in the United States. At the time, men in the advertising industry thought Candler was nuts to give away free product, but Coca-Cola's rapid popularity and company growth proved them wrong.
1900s
In 1895, US citizens first saw wireless telegraph, motion picture projectors, the X-ray, and Charles William Post's cereal company, Postum Cereal Company. In 1897, Mr. Post introduced Post Grape-Nuts, "fully cooked, pre-digested" ready-to-eat cold cereal. In 1912, he introduced Instant Postum cereal beverage. To promote this new product Post did what Coca-Cola did 25 years earlier, offered free samples. He also took on a massive advertising campaign, which is supposed to have included the first ever one-cent grocery coupons.
1920s
In the 1920s consumers began to see newspaper and magazine ads featuring coupons for things like a free trial-sized cake of Palmolive soap, a ten-day tube of Pepsodent, a free miniature container of Deodo―a product to prevent body odors―and coupons for information about radios and other products. Consumers collected coupons printed on product packaging and then sent them to manufactures to be redeemed for gifts.
1930s
The Great Depression in the 1930s forced consumers to make ends meet in any way possible, and that meant "cutting coupons," not only for cosmetic and hygiene products, but also for everyday food items. This practice remained a lifetime habit for many people. Before this, retailers used coupons to advertise their businesses, now they produced coupons to gather available consumer dollars. Neighborhood grocery stores followed suit and offered more coupons than ever before.
1940s
In the 1940s neighborhood grocery stores continued to offer coupons, and as supermarkets began to appear, they too offered coupons. With World War II came another kind of coupon, ration coupons, which often appeared in small booklets. These coupons allotted consumers limited amounts of products made scarce by the war.
1950s and 1960s
Coupon promotions and use grew immensely in the 1950s and 60s, and with it the need for greater efficiency. As a result, in 1957 the first clearing house devoted entirely to the redemption of coupons was created, the Nielsen Coupon Clearing House. (Its name was later changed to Manufacturers Coupon Control Center, or MC3.) By the 1960s at least half of all US households regularly clipped coupons, and some household began to receive coupons through the mail.
1970s
Free-standing Inserts (FSIs)―coupons included with, but not printed in, newspapers and magazines―were introduced in the 1970s, as was direct mail marketing. Coupon popularity continued to grow, and more than 35 billion coupons were distributed in this era. Sixty-five to seventy-five percent of American households clipped coupons.
1980s
Electronic coupons became available at checkouts. Coupons, or point-of-sale coupons, sometimes called negative coupons, were generated in response to items consumers didn't buy. Stores began to offer loyalty or frequent shopper discount programs.
1990s
The 1990s boomed with new technology, coupon clipping, and new means for distributing coupons. Supermarkets started to feature electronic shelf coupons positioned in front of products promoted. Internet coupons became available for the first time, but coupon fraud limited their use. Direct mail coupon companies multiplied.
Before this time, coupons had mostly promoted packaged goods; now coupons began to advertised other types of products―fast food, furniture, and electronics, and so on. In 1998, September was named "National Coupon Month."
2000s
The recession that ensued after 9-11 and further financial stresses in later years brought the level of "couponing" up to that of the early 1990s. Consumers redeemed more than 3.6 billion coupons in 2002. For the first time wealthy consumers have cut back their spending and begun to cut coupons. This trend is expected to continue.
The 2000s have seen a resurgence of Internet coupons, this time with greater controls and decreased chance for forgery. In 2006 one of the most popular coupons became free shipping coupons. More and more consumers are going to the Internet to print coupons for groceries, restaurants, electronics, and more.
References
• CouponInfoNow.com. (accessed 12-18-09)
• Duke University Libraries Digital Collection. (accessed 12-18-09).
• Go Frugal Blog. "The History of Coupons." (accessed 12-18-09).
• Postcereals.com. "Post Heritage." (accessed 12-18-09).
• PromotionalCodes.org.uk. "The History of Coupons and Promotional Codes." (accessed 12-18-09).