As it loses customers to lower cost private label rivals, Procter & Gamble, the largest US advertiser, said recently it was “shifting funds where effective to coupons and consumer promotions that deliver better value”.
Bob Recchia, chief financial officer of Valassis, a third party distributor of coupons, said last week that the company had had a “good” fourth quarter in its newspaper insert business, and expressed cautious optimism about demand in 2009.
“Historically, when you get into this type of an economy, consumer packaged goods companies do put out more coupons,” he said.
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