CHICAGO, July 7, 2003 (PRIMEZONE) -- This summer, the Southeast is a hot market -- and not just weather-wise. When it comes to clicking on the Internet for free samples, printable coupons, opt-in e-mail promotions and other special online offers, Dixie is a hotbed for Internet shoppers, according to a study of 7.5 million online consumers by CoolSavings, Inc. (OTCBB:CSAV), a leading online direct marketing and media company.
CoolSavings found that consumers in Southern cities were predominantly the most active among a sample of 7.5 million registered members of coolsavings.com residing in 210 designated marketing areas (DMAs).
Ten markets located in the Southern U.S. are home to members that are 10% to 17% more active than the average CoolSavings member. They are: Jackson, Miss.; Chattanooga, Tenn.; Lake Charles, Biloxi-Gulfport, Lafayette and Alexandria, La.; Birmingham, Montgomery and the Mobile, Ala. -- Pensacola, Fla. bistate market; and Albany, Ga. (See Ranking Chart below).
Brand Loyalty -- Coupon Wars
"A combination of factors -- including brand loyalty and grocery store 'coupon-wars' -- are likely factors that make Southerners our most active coupon clippers," said Matthew Moog, president and chief executive officer of CoolSavings.
For example, Simmons Market Research cites that a greater percentage of consumers in the Southeast agree with the statements: "I prefer shopping at stores that carry the best brands," and "Because of a coupon I was drawn to a store where I normally don't shop." (1)
Battling for the business of these brand-loyal shoppers, competing grocery stores in the south often wage so-called 'coupon wars,' during which they will double or triple the savings shown on coupons redeemed by shoppers.
"Coupon wars increase the value of the wide selection of printable grocery coupons that consumers find at coolsavings.com, and other leading sites that comprise our CoolSavings Marketing Network," Moog noted. The CoolSavings Marketing Network (CSMN) is the company's Internet distribution network for coupons and samples from consumer packaged good manufacturers, retailers and restaurants which includes 40 top Web properties in addition to coolsavings.com
Consumers in Midsized Markets Turn to the Internet
According to Lorraine Gallaher, spokesperson for CMS -- a leading manufacturers' agent that settles coupon and trade promotion transactions between consumer product manufacturers and their retail partners -- the size of these markets may also play a part in the growing importance of the Internet to shoppers.
"Because traditional printed Free Standing Inserts (FSI's) found in newspapers are mostly geared toward larger markets, people living outside major metropolitan areas may be turning to the Internet for coupons," she said. "We have found that Internet offers have been very attractive compared to the average offer in the Sunday paper, giving consumers in markets without FSI's an even more compelling incentive for turning to online sources like coolsavings.com."
Moog concluded, "Whether in Dixie or anywhere in the U.S., the phenomenal growth in 'clicking' coupons is driven by consumers looking for simple ways to save on the brands they want, and product manufacturers' growing belief in the power of the Internet to increase loyalty and sales."
Top Cities Ranked by Activity
Coolsavings.com members who are more active than the average member are located in these ten markets:
Market Percent by which Activity
Exceeds the U.S. Average
Jackson, Miss. 17% more active
Chattanooga, Tenn. 15% more active
Lake Charles, La. 14% more active
Biloxi-Gulfport, La. 13% more active
Alexandria, La. 13% more active
Mobile, Ala.-Pensacola, Fla. 12% more active
Lafayette, La. 11% more active
Moontgomery, Ala. 11% more active
Albany, Ga. 10% more active
Birmingham, Ala. 10% more active
Statistics ranking 210 designated marketing areas (DMAs) according to activity of 7.5 million consumers on coolsavings.com is available on request.
NOTE TO EDITORS:
September is National Coupon Month! Visit www.couponmonth.com
About CoolSavings
CoolSavings is an online direct marketing and media company that provides smarter solutions to help marketers reach their target consumers. Combining a broad distribution network, sophisticated analytics and proprietary technology with superior customer service, we enable a wide variety of advertisers to identify and engage their best customers among our more than 27 million registered members. CoolSavings is a registered trademark of CoolSavings, Inc. Other product and company names herein may be trademarks of their respective owners.
(1) Copyright SMRB 2003, full-year study Fall 2002, furnished by Kupper Parker Communications
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release regarding CoolSavings' business that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements under "Business Outlook" and other statements regarding the Company's expectations, beliefs, hopes, intentions or strategies. Where possible, such forward-looking statements have been identified by use of words such as "target," "forecast," "budget," "believe," "expects" and similar expressions. Known and unknown risks, uncertainties and other factors, both general and specific to the matters discussed in this press release, may cause CoolSavings' actual results and performance to differ materially from the future results and performance expressed in, or implied by, such forward-looking statements. Among these risks are the Company's ability to obtain additional debt and/or equity financing, the uncertainties related to CoolSavings' unproven business model in a rapidly evolving marketplace, and CoolSavings' ability to protect its patents, trademarks and propriety rights. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by CoolSavings, For further discussion of some of the risks, uncertainties and other factors which could cause actual results to differ from those expressed in, or implied by, the forward-looking statements, see "Risk Factors" in CoolSavings' Form 10-K, as filed with the SEC. CoolSavings undertakes no obligation to update or revise any forward-looking statements as a result of new information, future events or developments or changed circumstances.