What is an In-Ad coupon and what are the potential problems with this type of promotion?
An in-ad (IA) is a coupon sponsored by the retailer, usually in conjunction with the manufacturer. It is usually only redeemable at that retailers location. The retailer is responsible for the printing and distribution of the in-ad, usually within newspapers or within a retailers in-store flyer. The manufacturer may pay for all or a portion of the coupons expense. Retailers like in-ads because they promote store loyalty, defray the stores promotion costs, and give the store more control over design, timing, and distribution of the coupon. In-ads are trade promotions for a manufacturer. In-ads help maintain trade relations as retailers request them. They encourage immediate sales and can allow a manufacturer to target specific markets. Consumers like in-ads as their average face value is usually higher than the average for media coupons.
