The Valassis 2006 Coupon Report says that of the 3.8bn coupons distributed this year, 70% used direct mail for distribution, and of the 413m redeemed, 92% of redemptions were as a result of a direct mail strategy.
Sarah Earith, Valassis' client services manager, said: "It illustrates the enduring power of this sales and brand-awareness boosting tool.
"Both distribution and redemption values continue to climb, so companies are obviously willing to increase their investment in the sector."
Wine coupons are the most popular to distribute, with newspapers and magazines being the most popular for customers to redeem.
Valassis's research shows the majority of coupons are now redeemed within the first four weeks and the average face value of coupons distributed has increased to 拢1.11, from 拢1 in 2004.
The Valassis Report has tracked the voucher and coupon industry since the 1980s. Valassis processes over 80% of UK coupons at an average of 3bn data items each year.
Its annual report is based on 85% of UK coupon activity and is used by the Institute of Sales Promotion as the basis for the official industry statistics.
Marketers can receive The 2006 Valassis Coupon Report free by registering on
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