Extract: The number of cents-off coupons distributed by manufacturers and retailers rose from 10 billion to 90 billion between 1965 and 1980. About 80 percent of U.S. households redeemed coupons in 1979, making coupons the most rapidly growing form of food advertising. Although coupons still make up the smallest portion of all major food advertising, their value rose from less than 6 percent of total advertising expenditures in 1970 to 11 percent in 1979. This report analyzes the use of coupons by consumers, as a marketing tool by manufacturers and retailers, and in the marketing of farm produce.

Extract: Food is the most advertised product in the United States, amounting to $8 to $10 billion in 1980 and accounting for between 3 and 4 cents of each food dollar. Food manufacturers have increased their share of advertising and promotion expense while the retailer's share has gone down because of declining use of trading stamps. Promotion by fast food restaurants increased sharply over the past decade. Electronic advertising accounts for about 40 percent of food promotion, while printed and premium promotion account for a fourth each. Couponing, the fastest growing promotion form, accounted for about 11 percent. Between $2 and $4 billion of total food advertising was spent on manufacturers' promotion to the retailer. Advertising and promotion had little impact on increasing total U.S. food consumption, but may have diverted food purchases towards more heavily promoted foods.