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AOL Shortcuts Offers Clipless Coupons for Kroger Customers

AOL is launching a service in conjunction with the Kroger grocery chain, called Shortcuts, that allows manufacturers to distribute coupons on the internet without the need for users to print them out

Users log onto AOL, enter their loyalty card information, and choose the coupons for the products they wish to purchase. To redeem the coupons, the loyalty card is presented at the register, according to WebProNews.

Editor & Publisher points out that the program is free for consumers and retail chains; manufacturers pay to have their coupons listed, and can also buy banner ads to accompany their listings on Shortcuts.com.

The service is launching initially with coupons from one food manufacturer, General Mills. Kraft Foods and Kimberly-Clark are expected later this month.

Kroger is offering a similar service, using technology from Cellfire, that distributes coupons to mobile devices. Consumers look at a list of discounted products, create a list of those they wish to purchase, the list is sent to Kroger, and the discounted prices are given at the cash register when the loyalty card is swiped.

Kimberly-Clark and Procter & Gamble are among the companies working with Kroger on the wireless initiative.

Advertisers have been on the hunt for new distribution outlets to supplement their coupon inserts, though research shows that insert use is on the rise. In the past four years, the proportion of insert readers who use inserts and circulars to help decide which groceries to buy rose from 52 percent (in 2004) to 59 percent. And nearly half (47 percent) of Americans say inserts and circulars are the advertising vehicles that best capture their attention - a nine-point increase from 2003 levels - according to “Customer Focus 2008: Retail” study from Vertis Communications (via MarketingCharts).

Spending on freestanding inserts more than doubled last year, going from $413 million in 2006 to $904 million in 2007, per Nielsen Monitor-Plus.