Average Face Value of FSI Coupons Surpass $1.00 Mark in 2004

Contact Details:
Glenn Mandel
Golin/Harris International
(212) 373-6028
gmandel@golinharris.com

News

March 29, 2005

Average Face Value of FSI Coupons Surpass $1.00 Mark in 2004
FSI Trend Report Details Rise in Coupon Values; New Product Introductions Spur Growth.

New York, NY – In 2004 the average face value of coupons distributed within newspaper Free Standing Inserts (FSIs) reached beyond the $1.00 mark for the first time. According to the Marx Promotion Intelligence 2004 FSI Trend Report, the average face value of FSI coupons hit $1.03, in comparison to $.95 in 2003, representing an 8.1% increase or an extra $.08 per coupon. The jump in coupon values is attributed to new product introductions and an increase in coupon values for both food and non-food items.

“The trend to offer consumers increased savings through coupons is evident. We are seeing more manufacturers present greater incentives to shoppers, whether on a face value or per-unit basis. By their increasing participation, marketers continue to validate that FSIs are a great tool to build awareness and gain trial,” said Mark Nesbitt, Chief Operating Officer at Marx Promotion Intelligence, a division of TNS Media Intelligence.

New products traditionally coupon at a higher value in order to gain trial. While in 2004 product introductions in both the food and non-food sectors of packaged goods followed this practice, a new wrinkle appeared. Items of higher retail value issued introductory coupons with values far beyond those of traditional packaged goods. Coupons for electronic air fresheners, household cleaning systems, coffee makers, diabetic testing kits and other household appliances made a noticeable impact on overall values. This trend is expected to continue as CPG manufacturers continue to launch new, innovative products and utilize FSIs as a key media platform for reaching significant blocks of target consumers.

Coupon values for both food and non-food items increased in 2004. First Aid, Shaving Cream and Razors and Drain Cleaners product categories posted the highest rate of coupon value increase. Overall CPG sector value trends:

		Non-Food, the largest sector of coupon distribution in 2004, average coupon face value increased 11¢ to $1.26.

		Food categories also realized higher average face values, up 2¢ to $.78, a 2.8% increase vs. 2003.

		Despite a decline in face values in some food categories, an increase in value per unit signified a possible change from the multi-purchase promotion strategy where the consumer is offered an incentive to purchase more than one item.

FSI Coupon Average Face and Unit Value for 2004

Area	2004	% Chg	Actual Chg	2004	% Chg	Actual Chg
Food	$0.78	2.80%	$0.02	$0.56	6.30%	$0.03
Non-Food	$1.26	10.00%	$0.11	$1.12	7.40%	$0.08
Total CPG	$1.03	8.10%	$0.08	$0.85	8.40%	$0.07

FSI usage by marketers expanded in 2004, a fact made clear by two key statistics: total page growth of +7.7% and total coupons distributed growth of +7.7%. Couponing for consumer packaged goods products account for the majority of FSI activity, making up 71% of all FSI pages distributed in 2004. Dry Grocery, Personal Care and Household Products made up the top three couponing product segments in 2004, all posting healthy growth. The fourth-largest category, Health Care, posted an impressive 27% growth rate in couponing versus 2003. This type of expansion, attributed to a product category not normally associated with FSIs, demonstrates the increased importance of FSIs to marketers as an effective media.

The Marx FSI Trend Report was developed by Marx Promotion Intelligence, a division of TNS Media Intelligence, as the authoritative overview of FSI couponing.

About Marx Promotion Intelligence
Marx Promotion Intelligence is the industry standard for tracking Free Standing Insert (FSI) coupon activity. Marx provides the finest companies in America with web-based strategic insights and tactical tools that are the state of the art. Company website: http://www.tnsmi-marx.com.

About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.

For further information, including this and prior press releases, please visit http://www.tns-mi.com.

About TNS
TNS is one of the world's leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world's largest organizations and most recognized brands. TNS' research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.
TNS is listed on the London Stock Exchange (TNN) and is a trade mark of Taylor Nelson Sofres plc. Further information can be found on http://www.tns-global.com.