MINNEAPOLIS, MN July 16, 2008 –
The Weighted Average Face Value (WAFV) for Free Standing Insert
(FSI) coupons increased 7.5 percent to $1.34 in the first six months
of 2008. This increase has become the highest WAFV on record according
to Marx Promotion Intelligence, a division of TNS media intelligence.
“In the current climate of economic uncertainty, this new
record particularly highlights the importance of promotional strategies
to drive consumer demand,” said Mark Nesbitt, chief operating
officer at Marx Promotion Intelligence/TNS Media Intelligence.
Marx Promotion Intelligence, the industry standard for tracking
FSI coupon activity, reports that WAFV across the Non-Food segment
of the Consumer Packaged Goods (CPG) industry increased 5.4 percent
to $1.61, driven by the 17.7 percent increase within the Health
Care area. WAFV across the Food segment increased 5.6 percent to
$0.91, led by the 13.7 percent increase for the Dry Grocery area.
All other areas across the Non-Food and Food segments decreased
in WAFV for the first half of 2008.
Manufacturers delivered more than $173 billion in consumer incentives
as part of 129 billion coupons distributed across more than 101
billion pages during the first half of 2008. Additionally, retailer
participation in FSI promotions increased 31.3 percent to over 21.2
billion pages during this period, driven in part by the growth of
“co-equity” events that frequently deliver retailer-specific
coupons rather than traditional manufacturer coupons.
“Manufacturers continue to leverage FSIs as an effective
advertising vehicle to deliver consumer impressions and reinforce
brand messaging,” said Mark Nesbitt. “Leading retailers
are also increasing their use of FSIs to drive planned shopping
trips and build shopper loyalty. Manufacturers and retailers are
working together to deliver relevant incentives to their consumers
and shoppers during increasingly difficult economic times. Although
‘shopper marketing’ tactics are still evolving, FSIs
have definitely emerged as a key component of manufacturer and retailer
cooperative consumer promotion support.”
Overall FSI Activity
During the first half of 2008, more than $173 billion in consumer
incentives were delivered via FSIs in Sunday newspapers, up 3.8
percent from the same period in 2007. During the same six month
period, over 129 billion coupons were distributed within more than
101 billion FSI pages. These trends translate into manufacturers
delivering more value within each FSI event to stimulate consumer
interest and generate category excitement.
|Face Value (average)
The CPG sector remains the largest user of FSI pages with a 70.1 percent
share, followed by Direct Response, which includes general advertising
activity, and Franchise, comprised of restaurants, portrait studios,
and other businesses. FSI Pages Distributed increased for both the
CPG and Franchise sectors, up 0.5 percent and 1.0 percent respectively.
Pages Circulated for the Direct Response sector decreased 6.7 percent
which was the sole driver of the 1.1 percent decrease in Pages Circulated
for the FSI industry overall.
CPG Non-Food vs. Food
In the first half of 2008, Non-Food categories distributed more
than 79.6 billion coupons which represented an increase of 2.5 percent
versus a year ago, while Food categories distributed 50.0 billion
coupons which represented a decline of 11.4 percent. Health Care
and Personal Care were the only two areas with increases in Coupons
Dropped during this period.
Manufacturers increased the value of the offers that were delivered
to consumers in both the Non-Food and Food segments. WAFV for Non-Food
increased 5.4 percent to $1.61 and was combined with a 2.0 point
decrease in Multiple Purchase Requirements (MPR) resulting in Weighted
Average Face Value Per Unit (WAFVPU) increasing 7.4 percent to $1.43.
Similarly, WAFV for Food increased 5.6 percent to $0.91 and was
combined with a 3.2 point decrease in MPR resulting in WAFVPU increasing
8.4 percent to $0.70. Manufacturers also increased the expiration
lengths of these offers for the first time since 2005, up 3.2 percent
to 9.8 weeks for Non-Food and up 0.7 percent to 10.8 weeks for Food
categories. This increase appears to be a response to economic pressures
to increase the consumer value per unit, decrease the total investment
required for a qualifying purchase, and extend the offer period
to align with consumer purchase cycles and manufacturer promotion
Top 10 FSI Product Types in First Half 2008 (by Coupons
The top 10 product types based on coupons distributed accounted
for 35.8 percent of all FSI coupon activity during the first half
of 2008. Household Cleaning Products ranked first and increased
5.4 percent to distribute more than 7.5 billion coupons, with 530.7
million coupons being associated with nine new product introductions
during the first six months of 2008. Vitamins moved to fourth place
with a 28.3 percent increase to 5.0 billion coupons. This increase
is due in part to 248.1 million coupons supporting eight new product
introductions during this period.
||Household Cleaning Products
||Pet Food & Treats
About Marx Promotion Intelligence
Marx Promotion Intelligence, a division of TNS media 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 state of
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