2006 FSI Trends

Return To Previous Page

2006 Free Standing Insert Distribution Trends

Section 1: FSI Industry Overview

	Fast Fact Summary
	Total Page Allocation

Section 2: Consumer Packaged Goods FSI Coupon Trends

Total (Food vs. Non-Food)

		Distribution
		Face Value
		Expiration
		Multi-Purchase Requirments

Major Area

		Distribution
		Face Value
		Expiration
		Multi-Purchase Requirments

	Leading Coupon Growth Categories
	Leading CPG Categories by Key Metrics

		Distribution
		Distribution % increase
		Face Value
		Per-Unit Value
		Expiration
		Multi-Purchase Requirments

Top 20 Manufacturers

Section 3: Other FSI Coupon Trends

	Regionality
	Seasonality
	New Products
	Retailer Co-Marketing
	Buy One Get One Free (BOGO)
	Franchise FSIs

Section 1: FSI Industry Overview

Fast Facts Summary
	A record level of almost 200 billion total pages were distributed in 2006, an increase of 1.1% from 2005.
	Average Face Values had a record year as well, increasing 4.0% in 2006 and 37.2% since 2002.

FSI Fast Facts Summary
Measure	2006	Chg vs. 2005	Chg vs. 2002
Coupons	253 billion	-0.1%	13.6%
Pages	200 billion	1.1%	19.8%
Avg Face Value	$1.19	4.0%	37.2%
Avg Face Value Per Unit	$0.99	5.3%	39.9%
Fuse (weeks)	9.9	-2.4%	-7.5%

FSI Advertising Impressions Summary
	Frequency: FSI coupons maintained consistent frequency with activity in 49 out of the 53 Sundays in 2006.
	Weight: The pre-Easter promotion week of April 2 had the greatest combined weight by delivering 144 total pages. The pre-Thanksgiving week of November 11 was ranked second overall with 128 pages of FSI promotions.
	Reach: On average, FSIs reached almost 70 million households on a weekly basis throughout 2006, with household reach varying across national, regional, and local brands.
	More than 650 consumer packaged goods companies included FSI promotions as part of their marketing mix in 2006.

Total Page Allocations
	The Consumer Packaged Goods (CPG) sector continued to dominate total FSI page space, accounting for 67.4% of all pages distributed.
	The CPG sector declined 2.3% in 2006 to 134.5 billion pages while the Direct Response and Franchise sectors posted increases of 11.2% and 4.4% respectively.
	Despite being down in 2006, the CPG sector has increased 14.2% since 2002.

FSI Total Page Allocation 2006 (MM)
Sector	Pages	% Chg 2005	Share
CPG	134,505	-2.3%	67.4%
Direct Reponse	46,763	11.2%	23.4%
Franchise	18,384	4.4%	9.2%
Total	199,652	1.1%	100.0%

Section 2: Consumer Packaged Goods FSI Coupon Trends

Total (Food vs. Non-Food)

*Distribution*
	Total Packaged Goods coupons remained stable in 2006, declining roughly 0.1% to 252.8 billion.
	Non-Food coupons increased 2.7% to 146.1 billion in 2006, continuing the trend of overall increases year over year. The Household Products, Health Care and Personal Care areas were the main drivers of this overall increase.
	Non-Food increased its dominance of the FSI coupon space for the fourth year in a row representing almost 58% of the Total CPG coupon activity in 2006.
	Food coupons declined for the second consecutive year, decreasing 3.9% to 106.9 billion in 2006. Decreases in Frozen Products, Cereal and Shelf Stable Beverages contributed to this decline.

FSI Coupon Distribution 2002 - 2006 Food vs. Non-Food* (MM)
Sector	2002	2003	2004	2005	2006
Food	115,859	115,604	119,332	111,250	106,947
% Change	-	-0.2%	3.2%	-6.8%	-3.9%
Non-Food	107,143	117,733	131,785	142,331	146,160
% Change	-	9.9%	11.9%	8.0%	2.7%
Total Packaged Goods	222,565	232,828	250,719	253,030	252,823
% Change	-	4.6%	7.7%	0.9%	-0.1%

* Non-Food items include Health & Beauty, Over-The-Counter Medications and household-type items. Food includes all food items, such as canned, prepared, cereal, boxed and candy items. More than 650 consumer packaged goods companies had FSI coupon activity in 2006.

*Face Value*
	Over the past five years, FSI coupon face values have steadily increased. Total Packaged Goods Average Face Value jumped 4.0% to $1.19 in 2006.
	Non-Food has driven much of the overall increase in Average Face Values, jumping 3.6% to $1.45 in 2006. Household Products was the major driver behind this increase.
	Food has also steadily increased Average Face Value, up 1.7% to $0.82 in 2006.

FSI Coupon Average Face Value 2002 - 2006 Food vs. Non-Food
Sector	2002	2003	2004	2005	2006
Food	$0.71	$0.76	$0.78	$0.81	$0.82
% Change	-	7.0%	2.6%	3.8%	1.7%
Non-Food	$1.04	$1.16	$1.26	$1.40	$1.45
% Change	-	11.5%	8.6%	11.1%	3.6%
Total Packaged Goods	$0.86	$0.96	$1.03	$1.14	$1.19
% Change	-	11.3%	6.9%	10.9%	4.0%

*Expiration*
	The average FSI coupon expiration periods for Total Packaged Goods have shortened 2.4% to 9.9 weeks – down almost a full week from 2002.
	Non-Food average expiration periods have declined by one week from 2002, down to 9.4 weeks in 2006. This decline was led by Household Products, which had the shortest expiration period of 7.8 weeks. In contrast, Health Care had the longest expiration period of 11.2 weeks.
	Food FSI coupon expiration periods have remained consistent at about 10.5 weeks.
	Food expiration lengths in 2006 were over a week longer than Non-Food expiration lengths.

FSI Coupon Expiration Lengths 2002 - 2006 Food vs. Non-Food
Sector	2002	2003	2004	2005	2006
Food	10.8	10.7	10.4	10.5	10.5
% Change	-	-0.9%	-2.8%	1.0%	0.3%
Non-Food	10.5	10.0	9.9	9.9	9.4
% Change	-	-4.8%	-1.0%	0.0%	-5.4%
Total Packaged Goods	10.7	10.3	10.1	10.1	9.9
% Change	-	-3.0%	-2.1%	-0.2%	-2.4%

*Multi-Purchase Requirments*
	Multiple-purchase coupon offers, which accounted for 26.2% of all FSI coupons in 2006, remained relatively stable during the past five years.
	Non-Food increased multiple-purchase coupons to 16.8%, up 1.0 point, led by Household Products (+33.5%) and Personal Care (+41.5%).
	Food decreased slightly in multiple-purchase coupons to 39.3%. Cereals had the biggest decrease of 1.0 point.
	However, Food is still more than twice as likely as Non-Food to include multiple-purchase requirements.

FSI Coupon w/Multiple-Purchase Requirements 2002 - 2006 Food vs. Non-Food
Sector	2002	2003	2004	2005	2006
Food	39.8%	40.9%	41.6%	39.7%	39.3%
Actual % Change	-	1.1%	0.6%	-1.9%	-0.4%
Non-Food	12.4%	12.3%	14.3%	15.8%	16.8%
Actual % Change	-	-0.2%	2.0%	1.5%	1.0%
Total Packaged Goods	26.6%	26.4%	27.2%	26.2%	26.2%
Actual % Change	-	-0.2%	0.8%	-0.9%	0.0%

Major Areas *Distribution*
	All four Non-Food areas increased coupon distribution in 2006. Four of the five Food areas (ex. Refrigerated Foods) decreased in coupon distribution in 2006 with Frozen Products having the greatest decline of 16.3%.
	Dry Grocery continued to be the leading area in coupons distributed with 60.6 billion coupons in 2006.
	Other Packaged Goods (e.g., the Batteries category) had the biggest percent increase in coupons distributed, up 7.1% in 2006.
	Health Care increased coupon distribution by 2.1% despite a 14.7% decline for the Vitamins category in 2006.

FSI Coupon Distribution By Area 2005 vs. 2006 (MM)
Area	2005	2006	% Chg
Dry Grocery	62,337	60,625	-2.7%
Personal Care	52,017	53,551	2.9%
Household Products	44,345	45,451	2.5%
Health Care	42,061	42,926	2.1%
Refrigerated Foods	18,747	19,765	5.4%
Frozen Products	16,697	13,984	-16.3%
Shelf Stable Beverages	9,359	8,585	-8.3%
Cereals	5,953	5,464	-8.2%
Other Packaged Goods	5,041	5,397	7.1%

*Face Value*
	Personal Care, Health Care, and Household Products had the highest Average Face Value among the major areas, each above the Total Packaged Goods average of $1.19. Other Packaged Goods also finished near the top at $1.61.
	Household Products had the largest increase in Average Face Value, up 16.5% to $1.20. This increase was driven in part by the 23.8% increase in the Rug & Room Deodorizers category.
	The Refrigerated Foods area had the second highest percent increase in Average Face Value, up 7.5% to $0.72 in 2006.
	Health Care declined 1.5%, being driven in part by the Dental Pain category which dropped from $1.00 in 2005 to $0.77 in 2006.

FSI Coupon Average Face Value By Area 2005 vs. 2006
Area	2005	2006	% Chg	$Chg
Dry Grocery	$0.84	$0.84	0.7%	$0.01
Personal Care	$1.67	$1.67	-0.1%	$(0.00)
Household Products	$1.03	$1.20	16.5%	$0.17
Health Care	$1.43	$1.41	-1.5%	$(0.02)
Refrigerated Foods	$0.67	$0.72	7.5%	$0.05
Frozen Products	$0.84	$0.87	3.7%	$0.03
Shelf Stable Beverages	$0.87	$0.86	-1.4%	$(0.01)
Cereals	$0.87	$0.85	-2.7%	$(0.02)
Other Packaged Goods	$1.57	$1.61	3.0%	$0.05

*Expiration*
	The only CPG areas for which expiration periods increased were Dry Grocery and Refrigerated Foods.
	Household Products continued to have the shortest expiration period of 7.8 weeks in 2006. The Household Products area included three out of the top five CPG categories with the shortest expiration periods in 2006; Dishwashing (5.7 weeks), Rug & Room Deodorizers (6.4 weeks) and Fabric Softener (6.7 weeks).
	Health Care continued to have the longest expiration period for the third straight year with 11.2 weeks in 2006. Ear/Eye Care (16.9 weeks) and Analgesic (16.5 weeks) had the biggest influence on the average expiration duration for Health Care.
	In 2006, expiration lengths for Shelf Stable Beverages and Personal Care dropped below 10 weeks to join Household Products, Cereals and Other Packaged Goods below this threshold.
	All of the top 5 categories with the shortest expiration periods are Non-Food. Toothpaste had the shortest average expiration period of 5.3 weeks across the 5 billion coupons dropped in this category.

FSI Coupon Expiration Lengths By Area 2005 vs. 2006 (Weeks)
Area	2005	2006	% Chg
Dry Grocery	10.6	10.8	2.1%
Personal Care	10.1	9.4	-7.3%
Household Products	7.8	7.8	-0.8%
Health Care	11.7	11.2	-3.9%
Refrigerated Foods	10.4	10.7	2.6%
Frozen Products	10.5	10.4	-1.5%
Shelf Stable Beverages	10.2	9.5	-7.2%
Cereals	8.8	8.3	-5.2%
Other Packaged Goods	9.6	8.2	-15.1%

*Multi-Purchase Requirements*
	Dry Grocery had the highest percent of multiple-purchase requirements at 49.5%.
	Dry Grocery also had the greatest growth in multiple-purchase requirements, up 9.9 points versus 2005.
	Health Care coupons had the biggest decrease for multiple-purchase requirements, down 3.4 points due in part to a 16.7 point decline for Toothpaste.
	Household Products has steadily increased the amount of coupons with multiple-purchase requirements over the past five years.

FSI Coupons w/Multiple-Purchase Requirements By Area 2005 vs. 2006
Area	2005	2006	Act Chg
Cereals	39.6%	49.5%	9.9%
Dry Grocery	43.4%	41.5%	-1.9%
Frozen Products	31.2%	33.5%	2.3%
Health Care	13.7%	10.2%	-3.4%
Household Products	17.9%	22.6%	4.7%
Other Packaged Goods	6.8%	9.7%	2.9%
Personal Care	16.7%	18.3%	1.7%
Refrigerated Foods	38.2%	37.3%	-1.0%
Shelf Stable Beverages	36.4%	36.7%	0.4%

*Please note these numbers are updated from the previous Year End release

Leading Coupon Growth Categories within Major CPG Segments
	The following charts provide leading growth categories by major CPG product area. Only categories in which 2006 coupon distribution was at least 500 million and 2006 growth was at least 5% are included.

Dry Grocery (MM)
Rank*	Category	2005	2006	% Chg
92	Cooking Sprays	397	586	47.6%
70	Fruit/Shelf	809	1,170	44.7%
87	Baked Good/Shelf	534	756	41.6%
96	Cooking/Salad Oils	417	564	35.2%
74	Fish/Canned	711	918	29.1%
77	Baking Needs	670	859	28.1%
28	Soup	2,398	2,978	24.2%
64	Rice	1,063	1,257	18.3%
59	Combination/Food	1,157	1,364	17.9%
57	Seasoning/Spice/Salt	1,221	1,429	17.1%
2	Pet Food & Treats	10,943	12,295	12.4%
100	Meat/Canned	451	506	12.1%
61	Vegetables/Shelf	1,203	1,304	8.4%
68	Sugar	1,115	1,196	7.3%