Section 1: FSI Industry Overview

Fast Facts - Summary
Activity in the first half of 2011 decreased 3.9% in Coupons Dropped and also declined 2.0% in Pages Distributed. Average Coupon Values continued to increase, now up to $1.58, a 4.9%, or $0.07 increase verses H1 2010. Fuse lengths decreased 6.3% to 8.3 weeks continuing the downward trend.

Total Page Allocations
Total page allocation across the major sectors of FSI continues to be dominated by CPG which controls a 74.1% share of all pages distributed. CPG reported a 2.4% decline in Pages Circulated which is the first decline reported in the first half of the year since 2006 when there was a 6.7 percent decline. Direct Response H1 2011 decreased for the fifth year in a row, dropping 2.3%. Meanwhile, Franchise continued an upward trend with a 1.6% increase in pages.

Section 2: Consumer Packaged Goods FSI Coupon Trends

Total (Non-Food vs. Food)

Distribution
Distribution for Total Packaged Goods decreased 3.9% in the first half of 2011. The decrease was driven by Non-Food with a 4.4% decline which is the first decline in Non-Food reported for a half year since 2006. Food also decreased, down 3.3%.

Face Value
Face Values grew 4.9%, or $0.07, in the first half of 2011 for Total Packaged Goods verses the same period a year ago. Both Food and Non-Food contributed to the increase with Non-Food increasing $0.09 and Food increasing $0.05. This is the first time Food has had an average Face Value of over $1.00

Expiration Length (Fuse)
Fuse lengths dropped 6.3% to 8.3 weeks for Total Packaged Goods continuing the downward trend. Food declined 3.9% to 8.9 weeks and Non-Food declined 8.3% to 7.9 which marks the first time Fuse was below 8 weeks during the half year.

Major Segments

Distribution
Two major CPG segments saw increases in the first half of 2011 verses the same period a year ago. Dry Grocery saw the most growth up 3.5% which allowed it to take the top spot from Personal Care as the most active CPG segment. Other Packaged Goods saw the largest percent decline, down 38.1%.

Face Value
Average Face Values increased or remained flat in all Areas except Cereal. Other Packaged Goods saw the largest increase (both actual and percent change) in Face Values, up 38.9% to $2.63. Health Care also saw a large increase, up 10.6% or +$0.23 to $2.43 which is the second highest value among these segments.

Expiration Length (Fuse)
Fuse lengths decreased or remained flat in all areas except Cereals. Other Packaged Goods saw the largest decrease, down 2.4 weeks or -22.8% followed by Health Care which declined 1.2 weeks or -11.3%. Frozen Products now runs the longest Fuse at 10.6 weeks and Household Products now runs the shortest Fuse at 6.7 weeks after a decline of 0.5 weeks.

Leading CPG Categories

Distribution
Top 25 growth categories based on Coupons Dropped (having at least 500MM coupons) in the first half of 2011 included, Denture Cleaners, up 190.5%, External Analgesics, up 82.4%, Combination/Cooking, up 77.0% and Pasta/Macaroni, up 68.5%. Rug/Room Deodorizers posted the largest actual increase among growth categories, up 1.0 MM Coupons Dropped verses the same period a year ago.

Face Value
Top 25 categories posting the largest increases in Face Values were led by Denture Cleaners, up 159.8%, Toothbrush, up 78.5%, Baby Wipes, up 47.4% and Beverages, up 43.1%. Toothbrush posted the largest actual increase among growth categories, up $1.61.