print Highest Half Year Increase on Record Driven by High-Value Product Promotions
NEW YORK, NY, July 19, 2006 – The Marx Promotion Intelligence FSI Trend Report issued today reports that during the first six months of 2006, Free Standing Insert (FSI) average face value increased 8.6 percent to $1.18 vs. the same period in 2005. It is the largest average face value for a half year period on record. This trend is being driven primarily by the expanded use of FSI coupons for high-value products which are increasingly being added to the grocery channel. Face values for high-value products averaged $4.07 during the first half of 2006, up 20% from the same period in 2005.
The Marx FSI Trend Report is issued by Marx Promotion Intelligence, a division of TNS Media Intelligence. Marx Promotion Intelligence is considered the industry standard for tracking FSI coupon activity.
“Marketers continue to leverage FSIs to provide impression value and reach while delivering consumer incentive and brand messaging,” said Mark Nesbitt, chief operating officer, Marx Promotion Intelligence/ TNS Media Intelligence. “However, it is evident that high-value consumer promotions have emerged as an effective tactic as innovative new products are introduced and traditional retail channels continue to blur.”
High value products using FSIs include many personal care items and household cleaning products. Examples include:
- Teeth whitening kits (Colgate Simply White® Crest® Night Effects™ and Crest Whitestrips®)
- Diabetes care (OneTouch® Blood Glucose Monitoring System)
- Portable air treatment systems (Febreze® ScentStories™, Air Wick FreshMatic™, Glade® Wisp®)
- Disposable toilet cleaning systems (Clorox® Toilet Wand™, Scrubbing Bubbles® Fresh Brush™)
Non-Food vs. Food Segments
In the first half of 2006, average face values of coupons rose 10.9 percent across all Non-Food segments, versus same period 2005. The Household Products segment led this trend with a 22.0 percent increase to $1.11 driven by expanded activity in support of high-value products. Coupons dropped for Non-Food items decreased 2.7 percent versus the record levels observed in the first half of 2005. Personal Care and Household Products segments had slight increases in coupon distribution of 0.4 percent and 0.3 percent respectively, while the Health Care segment had a decrease of 7.9 percent.
Average face values of coupons among Food categories rose 2.2 percent to $0.82, led by Refrigerated Foods with an 8.2 percent increase to $0.74. The Cereals segment countered with a 7.1 percent decline to $0.83.
| 2006 1st Half Results by Segment (vs. 1st half 2005) | |||
| Segment | Face Value | Act. $ Chg | %Chg |
| Non-Food | $1.42 | $0.14 | 10.9% |
| Food | $0.82 | $0.02 | 2.2% |
| Total Packages Goods | $1.18 | $0.09 | 8.6% |
Coupons dropped for Food items decreased 6.5 percent versus the record levels observed last year, although Refrigerated Foods had a 3.9 percent increase in coupon circulation.
| 2006 1st Half Results by Segment (vs. 1st Half 2005) | ||
| Segment | Coupon Distribution | % Chg |
| Non-Food | 74,548 | -2.7% |
| Food | 56,004 | -6.5% |
| Total Packaged Goods | 130,351 | -4.2% |
Top 10 FSI Product Types in First Half 2006 (by coupons distributed*)
The top 10 coupon product types accounted for 32.1 percent of all coupons distributed. Rug/Room Deodorizers led the top 10 with an increase of 24.8 percent, due to the increasingly competitive Air Treatments segment.
| Coupons Distributed (MM) | |||||
| Rank | Product Type | 2006 (1st Half) | 2005 (1st Half) | % Chg | Act Chg |
| 1 | Household Cleaning Products | 6,418 | 7,125 | -9.9% | -707 |
| 2 | Pet Food & Treats | 5,554 | 5,581 | -0.5% | -27 |
| 3 | Combination/Personal Care | 5,545 | 4,960 | 11.8% | 584 |
| 4 | Rug/Room Deodorizer | 5,006 | 4,012 | 24.8% | 994 |
| 5 | Snacks | 4,212 | 4,596 | -8.4% | -385 |
| 6 | Vitamins | 3,728 | 4,282 | -12.9% | -554 |
| 7 | Cereals | 3,294 | 3,292 | 0.1% | 2 |
| 8 | Hair Care | 2,901 | 3,376 | -14.1% | -475 |
| 9 | Meat/Refrigerated | 2,832 | 2,123 | 33.4% | 709 |
| 10 | Cough Cold Sinus and Allergy (CCSA) | 2,811 | 2,955 | -4.9% | -143 |
*Coupons Distributed equals the actual number of coupons distributed in FSI inserts for manufacturers’ brands.
Overall FSI Activity
During the first half of 2006, more than 130 billion coupons were delivered via Free Standing Inserts (FSIs) in Sunday newspapers, down 4.2 percent from the same period in 2005, which was the most active six-month period on record for FSI activity. This decrease in coupons corresponds with a 2.2 percent decrease in total pages. As noted, average face values had an 8.6 percent increase due to an increase in support for high-value items. Finally, after increasing slightly in 2005, the average offer duration returned to its historical trend toward shorter promotion periods with a 3.3 percent decrease to 10.3 weeks. These trends indicate that manufacturers are continuing to leverage FSIs, but increasingly use them to deliver high-value offers that encourage brand trial and generate category excitement.
| 1st Half Results (vs. 1st Half 2005) | ||
| Measure | 2006 H1 | % Chg |
| Coupons | 130 billion | -4.2% |
| Pages | 104 billion | -2.2% |
| Face Value (avg) | $1.18 | 8.6% |
| Fuse (weeks) | 10.3 | -3.3% |
About Marx Promotion IntelligenceMarx 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 state of the art. Company website:
www.tnsmi-marx.com.
About TNS Media Intelligence
TNS Media Intelligence is the leading provider of strategic advertising intelligence to advertising agencies, advertisers, and media properties. The company's tracking technologies collect advertising expenditure and occurrence data, as well as select creative executions, for more than 2.2 million brands across 20 media. Established in 23 countries with more than 16,000 customers, TNS MI is part of the TNS Group, ranked #2 worldwide in marketing information and the world’s largest custom research company. The U.S. headquarters are in New York City with sales locations in major markets throughout the United States.
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