More than 190 new product introductions included FSI support
MINNEAPOLIS, MN July 18, 2007 – The Average Face Value (AFV) for Free Standing Insert (FSI) coupons increased 4.3 percent to $1.23 in the first six months of 2007 to become the highest half year increase on record, according to Marx Promotion Intelligence, a division of TNS Media Intelligence.
Marx Promotion Intelligence, the industry standard for tracking FSI coupon activity, reports that AFV across the Non-Food segment of the Consumer Packaged Goods (CPG) industry increased 3.4 percent to $1.50, led by the 9.1 percent increase within the Household Products area. AFV across the Food segment increased 5.0 percent to $0.86, led by the 19.1 percent increase for Shelf Stable Beverages.
During the First Half of 2007, 191 new products spanning 67 categories were supported with FSI coupons. Although the total number of new products supported by FSIs was down 3.0 percent from First Half 2006, total number of Event Dates in support of these products was up 19.8 percent from 268 to 321 Event Dates. This translates into a 23.5 percent increase in average Event Dates per new product increasing from 1.4 to 1.7 events. This increased level of support indicates that marketers continue to utilize FSIs as an important vehicle for creating category news, driving brand awareness, and generating new product trial.
The Cereals category led in new product activity with 22 new products that were supported by FSIs in First Half 2007, versus 13 new products during the same time period in 2006. Beverages (12), Snacks (11), Household Cleaning Products (9), Pet Food & Treats (7 – tie), and Meat/Refrigerated (7 – tie) comprised the rest of the Top 5 categories.
Overall FSI Activity
During the first half of 2007, nearly 134 billion coupons were delivered via FSIs in Sunday newspapers, up 2.6 percent from the same period in 2006. During the same six month period, nearly 103 billion FSI pages were distributed, representing a decline of 1.1 percent. These trends indicate that consumers are continuing to benefit from an increasing number of distinct offers while manufacturers are continuing to leverage FSIs to deliver both advertising impressions and consumer incentives.
“Effective levels of FSI reach, frequency, and weight, contribute to an integrated marketing program which delivers consumer impressions and reinforces brand messaging,” said Mark Nesbitt, chief operating officer at Marx Promotion Intelligence/TNS Media Intelligence. “The continuing trend toward higher values with shorter expiration lengths heightens the category excitement surrounding these offers.”
First Half 2007 Results (vs. First Half 2006)
| Measure | First Half 2007 | % Change |
| Coupons | 134 billion | 2.6% |
| Pages | 103 billion | -1.1% |
| Face Value (average) | $1.23 | 4.3% |
| Fuse (weeks) | 10 | -2.6% |
Sector ActivityThe CPG sector remains the largest user of FSI coupons and posted a 1.2 percent increase to achieve a 68.9 percent share. Following three years of steady increases, FSI pages for Direct Response, which includes general advertising activity, declined 10.2 percent to retain a 22.3 percent share of FSI pages. Distributed pages for the Franchise sector increased 7.4 percent to represent an 8.8 percent share.
First Half 2007 Results by Sector (vs. H1 2006)
| Sector | Pages | % Change | Share |
| CPG | 70,846 | 1.2% | 68.9% |
| Direct Response | 22,966 | -10.2% | 22.3% |
| Franchise | 9,011 | 7.4% | 8.8% |
| Total | 102,823 | -1.1% | 100.0% |
CPG Non-Food vs. Food
In the first half of 2007, Non-Food categories led an overall increasein coupons distributed with an increase of 3.9 percent. The Household Products and Personal Care segments outpaced this average with increases of 4.2 percent and 4.1 percent respectively, while the Other Packaged Goods and Health Care segments increased at a slower pace, up 2.1 percent and 1.0 percent respectively. AFV for Non-Food categories increased 3.4 percent to $1.50. Personal Care had the highest AFV at $1.77. However, Health Care had the greatest actual increase in AFV, increasing $0.10 to $1.21.
Coupons distributed for Food items increased 0.9 percent. Dry Grocery, the largest segment of the Food sector, increased 14.1 percent and was the only Food segment to show an increase for H1 2007. Decreases in coupons distributed for Cereals (-28.9 percent), Shelf Stable Beverages (-19.3 percent), Frozen Products (-16.5 percent), and Refrigerated Foods (-2.6 percent) did not offset the overall increase driven by the Dry Grocery segment. AFV for Food categories increased 5.0 percent to $0.86, led by the $0.15 increase to $0.99 within Shelf Stable Beverages.
First Half 2007 Results by Segment (vs. First Half 2006)
| Segment | Coupons Distributed | % Chg | Avg Face Value | % Chg | Avg Duration | % Chg |
| Non-Food | 77,463 | 3.9% | $1.50 | 3.4% | 9.5 | -5.1% |
| Food | 56,493 | 0.9% | $0.86 | 5.0% | 10.7 | 0.9% |
| Total Packaged Goods | 133,816 | 2.6% | $1.23 | 4.3% | 10 | -2.6% |
Top 10 FSI Product Types in H1 2007 (by coupons distributed*)
The top 10 product types based on coupons distributed accounted for 31.2 percent of all FSI coupon activity during First Half 2007. Although the Soup product type ranked 35th overall for coupons distributed, it ranked first for actual change in coupons distributed with an increase of 939MM. The Pet Food & Treats (+905MM), Bar/Liquid Soap (+694MM), Snacks (+647MM), and Hair Care (+547MM) product types rounded out the Top 5 ranking based on actual change in coupons distributed.
| Coupons Distributed (MMs) | |||||
| Rank | Product Type | First Half 2007 | First Half 2006 | % Change | Actual Change |
| 1 | Household Cleaning Products | 6,902 | 6,484 | 6.4% | 418 |
| 2 | Pet Food & Treats | 6,459 | 5,554 | 16.3% | 905 |
| 3 | Combination/Personal | 5,297 | 5,545 | -4.5% | -248 |
| 4 | Rug/Room Deodorizer | 5,146 | 5,006 | 2.8% | 140 |
| 5 | Snacks | 4,859 | 4,212 | 15.4% | 647 |
| 6 | Vitamins | 3,905 | 3,773 | 3.5% | 132 |
| 7 | Hair Care | 3,448 | 2,901 | 18.9% | 547 |
| 8 | Cough Cold Sinus Allergy (CCSA) | 3,133 | 2,811 | 11.4% | 322 |
| 9 | Prepared Food/Frozen | 2,877 | 2,764 | 4.1% | 113 |
| 10 | Bar/Liquid Soap | 2,834 | 2,140 | 32.5% | 694 |
*coupons distributed equals the actual number of coupons distributed in FSI inserts for manufacturers’ brands.
About Marx Promotion IntelligenceMarx 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 the art.
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