Free Standing Insert (FSI) Pages Increase 4.2 Percent; Coupon Face Values Rise 11.5 Percent in 2005

BOGO Promotions Increase by 48 percent as New Items, More Creative Promotional Campaigns and Competitive Strategies Fuel Growth

Minneapolis, MN, February 27, 2006 – Marx Promotion Intelligence/TNS Media Intelligence reports that 197 billion pages carrying over 253 billion coupons were delivered via Free Standing Inserts (FSIs) in Sunday newspapers in 2005 – a 4.2 percent increase versus 2004. Coupon Face Values also rose 11.5 percent to $1.15. Additionally, Buy-One-Get-One (BOGO) promotions increased 48 percent, fueled by more creative campaigns and competitive strategies among advertisers. These findings and more are featured in the annual Marx FSI Trend Report, the authoritative overview of the FSI industry, developed by Marx Promotion Intelligence, a division of TNS Media Intelligence. The Marx FSI Trend Report is available for free at www.tnsmi-marx.com/getTrends.htm.

“The key metrics for the FSI show a medium in ‘“tactical’ growth mode,” said Chief Operating Officer Mark Nesbitt of Marx Promotion Intelligence. “Marketers are utilizing FSIs in a variety of ways, not only to bring more incentives to the consumer, but to work with retailers as well.”

In 2005 Marx Promotion Intelligence completed a thorough analysis of Co-marketing activity between retailers and manufacturers. This study authored by Andrew Rumpelt Marx VP Business Development & Marketing showed that Co-marketing pages grew 13.4 percent, the fifth year of strong double digit growth. More than 215 manufacturers and 186 retailers participated in co-marketing promotions, an increase of 24 percent and 26 percent, respectively. “These increases indicate that more manufacturers are using FSIs, and that when they do, they are enticing consumers with increasingly attractive promotions. More than $2,758 in savings was offered per household in 2005,” added Rumpelt. For more insights on this topic contact Marx Promotion Intelligence to receive a comprehensive Co-marketing white paper.

The Consumer Packaged Goods (CPG) sector remains the largest user of FSI pages, accounting for two-thirds of all FSI page activity and the majority of coupons distributed. While FSI coupons overall grew 0.9 percent, Non-Food items within personal care, health care and household products segments continued to increase at significant levels.

Franchise businesses sector (i.e. fast food and casual dine-in chains) accounts for 9 percent of all page distribution and commonly focuses on price-point communications to consumers. A strong 11.5 percent growth in this franchise sector continues to exceed that for CPG, which rose 1.9 percent. Distributed page increases were driven in part by chain restaurants such as Quizno’s, Cold Stone Creamery, Friendly’s, Bennigan’s and Pizza Hut.

Trends that impacted the FSI Industry in 2005 included:

• Procter & Gamble brandSaver. In its fourth year, brandSAVER continues to methodically expand in size and scope. brandSAVER is issued by P&G monthly as a stand alone FSI coupon book and distributed nationally. 
• Continued Co-Marketing Partnering. More manufacturers and retailers are partnering to execute co-marketing promotions, thus tying in trade specific events with consumer coupon promotions.
  
• New Product Launches. Several new product lines/items received significant FSI coupon support including General Mill’s Honey Clusters and Chocolate Lucky Charms, Procter & Gamble’s Crest Pro-Health Rinse, Kimberly-Clark’s Huggies Bath and Body Care Products, and Kraft’s South Beach Diet line.
• Free Product Offers. Communicated via the “Buy-One-Get-One-Free” type offer, the use of this promotional tactic saw significant growth as several major manufacturers incorporated this tool as promotion tactic in 2005.

Procter & Gamble, General Mills and SC Johnson were the top FSI coupon advertisers in 2005. Overall, the top 20 packages goods companies accounted for 63 percent of all coupons issued.

Top 10 FSI Companies in 2005 (Ranked by Coupons Dropped)

Among the top 10 categories, Household Cleaning Products issued the most coupons in 2005 with more than 13 billion, a 9.5 percent increase. Rug/Room Deodorizer and Vitamins increased 22.9 and 30.0 percent, respectively. Prepared Food/Frozen declined the most among the Top 10 by 16.1 percent.

Top 10 FSI Categories in 2005 (Coupons Dropped)

Significant increases in coupon distribution were within Health Care and Personal Care segments. Five of the top 10 growth categories were Personal Care categories, led by Foot Care and Shaving Cream/Razor, up 61.1 percent and 54.6 percent, respectively. Health Care was led by Mouthwash, up 91 percent vs. 2004.

Top 10 FSI Coupon Growth Categories in 2005

*Coupons Distributed equals the actual number of coupons distributed in FSI inserts.

About Marx Promotion IntelligenceMarx Promotion Intelligence is the industry standard for tracking Free Standing Insert (FSI) coupon activity. Marx provides end users with real-time information and the tools to understand and act on the latest consumer promotion trends and Marx is the only source for census-level FSI data and creative back to 1995. 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. For further information, visit www.tns-mi.com.

About TNS
TNS is a market information group. We are the world’s largest custom research company and a leading provider of social and political polling. We are also a major supplier of consumer panel, TV audience measurement and media intelligence services. TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organizations. We combine our specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information.We think differently to help our clients build competitive advantage, making TNS the sixth sense of business.

TNS is listed on the London Stock Exchange (TNN) and is a trade mark of Taylor Nelson Sofres plc. Further information can be found on www.tns-global.com.