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Contact:
Glenn Mandel
Golin/Harris International
(212) 373-6028
gmandel@golinharris.com

News

February 8, 2005

Number of Free Standing Insert (FSI) Coupons Moves Past 250 Billion in 2004, According to Marx Promotion Intelligence/TNS Media Intelligence
FSI Trend Report Details Continuing FSI Growth: Over 850 Coupons for Each U.S. Citizen During 2004

New York, NY, February 8, 2005 – America’s love affair with the coupon continued in 2004, as 251 billion coupons were distributed within newspaper Free Standing Inserts (FSIs). According to the annual Marx FSI Trend Report, this represented a 7.7 percent increase in comparison to 2003. Over 850 FSI coupons were issued for every U.S. citizen with potential per-person savings of nearly $1,000. The Marx FSI Trend Report was developed by Marx Promotion Intelligence, a division of TNS Media Intelligence, as the authoritative overview of FSI couponing.

“FSI coupons traditionally account for the majority of all couponing in the United States,” said Mark Nesbitt, Chief Operating Officer at Marx Promotion Intelligence/TNS Media Intelligence. “We are continuing to see an increase in the number of FSI coupons distributed as coupons remain a critical piece of a brand’s overall marketing campaign.”

The Consumer Packaged Goods (CPG) sector remains the largest user of FSI coupons, accounting for two-thirds of all FSI page activity and the majority of FSI coupons distributed. The report found that over the past five years, couponing for non-food products such as household items and health and beauty aids has increased significantly and now surpasses couponing for food products. Nine of the top ten couponing brands in 2004 were non-food items, a trend led by a surge of new product introductions within the Oral Care, Cosmetic and Household Cleaning categories.

The Franchise business sector accounts for 11 percent of all page distribution, with more focus on special price point-type offers in addition to coupons among restaurant ads. Growth in the Franchise sector exceeds that for CPG, with 2004 registering 21 percent growth over 2003. “The expansion of Franchise FSIs has been driven in part by increased restaurant activity and the wider acceptance of FSIs as a cost efficient marketing vehicle for restaurants to get their messages out,” said Wallace Marx Jr., Director of Marketing.

Trends that impacted the FSI industry in 2004 included:

		Procter & Gamble’s brandSaver: in its 3rd year, brandSaver has become the benchmark for corporate event couponing and continues to expand in size and scope.
		Bigger Multi-Brand Coupon Events: a number of major manufacturers have run promotional campaigns that have created bigger themed multi-brand events.
		Retailer-Driven Promotions: manufacturers are maximizing trade support by partnering with selected retailers in co-marketing coupon events as a viable way to gain increased trade support.
		Low-Carb/Healthy Living: FSI coupon distribution was given a positive boost by the latest diet trends, both from food manufacturers and restaurants.
		High-Value Coupons/ Appliances: manufacturers used FSI’s to promote non-traditional offerings such as coffee makers, air freshening systems and electric shavers, thus driving awareness and purchase among the millions of consumers that make reading the FSIs part of their weekly Sunday ritual.

Procter & Gamble, General Mills and Unilever were the top FSI coupon advertisers in 2004. Overall, the top 20 packaged goods companies accounted for nearly 60 percent of all coupons distributed. The top 10 consisted of a nearly even split of food and non-food producers.

Top 10 FSI Companies in 2004 (by coupons distributed*)

2004 Top Couponing Manufacturers	2003 Rank	2004 Rank
Procter & Gamble	1	1
General Mills	2	2
Unilever	3	3
S.C. Johnson Wax	4	4
Johnson & Johnson	8	5
Reckitt Benckiser	5	6
Colgate-Palmolive	7	7
Kraft Foods NA	6	8
ConAgra	9	9
Gillette	16	10

Coupons Dist. (MM)

The top ten couponing product types accounted for 32.1 percent of overall couponing activity and registered a combined growth rate of 9.5 percent. Vitamins, the category with the greatest growth rate among the top ten, was pushed forward by diet supplements, related to the low-carb trend.

Top 10 FSI Product Types in 2004 (by coupons distributed*)

2004 Top Couponing Manufacturers		2003	2004	% Chg
1	Personal Care	11,149	12,056	8.1%
2	Pet Food & Treats	11,073	11,645	5.2%
3	Household Cleaning Products	12,851	10,694	-16.8%
4	Rug and Room Deodorizer	5,866	7,628	30.0%
5	Snacks	6,538	7,120	8.9%
6	Prepared and Frozen Food	6,161	6,953	12.9%
7	Hair Care	5,388	6,527	21.1%
8	Cough and Cold Remedies	5,538	6,331	14.3%
9	Cereals	5,491	6,147	11.9%
10	Vitamins	3,423	5,399	57.7%

Coupons Dist. (MM)
*Coupons Distributed equals the actual number of coupons distributed in FSI inserts for manufacturer’s brands.

About Marx Promotion Intelligence
Marx 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: http://www.tnsmi-marx.com.

About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.

For further information, including this and prior press releases, please visit http://www.tns-mi.com.

About TNS
TNS is one of the world's leading providers of market information. The company delivers strategic market measurement, analysis, insight and advice to many of the world's largest organizations and most recognized brands. TNS' research helps its clients better understand the needs and wants of their customers, and its capabilities span market segmentation, advertising and communications, new product development, brand performance and stakeholder management. The company is also one of the leading providers of social and political polling. From its global network that spans 70 countries who together conduct research in more than 110 countries, TNS allows for local expertise and knowledge to be combined together with internationally consistent information and analysis.
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 http://www.tns-global.com.