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  Contact Details:
Andrew Rumpelt
Marx Promotion Intelligence
(518) 438-7665
andy.rumpelt@tnsmi-marx.com
News
 
July 25, 2005
 
First Half 2005 Most Active Half Year Period on Record For FSI Coupons
Personal Care Segment Is the Main Driver
 

NEW YORK, NY, July 25, 2005 – The Marx FSI Trend Report issued today reports that during the first six months of 2005, more than 136 billion coupons were delivered via Free Standing Inserts (FSIs) in Sunday newspapers, up 2.3 percent from the same period one year ago. That is the largest number of FSI coupons distributed in any half year since 1995, when Marx Promotion Intelligence began tracking the FSI industry.

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.

FSIs saw growth in two other key measures: total pages increased 5.9 percent and average coupon face values grew 6.7 percent, to $1.09. Additionally, the average offer duration, which has trended downward over the past several years, increased to 10.6 weeks. These increases indicate that more manufacturers are using FSIs, and that when they do, they are enticing consumers with increasingly attractive promotions.

“The key metrics for the FSI show a medium in full-growth mode,” said Mark Nesbitt, Chief Operating Officer at Marx Promotion Intelligence/ TNS Media Intelligence. “As marketers assess different media, they are finding FSIs provide impression value and reach, while delivering consumer incentive and brand messaging.”

Sector Activity
The Consumer Packaged Goods (CPG) sector remains the largest user of FSI pages and posted a 3.4 percent increase in page activity through the first half of 2005. The Direct Response and Franchise sectors also posted positive growth. Direct Response, which includes general advertising activity, has been increasing in activity steadily for the past three years. In the Franchise sector, distributed page increases were driven in part by chain restaurants such as Quizno’s, Sweet Tomatoes and Pizza Hut and in part by strong increases from ice cream chains such as Cold Stone Creamery and Baskin-Robbins.

2005 1st Half Results by Sector (vs. 1st Half 2004)

Sector Pages % Chg Share
CPG 75,180 3.4% 70.7%
Direct Response 22,792 13.5% 21.4%
Franchise 8,389 9.6% 7.9%
Total 106,361 5.9% 100.0%
 

CPG Non Food vs. Food
In the first half of 2005, coupons for Non-Food items increased 11.8 percent. Two segments saw double digit increases in coupons dropped versus the same period in 2004: Personal Care, up 15.7 percent, and Health Care, which increased 11.8 percent. Conversely, Food item coupons declined 7.9 percent. Activity in Dry Grocery, the largest segment of the Food sector, declined 10.9 percent due to decreases in the Candy and Soup categories.

Average face values of coupons rose in both the Non-Food and Food segments. Non-Food average face values increased 4 percent, to $1.31, while the average face value of Food items increased 5.3 percent, to $.80. The largest increases were in Household Products, up 11.5 percent, Shelf Stable Beverages, up 6.7 percent, and Dry Grocery, up 6.6 percent.

2005 1st half Results (vs. 1st half 2004)

  Coupon Distribution % Chg Face Value Act. $ Chg % Chg
Total Packaged Goods 136,168 2.3% $1.09 $0.07 6.9%
Non-Food 76,728 11.8% $1.31 $0.05 4.0%
Food 59,903 -7.9% $0.80 $0.04 5.3%
 

Top 10 FSI Coupon Categories in First Half 2005*
Among the top 10 categories, Household Cleaning Products dropped the most coupons in first half 2005, over 7 billion, and posted an increase of 15.0 percent. Eight of the top 10 categories posted increases, lead by Vitamins, up 41.1 percent, and Rug/Room Deodorizer, up 23.1 percent.

 
      Coupons Dropped (MM)
Rank Segment Category 2005 (1st Half) 2004 (1st Half) % Chg
1 Household Products Household Cleaning Products 7,032 6,112 15.0%
2 Dry Grocery Pet Food & Treats 5,581 5,521 1.1%
3 Personal Care Combination/Personal 5,201 4,630 12.3%
4 Dry Grocery Snacks 4,586 4,342 5.6%
5 Health Care Vitamins 4,282 3,035 41.1%
6 Household Products Rug/Room Deodorizer 4,002 3,252 23.1%
7 Frozen Products Prepared Food/Frozen 3,480 3,526 -1.3%
8 Health Care Diet Aids 3,382 2,901 16.6%
9 Personal Care Hair Care 3,376 3,594 -6.1%
10 Frozen Products Desserts/Frozen 3,343 3,268 2.3%
*Coupons Distributed equals the actual number of coupons distributed in FSI inserts.

Top 10 FSI Coupon Growth Categories in First Half 2005
Significant increases in coupon distribution were noticed across a broad range of categories. The Gum and Foot Care categories surged 150 percent and 130 percent, respectively. Continuing its strong growth from last year, the Vitamins category had the largest increase in coupons dropped, up 1.2 billion to nearly 4.3 billion overall. The Personal Care segment had 4 categories among the top 10, including Foot Care, Shaving Cream/Razor, AP/Deodorant and Hand & Body.

 
      Coupons Dropped (MM)
(based on categories with 500mm+ coupons)
Rank Segment Category 2005 (1st Half) 2004 (1st Half) % Chg Actual Chg
1 Dry Grocery Gum 615 246 150.0% 369
2 Personal Care Foot Care 613 266 130.3% 347
3 Personal Care Shaving Cream/Razor 1,968 1,148 71.5% 820
4 Health Care Mouthwash 718 438 64.0% 280
5 Refrigerated Foods Prepared Food/Refrigerated 507 323 56.8% 184
6 Health Care Ear/Eye Care 789 516 52.9% 273
7 Personal Care AP/Deodorant 2,192 1,471 49.0% 721
8 Dry Grocery Sugar 539 366 47.1% 172
9 Personal Care Hand & Body 1,253 883 41.9% 370
10 Health Care Vitamins 4,282 3,035 41.1% 1,247
 

About Marx Promotion Intelligence
Marx Promotion Intelligence is the industry standard for tracking Free Standing Insert (FSI) coupon activity. Marx provides 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 19 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.

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