Average Face Value Of FSI Coupons Surpass $1 Mark In 2004.

In 2004 the average face value of coupons distributed within newspaper Free Standing Inserts (FSIs) reached beyond the $1.00 mark for the first time. According to the Marx Promotion Intelligence 2004 FSI Trend Report, the average face value of FSI coupons hit $1.03, in comparison to $.95 in 2003, representing an 8.1% increase or an extra $.08 per coupon. The jump in coupon values is attributed to new product introductions and an increase in coupon values for both food and non-food items.

“The trend to offer consumers increased savings through coupons is evident. We are seeing more manufacturers present greater incentives to shoppers, whether on a face value or per-unit basis. By their increasing participation, marketers continue to validate that FSIs are a great tool to build awareness and gain trial,” said Mark Nesbitt, Chief Operating Officer at Marx Promotion Intelligence, a division of TNS Media Intelligence.

New products traditionally coupon at a higher value in order to gain trial. While in 2004 product introductions in both the food and non-food sectors of packaged goods followed this practice, a new wrinkle appeared. Items of higher retail value issued introductory coupons with values far beyond those of traditional packaged goods. Coupons for electronic air fresheners, household cleaning systems, coffee makers, diabetic testing kits and other household appliances made a noticeable impact on overall values. This trend is expected to continue as CPG manufacturers continue to launch new, innovative products and utilize FSIs as a key media platform for reaching significant blocks of target consumers.

Coupon values for both food and non-food items increased in 2004. First Aid, Shaving Cream and Razors and Drain Cleaners product categories posted the highest rate of coupon value increase. Overall CPG sector value trends:

Non-Food, the largest sector of coupon distribution in 2004, average coupon face value increased 11¢ to $1.26.

Food categories also realized higher average face values, up 2¢ to $.78, a 2.8% increase vs. 2003.

Despite a decline in face values in some food categories, an increase in value per unit signified a possible change from the multi-purchase promotion strategy where the consumer is offered an incentive to purchase more than one item.

FSI usage by marketers expanded in 2004, a fact made clear by two key statistics: total page growth of +7.7% and total coupons distributed growth of +7.7%. Couponing for consumer packaged goods products account for the majority of FSI activity, making up 71% of all FSI pages distributed in 2004. Dry Grocery, Personal Care and Household Products made up the top three couponing product segments in 2004, all posting healthy growth. The fourth-largest category, Health Care, posted an impressive 27% growth rate in couponing versus 2003. This type of expansion, attributed to a product category not normally associated with FSI’s, demonstrates the increased importance of FSIs to marketers as an effective media.

To view chart CLICK above on ‘More Images’.

For more information at http://www.tnsmi-marx.com