According to Marx Promotion Intelligence, a division of TNS, free standing insert (FSI) coupon activity increased 8.0% during 2009 versus the previous year to more than 272 billion coupons dropped. This activity level is the highest yearly coupons dropped observed during the past decade, surpassing the second highest annual coupons dropped of 257 billion realized in 2007. In addition, retailer promotion pages also achieved new record levels with a 37.7% increase to more than 9.0 billion pages in 2009. Mark Nesbitt, President, TNS Media Intelligence, "... although ‘shopper marketing' tactics are still evolving, FSIs have clearly emerged as a key component of manufacturer and retailer aligned promotion programs... manufacturers are using corporate scale FSI coupon events... to break through the promotion clutter... " During 2009, more than $385 billion in consumer incentives were delivered via FSI coupons, up 15.0% from 2008. However, Average Expiration (Fuse) remained below ten weeks with a decrease to 9.3 weeks, down 3.9% versus a year ago. Manufacturers are delivering more offers of greater value to the consumer, but are managing their financial exposure by reducing the length of time that these offers are available in the market. Overall FSI Activity (2009 versus 2008) Measure2009% Change Dollars Circulated $385 billion 15.0% Coupons Dropped 272 billion 8.0% Pages Distributed 203 billion 4.0% Face Value (average) $1.42 6.5% Fuse (weeks) 9.3 -3.9% Source: TNS/Marx Promotion Intelligence, January 2010 The Consumer Packaged Goods (CPG) sector remained as the largest user of FSI pages with a 71.5% share, followed by Direct Response, which includes general advertising activity, and Franchise, comprised of restaurants, portrait studios, and other businesses. Results by Sector (2009 versus 2008) SectorPages (MM)% ChangeShare CPG 145,497 6.1% 71.5% Direct Response 38,797 -5.8% 19.1% Franchise 19,191 10.3% 9.4% Total 203,485 4.0% 100.0% Source: TNS/Marx Promotion Intelligence, January 2010 Retailer promotion pages increased 37.7% to more than 9.0 billion pages in 2009. Target continued to lead with more than 1.8 billion pages, up 43.9% versus 2008. Dollar General increased 386.2% to more than 885 million pages to rank third during 2009. These trends reflect the overall growth of retailer promotion within traditional FSI vehicles. Top 10 Retailers based on Pages CirculatedStoreRank 2008Rank 2009 Target 1 1 PETsMART 4 2 Dollar General 10 3 Walgreens 2 4 CVS/pharmacy 3 5 Family Dollar 17 6 Kroger (banner) 5 7 Publix 7 8 Safeway Food & Drug 9 9 Rite Aid 13 10 Source: TNS/Marx Promotion Intelligence, January 2010 During 2009, there were 388 new products that delivered FSI coupons across 788 event dates as part of their introduction, averaging 2.0 event dates per new product. This activity is up from 334 new products, 635 event dates, and 1.9 event dates per new product during 2008. Top 10 Categories for New Product Activity, 2009RankProduct Type# New Products 1 Snacks 30 2 Alcoholic Beverages 25 3 Cereals 24 4 Milk/Milk Products 18 5 Prepared Food/Frozen 12 6 Household Cleaning Products 11 6 Pet Food & Treats 11 6 Beverages 11 9 Bread Product/Shelf 10 10 Pet Products 8 Source: TNS/Marx Promotion Intelligence, January 2010 In 2009, Non-Food categories distributed more than 160.9 billion coupons, up 5.3% versus a year ago, driven by the 7.7% increase within the Personal Care area. Food categories distributed 111.6 billion coupons, representing an increase of 12.4%, led by the 7.8% increase for the Dry Grocery area. Additionally, manufacturers are increasing the value of the offers being delivered to consumers in both the Non-Food and Food segments. Weighted average face value for Non-Food increased 7.4% to $1.73 and was combined with a 0.8 point decrease in multiple purchase requirements resulting in weighted average face value per unit increasing 8.1% to $1.54. These changes appear to be a response to economic pressures to increase the perceived consumer value of each offer relative to retail price, concludes the report. CPG Non-Food vs. Food (2009 versus 2008) Class Coupons Dropped (MM)Avg Face Value ($)Avg Face Value Per Unit ($)% Multiple PurchaseAvg Duration (weeks)2009% Chg2009%Chg2009% Chg2009PtChg2009%Chg Non-Food 160,924 5.3% $1.73 7.4% $1.54 8.1% 15.1% -0.8 8.9 -2.8% Food 111,642 12.4% $0.97 7.5% $0.73 7.3% 38.0% -0.3 10 -5.3% Total CPG 272,053 8.0% $1.42 6.5% $1.21 6.9% 24.4% 0 9.3 -3.9% Source: TNS/Marx Promotion Intelligence, January 2010 The top 10 product types based on Coupons Dropped accounted for 34.8% of all FSI coupon activity during 2009. Combination/Personal products (comprised of Personal Care brands which are promoted across multiple individual Personal Care categories) ranked first and increased 7.5% to distribute more than 13.3 billion coupons. Top 10 FSI Product Types in 2009 (by Coupons Dropped*) RankProduct TypeCoupons Dropped (MM) 20082009% ChgAct Chg (MM) 1 Combination/Personal 12,379 13,305 7.50% 926 2 Pet Food & Treat 12,677 13,182 4.00% 504 3 Household Cleaning Products 13,141 11,504 -12.50% -1,637 4 Snacks 9,949 10,976 10.30% 1,026 5 Rug/Room Deodorizer 7,600 8,837 16.30% 1,236 6 Vitamins 8,275 8,748 5.70% 473 7 Cough/Cold/Sinus/Allergy 7,990 8,146 2.00% 156 8 Hair Care 6,953 7,522 8.20% 569 9 Shaving Cream/Razor 5,355 6,233 16.40% 878 10 AP/Deodorant 5,698 6,229 9.30% 531 Source: TNS/Marx Promotion Intelligence, January 2010 For additional information about this study, please visit Tnsmi-Marx here.