FSI Coupon Value Exceeds $1 For First Time Ever

by Jack Loechner, Apr 6, 2005, 3:00 AM

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FSI Coupon Value Exceeds $1 For First Time Ever

According to the Marx Promotion Intelligence 2004 FSI Trend Report, the average face value of Free Standing Inserts (FSIs), distributed within newspapers, hit $1.03, in comparison to $.95 in 2003, representing an 8.1% increase or an extra $.08 per coupon. In 2004 the average face value of coupons reached beyond the $1.00 mark for the first time.

Mark Nesbitt, Chief Operating Officer at Marx Promotion Intelligence “… 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.”

The report release notes that in 2004 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.

Overall, in the CPG sector, Non-Food, the largest sector of coupon distribution in 2004, increased 11¢ to $1.26. 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 Coupon Average Face and Unit Value for 2004
	Avg. Face Value			Avg. Value Per Unit
Area	2004	% Chg	Actual Chg	2004	% Chg	Actual Chg
Food	$0.78	2.8%	$0.02	$0.56	6.3%	$0.03
Non-Food	$1.26	10.0%	$0.11	$1.12	7.4%	$0.08
Total CPG	$1.03	8.1%	$0.08	$0.85	8.4%	$0.07
Source: Marx Promotion Intelligence/TNS Media Intelligence, March 2005

Couponing for consumer packaged goods products account for 71% of all FSI pages distributed in 2004. Dry Grocery, Personal Care and Household Products made up the top three couponing product segments. Health Care couponing, posted a 27% growth rate. This type of expansion, attributed to a product category not normally associated with FSI’s, demonstrates the increased importance of FSIs to marketers.

You can find out more here.

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