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) |
Measure | 2009% | 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) |
Sector | Pages (MM) | % Change | Share |
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 Circulated |
Store | Rank 2008 | Rank 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, 2009 |
Rank | Product 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 Purchase | Avg Duration (weeks) |
2009 | % Chg | 2009 | %Chg | 2009 | % Chg | 2009 | PtChg | 2009 | %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*) |
Rank | Product Type | Coupons Dropped
(MM) |
| | 2008 | 2009 | % Chg | Act 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.