Kantar Media reports Free-Standing Insert (FSI) Coupon Activity Increased 3.4 Percent in First Half of…



FSI coupon activity in Non-Food categories increased 8.2 percent to represent nearly two-thirds of the 158 billion FSI coupons distributed


 Free Standing Insert (FSI) coupon activity increased 3.4 percent based on Coupons Dropped during the first six months of 2014 versus the same time period in 2013, according to Marx, a Kantar Media solution.  FSI Coupons Dropped within Non-Food categories increased 8.2 percent to represent 65 percent of the 158 billion FSI coupons distributed during this period.


“Increases in FSI coupon activity within the Non-Food segment were driven by the Health Care and the Personal Care areas, which continue to leverage FSI coupons to effectively deliver advertising impact, purchase incentives and retailer merchandising support for their brands,” said Dan Kitrell, Vice President Account Solutions at Marx.  “Part of this increase is related to several leading manufacturers within Non-Food categories distributing multiple page corporate scale themed FSI coupon events including Procter & Gamble, L’Oreal, Johnson & Johnson, and Unilever.  Multiple page themed events are effective at breaking through promotion clutter with shoppers and creating larger merchandising opportunities with retailers,” explained Kitrell.


During the first six months of 2014, Food categories distributed 55.9 billion coupons, a decrease of 3.9 percent with the Refrigerated Foods area reporting the largest actual decrease.  “Decreases in FSI coupon activity within the Refrigerated Foods area may reflect unique challenges for these categories including securing incremental in-store display support, avoiding out of stocks on the shelf, and aligning with the shopper’s limited ability to stock up during promotions.  However, as FSI coupon events decrease in Refrigerated Foods, remaining events will stand out to shoppers and retailers,” stated Kitrell.


Manufacturers increased the value of FSI coupon offers while decreasing the number of weeks available to redeem the offer in both the Non-Food and Food segments.  Weighted Average Face Value (WAFV) for Non-Food increased 0.8 percent to $1.99 while WAFV for Food increased 9.8 percent to $1.13.  Average Expiration (weeks) decreased 2.0 percent to 6.3 weeks for Non-Food categories and decreased 1.3 percent to 8.2 weeks for Food categories.


Class Coupons Dropped (MM) Avg Face Value ($) Avg Value Per Unit ($) % Multiple Purchase Avg Expiration (weeks)
1st Half 2014 % Chg 1st Half 2014 % Chg 1st Half 2014 % Chg 1st Half 2014 Point Chg 1st Half 2014 % Chg
Non-Food 102,849 8.2% $1.99 0.8% $1.73 2.1% 18.7% -0.6 6.3 -2.0%
Food 55,980 -3.9% $1.13 9.8% $0.80 6.4% 41.9% 0.7 8.2 -1.3%
Total CPG 158,242 3.4% $1.69 4.5% $1.40 5.0% 26.8% -0.7 7.0 -2.4%

 Source: Kantar Media


Overall FSI Activity

During the first half of 2014, more than $267 billion in consumer incentives were delivered via FSI coupons, up 8.0 percent from the same period in 2013.  During the same six month period, more than 158 billion coupons were distributed within more than 114 billion FSI pages.  FSI coupon Average Face Value increased 4.5 percent to $1.69 for the first half 2014. Average Expiration (Fuse) decreased 2.4 percent to 7.0 weeks, which is the seventh consecutive year of declining Expiration lengths during the first half of the year.


First Half 2014 Results versus First Half 2013
Measure First Half 2014 % Change
Dollars Circulated $267 Billion 8.0%
Coupons Dropped 158 billion 3.4%
Pages Distributed 114 billion 1.4%
Face Value (average) $1.69 4.5%
Fuse (weeks) 7.0 -2.4%

Source: Kantar Media


Top 10 Retailers based on Pages Circulated

Retailer promotion pages increased 26.8 percent to more than 14.5 billion pages in the first half of 2014.  The number of manufacturers participating in retailer promotions increased from 236 in the first half of 2013 to 335 during the first half of 2014.  The number of retailers also increased during the first six months of the year from 107 in 2013 to 125 in 2014.  Retailers from Mass (Walmart, Target), Drug (Walgreens, CVS), Value (Family Dollar, Dollar General) and Food (Safeway, Kroger, Publix, and Vons retail banners) comprised the top ten retailers.


Walmart continued to hold the top spot based on number of Pages Circulated with an increase of 45.9 percent to more than 5.2 billion pages, which was the largest actual increase among the top ten retailers. These trends reflect the overall growth of retailer promotion within traditional FSI vehicles to reach shoppers in the home to drive trips, transactions, and profits across channels and retail formats.




Retailer Rank First Half 2013 Rank First Half 2014
Walmart 1 1
Walgreens 2 2
Target 3 3
Family Dollar 4 4
Dollar General 7 5
CVS Pharmacy 6 6
Safeway 5 7
Kroger (banner) PETsMART 10 8
Publix 12 9
Vons 9 10

      Source: Kantar Media




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