Free-​Standing Insert Coupons and Your Clients

Should you add FSI coupons to the media mix for your clients? This medium has long been used to induce consumers to try new products and in the first part of 2008, 129 billion FSI coupons were distributed to consumers via Sunday newspapers. By sector, here's how the distribution broke out:

  • Consumer Packaged Goods 70.1%
  • Direct Response (general advertising)  21%
  • Franchise (primarily restaurants) 8.9%

The largest categories for the CPG sector are household cleaning products, pet food/​treats, combination/​personal and vitamins.

The spending on FSI coupons  is linked to the following ROI (return on investment) and demographic data:

  • The typical redemption rate for newspaper coupons is about 1%.
  • Consumers who live in the Midwest and Northeast tend to be the heavier coupon users.
  • Sunday newspaper readers who clip coupons spend  $4 more on groceries on average each week.

Keep this data in mind as you consider which forms of media will be most effective in reaching consumers.

[Sources: Coupon information now; TMS Media Intelligence release]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.