New Third-quarter Coupon Facts Demonstrate Sustained Coupon Usage

Oct 18, 2010, 13:30 ET from Valassis

LIVONIA, Mich., Oct. 18 /PRNewswire-FirstCall/ -- Valassis (NYSE: VCI), one of the nation's leading media and marketing services companies, announced today that 11.6% more coupons were issued industry-wide in the third quarter of 2010 than a year ago (year-to-date through Sept. 30, 2010). Coupon distribution continues to grow above the record-breaking volumes experienced in 2009. These findings were revealed as part of the Third Quarter 2010 Consumer Packaged Goods (CPG) Coupon Industry Facts recently released by NCH Marketing Services, Inc., a Valassis company.

"While CPG marketers have increased their coupon distribution to consumers enlisting new savings-oriented shopping behaviors triggered by the economy, they are also modifying their offerings," said Charlie Brown, NCH Vice President of Marketing.  "What we have found is that marketers are balancing their budgets by managing the coupon offer characteristics that influence redemption velocity."

Third-quarter year-to-date 2010 findings reveal the following compared to the same period in 2009:

  • 260 billion coupons were distributed versus 233 billion;
  • Average face value increased to $1.44 compared to $1.37;
  • Multiple purchase requirements account for 29% of all CPG coupons distributed, up 2 share points; and
  • Expiration dates average 9.3 weeks compared to 10.9 weeks.

CPG marketers distributed even more coupons through the free-standing insert (FSI), up 1.7 share points since mid-year 2010 to account for 86.7% of CPG coupon distribution. The FSI continues to be, by far, the largest distribution channel. The Internet accounted for 1.1% of total CPG coupon distribution.

In total, 2.5 billion coupons have been redeemed year-to-date through the third quarter of 2010, up 5.3% compared to a year ago.  With the exception of the retail segment where dollar stores are reported, which is up 31% year-to-date, redemption increases across most retail channels have been on par with the industry-wide increase.

"Undoubtedly, the return to savings continues to influence the way marketers promote their brands," said Suzie Brown, Valassis Chief Marketing Officer.  "They are faced with meeting this increased demand for value while also providing the best return on their promotional dollars."

About Valassis

Valassis is one of the nation's leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum™ media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Through its digital offerings, including redplum.com, consumers can find compelling national and local deals. Headquartered in Livonia, Michigan with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America's Looking for Its Missing Children® program. Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc.  For more information, visit http://www.valassis.com or http://www.redplum.com. To learn about advertising opportunities with RedPlum, please call 1-800-437-0479.

Valassis Cautionary Statements Regarding Forward-looking Statements

Certain statements found in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: price competition from our existing competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including, without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers, senior secured credit facility lenders or other counterparties; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing; fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients' promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional impairment charges against goodwill and intangible assets in the future; possible governmental regulation or litigation affecting aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and financial condition; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Valassis



RELATED LINKS

http://www.valassis.com